HERDING BEHAVIOR IN FINANCIAL MARKET – SYSTEMATIC LITERATURE REVIEW
DOI:
https://doi.org/10.21009/JRMSI.015.1.04Keywords:
Herding Behavior, Investor Psychology, Systematic Literature ReviewAbstract
The aim of this research is to present a comprehensive theoretical analysis and provide concrete empirical support pertaining to the phenomenon of herding behavior within financial markets. The current paper can be classified as a literature review, which employed data collection techniques through an extensive survey of existing literature. The body of knowledge accumulated over a span of more than twenty years, consisting of both empirical investigations and theoretical inquiries, has yielded significant insights into the intricate nature of investor herding behavior. However, it is important to acknowledge that the author possesses relatively limited knowledge regarding markets other than capital markets, thereby presenting a constraint in terms of exploring the complexities associated with shifting behavior patterns. Furthermore, the available evidence concerning the existence of following behavior is not particularly compelling. Consequently, this paper advocates for the development and application of an empirical methodology that can effectively address these aforementioned limitations and offer a comprehensive evaluation of herding behavior. Additionally, this study critically examines recent empirical findings in order to identify areas that remain unexplored and require further investigation in future research endeavors.
References
Abdollah Ah Mand, Hawati Janor, Ruzita Abdul Rahim and Tamat Sarmidi. Published. (2021), “Herding behavior and stock market conditions”, PSUResearch Review, Vol. 7 No. 2, 2023 pp. 105-116 Emerald Publishing Limited 2399-1747 DOI 10.1108/PRR-10-2020-0033
Alfonso Guarino, Luca Grilli, Domenico Santoro, Francesco Messina, On the efficacy of “herd behavior” in the commodities market: A neuro-fuzzy agent “herding” on deep learning traders, 2023, The official journal of the International Society for Business and Industrial Statistics (ISBIS).
Banerjee, A.V., (1992). A Simple Model of Herd Behavior. The Quarterly Journal of Economics, 107(3), 797-817
Bickhandani, S. & Sharma, S. (2001). Herd Behavior in Financial Markets. IMF Staff Papers, 47(3), 279-310.
Bikhchandani, S., Hirshleifer, D., Welch, I., 1998. Learning from behaviour of others: conformity, fads and informational cascades. Journal of Economic Perspectives 12(3), 151-170.
Blasco, N., Corredor, P. & Ferreruela, S., 2012. Does Herding Affect Volatility? Implications for the Spanish Stock Market. Quantitative Finance, 12(2), pp. 311-327.
Borensztein. Eduardo and R. Gaston Gelos. 2000, ·'A Panic-Prone Pack? The Behavior of Emerging Market Mutual Funds,'' international Monetary Fund WorkLng Paper 001198.
Bouteska, Ahmed. (2020), “Tunisian Revolution and Herd Behavior: Empirical Evidence From the Tunisia Stock Exchange”, International Finance Review, Vol. 21, p185-199
Bowe, M. Domuta, D. (2004), “Investor herding during financial crisis: A clinical study of the Jakarta Stock Exchange”. Pacific-Basin Finance Journal
Bulut, E. ve Er, B. (2018). “Davranışsal Kurumsal Finans Ekseninde Kurumsal Finansal kararlar: Bir Literatür Değerlendirmesi”, UİİİD-IJEAS, 20,33-50.
Carlos Maquieira and Christian Espinosa-Méndez. (2022), “Herding behavior in the Chinese stock market and the impact of COVID-19”, Herding behavior in the Chinese… / Carlos Maquieira, Christian Espino
Chang, C L, McAleer, M, and Wang, Y A. (2020), “Herding behaviour in energy stock markets during the Global Financial Crisis, SARS, and ongoing COVID-19”, Renewable and Sustainable Energy Reviews,
Chang, E.C., Cheng, J.W., Khorana, A., 2000. An examination of herd behavior in equity markets: an international perspective. Journal of Banking and Finance 24 (10), 1651–1699.
Chang, Eric, Joseph Cheng, and Ajay Khurana, 1998, "An Examination of Herd Behavior in Equity Markets: An Empirical Perspective." (unpublished; Georgia institute of Technology).
Chen, G., Kim, K.A., Nofsinger, J.R., & Rui, O.M. (2007). Trading performance, disposition effect, overconfidence, representativeness bias, and experience of emerging market investors. Journal of Behavioral Decision Making, 20(4), 425-451. https://doi.org/10.1002/bdm.561
Chen, S. ve Ma, H. (2017). Peer Effects in Decision-Making: Evidence From Corporate Investment, Journal of Accounting Research, Erişim Adresi http://dx.doi.org/ 10.1016/j.cjar.2016.11.002(23.07.2020).
Chevalier, Judith and Glenn Ellison, 1999, "Career Concerns of Mutual Fund Managers, "Quarterly Journal of Economics, May, pp. 389-432.
Chiang, T. C., & Zheng, D. (2010). An empirical analysis of herd behavior in global stock markets. Journal of Banking and Finance, 34(8), 1911–1
Chiang, T. C., Jeon, Bang Nam., & Li, Huimin. (2007), “Dynamic correlation analysis of financial contagion: Evidence from Asian markets”, Journal of International Money and Finance, Volume 26, Issue 7, Pages 1206-1228
Choe, Hyuk, Bong-Chan Kho, and Rene M. Stutz, 1999, "Do Foreign Investors Destabilize Stock Markets? The Korean Experience in 1997,'' Journal of Financial Economics, Vol. 54. pp. 227-64
Christie. William G., and Roger D. Huang, 1995. ''Following the Pied Piper: Do Individual Returns Herd Around the Market?", Financial Analysts Journal, July-August, pp. 3 1-37.
