Abstract
Herding behaviour in the financial market has been popular as a theoretical concept since the 1990s. Many articles have studied and discussed herding behaviour in the capital market, but research examining the causes or factors that trigger herding behaviour is minimal. The research themes are relatively underdeveloped because the majority of empirical research still struggles to answer the question of whether herding behaviour is found in the capital market or not. It has impeded our understanding and the development of a comprehensive theoretical framework of herding behaviour. The purpose of this paper is to conduct a bibliometric analysis and systematic literature review to provide an overview of the research findings, analyse the research profile, and guide the researcher to the most influential works and results related to herding behaviour. Based on 279 articles taken from the Scopus database, we mapped the co-occurrence of research through keywords analysis. This paper's main contribution is to build a structure of knowledge for herding behaviour in the capital market, elaborate and classify empirical research into relevant dimensions that can be used as a reference for comprehensively developing herding behaviour research. Finally, this systematic literature review's results may provide insight into future research prospects about herding behaviour.
Similar content being viewed by others
Notes
We used the snowball method to search conceptual or theoretical research by using the reference list of a paper.
We define an institutional investor as a company or organization (except of mutual funds) that invests money on behalf of other people.
References
Agarwal S, Chiu I, Liu C, Rhee SG (2011) The brokerage firm effect in herding: evidence from Indonesia. J Financ Res 34(3):461–479. https://doi.org/10.1111/j.1475-6803.2011.01273.x
Aggarwal R (2014) International review of financial analysis animal spirits in financial economics: a review of deviations from economic rationality. Int Rev Financ Anal 32:179–187. https://doi.org/10.1016/j.irfa.2013.07.018
Agudo LF, Sarto JL, Vicente L (2008) Herding behaviour in Spanish equity funds. Appl Econ Lett 15(7):573–576. https://doi.org/10.1080/13504850600706974
Ahmed WMA (2014) The trading patterns and performance of individual vis-à-vis institutional investors in the Qatar exchange. Rev Account Financ 13(1):24–42. https://doi.org/10.1108/RAF-09-2012-0089
Akinsomi O, Coskun Y, Gupta R (2018a) Analysis of herding in REITs of an emerging market: the case of Turkey. J Real Estate Portf Manag 24(1):65–81. https://doi.org/10.1080/10835547.2018.12090007
Akinsomi O, Coskun Y, Gupta R, Lau CKM (2018b) Impact of volatility and equity market uncertainty on herd behaviour: evidence from UK REITs. J Eur Real Estate Res 11(2):169–186. https://doi.org/10.1108/JERER-06-2017-0021
Alevy JE, Haigh MS, List JA (2007) Information cascades: evidence from a field experiment with financial market professionals. J Financ 62(1):151–180. https://doi.org/10.1111/j.1540-6261.2007.01204.x
Allsopp L, Hey JD (2000) Two experiments to test a model of herd behaviour. Exp Econ 3(2):121–136. https://doi.org/10.1023/A:1026537302180
Anderson LR, Holt CA (1997) Information cascades in the laboratory. Am Econ Rev 87(5):847–862
Andersson M, Hedesström M, Gärling T (2014) A social-psychological perspective on herding in stock markets. J Behav Financ 15(3):226–234. https://doi.org/10.1080/15427560.2014.941062
Andreu L, Gargallo P, Salvador M, Sarto JL (2015) Bayesian analysis of herding behaviour: an application to Spanish equity mutual funds. Appl Stoch Model Bus Ind 31(6):745–761. https://doi.org/10.1002/asmb.2087
Andreu L, Ortiz C, Sarto JL (2009) Herding behaviour in strategic asset allocations: new approaches on quantitative and intertemporal imitation. Appl Financ Econ 19(20):1649–1659. https://doi.org/10.1080/09603100903018786
Andronikidi A, Kallinterakis V (2010) Thin trading and its impact upon herding: the case of Israel. Appl Econ Lett 17(18):1805–1810. https://doi.org/10.1080/13504850903357327
Arjoon V, Shekhar C (2017) Dynamic herding analysis in a frontier market. Res Int Bus Financ 42:496–508. https://doi.org/10.1016/j.ribaf.2017.01.006
Arlen J, Tontrup S (2015) Strategic bias shifting: herding as a behaviorally rational response to regret aversion. J Leg Anal 7(2):517–560. https://doi.org/10.1093/jla/lav014
Aronson E, Aronson J (2011) The social animal, 11 (edn) Worth Publisher, 41 Madison Avenue New York. Retrieved from www.worthpublisher.com
Avery C, Zemsky P (1998) Multidimensional uncertainty and herd behavior in financial markets. Am Econ Rev 88(4):724–748
Baddeley M (2010) Herding, social influence and economic decision-making: socio-psychological and neuroscientific analyses. Philos Trans Biol Sci 365(1538):281–290. https://doi.org/10.1098/rstb.2009.0169
Balcilar M, Demirer R (2015) Effect of global shocks and volatility on herd behavior in an emerging market: evidence from Borsa Istanbul. Emerg Mark Financ Trade 51(1):140–159. https://doi.org/10.1080/1540496X.2015.1011520
Balcilar M, Demirer R, Hammoudeh S (2013) Investor herds and regime-switching: evidence from Gulf Arab stock markets. J Int Financ Mark Institutions Money 23:295–321. https://doi.org/10.1016/j.intfin.2012.09.007
Balcilar M, Demirer R, Hammoudeh S (2014) What drives herding in oil-rich, developing stock markets? Relative roles of own volatility and global factors. North Am J Econ Financ 29:418–440. https://doi.org/10.1016/j.najef.2014.06.009
Bandura A (1977) Social learning theory. Prentice-Hall Inc., New Jersey
Banerjee AV (1992) A simple model of herd behavior. Q J Econ 107(3):797–817. https://doi.org/10.1016/j.intfin.2012.09.007
Barber BM, Odean T, Zhu N (2009) Systematic noise J Financ Mark 12(4):547–569. https://doi.org/10.1016/j.finmar.2009.03.003
