Abstract
This study investigates the impact of institutional herding on the relationship between risk and return. The important findings are as follows. First, the results show that if the multiple regression analysis of risk–return relationship does not consider institutional herding, the relationship is weak. Second, the behavior of institutional investors can link to an explanation for the risk–return relationship, especially foreign institutional investors. Third, the empirical evidence supports the effect of quintile ranking of institutional herding on the risk–return relationship, suggesting that the stronger the institutional herding, the greater the explanatory power for the risk–return relationship. Finally, qualitative comparative analysis supports the multiple regression analysis findings.
Sign-in/Register to access full text options 
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.
