Do Indian investors also follow the pied piper? A case for pre- and post-financial crisis
| Autor: | Neelam Rani, Aman Asija |
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| Rok vydání: | 2015 |
| Předmět: | |
| Zdroj: | International Journal of Behavioural Accounting and Finance. 5:334 |
| ISSN: | 1753-1977 1753-1969 |
| DOI: | 10.1504/ijbaf.2015.075344 |
| Popis: | The phenomenon of market-wide herding emerges when investors choose to ignore firm-specific information and instead decide to follow the market. This paper explores the presence of herding behaviour in the Indian stock market by implementing cross-sectional absolute deviation technique. The study also compares the presence of herding behaviour in both pre- and post-crisis periods. The findings reveal strong evidence of herding behaviour during extreme market upturn while anti-herding tendencies dominated at times of extreme downturn. Moreover, a change has been observed in the herding behaviour over time. During the pre-crisis period, there was anti-herding for the upward movement, but herding has been observed for the downward movement. It may be due to ambiguity created in the market during such reversals. The post-crisis period exhibits strong evidence for herding during upturns. Positive outlook of investors towards the Indian market leads to a speedy recovery after a financial crisis. Contrary to popular belief, anti-herding has dominated during the period of financial crisis. |
| Databáze: | OpenAIRE |
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