Herding Behavior in Chinese Stock Markets during COVID-19

Wu, Guosong; Yang, Boxian; Zhao, Ningru

doi:10.1080/1540496x.2020.1855138

Cited by 75 publications

(56 citation statements)

References 22 publications

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“…This finding of the evidence of herding effect in the bullish market condition corroborates the findings of Chang et al (2000); Lobão and Serra (2007); Hwang and Salmon (2004); Kassim and Duasa (2008); Barros (2009); Zhou and Lai (2009); Zaharyeva ( 2009 Sharma (2018); and Chaffai and Medhioub (2018). Considering the COVID-19 pandemic era, our findings match that of Espinosa-Méndez and Arias (2020), Dhall and Singh (2020), Wu et al (2020) and Sihombing et al (2021). The presence of herding behaviour in bullish market conditions may indicate the presence of excess volatility (Kabir & Shakur, 2018), which can negatively impact the optimal portfolio determining ability of investors during the crisis period (Shehzad et al, 2021) as it can lead to error in the pricing of stocks (Sihombing et al, 2021).…”

Section: Resultssupporting

confidence: 90%

Do Banking and Financial Services Sectors Show Herding Behaviour in Indian Stock Market Amid COVID-19 Pandemic? Insights from Quantile Regression Approach

Mishra

2021

Millennial Asia

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In India, the coronavirus (COVID-19) pandemic-induced country-wide regulatory lockdown and consequential supply-chain disruptions and market instability have all posed serious challenges before the regulators and policymakers. Amid the pandemic, the stock market showed return volatilities primarily due to the unexpected investors’ behaviour. One of the behavioural biases is herding, which has the power to wreck the market equilibrium and shatter the market efficiency. Given that the pandemic has generated unprecedented spirals of uncertainties across the globe, thereby creating interruptions in the pattern of stock market investment decisions, this study examined the herding behaviour of 54 stocks of banking and financial services sectors listed in the national stock exchange. In the quantile regression framework, the study provides evidence of the presence of herding for public sector banking and financial services under the bull market conditions during the pandemic in the 90th quantile of the return distribution. This finding has implications for the mispricing of financial assets in these sectors. So, the study suggests removing information asymmetry among the market participants and devising policy initiatives for ensuring market stability.

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Section: Resultssupporting

confidence: 90%

Do Banking and Financial Services Sectors Show Herding Behaviour in Indian Stock Market Amid COVID-19 Pandemic? Insights from Quantile Regression Approach

Mishra

2021

Millennial Asia

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“…COVID-19 pandemic is continuing and future research are likely to predict different asset prices in light of COVID-19 because new research (see for instance, [6] , [16] , [22] , [24] , [30] , [32] , [44] , [49] , [51] and [18] ) has shown that COVID-19 has influenced the entire financial and economic system.…”

Section: Discussionmentioning

confidence: 99%

Effect of COVID-19 on the relationship between Euro/USD exchange rate and oil price

Devpura

2021

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We investigate the relationship between the Euro-United States Dollar (Euro/USD) exchange rate and oil futures price using intra-day data. The dataset is on hourly basis from 01/07/2019 to 30/11/2020 and 17-hour per day, from 01:00am to 17:00pm. By employing a predictive regression model, we observe oil price has influenced Euro/USD exchange rate but the evidence is very limited. Further, when we control for the effect of COVID-19, this relationship vanishes. Overall, COVID-19 shows some effect on the exchange rate during March 2020. There is no predictive ability of oil price on Euro/USD exchange rate after controlling for COVID-19.

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“…As per their findings, March 2020 witnessed major sell off on FII end and the market overall moved towards bear territory. (Wu et al, 2020) Investigate the Chinese stock markets during pandemic for traces of herding behavior and find it to be significantly lower during covid times as compared to usual. This implies that Chinese investors become more skeptical and cautious with respect to financial markets during times of crisis.…”

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confidence: 99%

Indian Retail Investors and Initial Public Offers: Pre and Post Covid Analysis

Surana¹

2021

ITII

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Going public is one of the most popular forms of raising funds for expansion and growth of business. Since the liberalisation of economy in 1991, more than 1500 companies have listed themselves on the exchange. And the Indian stock markets keep expanding with increasing number of public offers in both mainstream and SME category. This paper compares the IPOs of Indian markets in broadly two phases-pre covid and post covid. A sample of 242 listings across eleven years from 2010-2020 are considered for the study. A comparison based on details of listing, listing gains etc reveal a more active retail investor segment. Overoptimism and urge to synthesise short term gains contribute to such gains. This is further backed by analysis of search results in the Indian region using google trends. Tail events such as covid-19 alter the way Indian investors behave and invest in IPOs and make their investments more on basis of speculative measures such as grey market premium, than actual fundamentals of the issue under consideration.

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Herding Behavior in Chinese Stock Markets during COVID-19

Cited by 75 publications

References 22 publications

Do Banking and Financial Services Sectors Show Herding Behaviour in Indian Stock Market Amid COVID-19 Pandemic? Insights from Quantile Regression Approach

Do Banking and Financial Services Sectors Show Herding Behaviour in Indian Stock Market Amid COVID-19 Pandemic? Insights from Quantile Regression Approach

Effect of COVID-19 on the relationship between Euro/USD exchange rate and oil price

Indian Retail Investors and Initial Public Offers: Pre and Post Covid Analysis

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