Institutional Herding and Mood

2017 ◽  
Author(s):  
Konstantinos Gavriilidis ◽  
Vasileios Kallinterakis ◽  
Belma Ozturkkal
Keyword(s):  
Institutional Herding

Institutional Herding: Causality and Persistence

2021 ◽  
pp. 227797522110402
Author(s):  
S S S Kumar
Keyword(s):  
Stock Market ◽  
Market Efficiency ◽  
Mutual Funds ◽  
Institutional Investors ◽  
International Markets ◽  
Jel Classification ◽  
Trading Strategies ◽  
Trading Activity ◽  
Indian Stock Market ◽  
Institutional Herding

We investigate the causality in herding between foreign portfolio investors (FPIs) and domestic mutual funds (MFs) in the Indian stock market. The estimated herding levels are considerably higher than those observed in other international markets, and herding is prevalent in small stocks. We find that institutional investors follow contrarian-trading strategies, unlike what was documented in most other markets. Analysis of the aggregate herding measure shows a bi-directional causality between FPIs and MFs. Further analysis using directional herding measures indicate no evidence of causality between institutional herds on the sell-side. But we find causality on the buy-side and it is running in both directions between FPIs and MFs, implying a feedback of information. Given the tendency of institutions for herding in small stocks, adopting contrarian-trading strategies, the observed sell-side causality is perhaps having a salubrious effect. As institutional investors are contrarians, their trading activity will lead to price corrections in small stocks aligning with the fundamentals, thereby contributing to market efficiency. JEL Classification: C23, C58, G23, G15, G40

scholarly journals Does mood affect institutional herding?

2020 ◽  
Vol 26 ◽  
pp. 100290
Author(s):  
Konstantinos Gavriilidis ◽  
Vasileios Kallinterakis ◽  
Belma Öztürkkal
Keyword(s):  
Institutional Herding

scholarly journals Detecting the Existence of Herding Behavior in Intraday Data: Evidence from the Indonesia Stock Exchange

2013 ◽  
Vol 15 (1) ◽  
pp. 27
Author(s):  
Setiyono Setiyono ◽  
Eduardus Tandelilin ◽  
Jogiyanto Hartono ◽  
Mamduh M. Hanafi
Keyword(s):  
Stock Exchange ◽  
Market Price ◽  
Trading Strategy ◽  
Market Condition ◽  
Herd Behavior ◽  
Herding Behavior ◽  
Subsequent Period ◽  
Intraday Data ◽  
Feedback Trading ◽  
Institutional Herding

This study attempts to investigate the issue of the existence of institutional herding in the stock market. The existence is detected in the intraday trade data from the Indonesia Stock Exchange (IDX) during up, down, and stable market condition over the period 2003-2005. By using the model of Lakonishok et al. (1992), it is found that the intensity of the existence of institutional herding at the IDX, on average, is 8.4 percent. Institutional investors do not seem to lead their transactions ina certain characteristic of stock. Most of them follow positive-feedback trading strategy while others follow negative-feedback trading strategy. This study also found that the existence of herd behavior at the IDX did not destabilize the market price in a subsequent period.

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