Herd Behaviour and Cascading in Capital Markets: a Review and Synthesis
نویسندگان
چکیده
We review theory and evidence relating to herd behaviour, payoff and reputational interactions, social learning, and informational cascades in capital markets. We offer a simple taxonomy of effects, and evaluate how alternative theories may help explain evidence on the behaviour of investors, firms, and analysts. We consider both incentives for parties to engage in herding or cascading, and the incentives for parties to protect against or take advantage of herding or cascading by others.
منابع مشابه
Herd Behavior and Cascading in Capital Markets: A Review and Synthesis
We review theory and evidence relating to herd behavior, payo and reputational interactions, social learning, and informational cascades in capital markets. We o er a simple taxonomy of e ects, and evaluate how alternative theories may help explain evidence on the behavior of investors, rms, and analysts. We consider both incentives for parties to engage in herding or cascading, and the incenti...
متن کاملThe Effect of Personality Characteristics of Capital Market Analysts on Investment Trends, Risk and Return of their Performance
The relationship between finance and other social sciences as known behavioural finance, evaluate investors to the decision-making process and their reaction to different conditions of financial markets deals. In this study assumed that analysts are specialist in fundamental and technical analysis and then influence their personality characteristics is evaluated on their performance. Statistica...
متن کاملA DSS-Based Dynamic Programming for Finding Optimal Markets Using Neural Networks and Pricing
One of the substantial challenges in marketing efforts is determining optimal markets, specifically in market segmentation. The problem is more controversial in electronic commerce and electronic marketing. Consumer behaviour is influenced by different factors and thus varies in different time periods. These dynamic impacts lead to the uncertain behaviour of consumers and therefore harden the t...
متن کاملA Hybrid Data Clustering Algorithm Using Modified Krill Herd Algorithm and K-MEANS
Data clustering is the process of partitioning a set of data objects into meaning clusters or groups. Due to the vast usage of clustering algorithms in many fields, a lot of research is still going on to find the best and efficient clustering algorithm. K-means is simple and easy to implement, but it suffers from initialization of cluster center and hence trapped in local optimum. In this paper...
متن کاملInvestigating the effect of herd behavior in the Iranian economy on the efficiency criteria of the asset pricing model
The capital asset pricing model provides an equilibrium model to show the relationship between risk and return on assets. One of the economic areas is herd behavior, which has attracted a lot of attention in recent decades. Therefore, the present study deals with the herd behavior in the Iranian economy on the efficiency criteria of the asset pricing model. The research method used in this rese...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2003