Barsky RB, Juster FT, Kimball MS, Shapiro MD (1997) Preference parameters and behavioral heterogeneity: an experimental approach in the health and retirement study. Q J Econ 112(2):537–579. https://doi.org/10.1162/003355397555280
Bekiros S, Jlassi M, Lucey B, Naoui K, Uddin GS (2017) Herding behavior, market sentiment and volatility: will the bubble resume? North Am J Econ Financ 42:107–131. https://doi.org/10.1016/j.najef.2017.07.005
Belgacem A, Lahiani A (2013) Herding behavior around US macroeconomic announcements. J Appl Bus Res 29(5):1401–1410. https://doi.org/10.19030/jabr.v29i5.8022
BenSaïda A (2017) Herding effect on idiosyncratic volatility in U.S. industries. Financ Res Lett 23:121–132. https://doi.org/10.1016/j.frl.2017.03.001
Bhaduri SN, Mahapatra SD (2013) Applying an alternative test of herding behavior: a case study of the Indian stock market. J Asian Econ 25:43–52. https://doi.org/10.1016/j.asieco.2013.02.001
Bhattacharya D, Sonaer G (2016) Herding by mutual funds: impact on performance and investors’ response. Eur J Financ 24(4):283–299. https://doi.org/10.1080/1351847X.2016.1224194
Bikhchandani S, Hirshleifer D, Welch I (1992) A theory of fads, fashion, custom, and cultural change as informational cascades. J Polit Econ 100(5):992–1026. https://doi.org/10.1086/261849
Bikhchandani S, Hirshleifer D, Welch I (1998) Learning from the behavior of others: conformity, fads, and informational cascades. J Econ Perspect 12(3):151–170. https://doi.org/10.1257/jep.12.3.151
Bikhchandani S, Sharma S (2000) Herd behavior in financial markets: a review. IMF Work Pap 00(48):1. https://doi.org/10.5089/9781451846737.001
Blake D, Sarno L, Zinna G (2017) The market for lemmings: the herding behavior of pension funds. J Financ Mark 36:17–39. https://doi.org/10.1016/j.finmar.2017.03.001
Blasco N, Corredor P, Ferreruela S (2011) Detecting intentional herding: what lies beneath intraday data in the Spanish stock market. J Oper Res Soc 62(6):1056–1066. https://doi.org/10.1057/jors.2010.34
Blasco N, Corredor P, Ferreruela S (2012) Does herding affect volatility? Implications for the Spanish stock market. Quant Financ 12(2):311–327. https://doi.org/10.1080/14697688.2010.516766
Bohl MT, Branger N, Trede M (2017) The case for herding is stronger than you think. J Bank Financ 85:30–40. https://doi.org/10.1016/j.jbankfin.2017.08.006
Bohl MT, Klein AC, Siklos PL (2014) Short-selling bans and institutional investors’ herding behaviour: evidence from the global financial crisis. Int Rev Financ Anal 33:262–269. https://doi.org/10.1016/j.irfa.2014.03.004
Borensztein E, Gelos RG (2003) A panic-prone pack? The behavior of emerging market mutual funds. IMF Staff Pap 50(1):43–63. https://doi.org/10.2307/4149947
Bowe M, Domuta D (2004) Investor herding during financial crisis: a clinical study of the Jakarta stock exchange. Pacific Basin Financ J 12(4):387–418. https://doi.org/10.1016/j.pacfin.2003.09.003
Boyson NM (2010) Implicit incentives and reputational herding by hedge fund managers. J Empir Financ 17(3):283–299. https://doi.org/10.1016/j.jempfin.2009.10.005
Brandouy O, Barneto P, Leger LA (2003) Asymmetric information, imitative behaviour and communication: price formation in an experimental asset market. Eur J Financ 9(5):393–419. https://doi.org/10.1080/1351847032000087786
Brennan MJ, Li F (2008) Agency and asset pricing. UCLA: Finance. Retrieved from https://escholarship.org/uc/item/53k014sd
Brunnermeier MK (2001) Asset pricing under asymmetric information: bubbles, crashes, technical analysis, and herding. Oxford University Press, Oxford
Burns RB, Dobson CB (1984) Introductory psychology. MTP Press Limited, Lancaster
Cajueiro DO, Tabak BM (2009) Multifractality and herding behavior in the Japanese stock market. Chaos Solit Fract 40(1):497–504. https://doi.org/10.1016/j.chaos.2007.07.091
Caldwell CB, Dolvin SD (2013) Herding behavior in student managed investment funds: identification, impact and reduction. J Econ Econ Educ Res 13(2):97–110
Caparrelli F, D’Arcangelis AM, Cassuto A (2004) Herding in the Italian stock market: a case of behavioral finance. J Behav Financ 5(4):222–230. https://doi.org/10.1207/s15427579jpfm0504_5
Carbone E (2009) Ownership herding and informational herding. Appl Econ Lett 17(12):1201–1204. https://doi.org/10.1080/00036840902845392
Casavecchia L (2016) Fund managers’ herding and the sensitivity of fund flows to past performance. Int Rev Financ Anal 47:205–221. https://doi.org/10.1016/j.irfa.2016.07.006
Çelen B, Kariv S (2004) Distinguishing informational cascades from herd behavior in the laboratory. Am Econ Rev 94(3):484–498. https://doi.org/10.1257/0002828041464461
Çelen B, Kariv S (2005) An experimental test of observational learning under imperfect information. Econ Theory 26(3):677–699. https://doi.org/10.1007/s00199-004-0542-0
Celiker U, Chowdhury J, Sonaer G (2015) Do mutual funds herd in industries? J Bank Financ 52:1–16. https://doi.org/10.1016/j.jbankfin.2014.11.006
Chaffai M, Medhioub I (2018) Herding behavior in Islamic GCC stock market: a daily analysis. Int J Islam Middle East Financ Manag 11(2):182–193. https://doi.org/10.1108/IMEFM-08-2017-0220
Chang C-H, Lin S-J (2015) The effects of national culture and behavioral pitfalls on investors’ decision-making: herding behavior in international stock markets. Int Rev Econ Financ 37:380–392. https://doi.org/10.1016/j.iref.2014.12.010
Chang C (2010) Herding and the role of foreign institutions in emerging equity markets. Pacific Basin Financ J 18(2):175–185. https://doi.org/10.1016/j.pacfin.2009.11.001
Chang EC, Cheng JW, Khorana A (2000) An examination of herd behavior in equity markets: an international perspective. J Bank Financ 24:1651–1679. https://doi.org/10.1002/ijc.2910340112
