Uncertainty and herding behavior: evidence from cryptocurrencies

Coşkun, Esra Alp; Lau, Chi Keung Marco; Kahyaoğlu, Hakan

doi:10.1016/j.ribaf.2020.101284

Cited by 51 publications

(23 citation statements)

References 82 publications

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“…This infers that there is antiherding behaviour in the cryptocurrency market. These results are in line with Coskun et al (2020), which shows evidence of anti-herding in the cryptocurrency market. This anti-herding behaviour can be attributed to the increased presence of informed traders in the cryptocurrency market preceding the occurrence of uncertain events (Feng et al, 2018;Yarovaya et al, 2021).…”

Section: Resultssupporting

confidence: 90%

Investor Attention and Herding in the Cryptocurrency Market During the Covid-19 Pandemic

Bashir

Kumar

Shiljas

2021

AFL

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This study examines the relationship between investor attention and herding effects in the cryptocurrency market by employing the vector autoregression and quantile regression models. Furthermore, we examine whether the COVID-19 pandemic affected herding behaviour in cryptocurrencies. Using the daily closing price and Google search volume of the five leading cryptocurrencies, the paper finds that herding in the cryptocurrency market decreases with an increase in investor attention for the overall sample. The results for the COVID-19 period indicate that the impact of investor attention on the herding effect decreases due to increased attention to the pandemic. This study is one of the initial attempts to examine the impact of investor attention on herding in cryptocurrencies.

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Section: Resultssupporting

confidence: 90%

Investor Attention and Herding in the Cryptocurrency Market During the Covid-19 Pandemic

Bashir

Kumar

Shiljas

2021

AFL

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“… Philippas et al(2020) investigate whether informative signals drive herding among investors in 100 cryptocurrencies. Recently, Coskun et al (2020) use the CSAD and the time-varying Markov-switching (TV-MS) for 14 cryptocurrencies but do not report evidence of herding. Susana et al (2020) employ the CSSD approach and prove evidence of herding in the top ten cryptocurrencies during the pre-Covid 19 and Covid 19 pandemic.…”

Section: Literature Reviewmentioning

confidence: 99%

Herding behavior in the cryptocurrency market during COVID-19 pandemic: The role of media coverage

Youssef

Waked

2022

The North American Journal of Economics and Finance

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“…Furthermore, our model predicts that significant changes in adults' ecology stage will result in a new spike in exploration and social following behaviour. Although it is the common trope that adolescents will jump off the bridge if all their friends would do it, there is plenty of evidence of adults showing the same herding behaviour when there is uncertainty, for instance in real estate markets (Babalos et al, 2015) or cryptocurrencies (Coskun et al, 2020). More recently, following the Covid-19 outbreak, we have seen herding in hoarding of toilet paper in several countries around the world (Garbe et al, 2020;Kirk & Rifkin, 2020).…”

Section: Limitations and Extensionsmentioning

confidence: 99%

Adolescent risk-taking in the context of exploration and social influence

Ciranka

Bos

2021

Developmental Review

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Adolescents are often described as a strange and different species that behaves like no other age group, typical behaviours being excessive risk-taking and sensitivity to peer influence. Different theories of adolescent behaviour attribute this to different internal mechanisms like undeveloped cognitive control, higher sensation-seeking or extraordinary social motivation. Many agree that some of adolescent risk-taking behaviour is adaptive. Here we argue that to understand adolescent risktaking, and why it may be adaptive, research needs to pay attention to the adolescent environments' structure and view adolescents as learning and exploring agents in it. We identify three unique aspects of the adolescent environment: 1) the opportunities to take risks are increased significantly, 2) these opportunities are novel and their outcomes uncertain, and 3) peers become more important. Next, we illustrate how adolescent risk-taking may emerge from learning using agent-based modelling, and show that a typical inverted-U shape in risk-taking may emerge in absence of a specific adolescent motivational drive for sensation-seeking or sensitivity to social information. The simulations also show how risky exploration may be necessary for adolescents to gain long-term benefits in later developmental stages and that social learning can help reduce losses. Finally, we discuss how a renewed ecological perspective and the focus on adolescents as learning agents may shift the interpretation of current findings and inspire future studies.

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Uncertainty and herding behavior: evidence from cryptocurrencies

Cited by 51 publications

References 82 publications

Investor Attention and Herding in the Cryptocurrency Market During the Covid-19 Pandemic

Investor Attention and Herding in the Cryptocurrency Market During the Covid-19 Pandemic

Herding behavior in the cryptocurrency market during COVID-19 pandemic: The role of media coverage

Adolescent risk-taking in the context of exploration and social influence

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