Year: 2009
Type: article
Study design: Observational Study
Abstract: Based on a questionnaire survey this article distinguishes between herding asset managers who try to be good, and nonherding asset managers who try to be better than their competitors. It provides evidence for reputational herding and discusses herding managers’ working effort, preferred sources of information and investment horizon. Additionally, their risk-taking behaviour, including their investment behaviour in short-term tournament scenarios, is analysed. It is found that herding managers assess themselves as generally more risk averse than nonherding managers, but in the tournament they are willing to take more risk. This finding is ascribable to their fear of falling out of the herd.
Source: Applied Financial Economics
Author: Torben Lütje
Institution: Leibniz University Hannover
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1530934107