Chang EC, Dong S (2006) Idiosyncratic volatility, fundamentals, and institutional herding: evidence from the Japanese stock market. Pacific Basin Financ J 14(2):135–154. https://doi.org/10.1016/j.pacfin.2005.09.001
Chattopadhyay M, Garg AK, Mitra SK (2018) Herding by foreign institutional investors: an evidential exploration for persistence and predictability. J Behav Financ 19(1):73–88. https://doi.org/10.1080/15427560.2017.1373282
Chen C-D, Demirer R (2018) The profitability of herding: evidence from Taiwan. Manag Financ 44(7):919–934. https://doi.org/10.1108/MF-12-2016-0357
Chen H-L, Chow EH, Shiu C-Y (2015) The informational role of individual investors in stock pricing: evidence from large individual and small retail investors. Pacific Basin Financ J 31:36–56. https://doi.org/10.1016/j.pacfin.2014.12.001
Chen Q, Hua X, Jiang Y (2018) Contrarian strategy and herding behaviour in the Chinese stock market. Eur J Financ 24(16):1552–1568. https://doi.org/10.1080/1351847X.2015.1071715
Chen T (2013) Do investors herd in global stock markets? J Behav Financ 14(3):230–239. https://doi.org/10.1080/15427560.2013.819804
Chen Y-F, Wang C-Y, Lin F-L (2008) Do qualified foreign institutional investors herd in Taiwan’s securities market? Emerg Mark Financ Trade 44(4):62–74. https://doi.org/10.2753/REE1540-496X440405
Chen Y-F, Yang S-Y, Lin F-L (2012) Foreign institutional industrial herding in Taiwan stock market. Manag Financ 38(3):325–340. https://doi.org/10.1108/03074351211201442
Chiang TC, Li J, Tan L (2010) Empirical investigation of herding behavior in Chinese stock markets: evidence from quantile regression analysis. Glob Financ J 21(1):111–124. https://doi.org/10.1016/j.gfj.2010.03.005
Chiang TC, Zheng D (2010) An empirical analysis of herd behavior in global stock markets. J Bank Financ 34(8):1911–1921. https://doi.org/10.1016/j.jbankfin.2009.12.014
Choe H, Kho B-C, Stulz RM (1999) Do foreign investors destabilize stock markets? The Korean experience in 1997. J Financ Econ 54(2):227–264. https://doi.org/10.1016/S0304-405X(99)00037-9
Choi N, Sias RW (2009) Institutional industry herding J Financ Econ 94(3):469–491. https://doi.org/10.1016/j.jfineco.2008.12.009
Choi N, Skiba H (2015) Institutional herding in international markets. J Bank Financ 55:246–259. https://doi.org/10.1016/j.jbankfin.2015.02.002
Choi S (2016) Herding among local individual investors: evidence from online and offline trading. Econ Lett 144:4–6. https://doi.org/10.1016/j.econlet.2016.04.030
Chong TT-L, Liu X, Zhu C (2017) What explains herd behavior in the Chinese stock market? J Behav Financ 18(4):448–456. https://doi.org/10.1080/15427560.2017.1365365
Christie WG, Huang RD (1995) Following the pied piper: do individual returns herd around the market? Financ Anal J 51(4):31–37. https://doi.org/10.1016/j.jfineco.2008.12.009
Cipriani M, Costantini R, Guarino A (2012) A bayesian approach to experimental analysis: trading in a laboratory financial market. Rev Econ Des 16(2):175–191. https://doi.org/10.1007/s10058-012-0124-8
Cipriani M, Guarino A (2005) Herd behavior in a laboratory financial market. Am Econ Rev 95(5):1427–1443
Cipriani M, Guarino A (2008) Transaction costs and informational cascades in financial markets. J Econ Behav Organ 68(3):581–592. https://doi.org/10.1016/j.jebo.2008.08.001
Cipriani M, Guarino A (2009) Herd behavior in financial markets: an experiment with financial market professionals. J Eur Econ Assoc 7(1):206–233. https://doi.org/10.1162/JEEA.2009.7.1.206
Cipriani M, Guarino A (2014) Estimating a structural model of herd behavior in financial markets. Am Econ Rev 104(1):224–251. https://doi.org/10.1257/aer.104.1.224
Clements A, Hurn S, Shi S (2017) An empirical investigation of herding in the U.S. stock market. Econ Model 67:184–192. https://doi.org/10.1016/j.econmod.2016.12.015
Dang HV, Lin M (2016) Herd mentality in the stock market: on the role of idiosyncratic participants with heterogeneous information. Int Rev Financ Anal 48:247–260. https://doi.org/10.1016/j.irfa.2016.10.005
Danrimi ML, Abdullah M, Alfan E (2018) Investors’ herding practice: do IFRS and national economic culture matter? Manag Financ 44(9):1117–1133. https://doi.org/10.1108/MF-08-2017-0311
Dasgupta A, Prat A (2008) Information aggregation in financial markets with career concerns. J Econ Theory 143(1):83–113. https://doi.org/10.1016/j.jet.2008.01.005
Dasgupta A, Prat A, Verardo M (2011) The price impact of institutional herding. Rev Financ Stud 24(3):892–925. https://doi.org/10.1093/rfs/hhql37
Dass N, Massa M, Patgiri R (2008) Mutual funds and bubbles: the surprising role of contractual incentives. Rev Financ Stud 21(1):51–99. https://doi.org/10.1093/rfs/hhm033
de Almeida RP, Costa HC, da Costa Jr. NCA, (2012) Herd behavior in Latin American stock markets. Lat Am Bus Rev 13(2):81–102. https://doi.org/10.1080/10978526.2012.700271
Dehghani P, Sapian RZZ (2014) Sectoral herding behavior in the aftermarket of Malaysian IPOs. Ventur Cap 16(3):227–246. https://doi.org/10.1080/13691066.2014.921100
Deng X, Hung S, Qiao Z (2018) Mutual fund herding and stock price crashes. J Bank Financ 94:166–184. https://doi.org/10.1016/j.jbankfin.2018.07.014
Devenow A, Welch I (1996) Rational herding in financial economics. Eur Econ Rev 40(3):603–615. https://doi.org/10.1016/0014-2921(95)00073-9
Dhaene J, Linders D, Schoutens W, Vyncke D (2012) The herd behavior index: a new measure for the implied degree of co-movement in stock markets. Insur Math Econ 50(3):357–370. https://doi.org/10.1016/j.insmatheco.2012.01.005
Doherty O (2018) Informational cascades in financial markets: review and synthesis. Rev Behav Financ 10(1):53–69. https://doi.org/10.1108/RBF-05-2016-0030
Dong Z, Gu Q, Han X (2010) Ambiguity aversion and rational herd behaviour. Appl Financ Econ 20(4):331–343. https://doi.org/10.1080/09603100903299675
