Findings of Herd Behavior in Borsa Istanbul During Covid-19

Abstract

In cases where investors' emotional and behavioral responses are influenced, mimicking fellow investors leads to the manifestation of herd behavior. This study is dedicated to scrutinizing and contrasting instances of herd behavior within the Borsa Istanbul during the Covid-19 period against those in the pre-pandemic phase. The analysis specifically encompasses the banking, food, transportation, tourism, and technology sectors traded on the Borsa Istanbul, as well as the BIST 30 and BIST 100 indices. The CSAD (cross-section absolute deviation) methodology is employed as the analytical framework. The findings delineate a lack of herd behavior during the pre-pandemic period. However, contrasting this, the pandemic period witnesses the emergence of herd behavior, evident within the BIST 30, BIST 100 indices, and the banking, food, and technology sectors.