Daniel, K., Hirshleifer, D. and Subrahmanyam, A. (1998), “Investor psychology and security market under-and overreactions”, The Journal ofFinance, Vol. 53 No. 6, pp. 1839-1885
Demirer, R,. Gubo, D. ve Kutan, A.M. (2007). An analysis of cross-country herd behavior in stock markets: A regional perspective. J. Int. Financ. Mark. Inst. Money, 3, 123-142.
Demirer, R. and Kutan, A.M. (2006), “Does herding behavior exist in Chinese stock markets?”, Journal of International Financial Markets, Institutions andMoney, Vol. 16 No. 2, pp. 123-142, doi: 10.1016/j. intfin.2005.01.002
Devenow, A. & Welch, I. (1996). Rational Herding in Financial Economics. Journal of European Economic Review, 40, 603-615.DOI: 10.17477/jcea.2020.19.1.097
Dina Gabbori, Nader Virk, Nadeem Aftab, Basel Awartani, The impact of Islamic events on herding behaviour in Saudi Arabian equities market, 2019, International Journal of Finance and Economic.
Elisabete F. Simões Vieiraa,∗, Márcia S. Valente Pereira, Herding behaviour and sentiment: Evidence in a small Europeanmarket, 2013 ASEPUC. Publicado por Elsevier España, S.L.U. Todos los derechos reservados.
Firdaus, Muhammad Yahya, Ayati, Afifah & Aprilia, Puji. (2022), “The Effect Of Financial Literature, Income And Herding Bias On Investment Decisions (Study on Students of the Faculty of Economics and Business, Mercu Buana University, Jakarta)”, Vol, 6 p1
Froot. Kenneth. Paul G. J. O'Connell and Mark Seasholes, 2001. ''The Portfolio Flows of International lnvestors." Journal of International Economics. Vol. 59, No. 2 (February). pp. 15 1-93
Gabbori, Dina. Virk, Nader. Aftab, Nadeem.and Awartani, Basel. (2022), “The impact of Islamic events on herding behaviour in Saudi Arabian equities market”, International Journal of Finance and Economic, https://doi.org/10.1002/ijfe.2678
Garg, A. ve Gulati, R. (2013). Do investors herd in Indian market. Decision, 40(3), 181– 196.
Ghazali syamni. (2009), “Hubungan Perilaku Perdagangan Investor Dengan Volume Perdagangan di Bursa Efek Indonesia”, Jurnal Manajemen Teori dan Terapan | Tahun 2, No.1, April 2009
Gleasona, Kimberly C. Mathurb, Ike, Peterson, Mark A. (2004), “Analysis of intraday herding behavior among the sector ETFs”, Journal of Empirical Finance 11 (2004) 681–694
Gong, Weili, Li, Silin, & Yu, Hongxin. (2022), “Herding Behavior in China's Stock Market under the Background of Implementation of the SHKSC Policy”, Discrete Dynamics in Nature and Society, Vol. 2022, https://doi.org/10.1155/2022/7278023
Graham, J.R., 1999. Herding among investment newsletters: Theory and evidence. J. Finance 54, 237–268
Grinblatt, M., Titman, S. and Wermers, R. (1995), “Momentum investment strategies, portfolio performance, and herding: a study of mutual fund behavior”, The American Economic Review, Vol. 85 No. 5, pp. 1088-1105
Gul, F., & Khan, K. (2019). An empirical study of investors attitudinal factors influencing herd behavior, Evidence from Pakistan Stock Exchange. Abasyn Journal of Social Sciences, 12(1), 1-1
Güvercin, A.(2016). “SentimentalHerding: The Role of Regionaland Global Shocks in Egyptian and Saudi Stock Markets, Sosyoekonomi”,.24(27), 25-32.
H. Uchida, and R. Nakagawa. (2007), “Herd behavior in the Japanese loan market: Evidence”, J. Finan. Intermediation 16 (2007) 555–583
Hong, Harrison, Jeffrey D. Kudik and Amit Solomon, 2000, "Security Analysts' Career Concerns and Herding of Earnings Forecasts:' RAND Journal of Economics, Vol. 3 1 , No. 1 , pp. 1 2 1-44
Hwang, S., and M. Salmon, 2004, Market stress and herding, Journal of Empirical Finance 11 (4), pp. 585–616.
Ike Arisanti. (2020), “Herding Behaviour Around Fed Fund Rate Announcements in Southeast Asia”, Jurnal Reviu Akuntansi dan Keuangan, vol 10 no 1, p. 93-102
Imran Yousaf a, Larisa Yarovaya, Herding behavior in conventional cryptocurrency market, non-fungible tokens, and DeFi assets, 2022, Finance Research Letters 50 103299, Published by Elsevier Inc.
Kahneman, D. and Tversky, A. (1979), "Prospect Theory: An Analysis of Decision under Risk", Econometrica, Vol. 47 No. 2, pp. 263-291.