dos Santos LGG, Lagoa S (2017) Herding behaviour in a peripheral European stock market: the impact of the subprime and the European sovereign debt crises. Int J Bank Acc Financ 8(2):174. https://doi.org/10.1504/IJBAAF.2017.087074
Drehmann BM, Oechssler J, Roider A (2005) Herding and contrarian behavior in financial markets-an internet experiment appendix a: instructions. Am Econ Rev Append C 7:1–14. https://doi.org/10.1257/000282805775014317
Drehmann M, Oechssler J, Roider A (2007) Herding with and without payoff externalities—an internet experiment. Int J Ind Organ 25(2):391–415. https://doi.org/10.1016/j.ijindorg.2006.04.016
Dvořák T (2005) Do domestic investors have an information advantage? Evidence from Indonesia. J Financ LX 60(2):94–105. https://doi.org/10.1111/j.1540-6261.2005.00747.x
Economou F, Gavriilidis K, Kallinterakis V, Yordanov N (2015) Do fund managers herd in frontier markets—and why? Int Rev Financ Anal 40:76–87. https://doi.org/10.1016/j.irfa.2015.03.017
Economou F, Hassapis C, Philippas N (2018) Investors’ fear and herding in the stock market. Appl Econ 50(34–35):3654–3663. https://doi.org/10.1080/00036846.2018.1436145
Economou F, Katsikas E, Vickers G (2016) Testing for herding in the Athens stock exchange during the crisis period. Financ Res Lett 18:334–341. https://doi.org/10.1016/j.frl.2016.05.011
Economou F, Kostakis A, Philippas N (2011) Cross-country effects in herding behaviour: evidence from four South European markets. J Int Financ Mark Inst Money 21(3):443–460. https://doi.org/10.1016/j.intfin.2011.01.005
Eyster E, Rabin M (2010) Naïve herding in rich-information settings. Am Econ J Microecon 2(4):221–243. https://doi.org/10.1257/mic.2.4.221
Fang H, Lu Y-C, Yau H-Y (2014) The effects of stock characteristics on the direction and extent of herding by foreign institutional investors in the Taiwan stock exchange. Emerg Mark Financ Trade 50(sup2):60–74. https://doi.org/10.2753/REE1540-496X5002S204
Fang H, Lu Y-C, Yau H-Y, Lee Y-H (2017a) Causes and impacts of foreign and domestic institutional investors’ herding in the Taiwan stock market. Emerg Mark Financ Trade 53(4):727–745. https://doi.org/10.1080/1540496X.2015.1103126
Fang H, Shen C-H, Lee Y-H (2017b) The dynamic and asymmetric herding behavior of US equity fund managers in the stock market. Int Rev Econ Financ 49:353–369. https://doi.org/10.1016/j.iref.2016.12.012
Fernández B, Garcia-merino T, Mayoral R, Santos V, Vallelado E (2011) Herding, information uncertainty and investors’ cognitive profile. Qual Res Financ Mark 3(1):7–33. https://doi.org/10.1108/17554171111124595
Fisch C, Block J (2018) Six tips for your (systematic) literature review in business and management research. Manag Rev Q 68(2):103–106. https://doi.org/10.1007/s11301-018-0142-x
Frey S, Herbst P, Walter A (2014) Measuring mutual fund herding–a structural approach. J Int Financ Mark Insti Money 32:219–239. https://doi.org/10.1016/j.intfin.2014.05.006
Froot KA, Scharfstein DS, Stein JC (1992) Herd on the street: informational inefficiencies in a market with short-term speculation. J Financ 47(4):1461–1484. https://doi.org/10.1111/j.1540-6261.1992.tb04665.x
Galariotis EC, Krokida S, Spyrou SI (2016) Herd behavior and equity market liquidity: evidence from major markets. Int Rev Financ Anal 48:140–149. https://doi.org/10.1016/j.irfa.2016.09.013
Galariotis EC, Rong W, Spyrou SI (2015) Herding on fundamental information: a comparative study. J Bank Financ 50:589–598. https://doi.org/10.1016/j.jbankfin.2014.03.014
Ganesh R, Gopal N, Thiyagarajan S (2018) Bulk and block holders herding behaviour. South Asian J Bus Stud 7(2):150–171. https://doi.org/10.1108/SAJBS-12-2017-0139
Gavriilidis K, Kallinterakis V, Ferreira MPL (2013) Institutional industry herding: intentional or spurious? J Int Financ Mark Inst Money 26(1):192–214. https://doi.org/10.1016/j.intfin.2013.05.008
Gavriilidis K, Kallinterakis V, Tsalavoutas I (2016) Investor mood, herding and the ramadan effect. J Econ Behav Organ 132:23–38. https://doi.org/10.1016/j.jebo.2015.09.018
Gębka B, Wohar ME (2013) International herding: does it differ across sectors? J Int Financ Mark Inst Money 23:55–84. https://doi.org/10.1016/j.intfin.2012.09.003
Gleason KC, Mathur I, Peterson MA (2004) Analysis of intraday herding behavior among the sector ETFs. J Empir Financ 11(5):681–694. https://doi.org/10.1016/j.jempfin.2003.06.003
Gong P, Dai J (2017) Monetary policy, exchange rate fluctuation, and herding behavior in the stock market. J Bus Res 76:34–43. https://doi.org/10.1016/j.jbusres.2017.02.018
Gong P, Dai J (2018) Herding on lottery-type stocks: evidence from the Chinese stock market. Appl Econ Lett 25(10):659–662. https://doi.org/10.1080/13504851.2017.1355532
Graham JF, Stendardi EJ, Myers JK, Graham MJ (2002) Gender differences in investment strategies: an information processing perspective. Int J Bank Mark 20(1):17–26. https://doi.org/10.1108/02652320210415953
Graham JR (1999) Herding among investment newsletters: theory and evidence. J Financ LIV 54(1):237–268. https://doi.org/10.1111/0022-1082.00103
Grinblatt M, Keloharju M (2001) What makes investors trade? J Financ LV I(2):589–616. https://doi.org/10.1111/0022-1082.00338
Grinblatt M, Titman S, Wermers R (1995) Momentum strategy, portfolio performance, and herding: a study of mutual fund behavior. Am Econ Rev 85(5):1088–1105
Guney Y, Kallinterakis V, Komba G (2017) Herding in frontier markets: evidence from African stock exchanges. J Int Financ Mark Inst Money 47:152–175. https://doi.org/10.1016/j.intfin.2016.11.001
Henker J, Henker T, Mitsios A (2006) Do investors herd intraday in Australian equities? Int J Manag Financ 2(3):196–219. https://doi.org/10.1108/17439130610676475
