EconPapers    
Economics at your fingertips  
 

HERDING BEHAVIOR OF INSTITUTIONAL INVESTORS IN ROMANIA. AN EMPIRICAL ANALYSIS

Mihaela Brodocianu () and Ovidiu Stoica ()
Additional contact information
Mihaela Brodocianu: Department of Finance, Money and Public Administration, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Romania

Review of Economic and Business Studies, 2017, issue 20, 115-130

Abstract: During the last decades, institutional investors have been the main players, both in developed as well as in emerging stock markets. Thus, their investment behavior was analyzed at the national or international level, in order to assess if institutional investors herd, increase stock return volatility, affect market efficiency and liquidity, influence the corporate governance, or destabilize stock prices. This paper studies the behavior of the institutional investors on the Romanian stock market, a European frontier market that struggles to attain the status of emerging market. We examine if the disclosure level generates any herding behavior for institutional investors. In emerging markets, the lack of transparency affects the degree of investments in a listed company, as long as insider trading is pushed to the limit of the legal line. For this study, we used financial information from the companies listed on the Bucharest Stock Exchange for the period 2010-2014. The findings highlight that there is a certain herding behavior among institutional investors in Romania.

Keywords: Euro Area; macroeconomic stabilization; fiscal burden; FDI inflows; Pooled Mean Group (search for similar items in EconPapers)
JEL-codes: G14 G23 G11 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://rebs.feaa.uaic.ro/articles/pdfs/249.pdf (application/pdf)

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:aic:revebs:y:2017:j:20:brodocianum

Access Statistics for this article

More articles in Review of Economic and Business Studies from Alexandru Ioan Cuza University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Sireteanu Napoleon-Alexandru ().

 
Page updated 2020-10-30
Handle: RePEc:aic:revebs:y:2017:j:20:brodocianum