Do investors herd in emerging stock markets?: Evidence from the Taiwanese market

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

“…In a recent study, Demirer et al (2010), analyzed the herding behavior in the emerging market of Taiwan. This work is interesting because it compares different models.…”

“…Therefore, a sub-hypothesis is that herding behavior is stronger in some specific sectors ( ). Some industries have less herding because of stricter regulation (Christie and Huang, 1995) or a larger proportion of foreign shareholders (Demirer et al, 2010). Gavriilidis et al (2013a) identify intentional herding in two of the main Spanish sectors, and suggest that this occurs because fund managers with less information are more concerned about their reputation when investing in the key sectors.…”

“…The works that compare the estimated CSAD model with and without the GARCH methodology, found no large differences in results (Demirer et al, 2010;My and Truong, 2011), becoming a point of interest to test if the same happens in Portugal and for the CSSD model.…”

Analysis of Herd Behavior Using Quantile Regression: Evidence from Karachi Stock Exchange (KSE)

“…If the investor is confident about the direction of the market, herding will be strongest (Park, 2010) The results of previous studies suggested that herding is more common in declining market situations or when returns are low in the market [ (Holmes, Kallinterakis, & Ferreira, 2011); (Demirer, Kutan, & Chen, 2010)]. On the other hand, Szyszka (2010) contradicted these findings and claimed that during the high market, investors decide on the basis of past prices and other investors behavior instead of fundamentals.…”

Herd behaviour in Southeast Asian stock markets — An empirical investigation*

“…A recent study by Bhaduri -Mahapatra (2013) also identified consistent patterns of herd behaviour in Indian equity markets. The presence of herding is also pronounced in other Asian equity markets such as Taiwan (Demirer et al 2010), Malaysia Cheng et al (2000) explained that a relative insufficiency of timely and accurate firm-related information in emerging countries may cause investors to seek trading signals from macroeconomic information, which as a result play a significant role in the investment decisions of investors.…”