Hirshleifer D, Subrahmanyam A, Titman S (1994) Security analysis and trading patterns when investors receive information before others. J Finance 49(5):1665–1698. https://doi.org/10.1111/j.1540-6261.1994.tb04777.x
Hirshleifer D, Teoh SH (2003) Herd behaviour and cascading in capital markets: a review and synthesis. Eur Financ Manag 9(1):25–66. https://doi.org/10.1111/1468-036X.00207
Hoitash R, Krishnan M, (Murgie), (2008) Herding, momentum and investor over-reaction. Rev Quant Financ Account 30(1):25–47. https://doi.org/10.1007/s11156-007-0042-y
Holtfort T (2019) From standard to evolutionary finance: a literature survey. Manag Rev Q 69(2):207–232. https://doi.org/10.1007/s11301-018-0151-9
Hott C (2009) Herding behavior in asset markets. J Financ Stab 5(1):35–56. https://doi.org/10.1016/j.jfs.2008.01.004
Hsieh S (2013) Individual and institutional herding and the impact on stock returns: evidence from Taiwan stock market. Int Rev Financ Anal 29:175–188. https://doi.org/10.1016/j.irfa.2013.01.003
Hsieh M-F, Yang T-Y, Yang Y-T, Lee J-S (2011) Evidence of herding and positive feedback trading for mutual funds in emerging Asian countries. Quant Financ 11(3):423–435. https://doi.org/10.1080/14697688.2010.506882
Huang T-C, Lin B-H, Yang T-H (2015) Herd behavior and idiosyncratic volatility. J Bus Res 68:763–770. https://doi.org/10.1016/j.jbusres.2014.11.025
Huang T-C, Wang K-Y (2017) Investors’ fear and herding behavior: evidence from the Taiwan stock market. Emerg Mark Financ Trade 53(10):2259–2278. https://doi.org/10.1080/1540496X.2016.1258357
Huck S, Oechssler J (2000) Informational cascades in the laboratory: Do they occur for the right reasons ? J Econ Psychol 21:661–671. https://doi.org/10.1016/S0167-4870(00)00025-8
Hung AA, Plott CR (2001) Information cascades: replication and an extension to majority rule and conformity-rewarding institutions. Am Econ Rev 91(5):1508–1520. https://doi.org/10.1257/aer.91.5.1508
Hung W, Lu C, Lee CF (2010) Mutual fund herding its impact on stock returns: evidence from the Taiwan stock market. Pacific Basin Financ J 18(5):477–493. https://doi.org/10.1016/j.pacfin.2010.06.001
Hwang S, Salmon M (2004) Market stress and herding. J Empir Financ 11(4):585–616. https://doi.org/10.1016/j.jempfin.2004.04.003
Javaira Z, Hassan A (2015) An examination of herding behavior in Pakistani stock market. Int J Emerg Mark 10(3):474–490. https://doi.org/10.1108/IJoEM-07-2011-0064
Jensen MC, Meckling WH (1976) Theory of the firm: managerial behavior, agency costs and ownership structure. J Financ Econ 3(4):305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Jeon JQ, Moffet CM (2010) Herding by foreign investors and emerging market equity returns: evidence from Korea. Int Rev Econ Financ 19(4):698–710. https://doi.org/10.1016/j.iref.2010.03.001
Jetter M, Walker JK (2018) The gender of opponents: explaining gender differences in performance and risk-taking? Eur Econ Rev 109:238–256. https://doi.org/10.1016/j.euroecorev.2017.05.006
Jianakoplos NA, Bernasek A (1998) Are women more risk averse? Econ Inq 36(4):620–630. https://doi.org/10.1111/j.1465-7295.1998.tb01740.x
Jiang HAO, Verardo M (2018) Does herding behavior reveal skill? An analysis of mutual fund performance. J Finance 73:1–41. https://doi.org/10.1111/jofi.12699
Jiao Y, Ye P (2014) Mutual fund herding in response to hedge fund herding and the impacts on stock prices. J Bank Financ 49:131–148. https://doi.org/10.1016/j.jbankfin.2014.09.001
John WSH, Lee YH, Chen YC (2018) Mutual fund herding behavior and investment strategies in Chinese stock market. Invest Manag Financ Innov 15(2):87–95. https://doi.org/10.21511/imfi.15(2).2018.08
Kabir HM, Shakur S (2018) Regime-dependent herding behavior in Asian and Latin American stock markets. Pacific Basin Financ J 47:60–78. https://doi.org/10.1016/j.pacfin.2017.12.002
Kahneman D, Slovic P, Tversky A (1982) Judgment under uncertainty: heuristics and biases. Cambridge University Press, Cambridge
Kallinterakis V, Munir N, Radovic-markovic M (2010) Herd behaviour, illiquidity and extreme market states: evidence from Banja Luka. J Emerg Mark Financ 9(3):305–324. https://doi.org/10.1177/097265271000900303
Keynes JM (1936) The general theory of employment, interest, and money. Cambridge University Press, Cambridge
Kim KA, Nofsinger JR (2005) Institutional herding, business groups, and economic regimes: evidence from Japan. J Bus 78(1):213–242. https://doi.org/10.1086/426524
Kim S-W, Lee B-S, Kim Y-M (2014) Who mimics whom in the equity fund market? evidence from the Korean equity fund market. Pacific Basin Financ J 29:199–218. https://doi.org/10.1016/j.pacfin.2014.04.004
Klein AC (2013) Time-variations in herding behavior: evidence from a markov switching sur model. J Int Financ Mark Institutions Money 26:291–304. https://doi.org/10.1016/j.intfin.2013.06.006
Kremer S, Nautz D (2013a) Causes and consequences of short-term institutional herding. J Bank Financ 37(5):1676–1686. https://doi.org/10.1016/j.jbankfin.2012.12.006
Kremer S, Nautz D (2013b) Short-term herding of institutional traders: new evidence from the German stock market. Eur Financ Manag 19(4):730–746. https://doi.org/10.1111/j.1468-036X.2011.00607.x
Lakonishok J, Shleifer A, Vishny RW (1992) The impact of institutional stock prices. J Financ Econ 32:23–43
Lakshman MV, Basu S, Vaidyanathan R (2013) Market-wide herding and the impact of institutional investors in the Indian capital market. J Emerg Mark Financ 12(2):197–237. https://doi.org/10.1177/0972652713494046
Lam KSK, Qiao Z (2015) Herding and fundamental factors: the Hong Kong experience. Pacific Basin Financ J 32:160–188. https://doi.org/10.1016/j.pacfin.2014.11.002
Lao P, Singh H (2011) Herding behaviour in the Chinese and Indian stock markets. J Asian Econ 22(6):495–506. https://doi.org/10.1016/j.asieco.2011.08.001
Le Bon G (1896) The crowd: a study of the popular mind. The Floating Press.
