The Impact of Cultural Shocks on Investor Sentiment and Herding Behavior: An Evidence during COVID-19 Pandemic

Aims: This study investigates herding under covid 19 pandemic. Also, this research aims to measure the effect of investors' sentiment toward behavior moderated by culture shock in emerging market stock exchange.
 Study Design: uses a sample that constitutes liquid index market.
 Place and Duration Study: The samples are 26 countries incorporated markets. observation is 10.192. duration from December 2019 June 2021.
 Methodology: Research model Chang et al. (2000) estimate as dependent variable. independent variable investor measured VIX VXEEM indices. Culture assumed moderating dummy variables. variables cultural divided into three phases: honeymoon phase at beginning virus spreading, lockdown phase, new normal phase. data for taken WHO data. will be analyzed with Moderated Regression Analysis EViews.
 Results: results consist following: First, investors capital markets developing proven have anti-herding making investment decisions during Covid-19 Second, has influenced Lastly, covid-19 pandemic condition strengthened carry out behavior, especially or novelty introducing concept psychology, namely believed strengthen towards cause behavior.
 Conclusion: provide helpful information financial understanding Investor possibility decline performance gives rise irrational (herding). In addition, shocks habits can also behavior. It should use more comprehensive developed further research.