How Volatility and Herding of the Stock Markets in the Oceania Region Influence Investors and Policymakers: A Sector-Wise Exploration in Pre and Post-COVID Period

Swarnil Roy, Sk. Riad Arefin and Avijit Mallik

International Journal of Economics and Finance, 2023, vol. 15, issue 1, 24

Abstract: The paper probes the sector-wise presence of volatility persistence, herding behavior and corresponding implications on investors and policymakers in the Oceania region both in Pre-COVID & Post-COVID era. The inspection is based on seven identical sectors from both Australia and New Zealand using GARCH (Generalized autoregressive conditional heteroscedasticity) methods for volatility analysis and CSAD (Cross-Sectional Absolute Deviation) method for herding behavior. This paper finds the existence of herding behavior only in the consumer discretionary sector for both countries which delineates efficient market conditions for other sectors. The market is highly favorable for the investors in Food & Beverages, IT, and Healthcare sectors in both countries due to the potential growth opportunity while Real Estate and Financial sectors should be meticulously assessed in line with the alteration of macroeconomic forces. Fiscal and monetary measures along with the influx of labor forces and technological breakthroughs should be the key concentrations for the policymakers of both countries.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ccsenet.org/journal/index.php/ijef/article/download/0/0/48153/51759 (application/pdf)
https://ccsenet.org/journal/index.php/ijef/article/view/0/48153 (text/html)

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:ibn:ijefaa:v:15:y:2023:i:1:p:24

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().