Industry herding behaviour in Indian stock market

R. Ganesh, G. Naresh and S. Thiyagarajan

American Journal of Finance and Accounting, 2016, vol. 4, issue 3/4, 284-308

Abstract: Investors mimicking the investment pattern of other investors are called herding. Studies have already shown that herding is not a profitable investment strategy and could even be damaging for both investors and stock markets. Hence herding continues to be an active topic of study the world over. Understanding the herding behaviour in the market will be effective when investors have a diversified portfolio, but may not hold good when their portfolio consist of similar stocks. This emphasises the importance of studying herding in industry-wise stocks traded in Indian market. The present study employs the Christie and Huang model and Chang, Cheng and Khoruna model to trace out the presence of industry herding behaviour in Nifty 50 index during the period 1st April 2005 to 31st March 2015. The findings of the study showed that overall Indian stock market is not influenced by industry herding behaviour.

Keywords: industry herding; CH model; Christie and Huang; CCK model; Chang Cheng and Khoruna; CSSD; CSAD; December effect; bias; herding behaviour; India; stock markets. (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.inderscience.com/link.php?id=80734 (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:ids:amerfa:v:4:y:2016:i:3/4:p:284-308

Access Statistics for this article

More articles in American Journal of Finance and Accounting from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().