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Herd Behavior in Financial Markets

Herd Behavior in Financial Markets
Author: Sushil Bikhchandani
Publisher:
Total Pages: 38
Release: 2000
Genre: Capital market
ISBN:

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Estimating a Structural Model of Herd Behavior in Financial Markets

Estimating a Structural Model of Herd Behavior in Financial Markets
Author: Antonio Guarino
Publisher: International Monetary Fund
Total Pages: 35
Release: 2010-12-01
Genre: Business & Economics
ISBN: 1455211699

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We develop a new methodology to estimate the importance of herd behavior in financial markets: we build a structural model of informational herding that can be estimated with financial transaction data. In the model, rational herding arises because of information-event uncertainty. We estimate the model using data on a NYSE stock (Ashland Inc.) during 1995. Herding often arises and is particularly pervasive on some days. The proportion of herd buyers (sellers) is 2 percent (4 percent) and is greater than 10 percent in 7 percent (11 percent) of information-event days. Herding causes important informational inefficiencies, amounting, on average, to 4 percent of the expected asset value.


Contemporary Issues in Behavioral Finance

Contemporary Issues in Behavioral Finance
Author: Simon Grima
Publisher: Emerald Group Publishing
Total Pages: 259
Release: 2019-07-04
Genre: Business & Economics
ISBN: 1787698831

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This special edition of Contemporary Studies in Economic and Financial Analysis offers seventeen chapters from invited participants in the International Applied Social Science Congress, held in Turkey between the 19th and 21st April 2018.


Hedge Funds and Financial Market Dynamics

Hedge Funds and Financial Market Dynamics
Author: Mrs.Anne Jansen
Publisher: International Monetary Fund
Total Pages: 92
Release: 1998-05-15
Genre: Business & Economics
ISBN: 9781557757364

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Hedge funds are collective investment vehicles, often organized as private partnerships and resident offshore for tax and regulatory purposes. Their legal status places few restrictions on their portfolios and transactions, leaving their managers free to use short sales, derivative securities, and leverage to raise returns and cushion risk. This paper considers the role of hedge funds in financial market dynamics, with particular reference to the Asian crisis.


Herd Behavior in Financial Markets

Herd Behavior in Financial Markets
Author: Marco Cipriani
Publisher:
Total Pages: 0
Release: 2008
Genre: Capitalists and financiers
ISBN:

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We study herd behavior in a laboratory financial market with financial market professionals. We compare two treatments, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty makes herding possible. In the first treatment, subjects herd seldom, in accordance with both the theory and previous experimental evidence on student subjects. A proportion of subjects, however, engage in contrarianism, something not accounted for by the theory. In the second treatment, the proportion of herding decisions increases, but not as much as theory suggests; moreover, contrarianism disappears altogether.


Herd Behavior in Financial Markets

Herd Behavior in Financial Markets
Author: Antonio Guarino
Publisher: INTERNATIONAL MONETARY FUND
Total Pages: 28
Release: 2008-06-01
Genre: Business & Economics
ISBN: 9781451869996

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We study herd behavior in a laboratory financial market with financial market professionals. We compare two treatments, one in which the price adjusts to the order flow so that herding should never occur, and one in which event uncertainty makes herding possible. In the first treatment, subjects herd seldom, in accordance with both the theory and previous experimental evidence on student subjects. A proportion of subjects, however, engage in contrarianism, something not accounted for by the theory. In the second treatment, the proportion of herding decisions increases, but not as much as theory suggests; moreover, contrarianism disappears altogether.


Handbook on Business Information Systems

Handbook on Business Information Systems
Author: Angappa Gunasekaran
Publisher: World Scientific
Total Pages: 961
Release: 2010
Genre: Business & Economics
ISBN: 9812836055

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Diversification and Portfolio Management of Mutual Funds

Diversification and Portfolio Management of Mutual Funds
Author: G. Gregoriou
Publisher: Springer
Total Pages: 446
Release: 2015-12-17
Genre: Business & Economics
ISBN: 0230626505

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This book addresses the importance of diversification for reducing volatility of investment portfolios. It shows how to improve investment efficiency, and explains how international diversification reduces overall risk while enhancing performance. This book is a crucial tool for any investor looking to improve the profit gain from their investment.


Handbook of Frontier Markets

Handbook of Frontier Markets
Author: Panagiotis Andrikopoulos
Publisher: Academic Press
Total Pages: 428
Release: 2016-08-05
Genre: Business & Economics
ISBN: 0128094915

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Handbook of Frontier Markets: Evidence from Asia and International Comparative Studies provides novel insights from academic perspectives about the behavior of investors and prices in several frontier markets. It explores finance issues usually reserved for developed and emerging markets in order to gauge whether these issues are relevant and how they manifest themselves in frontier markets. Frontier markets have now become a popular investment class among institutional investors internationally, with major financial services providers establishing index-benchmarks for this market-category. The anticipation for frontier markets is optimistic uncertainty, and many people believe that, given their growth rates, these markets will be economic success stories. Irrespective of their degrees of success, The Handbook of Frontier Markets can help ensure that the increasing international investment diverted to them will aid in their greater integration within the global financial system. Presents topics in the contexts of frontier markets and uses tests based on established methodologies from finance research Features contributing authors who are established university academics Emphasizes financial institutions and applications of financial risk models Explores finance issues usually reserved for developed and emerging markets in order to gauge whether these issues are relevant and how they manifest themselves in frontier markets


Herd Behavior in Financial Markets

Herd Behavior in Financial Markets
Author: Sushil Bikhchandani
Publisher:
Total Pages: 33
Release: 2005
Genre:
ISBN:

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Policymakers often express concern that herding by financial market participants destabilizes markets and increases the fragility of the financial system. This paper provides an overview of the recent theoretical and empirical research on herd behavior in financial markets. It addresses the following questions: What precisely do we mean by herding? What could be the causes of herd behavior? What success have existing studies had in identifying such behavior? And what effect does herding have on financial markets?