Kaminsky, G., Schmukler, S., 1999. What triggers market?: a chronicle of the Asian crisis. J. Int. Money Finance 18 (4), 537–560.Kapusuzoglu, A. (2011), "Herding in the Istanbul Stock Exchange (ISE): A case of behavioral finance", African Journal of Business Management, Vol. 5 No.27, pp. 11210-11218.
Kataria, C.D. and Choudhary, S. (2015), “Herding behavior in financial market: critical literature review”, International Research Journal ofCommerce Arts and Science, Vol. 6 No. 12, pp. 16-26
Kayalıdere,K (2012). “Hisse Senedi Piyasasında Sürü Davranışı: İMKB’de Ampirik Bir İnceleme”, İşletme Araştırmaları Dergisi, 4(4), 77-94.
Keynes, J.M., 1936. The General Theory of Employment, Interest and Money. London: Macmillan.
Kim, Woochan and Shang-Jin Wei, 1999, "Foreign Portfolio investors Before and During a Crisis," NBER Working Paper No. 6968, (Cambridge, Massachusetts: NBER)
Kimberly C. Gleasona, Ike Mathurb,*, Mark A. Peterson. (2004), “Analysis of intraday herding behavior among the sector ETFs”, Journal of Empirical Finance 11 (2004) 681–694
Lakonishok, Josef, Andrei Shleifer and Robert W. Vishny, 1992, ''The Impact of Institutional Trading on Stock Prices," Journal of Financial Economics, Vol. 32, pp. 23-43.
Leary, Mark T and Roberts, Michael R. (2013), “ Do Peer Firms Affect Corporate Financial Policy?”, The Journal of Finance, https://doi.org/10.1111/jofi.12094
Lin, A. Y., and P. E. Swanson, 2003, The behavior and performance of foreign investors in emerging equity markets: Evidence from Taiwan, International Review of Finance 4(3–4), pp. 189–210.
Lin, A. Y., L. S. Huang, and M. Y. Chen, 2007, Price comovement and institutional performance following large market movements, Emerging Markets Finance and Trade 43 (5), pp. 37–61.
Loang, Ooi Kok and Ahmad, Zamri. (2020), “Social Factors and Herd Behaviour in Developed Markets, Advanced Emerging Markets and Secondary Emerging Markets”, Journal of Contemporary Eastern Asia Vol. 19, No. 1: 97-122
Lux, T. (1995). “Herd Behaviour, Bubbles and Crashes”. Economic Journal 105. 881-896.
Mabrouk, H.B. & Mohamed, F. (2013). Herding During Market Upturns and Downturns: International Evidence. The IUP Journal of Applied Finance, 19(2), 5-26
Maquieira, Carlos and Espinosa-Méndez, Christian. (2022), “Herding behavior in the Chinese stock market and the impact of COVID-19”, Estudios de Economia, Vol. 49, p199-229
Masriani. H. (2021), “The Effect Financial Literacy, Herding, Risk Tolerance and Self Monitoring on Investment Decisions (Study During the Covid-19 Pandemic)”, Tesis, Program Magister Akuntansi Fakultas Ekonomi dan Bisnis Universitas Hasanuddin Makassar
Ming-Hung Wu, Wan-Ting Hu, Pei-Shih Weng / Herd behaviors in index futures trading: Driving factors and impact on market volatility, 2023, The Journal of Future Market
Mouna Jlassi & Ahmed Bensaïda (2014), Herding Behavior and Trading Volume: Evidence from the American Indexes, International Review of Management and Business Research, Vol. 3 Issue.2
My, T. N ve Truong, H. H. (2011). “Herding behavior in an emerging stock market: Empirical evidence from Vietnam”, Research Journal of Business Management, 5(2), 51-76
Nahar Annisa. (2019), “Pengaruh Heuristic, Herding dan Sikap Investor Terhadap Risiko Pada Kinerja Investasi (Studi Pada Bursa Efek Indonesia)”, Tesis, Program Studi Mmagister Ilmu Akuntansi Fakultas Ekonomi dan Bisnis Universitas Lampung Bandar Lampung
Nikolaos Voukelatos, and Thanos Verousis. (2019), “Option-implied information and stock herding”, International Journal of Finance and Economic.
Nofsinger J & Baker H (2010), Behavioral Finance: Investors, Corporations, and Markets, John Wiley and Sons, Book, DOI: 10.1002/9781118258415
Nofsinger, J.R. and Sias, R.W. (1999), “Herding and feedback trading by institutional and individual investors”, The Journal ofFinance, Vol. 54 No. 6, pp. 2263-2295.
