Market Participation Willingness and Investor’s Herding Behavior: Evidence from an Emerging Market

Xiong Xiong, Chen Wang and Dehua Shen
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Xiong Xiong: Tianjin University
Chen Wang: Tianjin University

Asia-Pacific Financial Markets, 2020, vol. 27, issue 3, No 7, 439-452

Abstract: Abstract With the newly emerged dataset on investors’ willingness to participate into the stock market, this paper gives the first empirical evidence on the impacts of the market participation on investors’ herding behavior in Chinese stock market. The empirical results mainly show that: (1) investors’ market participation willingness is positively related to investors’ herding behavior; (2) the herding behavior is more pronounced in the periods of investors’ market participation willingness is high and rising; and (3) these impacts are more pronounced in the period from April 1, 2012 to March 9, 2016. Generally speaking, our results indicate the interdependence between investor trading behavior and online sentiment.

Keywords: Market participation; Herding behavior; Social media; Investor sentiment; Yu’E Bao (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10690-020-09302-8

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