Institutional Herding Research Articles

Political uncertainty and institutional herding

Political uncertainty represents a key determinant of corporate investment decisions. In this paper, we study the relation between political uncertainty and investment from the perspective of institutional investors. Using U.S. equity holdings data from 13F filings, we find that institutional investors herd during politically uncertain times. This trading behavior is stronger when U.S. presidents are unpopular, due to their proclivity for controversial policies, and among riskier stocks. We also find that this mechanism, despite generating some excess trading, helps incorporate a risk premium into stock prices. Overall, the findings unveil a new channel through which political uncertainty affects financial markets.

Institutional herding and investor sentiment

We investigate the role of investor sentiment in institutional herding behavior and its impact on stock prices. We find that institutional investors exhibit more herding behavior during periods of high sentiment, which has a significant impact on stock prices. Our results show that herding has a stabilizing effect on the stock market when investor sentiment is low, while it causes price distortions when sentiment is high. We also show that the impact of sentiment on price is particularly pronounced for small, non-profitable, low tangibility, high-growth firms.

Institutional Herding and Investor Sentiment

Institutional Herding and Investor Sentiment

Is institutional herding efficient? Evidence from an investment efficiency and informational network perspective

This paper proposes an informational network measure and an extended analysis method for network data envelopment, uncovering a negative relationship between institutional herding and investment efficiency. We also capture the investment efficiency loss of the herding institutions. The results show that the eccentric institutions outperform their herding peers by over 1.4% annually. Our evidence indicates that herding actions weaken the positive role of active management, leading to inefficiency. Further analyses show that a stressed market and herding strategy implemented by poorly performing institutions with inadequate past performance can aggravate the negative effect of institutional herding. Moreover, we support the positive effect of institutional herding on an increasing rise and mitigating effect concerning the intensification of persistent crashes.

COMPARATIVE STUDY OF PREVALANCE OF GASTROINTESTINAL ENDOPARASITES IN INSTITUTIONAL HERDS OF NILI RAVI BUFFALO

Gastrointestinal endoparasites have a great impact on livestock production. Currentresearch is conducted to realize the proper prevalence of gastrointestinal parasitical incursion in threeinstitutional buffalo herds in the Punjab Province. A total of 758 fecal samples were examined in farmand health laboratory, Buffalo Research Institute for a time duration of one year (July 2017 to June2018) from three institutional herds. The fecal samples collected from Livestock experiment stationBhunikey, Chak katora and Haroonabad were 227,208 and 323 respectively. Out of which 311 (41.02%) were found positive and different for parasites during the current duration of study. Thepervasiveness of different parasites including trematodes, nematodes, and diverse infestation inbuffaloes at Livestock Experiment Station Bhunikey was 25.50% (58/227), 14.90%(34/227), and4.80%(11/227) , while at Livestock Experiment Station Chak Katora it was 19.81%(64/323),17.64%(57/323) and 3.7%(12/323) percent respectively. Livestock Experiment Station Haroonabadshowed the prevalence of trematodes, nematodes and mixed infections as 24.51 %( 51/208), 6.70 %(14/208) and 4.80 %( 10/208). Maximum prevalence was observed from November to February(trematodes 24.01%, nematodes 13.81% and mixed infestation 3.4%) while minimum parasitism wasobserved from July to October (trematodes 20%, nematodes 3.5% and mixed infestation 1.2%). Thestudy that is conducted has varied results revealed that the occurrence of different gastrointestinalparasites in buffaloes is quite severe causing economical losses by reducing milk production. Bykeeping focus on this factor, a proper planned and strategic way of treatment and control program maybe designed to cover and control gastrointestinal parasitic contagions in buffaloes.

FACTORS ASSOCIATED WITH BIRTH WEIGHT OF CALVES IN NILI RAVI BUFFALOES AT BRI PATTOKI, PUNJAB

This study was made to determine the effects of herd, year, season, lactation number and sex on calf’s birth weight in Nili Ravi Buffalo. The data from 1975-2017 was taken in 15525 edited observations of 6932 buffaloes from six institutional herds. The year was divided into four seasons viz (December to February, March to May, June to August and September to November) to evaluate the real effects of herd x year and season. To analyze the data SPSS version 19, statistical package was used. The mean ± S.E of birth weight was calculated as 35.18±.018Kg. The mean of birth weight of male and female calf were as 35.82 ± 0.19Kg and 34.53 ± 0.18Kg, affected by herd-yearseason, sex and lactation number (P<0.01) while the effect of gestation period and age of dam wasnon-significant. The sex ratio between male and female was 51.25 and 48.74 respectively. It was observed that calf’s birth weight had significant effect on milk production.

Institutional Herding and Equity Returns: Do Institutions Derive Valuable Information from their Network?

Institutional Herding and Equity Returns: Do Institutions Derive Valuable Information from their Network?

Does Institutional Herding Tendency and Direction Destabilizes Stock Prices?

Does Institutional Herding Tendency and Direction Destabilizes Stock Prices?