Lee C-C, Chen M-P, Hsieh K-M (2013) Industry herding and market states: evidence from Chinese stock markets. Quant Financ 13(7):1091–1113. https://doi.org/10.1080/14697688.2012.740571
Lee K (2017) Herd behavior of the overall market: evidence based on the cross-sectional comovement of returns. North Am J Econ Financ 42:266–284. https://doi.org/10.1016/j.najef.2017.07.006
Li C, Hu Z, Tang L (2018) Re-examining the Chinese A-share herding behaviour with a Fama-French augmented seven-factor model. Appl Econ 51:1–21. https://doi.org/10.1080/00036846.2018.1494809
Li W, Rhee G, Shuye S (2017) Differences in herding: individual vs institutional investors. Pacific Basin Financ J 45:174–185. https://doi.org/10.1016/j.pacfin.2016.11.005
Lillo F, Moro E, Vaglica G, Mantegna RN (2008) Specialization of strategies and herding behavior of trading firms in a financial market. New J Phys 10:1–15. https://doi.org/10.1088/1367-2630/10/4/043019
Lin AY, Lin Y-N (2014) Herding of institutional investors and margin traders on extreme market movements. Int Rev Econ Financ 33:186–198. https://doi.org/10.1016/j.iref.2014.05.001
Lin WT, Tsai S-C, Lung P-Y (2013) Investors’ herd behavior: rational or irrational? Asia Pacific J Financ Stud 42(5):755–776. https://doi.org/10.1111/ajfs.12030
Litimi H (2017) Herd behavior in the French stock market. Rev Account Financ 16(4):497–515. https://doi.org/10.1108/RAF-11-2016-0188
Litimi H, Bensaïda A, Bouraoui O (2016) Herding and excessive risk in the American stock market: a sectoral analysis. Res Int Bus Financ 38:6–21. https://doi.org/10.1016/j.ribaf.2016.03.008
Lu Y-C, Fang H, Lee Y-H (2017) The informational and non-informational compositions of UK fund managers’ dynamic herding in the stock market. Panoeconomicus 64(5):571–592. https://doi.org/10.2298/PAN150212016L
Lu S, Zhao J, Wang H, Ren R (2018) Herding boosts too-connected-to-fail risk in stock market of China. Phys A Stat Mech Its Appl 505:945–964. https://doi.org/10.1016/j.physa.2018.04.020
Luo Z, Schinckus C (2015) Herding behaviour in asymmetric and extreme situations: the case of China. Appl Econ Lett 22(11):869–873. https://doi.org/10.1080/13504851.2014.985363
Lütje T (2009) To be good or to be better: asset managers’ attitudes towards herding. Appl Financ Econ 19(10):825–839. https://doi.org/10.1080/09603100801964404
Lux T (1995) Herd behaviour, bubbles and crashes. Econ J 105(431):881. https://doi.org/10.2307/2235156
Mabrouk HB (2018) Cross-herding behavior between the stock market and the crude oil market during financial distress: evidence from the New York Stock Exchange. Manag Financ 44(4):439–458. https://doi.org/10.1108/MF-09-2017-0363
Maug E, Naik N (2011) Herding and delegated portfolio management: on asset allocation. Q J Financ 1(2):265–292. https://doi.org/10.1142/S2010139211000092
Medhioub I, Chaffai M (2018) Islamic finance and herding behavior: an application to Gulf Islamic stock markets. Rev Behav Financ 10(2):192–206. https://doi.org/10.1108/RBF-02-2017-0014
Menkhoff L, Schmidt U, Brozynski T (2006) The impact of experience on risk taking, overconfidence, and herding of fund managers: complementary survey evidence. Eur Econ Rev 50(7):1753–1766. https://doi.org/10.1016/j.euroecorev.2005.08.001
Merli M, Roger T (2013) What drives the herding behavior of individual investors? Finance 34(3):67–104. https://doi.org/10.2139/ssrn.2079701
Mertzanis C, Allam N (2018) Political instability and herding behaviour: evidence from Egypt’s stock market. J Emerg Mark Financ 17(1):29–59. https://doi.org/10.1177/0972652717748087
Messis P, Zapranis A (2014) Herding towards higher moment CAPM, contagion of herding and macroeconomic shocks: evidence from five major developed markets. J Behav Exp Financ 4:1–13. https://doi.org/10.1016/j.jbef.2014.09.002
Miceli V (2013) Do sovereign wealth funds herd in equity markets? Quant Financ 13(10):1503–1518. https://doi.org/10.1080/14697688.2013.830321
Mobarek A, Mollah S, Keasey K (2014) A cross-country analysis of herd behavior in Europe. J Int Financ Mark Inst Money 32(107):127. https://doi.org/10.1016/j.intfin.2014.05.008
Munkh-Ulzii BJ, McAleer M, Moslehpour M, Wong WK (2018) Confucius and herding behaviour in the stock markets in China and Taiwan. Sustain 10(12):1–16. https://doi.org/10.3390/su10124413
My TN, Truong HH (2011) Herding behaviour in an emerging stock market: empirical evidence from Vietnam. Res J Bus Manag. https://doi.org/10.3923/rjbm.2011.51.76
Najmudin SDH, Wahyudi S, Muharam H (2017) Applying an international CAPM to herding behaviour model for integrated stock markets. J Int Stud 10(4):47–62. https://doi.org/10.14254/2071-8330.2017/10-4/3
Nelson L (2002) Persistence and reversal in herd behavior: theory and application to the decision to go public. Rev Financ Stud 15(1):65–95. https://doi.org/10.1093/rfs/15.1.65
Nofsinger JR, Sias RW (1999) Herding and feedback trading by institutional and individual investors. J Financ 54(6):2263–2295. https://doi.org/10.1111/0022-1082.00188
Nöth M, Weber M (2003) Information aggregation with random ordering: cascades and overconfidence. Econ J 113(484):166–189. https://doi.org/10.1111/1468-0297.00091
Ouarda M, El Bouri A, Bernard O (2013) Herding behavior under markets condition: empirical evidence on the European financial markets. Int J Econ Financ Issues 3(1):214–228
Palley TI (1995) Safety in numbers: a model of managerial herd behavior. J Econ Behav Organ 28(3):443–450. https://doi.org/10.1016/0167-2681(95)00046-1
Park A, Sabourian H (2011) Herding and contrarian behavior in financial markets. Econometrica 79(4):973–1026. https://doi.org/10.3982/ECTA8602
Park A, Sgroi D (2012) Herding, contrarianism and delay in financial market trading. Eur Econ Rev 56(6):1020–1037. https://doi.org/10.1016/j.euroecorev.2012.04.006