Norma Norahayu Kuasa and Achmad Tjahjono. (2023), “Pengaruh Herding, Overconfidence, Accounting Knowledge, Dan Risk Perception Terhadap Keputusan Investasi di Bursa Saham”, Kajian Bisnis Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha Vol. 31, No. 2, Tahun 2023, 1 – 15 https://doi.org/10.32477/jkb.v31i2.495
Nouri-Goushki, Mohadese and Hojaji, S. Navid. (2023), “Herding behavior and government policy responses: Evidence from COVID-19 effect”, Heliyon 9, e17964
Nurul nadiah rusle, herding behavior in dividend policy-Case study of malaysia, master of science (finance), universiti utara malaysia, 2013
Olivier Guedj And Jean-Philippe Bouchaud. (2005), “Experts’ Earning Forecasts: Bias, Herding And Gossamer Information “, International Journal of Theoretical and Applied Finance Vol. 8, No. 7 (2005) 933–946
Özen, Ercan and Ersoy, Gürsel. (2019), “The impact of financial literacy on cognitive biases of individual investors”, Contemporary Studies in Economic and Financial Analysis, Vol.101, p77-95
Phan, Hong Mai,. Quynh Le, Thi Nhu,. Dam, Vu Duc Hieu., Tran, Manh Son,. Truong, Thi Hoai Linh., and Anh Le, Quoc. (2023), “Herd behavior in Vietnam’s stock market: Impacts of COVID-19”, Cogent Economics & Finance (2023), 11: 2266616 https://doi.org/10.1080/23322039.2023.2266616
Poshakwale, S and Mandal, A. (2014), “Investor behaviour and herding: Evidence from the national stock exchange in India”, Journal of Emerging Market Finance
Prechter, R.R. (2001), “Unconscious herding behavior as the psychological basis of financial market trends and patterns”, Journal of Psychology and Financial Markets, Vol.2 No.3, pp. 120-12
Tiwari, Puja. (2021), “Effect of Media on the Behaviour of Investors and Stocks”, Turkish Online Journal of Qualitative Inquiry (TOJQI) Volume 12, Issue 6, June 2021: 1667-1673
Raddatz, C, Schmukler, S L, and Williams, T. (2017), “International asset allocations and capital flows: The benchmark effect”, Journal of International Economics,
Rahim, et. Al (2021), “Post Covid-19 Influence of Herding Effect Bias on Investment Decisions Of Pakistani Stock Investors”, Elementary Education Online
Retail”, Bachelor Thesis in Business Administration Title, Jokoping International Business School
Daniati, Ria Restu, and Prasetyo, Hendra Dwi. (2022), “Pengaruh Herding Dan Overconfidence Terhadap Keputusan Investasi”. Vol. 3, No. 1, Juni 2022 ISSN : 2723-6498 e-ISSN: 2723-6501 DOI Issue : 10.46306/rev.v3i1 Doi Artikel : 10.46306/rev.v3i1.92
Sari Fitriyani and Saiful Anwar, (2022), “The Effect of Herding, Experience Regret and Religiosity on Sharia Stock Investment Decisions for Muslim Millennial Investors with Financial Literacy as a Moderating Variable”, Jurnal Ekonomi Syariah Teori dan Terapan p-ISSN: 2407-1935, e-ISSN: 2502-1508. Vol. 9 No. 1 Januari 2022: 68-77; DOI: 10.20473/vol9iss20221pp68-77
Sari, Winda Wulan, Fathoni, and Ahmad Fauzan Haryetti. (2019), “The Effect of Stock Performance Information on Investment Decision Making with Herding Behavior as a Mediating Variable”, Jurnal Ekonomi Fakultas Ekonomi dan Bisnis Universitas Riau, Vol.27, p282-292
Shefrin, H. (2000), Beyond Greed and Fear; Understanding Behavioral Finance and the Psychology of Investing. Cambridge: HBS Pres (Washington: IMF).
Shefrin, H. and Statman, M. (1985), “The disposition to sell winners too early and ride losers too long: theory and evidence”, The Journal ofFinance, Vol. 40 No. 3, pp. 777-790
Tan, L., Chiang, T. C., Mason, J. R., & Nelling, E. (2008). Herding behavior in Chinese stock markets: An examination of A and B shares. Pacific-Basin Finance Journal, 16(1–2), 61–77. http://dx.doi.org/10.1016/j.pacfin.2007.04.004
Timothy Salvatore and Artha Ayerza Esra, (2020), “Pengaruh Over Confidence, Herding, Regret Aversion, and Risk dalam Pengambilan Keputusan Investasi”, Kweek Gian Gee School of Business
Ulzii, B.J.M, McAleer, M., Moslehpour, M. Ve Wong, W-K. (2018). Confucius and Herding Behaviour in the Stock Markets in China and Taiwan. Sustainability, 10(12), 4413
Voukelatos, Nikolaos & Verousis, Thanos. (2019), “Option-implied information and stock herding”, International Journal of Finance and Economics, Vol. 24, p1429-1442
Weiner, R. J. (2006). Do birds of a feather flock together? Speculator herding in the world oil market. Discussion Paper No: 06-31, Resources for the Futures.
Welch, lvo, 2000, "Herding Among Security Analysts." Journal of Financial Economics, Vol. 58, No. 3 (December), pp. 369-96.
Yao, J.; Ma, C. ve He, W.P. (2014). Investor herding behaviour of Chinese stock market. Int. Rev. Econ. Financ, 29,12–29.
Yide Wang, Chao Yu, Xujie Zhao, (2023), “Does herding effect help forecast market volatility? Evidence from the Chinese stock market”, Journal of Forecasting, https://doi.org/10.1002/for.2968
Yide Wang, Chao Yu, Xujie Zhao, Does herding effect help forecast market volatility?—Evidence from the Chinese stock market, 2023, Journal of Forecasting.
