Exploring herding behavior in an innovative-oriented stock market: evidence from ChiNext

We adopt the cross-sectional absolute deviation model (CSAD) to test herding behavior of ChiNext, a decade-old NASDAQ-style stock market in China, based on its stocks from 2015-2019. Our findings show that is prevalent, implying such widespread relatively new themed with growth-oriented innovative enterprises and dominated by individual investors instead institutional investors. Moreover, we find tends be more severe during periods falling than rising market. explain several distinct attributes cause them sell market, an act contrary standard account “disposition effect holding losers” behavioral finance. contribute literature for innovative-oriented as well our understanding investors’ circumstances, which may disprove often-quoted disposition effect.