Comprehensive genetic analysis of linear type traits for characterization of the Sahiwal cattle in an organized herd

Sahiwal is one of the most important dairy cattle breeds of the Indian subcontinent. A holistic and balanced approach to selection and breeding strategies must be adopted to bring about desirable genetic improvement in livestock, including indigenous cattle. The inclusion of linear type traits for dairy cattle selection in any breed improvement program has not been carried out in India so far. Therefore, this study was taken up to characterize Sahiwal cattle, on the basis of linear type traits. Data was collected on adult Sahiwal cows up to their 10thparity, maintained at Institute herd of Indian Council of Agricultural Research- National Dairy Research Institute, Karnal, Haryana from 2006-2021. Data were analysed using Least Squares Maximum Likelihood (LSMLMW), considering a sire model for the present study. Parity, season and period of calving were taken as fixed effect and age at first calving as covariable. Sire or animal was considered as random variable. Least squares means of objective linear type traits viz., stature was 125.97±0.68 cm, body length 136.58±1.01 cm, chest girth 173.04±1.14 cm, body depth203.40± 1.39 cm, rump angle 14.50±0.39 cm, rump width 20.62±0.28cm, udder depth 20.87±0.41 cm, rear udder height 18.38±0.33 cm, and teat length 6.16±0.24 cm. On the other hand, least square mean scores of subjective linear type traits (1-9 scale) viz. fore teat placement was 6.32±0.46, rear teat placement was 7.27±0.35,rear leg side view was 6.26±0.26, rear leg rear view was 6.28±0.27score, foot angle 6.86±0.27, angularity 34.97±0.50-degree, central ligament 6.55± 0.39, fore udder attachment 5.91±0.32, fore teat placement 6.32±0.46, and rear teat placement was 7.27±0.35. Parity had a significant (p<0.05) effect on fore udder attachment and central ligament and teat length in Sahiwal cattle. Season of calving had the significant (p< 0.05) effect, observed in case of udder depth in Sahiwal cattle. Period of calving had a significant(p<0.05) effect on rump angle, udder depth, teat length, angularity and central ligament in Sahiwal cattle. Based on results of present study, it was observed that Sahiwal cattle establishes a balance between the scoring pattern of linear type traits, as the balance scoring of animals was desirable for better sustainability and production performance of a dairy cattle, on a longer run. Moreover, linear type traits have a better scope in selection process and genetic improvement programs that can be utilized as balanced and comprehensive approach for indigenous dairy cattle.

Do Designated Sales Agents in ATM Offerings Exploit Post-Earnings-Announcement Drift? Evidence from Real Estate Investment Trusts

This paper investigates whether designated sales agents hired to work on the At-the-Market (ATM) offerings act as liquidity traders and arbitrage apparent market inefficiencies such as post-earnings-announcement drift (PEAD). Those sales agents can compete to provide liquidity in the presence of asymmetric information and continuously sell their new equity shares at any time. We find that the supply of liquidity shocks from ATM offerings negatively impacts the cross-section of risk premia. Consistent with the prediction of a dynamic rational expectations model, the well-documented PEAD anomaly disappears in Real Estate Investment Trusts (REITs). When analyzing reversal magnitudes around earnings announcements, we show attenuated return reversals in ATM REITs compared with non-ATM REITs. Furthermore, institutional ownership, institutional herding, and adverse selection cannot explain future returns in firms with good earnings surprises below their expected levels.

Herd behaviour in an emerging market: an evidence of calendar and size effects

PurposeThis study aims to examine investors’ herd behaviour for various calendar events and size-based stock portfolios in Pakistan. The authors consider three calendar effects, crisis (COVID-19 and financial crisis 2018–19), announcement of political news and popular calendar anomalies (month-of-the-year and day-of-the-week), and investigate the impact of stock size on calendar effect in terms of investors’ herd behaviour.Design/methodology/approachThe study uses non-linear specification to capture herd behaviour using firm-level daily data for 496 stocks listed on Pakistan Stock Exchange over the period 2001–2020.FindingsThe results indicate herd formation during periods of COVID-19, financial crisis, political news announcements and January (month-of-the-year). The authors also observe significant herding for the biggest and smallest size stocks over complete period. However, the authors find more pronounced herding in big stocks during January as compared to the more noticeable herding in small stocks over complete period. The findings suggest that herding in small stocks is not the main cause of January herding and hint on the prevalence of significant institutional herding during January.Practical implicationsThe stock prices destabilize because of the mimicking behaviour during crisis periods, days of political announcements and month of January. Implementation of insider trading laws and transparent information environment can help in reducing these effects and increasing market efficiency.Originality/valueThe authors consider the recent COVID period in our analysis. In addition, we provide new evidence on the possible impact of stock size on calendar effect in terms of herd behaviour, which, to the best of the authors’ knowledge, has not yet been documented in literature.

