Year: 2024
Type: article
Abstract: The purpose of this research is to investigate herding behaviour on the Pakistani Stock Exchange.It has been claimed in previous research that herding behaviour is driven by basic information, which promotes swift price changes in response to new information and leads to efficient markets.In this study, daily market data from 2011 to 2020 was used.The cross-sectional absolute deviation (CSAD) approach was used.This paper makes a progressive contribution by investigating the herding behaviour which includes the herding of companies toward the marketplace.Additionally, we studied herding in five quintiles which are arranged according to the firm size.This study found that investors in large companies tend to keep a closer eye on the market than investors in smaller companies.This research may assist regulators in conducting a thorough investigation of market abnormalities, which will result in more efficient market processing.
Authors: Mahnoor Fatima, Zia ur Rehman Rao, Wajeeha Baig, Muhammad Sabeeh Iqbal
Institutions: University of the Punjab, Bilkent University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4405000361