Abstract
This paper investigates the effect of loss aversion behavior, by adapting the loss aversion utility function of Berkelaar et al. [3], and taking into account the US-China trade war, on the herding behavior in the Stock Exchange of Thailand. It used the daily data from 01/04/2010 to 05/31/2019 for estimation using Ordinary Least Squares and Quantile Regression. The results did not report the herding behavior in the Stock Exchange of Thailand in both upward and downward trends of the market. The testing of the effect of loss aversion bias on herding behavior revealed the loss aversion to have effect on the herding behavior in some industries when the returns are high. Furthermore, the US-China trade war has a bearing herding behavior in some industries.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.