Herding Behavior under Markets Condition: Empirical Evidence on the European Financial Markets

Ouarda Moatemri, Abdelfatteh El Bouri and Bernard Olivero ()
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Ouarda Moatemri: Université de Sfax
Abdelfatteh El Bouri: Université de Sfax
Bernard Olivero: GRM - Groupe de Recherche en Management - EA 4711 - UNS - Université Nice Sophia Antipolis (1965 - 2019) - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon

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Abstract: This study presents four main contributions to the literature of behavior herding. Firstly, it extends the behavioral researches of herding of the investors on a developed market and mainly on a European market as a whole. Secondly, we are interested in examination of herding behavior at the level of sectors by using data at the levels of companies. Thirdly, this document estimates the implications of herding behavior in terms of returns, volatility and volume of transaction. Fourthly, the herding behavior is revealed as well during the period of the recent global financial crisis in 2007-2008 and of Asian crisis. Our results reveal a strong evidence of herding behavior sharply contributed to a bearish situation characterized by a strong volatility and a trading volume. The repercussion of herding during the period of the recent financial crisis is clearly revealed for the sectors of the finance and the technology.

Keywords: Herding behavior; European financial markets; Financial crisis; Cross-sectional returns (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (9)

Published in International Journal of Economics and Financial Issues, 2013, 3 (1), pp.214-228

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02103219

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