Herding behavior in developed, emerging, and frontier European stock markets during COVID-19 pandemic (CROSBI ID 313676)
Prilog u časopisu | izvorni znanstveni rad | međunarodna recenzija
Podaci o odgovornosti
Bogdan, Siniša ; Natali, Suštar ; Bojana, Olgić Draženović
engleski
Herding behavior in developed, emerging, and frontier European stock markets during COVID-19 pandemic
The behavior of market participants often does not rely on market signals, but replicates the investment decisions of other parties. The convergence of their investment behavior leads to the emergence of herd behavior with negative implications for financial stability. Moreover, this phenomenon may be even more pronounced in times of crisis. Although herding is an interesting topic which invites the interest of academic researchers, it still has not been sufficiently studied in terms of comparing the herd effect between differently developed stock markets. The first objective of this research was to determine the herd behavior during the COVID-19 pandemic using static and rolling regression analysis. The second objective was to investigate whether the herd behavior was triggered by the pandemic, while the third objective was to compare the differences in herd behavior between differently developed European stock markets. The results show that this phenomenon is most pronounced in emerging markets, followed by frontier markets and developed markets. Therefore, the results of this study are of particular importance for individual and institutional investors to achieve efficient risk diversification and for financial authorities to establish rules and avoid an increase in herd behavior
behavioral finance ; herd behavior ; CSAD ; CSSD ; crisis
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Podaci o izdanju
15 (9)
2022.
1-12
objavljeno
1911-8066
1911-8074
10.3390/jrfm15090400
Povezanost rada
Ekonomija