Cross-country effects in herding behaviour: Evidence from four south European markets

Herding behaviour in a peripheral European stock market: the impact of the subprime and the European sovereign debt crises

“…These results are similar to Economou et al (2011) for Portugal, which found the existence of herding with weighted returns, but did not confirm the same for average returns. The divergent outcome in relation to average returns may be explained by a different sample period.…”

“…The CSAD model can accommodate asymmetric behavior when the market rises or falls (Economou et al, 2011):…”

“…For Christie and Huang (1995), investors acquire greater propensity for mutual imitation in periods of market stress, or great volatility. On the other hand, with the awakening of the Asian crisis of 1997 (Kim and Wei, 2002) and the recent global financial crisis of 2007/08 (Economou et al, 2011), the number of studies on herding behavior in crises increased. Now, let us refer to the main economic repercussions of herding behavior.…”

“…The subprime financial crisis is defined as taking place from 01/08/2007 (Horta et al, 2015) to 31/12/2008 (Economou et al, 2011). Over this period there is a clear downward trend in PSI 20.…”

Institutional industry herding: Intentional or spurious?

“…This is interesting from an investor's viewpoint, since being aware of the conditions that promote herding among funds investing in a sector can constitute a potentially useful input to any sector-style strategy. Regarding regulators, these results denote that the intent underlying institutional industry herding is versatile in nature, motivated by different marketwide and sector-specific factors for each sector; such knowledge can be particularly important to them when considering measures aiming at curtailing fund managers' herding tendencies in order to avoid their potentially destabilizing effects (Goodhart et al, 1999;Economou et al, 2011). …”