Yousaf, Imran. and Yarovaya. Larisa. (2022), “Herding behavior in conventional cryptocurrency market, non-fungible tokens, and DeFi assets”, Finance Research Letters 50, 103299
Zekria, Alizada and Oscar, Clarin. (2018), “The Impact of Loss Aversion Bias on Herding Behavior of Young Swedish
Zhang, Mao., and Wang, Yi-Ming., (2020), “The network correlation between the investor's herding behavior and overconfidence behavior” Chinese Phys. B in press https://doi.org/10.1088/1674-1056/ab7740
Zhou Lulin1, Henry Asante Antwi1, Wenxin Wang1, Ethel Yiranbon1, Emmanuel Opoku Marfo2 and Patrick Acheampong1. (2016), “The effect of herd formation among healthcare investors on health sector growth in China”, International Journal for Equity in Health, Vol. 15 p1-16
Alfonso Guarino, Luca Grilli, Domenico Santoro, Francesco Messina, On the efficacy of “herd behavior” in the commodities market: A neuro-fuzzy agent “herding” on deep learning traders, 2023, The official journal of the International Society for Business and Industrial Statistics (ISBIS).
Banerjee, A.V., (1992). A Simple Model of Herd Behavior. The Quarterly Journal of Economics, 107(3), 797-817
Bickhandani, S. & Sharma, S. (2001). Herd Behavior in Financial Markets. IMF Staff Papers, 47(3), 279-310.
Bikhchandani, S., Hirshleifer, D., Welch, I., 1998. Learning from behaviour of others: conformity, fads and informational cascades. Journal of Economic Perspectives 12(3), 151-170.
Blasco, N., Corredor, P. & Ferreruela, S., 2012. Does Herding Affect Volatility? Implications for the Spanish Stock Market. Quantitative Finance, 12(2), pp. 311-327.
Borensztein. Eduardo and R. Gaston Gelos. 2000, ·'A Panic-Prone Pack? The Behavior of Emerging Market Mutual Funds,'' international Monetary Fund WorkLng Paper 001198.
Bouteska, Ahmed. (2020), “Tunisian Revolution and Herd Behavior: Empirical Evidence From the Tunisia Stock Exchange”, International Finance Review, Vol. 21, p185-199
Bowe, M. Domuta, D. (2004), “Investor herding during financial crisis: A clinical study of the Jakarta Stock Exchange”. Pacific-Basin Finance Journal
Bulut, E. ve Er, B. (2018). “Davranışsal Kurumsal Finans Ekseninde Kurumsal Finansal kararlar: Bir Literatür Değerlendirmesi”, UİİİD-IJEAS, 20,33-50.
Carlos Maquieira and Christian Espinosa-Méndez. (2022), “Herding behavior in the Chinese stock market and the impact of COVID-19”, Herding behavior in the Chinese… / Carlos Maquieira, Christian Espino
Chang, C L, McAleer, M, and Wang, Y A. (2020), “Herding behaviour in energy stock markets during the Global Financial Crisis, SARS, and ongoing COVID-19”, Renewable and Sustainable Energy Reviews,
Chang, E.C., Cheng, J.W., Khorana, A., 2000. An examination of herd behavior in equity markets: an international perspective. Journal of Banking and Finance 24 (10), 1651–1699.
Chang, Eric, Joseph Cheng, and Ajay Khurana, 1998, "An Examination of Herd Behavior in Equity Markets: An Empirical Perspective." (unpublished; Georgia institute of Technology).
Chen, G., Kim, K.A., Nofsinger, J.R., & Rui, O.M. (2007). Trading performance, disposition effect, overconfidence, representativeness bias, and experience of emerging market investors. Journal of Behavioral Decision Making, 20(4), 425-451. https://doi.org/10.1002/bdm.561
Chen, S. ve Ma, H. (2017). Peer Effects in Decision-Making: Evidence From Corporate Investment, Journal of Accounting Research, Erişim Adresi http://dx.doi.org/ 10.1016/j.cjar.2016.11.002(23.07.2020).
Chevalier, Judith and Glenn Ellison, 1999, "Career Concerns of Mutual Fund Managers, "Quarterly Journal of Economics, May, pp. 389-432.
Chiang, T. C., & Zheng, D. (2010). An empirical analysis of herd behavior in global stock markets. Journal of Banking and Finance, 34(8), 1911–1
Chiang, T. C., Jeon, Bang Nam., & Li, Huimin. (2007), “Dynamic correlation analysis of financial contagion: Evidence from Asian markets”, Journal of International Money and Finance, Volume 26, Issue 7, Pages 1206-1228
Choe, Hyuk, Bong-Chan Kho, and Rene M. Stutz, 1999, "Do Foreign Investors Destabilize Stock Markets? The Korean Experience in 1997,'' Journal of Financial Economics, Vol. 54. pp. 227-64
Christie. William G., and Roger D. Huang, 1995. ''Following the Pied Piper: Do Individual Returns Herd Around the Market?", Financial Analysts Journal, July-August, pp. 3 1-37.
Daniel, K., Hirshleifer, D. and Subrahmanyam, A. (1998), “Investor psychology and security market under-and overreactions”, The Journal ofFinance, Vol. 53 No. 6, pp. 1839-1885
Demirer, R,. Gubo, D. ve Kutan, A.M. (2007). An analysis of cross-country herd behavior in stock markets: A regional perspective. J. Int. Financ. Mark. Inst. Money, 3, 123-142.
Demirer, R. and Kutan, A.M. (2006), “Does herding behavior exist in Chinese stock markets?”, Journal of International Financial Markets, Institutions andMoney, Vol. 16 No. 2, pp. 123-142, doi: 10.1016/j. intfin.2005.01.002
Devenow, A. & Welch, I. (1996). Rational Herding in Financial Economics. Journal of European Economic Review, 40, 603-615.DOI: 10.17477/jcea.2020.19.1.097
Dina Gabbori, Nader Virk, Nadeem Aftab, Basel Awartani, The impact of Islamic events on herding behaviour in Saudi Arabian equities market, 2019, International Journal of Finance and Economic.
