Internet postings and investor herd behavior: evidence from China’s open-end fund market

Shifen Zhou and Xiaojun Liu ()
Additional contact information
Shifen Zhou: Dongguan Polytechnic
Xiaojun Liu: Hunan University

Palgrave Communications, 2022, vol. 9, issue 1, 1-11

Abstract: Abstract The popularity of social media facilitates the dissemination of private information, which has significant implications for investors’ behavior and market efficiency. This paper examines the dynamic dependence between internet postings and herd behavior in China’s open-end fund market by applying the DCC-GARCH and TVP-SV-VAR models. The results show that the relationship between internet postings and herd behavior is time-varying and asymmetric. Specifically, internet postings have a negative effect on herd behavior, and the effect is more pronounced in the short term. Additionally, herd behavior will increase postings and further weaken the herding effect through the internet postings channel. Our results also show that the increase and decrease of postings have asymmetric effects on herd behavior, and the increase of postings has a greater effect on herd behavior.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1057/s41599-022-01462-4 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palcom:v:9:y:2022:i:1:d:10.1057_s41599-022-01462-4

Ordering information: This journal article can be ordered from
https://www.nature.com/palcomms/about

DOI: 10.1057/s41599-022-01462-4

Access Statistics for this article

More articles in Palgrave Communications from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().