This research aims to determine the effect of firm value and institutional investors on herding behavior. The newnes this add an indicator that have never been used for measurement value. existence previous result not conclusive raise empirical gaps population are worthy re-study. is carried out using Book Market Ratio Firm Size. size uses company's ownership, behavior Cross-Sectional Absolute ...

What happens when uninformed investors trade stocks via mobile phones? Do they react to social sentiment differently than more informed traders in traditional trading? Based on 16,817 data observations and econometric analysis for the trading of 251 equities in Korea over 39 days, we present evidence of herding behavior among uninformed traders in the mobile channel. The results indicate that m...

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. We study herd behavior in a laboratory financial market with ...

herd behavior by investors in capital markets is a behavioral bias that can cause to undesirable effects such as bubble, crash and high fluctuation in stock price. this anomalies can disturb the equilibrium relations in stock market and lead to market inefficiency. herd behavior is a condition that investors with rational or in rational reasons ignore private information and imitate from others...

This paper investigates how the pattern of encounters between a firm’s competitors affects the firm’s inclination to follow its competitors into a new market. We theorize that direct encounters between a firm’s rivals lead to a herding effect, making imitative market entry more likely. Past mutual forbearance between a firm’s competitors (resulting from asymmetric multimarket competition) furth...

We study herd behavior in a laboratory financial market with financial market professionals. We compare two treatments: one in which the price adjusts to the order flow in such a way that herding should never occur, and one in which the presence of event uncertainty makes herding possible. In the first treatment, traders seldom herd, in accordance with both the theory and previous experimental ...

While herding has long been suspected to play a role in financial market booms and busts, theoretical analyses have struggled to identify conclusive causes for the effect. Recent theoretical work shows that informational herding is possible in a market with efficient asset prices if information is bi-polar, and contrarianism is possible with single-polar information. We present an experimental ...

This paper studies the investment behavior and performance of contrarian mutual funds, as well as the performance of stocks widely held and traded by such funds over the 1994 to 2006 period. We define a “contrarian fund” as a fund that trades in a direction opposite to mutual fund “herds” much more frequently than the average fund. We find that contrarian funds tend to persist in trading agains...