Elisabete F. Simões Vieiraa,∗, Márcia S. Valente Pereira, Herding behaviour and sentiment: Evidence in a small Europeanmarket, 2013 ASEPUC. Publicado por Elsevier España, S.L.U. Todos los derechos reservados.
Firdaus, Muhammad Yahya, Ayati, Afifah & Aprilia, Puji. (2022), “The Effect Of Financial Literature, Income And Herding Bias On Investment Decisions (Study on Students of the Faculty of Economics and Business, Mercu Buana University, Jakarta)”, Vol, 6 p1
Froot. Kenneth. Paul G. J. O'Connell and Mark Seasholes, 2001. ''The Portfolio Flows of International lnvestors." Journal of International Economics. Vol. 59, No. 2 (February). pp. 15 1-93
Gabbori, Dina. Virk, Nader. Aftab, Nadeem.and Awartani, Basel. (2022), “The impact of Islamic events on herding behaviour in Saudi Arabian equities market”, International Journal of Finance and Economic, https://doi.org/10.1002/ijfe.2678
Garg, A. ve Gulati, R. (2013). Do investors herd in Indian market. Decision, 40(3), 181– 196.
Ghazali syamni. (2009), “Hubungan Perilaku Perdagangan Investor Dengan Volume Perdagangan di Bursa Efek Indonesia”, Jurnal Manajemen Teori dan Terapan | Tahun 2, No.1, April 2009
Gleasona, Kimberly C. Mathurb, Ike, Peterson, Mark A. (2004), “Analysis of intraday herding behavior among the sector ETFs”, Journal of Empirical Finance 11 (2004) 681–694
Gong, Weili, Li, Silin, & Yu, Hongxin. (2022), “Herding Behavior in China's Stock Market under the Background of Implementation of the SHKSC Policy”, Discrete Dynamics in Nature and Society, Vol. 2022, https://doi.org/10.1155/2022/7278023
Graham, J.R., 1999. Herding among investment newsletters: Theory and evidence. J. Finance 54, 237–268
Grinblatt, M., Titman, S. and Wermers, R. (1995), “Momentum investment strategies, portfolio performance, and herding: a study of mutual fund behavior”, The American Economic Review, Vol. 85 No. 5, pp. 1088-1105
Gul, F., & Khan, K. (2019). An empirical study of investors attitudinal factors influencing herd behavior, Evidence from Pakistan Stock Exchange. Abasyn Journal of Social Sciences, 12(1), 1-1
Güvercin, A.(2016). “SentimentalHerding: The Role of Regionaland Global Shocks in Egyptian and Saudi Stock Markets, Sosyoekonomi”,.24(27), 25-32.
H. Uchida, and R. Nakagawa. (2007), “Herd behavior in the Japanese loan market: Evidence”, J. Finan. Intermediation 16 (2007) 555–583
Hong, Harrison, Jeffrey D. Kudik and Amit Solomon, 2000, "Security Analysts' Career Concerns and Herding of Earnings Forecasts:' RAND Journal of Economics, Vol. 3 1 , No. 1 , pp. 1 2 1-44
Hwang, S., and M. Salmon, 2004, Market stress and herding, Journal of Empirical Finance 11 (4), pp. 585–616.
Ike Arisanti. (2020), “Herding Behaviour Around Fed Fund Rate Announcements in Southeast Asia”, Jurnal Reviu Akuntansi dan Keuangan, vol 10 no 1, p. 93-102
Imran Yousaf a, Larisa Yarovaya, Herding behavior in conventional cryptocurrency market, non-fungible tokens, and DeFi assets, 2022, Finance Research Letters 50 103299, Published by Elsevier Inc.
Kahneman, D. and Tversky, A. (1979), "Prospect Theory: An Analysis of Decision under Risk", Econometrica, Vol. 47 No. 2, pp. 263-291.
Kaminsky, G., Schmukler, S., 1999. What triggers market?: a chronicle of the Asian crisis. J. Int. Money Finance 18 (4), 537–560.Kapusuzoglu, A. (2011), "Herding in the Istanbul Stock Exchange (ISE): A case of behavioral finance", African Journal of Business Management, Vol. 5 No.27, pp. 11210-11218.
Kataria, C.D. and Choudhary, S. (2015), “Herding behavior in financial market: critical literature review”, International Research Journal ofCommerce Arts and Science, Vol. 6 No. 12, pp. 16-26
Kayalıdere,K (2012). “Hisse Senedi Piyasasında Sürü Davranışı: İMKB’de Ampirik Bir İnceleme”, İşletme Araştırmaları Dergisi, 4(4), 77-94.
Keynes, J.M., 1936. The General Theory of Employment, Interest and Money. London: Macmillan.
Kim, Woochan and Shang-Jin Wei, 1999, "Foreign Portfolio investors Before and During a Crisis," NBER Working Paper No. 6968, (Cambridge, Massachusetts: NBER)
Kimberly C. Gleasona, Ike Mathurb,*, Mark A. Peterson. (2004), “Analysis of intraday herding behavior among the sector ETFs”, Journal of Empirical Finance 11 (2004) 681–694
Lakonishok, Josef, Andrei Shleifer and Robert W. Vishny, 1992, ''The Impact of Institutional Trading on Stock Prices," Journal of Financial Economics, Vol. 32, pp. 23-43.
