Herd Behaviour Manifestation in Share Market: A Gender Based Study
DOI:
https://doi.org/10.31305/rrijm.2023.v08.n12.001Keywords:
Herd Behaviour, Behavioural Finance, Bias, Investment DecisionAbstract
Investment in shares is growing rapidly in India either directly or indirectly. Although the number of investors has risen, the knowledge and expertise needed for making share investment decisions is lacking among most of the investors. Investment process is also influenced by various psychological factors. These psychological factors are critical in the investment decision making process. Herd behaviour is an investment bias which investors in share market adopt mostly during complex investment situations. Behavioural finance identified this bias as one of the causes for bubble formation in the share market, which creates a deviation in the market price from its fundamental value. This paper has studied the differences in the level of herd behaviour between males and females in respect to share investment decisions. The study found no significant difference between herd behaviour manifestation between males and females.
References
Ah Mand, A., Janor, H., Abdul Rahim, R. and Sarmidi, T. (2023), "Herding behavior and stock market conditions", PSU Research Review, Vol. 7 No. 2, pp. 105-116. https://doi.org/10.1108/PRR-10-2020-0033
Baddeley, M., Burke, C., Schultz, W., & Tobler, P. (2012). Herding in financial behavior: A behavioral and neuroeconomic analysis of individual differences. Cambridge Working Papers in Economics. Faculty of Economics, University of Cambridge.
Caporale.G.M., Economou. F and Philippas. N. (2008), “Herd behaviour in extreme market conditions: the case of the Athens stock exchange”, available at https://www.brunel.ac.uk/__data/assets/pdf_file/0004/82282/0829.pdf, accessed on 5th Feb 2022.
Chang E.C., Cheng J.W., Khorana A. (2000). An examination of herd behavior in equity markets: an international perspective. Journal of Banking & Finance, 24 (10),1651-1679.
Chiang, T. & Zheng, D. (2010). An empirical analysis of herd behavior in global stock markets. Journal of Banking & Finance. 34(8), 1911-1921.
Douagi. B.M.,Wyeme.F. and Olfa.C (2013) “ Herding Behaviour before and after the Tunisian Revolution”, International Journal of Multidisciplinary Sciences and Engineering, Vol. 4, No. 10. .
Harras, G., & Sornette, D. (2011). How to grow a bubble: A model of myopic adapting agents. Journal of Economic Behavior and Organization, 80(1), 137-152.
Hirshleifer, D.,(2015). Behavioral Finanace, Annual Review of Financial Economics, 7, 133-159.
IC, S., & Kahyaoglu, B.(2013). Herd Behavior in BIST: An Application on Individual Stock Investors. Journal of Business Economics and Finance, 2(2), 28-42.
Nagpal, A. & Chadha, M.,“Demographic factors Influencing Herding Behavior among Indian Retail Mutual Fund Investors”, ABS International Journal of Management, vol VIII(2), December 2020, 25-30.
Narasimhan. J and Kim. W (2006) “Do Analysts Herd? An Analysis of Analysts’ Recommendations and Market Reactions”, available at https://www3.nd.edu/~finance/020601/news/Narasimhan%20Jegadeesh%20Paper%203-12-2007.pdf, accessed on 4th Dec 2022.
Rahayu, S., Rohman,A., & Harto, P.(2021). Herding Behavior Model in Investment Decision on Emerging Markets: Experimental in Indonesia, Journal of Asian Finance, Economics and Business, 8(1), 53-59.
Sachdeva, M., Lehal, R., Gupta, S. and Garg, A. (2023), "What make investors herd while investing in the Indian stock market? A hybrid approach", Review of Behavioral Finance, Vol. 15 No. 1, 19-37. https://doi.org/10.1108/RBF-04-2021-0070
Sarpong, P.K. & Sibanda, M., “Against the herd: Contrarian investment strategies on the Johannesburg stock exchange”, Journal of Economics and Behavioral Studies, 6 (2), 2014, 120-129.
Walia, N., & Kiran, R. (2009). An analysis of investor’s risk perception towards mutual funds services. International Journal of business and Management, 4(5), 106-120
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This is an open access article under the CC BY-NC-ND license Creative Commons Attribution-Noncommercial 4.0 International (CC BY-NC 4.0).
