Abstract
The existence of herding behaviour challenges the validity of an Efficient Market Hypothesis. This study examines herding behaviour in the Chinese and Indian stock markets; our findings suggest that herding behaviour exists in both stock markets. The level of herding depends on the market conditions. In the Chinese market, herding behaviour is greater when the market is falling and the trading volume is high. On the other hand, in India the study finds herding behaviour occurs during the up market conditions. Herding behaviour is more prevalent during large market movements in both the markets. Relatively, a lower prevalence of herding behaviour was detected in the Indian stock market.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: 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.
