Herd Behavior in Financial Markets : a Review /

Herd Behavior in Financial Markets : a Review /

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Bibliographic Details
Author / Creator:Sharma, Sunil.
Imprint:Washington, D.C. : International Monetary Fund, 2000.
Description:1 online resource (32 pages)
Language:English
Series:IMF Working Papers ; Working Paper No. 00/48
IMF Working Papers ; Working Paper no. 00/48.
Subject:
Capital market.
Contagion (Social psychology)
Collective behavior -- Economic aspects.
Investments -- Decision making.
Capital market.
Contagion (Social psychology)
Investments -- Decision making.
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12501035
Hidden Bibliographic Details
Other authors / contributors:International Monetary Fund.
ISBN:9781451893885
1451893884
1462327834
9781462327836
1452784582
9781452784588
1281266027
9781281266026
9786613778246
6613778249
9781451846737
1451846738
Notes:Available in PDF, ePUB, and Mobi formats on the Internet.
English.
Summary:Policymakers often express concern that herding by financial market participants destabilizes markets and increases the fragility of the financial system. This paper provides an overview of the recent theoretical and empirical research on herd behavior in financial markets. It addresses the following questions: What precisely do we mean by herding? What could be the causes of herd behavior? What success have existing studies had in identifying such behavior? And what effect does herding have on financial markets?
Other form:1-4518-4673-8
Standard no.:10.5089/9781451893885.001
Table of Contents:
  • Intro
  • Contents
  • I. Introduction
  • II. Causes of Rational Herd Behavior
  • A. Information-based Herding and Cascades
  • Application to Financial Markets
  • B. Reputation-based Herding
  • C. Compensation-based Herding
  • III. Implications for Empirical Tests
  • IV. The Empirical Evidence
  • A. Herding in the Stock Market
  • Drawbacks with the LSV Measure of Herding
  • A Modification of the LSV Measure of Herding
  • Other Measures of Herding
  • B. Herding in Other Financial Markets
  • C. Herding Among Investment Analysts and News Letters
  • D. Herding in Emerging Stock Markets
  • V. Concluding Remarks
  • VI. References.

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