Leary, Mark T and Roberts, Michael R. (2013), “ Do Peer Firms Affect Corporate Financial Policy?”, The Journal of Finance, https://doi.org/10.1111/jofi.12094
Lin, A. Y., and P. E. Swanson, 2003, The behavior and performance of foreign investors in emerging equity markets: Evidence from Taiwan, International Review of Finance 4(3–4), pp. 189–210.
Lin, A. Y., L. S. Huang, and M. Y. Chen, 2007, Price comovement and institutional performance following large market movements, Emerging Markets Finance and Trade 43 (5), pp. 37–61.
Loang, Ooi Kok and Ahmad, Zamri. (2020), “Social Factors and Herd Behaviour in Developed Markets, Advanced Emerging Markets and Secondary Emerging Markets”, Journal of Contemporary Eastern Asia Vol. 19, No. 1: 97-122
Lux, T. (1995). “Herd Behaviour, Bubbles and Crashes”. Economic Journal 105. 881-896.
Mabrouk, H.B. & Mohamed, F. (2013). Herding During Market Upturns and Downturns: International Evidence. The IUP Journal of Applied Finance, 19(2), 5-26
Maquieira, Carlos and Espinosa-Méndez, Christian. (2022), “Herding behavior in the Chinese stock market and the impact of COVID-19”, Estudios de Economia, Vol. 49, p199-229
Masriani. H. (2021), “The Effect Financial Literacy, Herding, Risk Tolerance and Self Monitoring on Investment Decisions (Study During the Covid-19 Pandemic)”, Tesis, Program Magister Akuntansi Fakultas Ekonomi dan Bisnis Universitas Hasanuddin Makassar
Ming-Hung Wu, Wan-Ting Hu, Pei-Shih Weng / Herd behaviors in index futures trading: Driving factors and impact on market volatility, 2023, The Journal of Future Market
Mouna Jlassi & Ahmed Bensaïda (2014), Herding Behavior and Trading Volume: Evidence from the American Indexes, International Review of Management and Business Research, Vol. 3 Issue.2
My, T. N ve Truong, H. H. (2011). “Herding behavior in an emerging stock market: Empirical evidence from Vietnam”, Research Journal of Business Management, 5(2), 51-76
Nahar Annisa. (2019), “Pengaruh Heuristic, Herding dan Sikap Investor Terhadap Risiko Pada Kinerja Investasi (Studi Pada Bursa Efek Indonesia)”, Tesis, Program Studi Mmagister Ilmu Akuntansi Fakultas Ekonomi dan Bisnis Universitas Lampung Bandar Lampung
Nikolaos Voukelatos, and Thanos Verousis. (2019), “Option-implied information and stock herding”, International Journal of Finance and Economic.
Nofsinger J & Baker H (2010), Behavioral Finance: Investors, Corporations, and Markets, John Wiley and Sons, Book, DOI: 10.1002/9781118258415
Nofsinger, J.R. and Sias, R.W. (1999), “Herding and feedback trading by institutional and individual investors”, The Journal ofFinance, Vol. 54 No. 6, pp. 2263-2295.
Norma Norahayu Kuasa and Achmad Tjahjono. (2023), “Pengaruh Herding, Overconfidence, Accounting Knowledge, Dan Risk Perception Terhadap Keputusan Investasi di Bursa Saham”, Kajian Bisnis Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha Vol. 31, No. 2, Tahun 2023, 1 – 15 https://doi.org/10.32477/jkb.v31i2.495
Nouri-Goushki, Mohadese and Hojaji, S. Navid. (2023), “Herding behavior and government policy responses: Evidence from COVID-19 effect”, Heliyon 9, e17964
Nurul nadiah rusle, herding behavior in dividend policy-Case study of malaysia, master of science (finance), universiti utara malaysia, 2013
Olivier Guedj And Jean-Philippe Bouchaud. (2005), “Experts’ Earning Forecasts: Bias, Herding And Gossamer Information “, International Journal of Theoretical and Applied Finance Vol. 8, No. 7 (2005) 933–946
Özen, Ercan and Ersoy, Gürsel. (2019), “The impact of financial literacy on cognitive biases of individual investors”, Contemporary Studies in Economic and Financial Analysis, Vol.101, p77-95
Phan, Hong Mai,. Quynh Le, Thi Nhu,. Dam, Vu Duc Hieu., Tran, Manh Son,. Truong, Thi Hoai Linh., and Anh Le, Quoc. (2023), “Herd behavior in Vietnam’s stock market: Impacts of COVID-19”, Cogent Economics & Finance (2023), 11: 2266616 https://doi.org/10.1080/23322039.2023.2266616
Poshakwale, S and Mandal, A. (2014), “Investor behaviour and herding: Evidence from the national stock exchange in India”, Journal of Emerging Market Finance
Prechter, R.R. (2001), “Unconscious herding behavior as the psychological basis of financial market trends and patterns”, Journal of Psychology and Financial Markets, Vol.2 No.3, pp. 120-12
Tiwari, Puja. (2021), “Effect of Media on the Behaviour of Investors and Stocks”, Turkish Online Journal of Qualitative Inquiry (TOJQI) Volume 12, Issue 6, June 2021: 1667-1673