Philippas N, Economou F, Babalos V, Kostakis A (2013) Herding behavior in REITs: novel tests and the role of financial crisis. Int Rev Financ Anal 29:166–174. https://doi.org/10.1016/j.irfa.2013.01.004
Pochea M-M, Filip A-M, Pece A-M (2017) Herding behavior in CEE stock markets under asymmetric conditions: a quantile regression analysis. J Behav Financ 18(4):400–416. https://doi.org/10.1080/15427560.2017.1344677
Pompian MM (2006) Behavioral finance and wealth management. John Wiley & Sons Ltd, New Jersey. https://doi.org/10.1002/9781119202400
Popescu M, Xu Z (2018) Mutual fund herding and reputational concerns. J Econ Financ 42(3):550–565. https://doi.org/10.1007/s12197-017-9405-y
Poshakwale S, Mandal A (2014) Investor behaviour and herding: evidence from the national stock exchange in India. J Emerg Mark Financ 13(2):197–216. https://doi.org/10.1177/0972652714541341
Powell M, Ansic D (1997) Gender differences in risk behaviour in financial decision-making: an experimental analysis. J Econ Psychol 18:605–628. https://doi.org/10.1016/S0167-4870(97)00026-3
Prietzel TT (2020) The effect of emotion on risky decision making in the context of prospect theory: a comprehensive literature review. Manag Rev Q 70(3):313–353. https://doi.org/10.1007/s11301-019-00169-2
Qiao Z, Chiang TC, Tan L (2014) Empirical investigation of the causal relationships among herding, stock market returns, and illiquidity: evidence from major Asian markets. Rev Pacific Basin Financ Mark Policies 17(3):1450018. https://doi.org/10.1142/S0219091514500180
Raddatz C, Schmukler SL (2013) Deconstructing herding: evidence from pension fund investment behavior. J Financ Serv Res 43(1):99–126. https://doi.org/10.1007/s10693-012-0155-x
Rahman MA, Chowdhury SSH, Sadique MS (2015) Herding where retail investors dominate trading: the case of Saudi Arabia. Q Rev Econ Financ 57:46–60. https://doi.org/10.1016/j.qref.2015.01.002
Ramli I, Agoes S, Setyawan IR (2016) Information asymmetry and the role of foreign investors in daily transactions during the crisis; a study of herding in the Indonesian stock exchange. J Appl Bus Res 32(1):269–288. https://doi.org/10.19030/jabr.v32i1.10178
Roider A, Voskort A (2016) Reputational herding in financial markets: a laboratory experiment. J Behav Financ 17(3):244–266. https://doi.org/10.1080/15427560.2016.1203322
Roll R (1992) A mean/variance analysis of tracking error. J Portf Manag 18(4):13–22. https://doi.org/10.3905/jpm.1992.701922
Rompotis GG (2018) Herding behavior among exchange-traded funds. J Behav Financ 19:1–15. https://doi.org/10.1080/15427560.2018.1431886
Rook L (2006) An economic psychological approach to herd behavior. J Econ Issues 40(1):75–95. https://doi.org/10.1080/00213624.2006.11506883
Rıza D, Kutan AM (2006) Does herding behavior exist in Chinese stock markets? J Int Financ Mark Institutions Money 16(2):123–142. https://doi.org/10.1016/j.intfin.2005.01.002
Riza D, Zhang H (2019) Do firm characteristics matter in explaining the herding effect on returns? Rev Financ Econ 37(2):56–271. https://doi.org/10.1002/rfe.1036
Riza D, Lien D, Zhang H (2015) Industry herding and momentum strategies. Pacific Basin Financ J 32:95–110. https://doi.org/10.1016/j.pacfin.2015.02.010
Sabir SA, Mohammed HB, Kadir Shahar HB (2018) The effect of illusion of control and self attribution on herding behaviour with a moderating role of information availability: a case of retail investors of Pakistan stock exchange. Opcion 34(86):2675–2689
Scharfstein DS, Stein JC (1990) Herd behavior and investment. Am Econ Rev 80(3):465–479
Senarathne WC, Jianguo W (2018) Do investors mimic trading strategies of foreign investors or the market: implications for capital asset pricing. Stud Bus Econ 13(3):171–205. https://doi.org/10.2478/sbe-2018-0042
Setiyono TE, Hartono J, Hanafi M (2013) Detecting the existence of herding behavior in intraday data: evidence from the Indonesia stock exchange. Gadjah Mada Int J Bus 15(1):27–44. https://doi.org/10.22146/gamaijb.5399
Setyawan IR, Ramli I (2016) Herding behavior in the Indonesian stock exchange: the roles and contributions of foreign investors during the period 2006 to 2011. J Pengur 46:125–135. https://doi.org/10.2139/ssrn.2313036
Sgroi D (2003) The right choice at the right time: a herding experiment in endogenous time. Exp Econ 6(2):159–180. https://doi.org/10.1023/A:1025357004821
Shah MUD, Shah A, Khan SU (2017) Herding behavior in the Pakistan stock exchange: some new insights. Res Int Bus Financ 42:865–873. https://doi.org/10.1016/j.ribaf.2017.07.022
Sharma SS, Narayan P, Thuraisamy K (2015) Time-varying herding behavior, global financial crisis, and the Chinese stock market. Rev Pacific Basin Financ Mark Policies 18(2):1–32. https://doi.org/10.1142/S0219091515500095
Shiller RJ (1995) Conversation, information, and herd behavior. Am Econ Rev 85(2):181–185
Sias RW (2004) Institutional herding. Rev Financ Stud 17(1):165–206. https://doi.org/10.1093/rfs/hhg035
Simões Vieira EF, Valente Pereira MS (2015) Herding behaviour and sentiment: evidence in a small European market. Rev Contab 18(1):78–86. https://doi.org/10.1016/j.rcsar.2014.06.003
Simon HA (1955) A behavioral model of rational choice. Q J Econ 69(1):99–118. https://doi.org/10.2307/1884852
Singh V (2013) Did institutions herd during the internet bubble? Rev Quant Financ Account 41(3):513–534. https://doi.org/10.1007/s11156-012-0320-1
Smith L, Sørensen P (2000) Pathological outcomes of observational learning. Econometrica 68(2):371–398. https://doi.org/10.1111/1468-0262.00113
Solakoglu MN, Demir N (2014) Sentimental herding in Borsa Istanbul: informed versus uninformed. Appl Econ Lett 21(14):965–968. https://doi.org/10.1080/13504851.2014.902015
Spiwoks M, Bizer K, Hein O (2008) Informational cascades: a mirage? J Econ Behav Organ 67(1):193–199. https://doi.org/10.1016/j.jebo.2007.06.005
Spyrou S (2013) Herding in financial markets: a review of the literature. Rev Behav Financ 5(2):175–194. https://doi.org/10.1108/RBF-02-2013-0009
