Selfish-herd behaviour of sheep under threat

Do investors in the stock markets act/react on true information or noise? Do they believe on their own information or simply herd? The study seeks to explore these typical research queries from the behavioral finance perspectives. In particular, it develops a new theory of herding behavior and extends the models of Banerjee (1992) and Bikhchandani, Hirshleifer, and Welch (1992). The study also empirically tests the same on the Indian context with the high frequency intraday trading data for the real trade-time or time-stamp, trade-volume, and trade-price of ten sample scripts listed for their trading in both markets - the Bombay Stock Exchange (BSE) and the National stock Exchange (NSE). The study contributes to the literature with original findings. It shows that investors in the two Indian stock markets show crowd of positive and negative herding as well significantly and there is huge noise along with information in the markets equilibrium pricing mechanism.

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INVESTOR HERD BEHAVIOUR IN AFRICA’S EMERGING AND FRONTIER MARKETS

International Journal of Economics and Financial Issues ◽

10.32479/ijefi.10709 ◽

2020 ◽

Vol 10 (6) ◽

pp. 194-205

Author(s):

Godfred Aawaar ◽

Nicholas Addai Boamah ◽

Joseph Oscar Akotey

Keyword(s):

Herd Behaviour

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An Exploratory Study of Herd Behaviour in Vietnamese Stock Market: A New Method

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v6i1.5326 ◽

2014 ◽

Vol 6 (1) ◽

pp. 464

Author(s):

Ngoc Hong Truong ◽

Minh Uyen Le

Keyword(s):

Stock Market ◽

Exploratory Study ◽

New Method ◽

Herd Behaviour

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Herd Behaviour in Adoption of Network Technologies

Journal of Economics ◽

10.1007/s00712-005-0153-7 ◽

2005 ◽

Vol 86 (2) ◽

pp. 161-182 ◽

Cited By ~ 1

Author(s):

Cecilia Vergari

Keyword(s):

Herd Behaviour ◽

Network Technologies

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Solving the Mystery of Crypto’s Bubble

Ushus - Journal of Business Management ◽

10.12725/ujbm.52.2 ◽

2020 ◽

Vol 19 (3) ◽

pp. 25-39

Author(s):

Harsh Sengar

Keyword(s):

Legal Entity ◽

Market Participants ◽

True Value ◽

Herd Behaviour ◽

Rational Bubble ◽

Adf Test

Blockchain is the vehicle on which cryptocurrencies run, and it can’t be regulated by any legal entity during its operation.The huge growth in various cryptocurrency segments in 10 years has created the controversy of an inevitable bubble. A bubble can be generated either by queer herd behaviour or logical secular movement. Traces of evident bubbles have been a certainty and they take the perceived valuation of crypto to figures far away from its true value. This sudden diversion can be lethal due to the illogical, irrational propensity of regular market participants. This study observes ten cryptos under surveillance from September 2014 to August 2019. The selected ten (Monero, Bitcoin, XRP Ripple, Litecoin, Dogecoin, Monacoin, Ethereum, Bytecoin, Digibite, Potcoin) cryptocurrencies were studied for the last five years using Right Tailed ADF Test. Prominent traces of the rational bubble in all the underlying cryptocurrencies were found and have been considered for the study.

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