Raddatz, C, Schmukler, S L, and Williams, T. (2017), “International asset allocations and capital flows: The benchmark effect”, Journal of International Economics,
Rahim, et. Al (2021), “Post Covid-19 Influence of Herding Effect Bias on Investment Decisions Of Pakistani Stock Investors”, Elementary Education Online
Retail”, Bachelor Thesis in Business Administration Title, Jokoping International Business School
Daniati, Ria Restu, and Prasetyo, Hendra Dwi. (2022), “Pengaruh Herding Dan Overconfidence Terhadap Keputusan Investasi”. Vol. 3, No. 1, Juni 2022 ISSN : 2723-6498 e-ISSN: 2723-6501 DOI Issue : 10.46306/rev.v3i1 Doi Artikel : 10.46306/rev.v3i1.92
Sari Fitriyani and Saiful Anwar, (2022), “The Effect of Herding, Experience Regret and Religiosity on Sharia Stock Investment Decisions for Muslim Millennial Investors with Financial Literacy as a Moderating Variable”, Jurnal Ekonomi Syariah Teori dan Terapan p-ISSN: 2407-1935, e-ISSN: 2502-1508. Vol. 9 No. 1 Januari 2022: 68-77; DOI: 10.20473/vol9iss20221pp68-77
Sari, Winda Wulan, Fathoni, and Ahmad Fauzan Haryetti. (2019), “The Effect of Stock Performance Information on Investment Decision Making with Herding Behavior as a Mediating Variable”, Jurnal Ekonomi Fakultas Ekonomi dan Bisnis Universitas Riau, Vol.27, p282-292
Shefrin, H. (2000), Beyond Greed and Fear; Understanding Behavioral Finance and the Psychology of Investing. Cambridge: HBS Pres (Washington: IMF).
Shefrin, H. and Statman, M. (1985), “The disposition to sell winners too early and ride losers too long: theory and evidence”, The Journal ofFinance, Vol. 40 No. 3, pp. 777-790
Tan, L., Chiang, T. C., Mason, J. R., & Nelling, E. (2008). Herding behavior in Chinese stock markets: An examination of A and B shares. Pacific-Basin Finance Journal, 16(1–2), 61–77. http://dx.doi.org/10.1016/j.pacfin.2007.04.004
Timothy Salvatore and Artha Ayerza Esra, (2020), “Pengaruh Over Confidence, Herding, Regret Aversion, and Risk dalam Pengambilan Keputusan Investasi”, Kweek Gian Gee School of Business
Ulzii, B.J.M, McAleer, M., Moslehpour, M. Ve Wong, W-K. (2018). Confucius and Herding Behaviour in the Stock Markets in China and Taiwan. Sustainability, 10(12), 4413
Voukelatos, Nikolaos & Verousis, Thanos. (2019), “Option-implied information and stock herding”, International Journal of Finance and Economics, Vol. 24, p1429-1442
Weiner, R. J. (2006). Do birds of a feather flock together? Speculator herding in the world oil market. Discussion Paper No: 06-31, Resources for the Futures.
Welch, lvo, 2000, "Herding Among Security Analysts." Journal of Financial Economics, Vol. 58, No. 3 (December), pp. 369-96.
Yao, J.; Ma, C. ve He, W.P. (2014). Investor herding behaviour of Chinese stock market. Int. Rev. Econ. Financ, 29,12–29.
Yide Wang, Chao Yu, Xujie Zhao, (2023), “Does herding effect help forecast market volatility? Evidence from the Chinese stock market”, Journal of Forecasting, https://doi.org/10.1002/for.2968
Yide Wang, Chao Yu, Xujie Zhao, Does herding effect help forecast market volatility?—Evidence from the Chinese stock market, 2023, Journal of Forecasting.
Yousaf, Imran. and Yarovaya. Larisa. (2022), “Herding behavior in conventional cryptocurrency market, non-fungible tokens, and DeFi assets”, Finance Research Letters 50, 103299
Zekria, Alizada and Oscar, Clarin. (2018), “The Impact of Loss Aversion Bias on Herding Behavior of Young Swedish
Zhang, Mao., and Wang, Yi-Ming., (2020), “The network correlation between the investor's herding behavior and overconfidence behavior” Chinese Phys. B in press https://doi.org/10.1088/1674-1056/ab7740
Zhou Lulin1, Henry Asante Antwi1, Wenxin Wang1, Ethel Yiranbon1, Emmanuel Opoku Marfo2 and Patrick Acheampong1. (2016), “The effect of herd formation among healthcare investors on health sector growth in China”, International Journal for Equity in Health, Vol. 15 p1-16
Downloads
Published
2024-04-01
How to Cite
Sibarani, B. (2024). HERDING BEHAVIOR IN FINANCIAL MARKET – SYSTEMATIC LITERATURE REVIEW. JRMSI - Jurnal Riset Manajemen Sains Indonesia, 15(01), 33–45. https://doi.org/10.21009/JRMSI.015.1.04
Issue
Section
Articles
License
Articles in Jurnal Riset Manajemen Sains Indonesia are Open Access articles published under the Creative Commons CC BY-NC-SA License. This license permits use, distribution and reproduction in any medium for non-commercial purposes only, provided the original work and source is properly cited. Any derivative of the original must be distributed under the same license as the original.
