Empirical Investigation of Herding under Different Economic Setups ()
ABSTRACT
Present study is an attempt
to analyse the presence of herding in different economic conditions. A mix of
developed and developing countries is selected from different corners of the
word. Our sample comprises 35 world markets, out of which 18 are emerging
markets while 17 are developed markets. Daily data of all constituents stocks
of the representative indices of these markets are extracted over most recent
period ranging from Jan. 2000 to Apr. 2018. Applying different methodologies
static and time varying, we find that only 11 markets out of 35 exhibit
significant herding behaviour. These markets majorly belong to Asia, Africa and
Middle East. We also try to relate herding with region, culture and state of
economy and do not find any significant relation of these variables with
herding.
Share and Cite:
Kumar, A. and Badhani, K. (2018) Empirical Investigation of Herding under Different Economic Setups.
Theoretical Economics Letters,
8, 3313-3352. doi:
10.4236/tel.2018.815205.