Stavroyiannis S, Babalos V (2017) Herding, faith-based investments and the global financial crisis: empirical evidence from static and dynamic models. J Behav Financ 18(4):478–489. https://doi.org/10.1080/15427560.2017.1365366
Stinerock RN, Stern BB, Solomon MR (1991) Gender differences in the use of surrogate consumers for financial decision-making. J Prof Serv Mark 7(2):167–182. https://doi.org/10.1300/J090v07n02
Stone DF, Miller SJ (2013) Leading, learning and herding. Math Soc Sci 65(3):222–231. https://doi.org/10.1016/j.mathsocsci.2012.12.002
Tan L, Chiang TC, Mason JR, Nelling E (2008) Herding behavior in Chinese stock markets: an examination of A and B shares. Pacific Basin Financ J 16(1):61–77. https://doi.org/10.1016/j.pacfin.2007.04.004
Tayde M, Rao SVDN (2011) Do foreign institutional investors (FIIs) exhibit herding and positive feedback trading in Indian stock markets? Int Financ Rev 12(2011):169–185. https://doi.org/10.1108/S1569-3767(2011)0000012009
Teng YP, Liu YA (2014) The study of herding behavior among the Greater China stock markets during financial crisis. J Interdiscip Math 17(2):163–197. https://doi.org/10.1080/09720502.2013.878817
Tessaromatis N, Thomas V (2009) Herding behavior in the Athens stock exchange. Invest Manag Financ Innov 6(3):156–164
Trueman B (1994) Analyst forecasts and herding behavior. Rev Financ Stud 7(1):97–124. https://doi.org/10.1093/rfs/7.1.97
Veblen T (1899) The theory of the leisure class. Oxford University Press, New York
Venezia I, Nashikkar A, Shapira Z (2011) Firm specific and macro herding by professional and amateur investors and their effects on market volatility. J Bank Financ 35(7):1599–1609. https://doi.org/10.1016/j.jbankfin.2010.11.015
Villatoro F (2009) The delegated portfolio management problem: reputation and herding. J Bank Financ 33(11):2062–2069. https://doi.org/10.1016/j.jbankfin.2009.04.018
Vo XV, Phan DBA (2017) Further evidence on the herd behavior in Vietnam stock market. J Behav Exp Financ 13:33–41. https://doi.org/10.1016/j.jbef.2017.02.003
Voronkova S, Bohl MT (2005) Institutional traders’ behavior in an emerging stock market: empirical evidence on Polish pension fund investors. J Bus Financ 32(7 8):1537–1560. https://doi.org/10.1111/j.0306-686X.2005.00639.x
Wahyudi S, Laksana RD, Najmudin N, Rachmawati R (2018) Assessing the contagion effect on herding behaviour under segmented and integrated stock markets circumstances in the USA, China, and Asean-5. Econ Ann 169(1–2):15–20. https://doi.org/10.21003/ea.V169-03
Welch I (1992) Sequential sales, learning, and cascades. J Financ 47(2):695–732. https://doi.org/10.1111/j.1540-6261.1992.tb04406.x
Welch I (2000) Herding among security analysts. J Financ Econ 58(3):369–396. https://doi.org/10.1016/S0304-405X(00)00076-3
Wermers R (1999) Mutual fund herding and the impact on stock prices. J Financ 54(2):581–622. https://doi.org/10.1111/0022-1082.00118
Wylie S (2005) Fund manager herding: a test of the accuracy of empirical results using UK data. J Bus 78(1):381–403. https://doi.org/10.1086/426529
Xie T, Xu Y, Zhang X (2015) A new method of measuring herding in stock market and its empirical results in Chinese A-share market. Int Rev Econ Financ 37:324–339. https://doi.org/10.1016/j.iref.2014.12.004
Yang W-R, Chen Y-L (2015) The response of dynamic herd behavior to domestic and US market factors: evidence from the Greater China stock markets. Emerg Mark Financ Trade 51(sup1):18–41. https://doi.org/10.1080/1540496X.2014.998884
Yang X, Gao M, Wu Y, Jin X (2018) Performance evaluation and herd behavior in a laboratory financial market. J Behav Exp Econ 75:45–54. https://doi.org/10.1016/j.socec.2018.05.001
Yao J, Ma C, He WP (2014) Investor herding behaviour of Chinese stock market. Int Rev Econ Financ 29:12–29. https://doi.org/10.1016/j.iref.2013.03.002
Yousaf I, Ali S, Shah SZA (2018) Herding behavior in ramadan and financial crises: the case of the Pakistani stock market. Financ Innov 4(1):16. https://doi.org/10.1186/s40854-018-0098-9
Youssef M, Mokni K (2018) On the fffect of herding behavior on dependence structure between stock markets: evidence from GCC countries. J Behav Exp Financ 20:52–63. https://doi.org/10.1016/j.jbef.2018.07.003
Yüksel HZ (2015) Does investment horizon matter? disentangling the effect of institutional herding on stock prices. Financ Rev 50(4):637–669. https://doi.org/10.1111/fire.12080
Zheng D, Li H, Chiang TC (2017) Herding within industries: evidence from Asian stock markets. Int Rev Econ Financ 51:487–509. https://doi.org/10.1016/j.iref.2017.07.005
Zheng D, Li H, Zhu X (2015) Herding behavior in institutional investors: evidence from China’s stock market. J Multinatl Financ Manag 32–33:59–76. https://doi.org/10.1016/j.mulfin.2015.09.001
Zhou J, Anderson RI (2013) An empirical investigation of herding behavior in the US REIT market. J Real Estate Financ Econ 47(1):83–108. https://doi.org/10.1007/s11146-011-9352-x
Zhou RT, Lai RN (2009) Herding and information based trading. J Empir Financ 16(3):388–393. https://doi.org/10.1016/j.jempfin.2009.01.004
Ziegelmeyer A, Koessler F, Bracht J, Winter E (2010) Fragility of information cascades: an experimental study using elicited beliefs. Exp Econ 13(2):121–145. https://doi.org/10.1007/s10683-009-9232-x
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
On behalf of all authors, the corresponding author states that there is no conflict of interest.
Rights and permissions
About this article
Cite this article
Komalasari, P.T., Asri, M., Purwanto, B. et al. Herding behaviour in the capital market: What do we know and what is next?. Manag Rev Q 72, 745–787 (2022). https://doi.org/10.1007/s11301-021-00212-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11301-021-00212-1
Keywords
- Bibliometric analysis
- Capital markets
- Herding behaviour
- Informational cascade
- Systematic literature review