Genotype x environment interaction on fertility traits of crossbred dairy cows under tropical climatic conditions of India

Present study was envisaged to examine existence of genetic group x THI in crossbred cows at institute herd of ERS, ICAR-NDRI, Kalyani, West Bengal. 1041 fertility records each on service period (SP) and conception rate (CR) and weather parameters spanned over 22 years (1994-2015) were collected; arranged under three THI groups; thermal comfort (THI<72), two heat stress zones (THI 72-78) and THI>78 and six genetic groups.SP was longest (163.61 ± 6.83 days) when THI>78and lowest (149.27±6.69 days) during THI<72. CR was lowest (65.66±2.73 %) when THI>78 and highest (70.54±2.8 %) at THI<72. Genetic group x THI was non-significant on SP and CR. However, there was re-ranking of genetic groups across three THI zones. Genetic group bearing 50% Jersey + 50% Tharparkar followed by 50% Jersey + 50% Red Sindhi exhibited least increase in SP (5.09 and 6.37 days) when THI>78.Cows bearing 50% Jersey and 50% indigenous cattle inheritance followed by 50% Jersey + 50% Red Sindhi and 50% Jersey + 50% Tharparkar depicted least drop in CR at THI>78 (-2.38, -2.40 and -3.6%) in comparison to THI<72. The genetic group with>75% Jersey depicted maximum increase in SP (15.33 days) and drop in CR (-7.43%) at THI>78.

Analyst target price revisions and institutional herding

We document that institutional herding behavior is associated with analyst target price revisions even after controlling for the effects of analyst recommendations and earnings forecasts, and provide insights into the price impact of institutional herding. Institutional investors tend to buy the same stocks following an upward target price revision and sell the same stocks following a downward price revision. Moreover, institutional investors tend to overreact to analysts' target price revisions, which exacerbates the mispricing in the stock market. Such price destabilizing effect is particularly pronounced for herding among investment firms.

Institutional Herding: Causality and Persistence

We investigate the causality in herding between foreign portfolio investors (FPIs) and domestic mutual funds (MFs) in the Indian stock market. The estimated herding levels are considerably higher than those observed in other international markets, and herding is prevalent in small stocks. We find that institutional investors follow contrarian-trading strategies, unlike what was documented in most other markets. Analysis of the aggregate herding measure shows a bi-directional causality between FPIs and MFs. Further analysis using directional herding measures indicate no evidence of causality between institutional herds on the sell-side. But we find causality on the buy-side and it is running in both directions between FPIs and MFs, implying a feedback of information. Given the tendency of institutions for herding in small stocks, adopting contrarian-trading strategies, the observed sell-side causality is perhaps having a salubrious effect. As institutional investors are contrarians, their trading activity will lead to price corrections in small stocks aligning with the fundamentals, thereby contributing to market efficiency. JEL Classification: C23, C58, G23, G15, G40

Genotype Environment Interaction on Milk Production Traits of Crossbred Dairy Cows under Tropical Climatic Condition of India

Background: Genotype environment interaction plays vital role in animal productivity. Heat stress is one of the major environmental stressor affecting milk production and measured in terms of temperature humidity index (THI). Indian milk industry largely depends on crossbred cows bearing different degree of exotic inheritance. Thus, the role of genotype (genetic group) of the crossbred cows and environment (THI) interaction plays vital role in Indian climate which is mostly tropical in nature. Therefore, study was undertaken to examine the existence of genetic group × THI in crossbred dairy cows reared at institute herd of ICAR-National Dairy Research Institute, Eastern Regional Station, Kalyani, West Bengal. Methods: A total of 12364 records each of monthly milk yield (MMY) and average daily milk yield in a month (AMY) of crossbred cows spanned over twenty two years (1994-2015) and weather parameters(temperature and relative humidity) for the corresponding years were collected from institute records. The data were classified into 8 genetic groups according to the genetic composition and 3 THI groups (THI less than 72, THI 72-78 and THI above 78). The interaction model was used to study the G×E interaction study using least squares analysis. Result: Effect of non-genetic factors (parity, period of calving and stage of lactation) was found to be highly significant (P less than 0.01) and genetic group × THI was significant (P less than 0.05) of on both MMY and AMY. Genetic group bearing 50% Jersey and 50% Red Sindhi or Tharparkar were the most heat tolerant breeds. Jersey crossbred cows were more heat tolerant than Holstein crossbred cows. Crossbred cows with 50% Jersey inheritance performed better than higher Jersey inheritance during periods of THI above 72.

Effects of castration on IFN-γ and TNF-α expression in the adrenal gland of Angora goat

In the adrenal gland, there is a mutual interaction between the cells in the cortex and medulla and the cells of the immune system. Sex hormones regulate immune cell functions as well as reproductive and metabolic processes throughout life. Interferon-gamma (IFN-γ) is a cytokine that regulates the maturation and differentiation of many cell types. Tumor necrosis factor-alpha (TNF-α) is a multifunctional cytokine that plays an important role in various physiological and pathophysiological processes and orchestrates cytokines. This study was conducted to investigate the effects of castration on the expression of IFN-γ and TNF-α in the adrenal gland of Angora goat. A total of 16 Angora goat kids were used as material for the study. Healthy animals were selected for the study by clinical examination. At an average age of 75 days, eight animals were randomly selected from the institute herd and castrated. 85 days after castration (after approximately 160 days old), eight control and eight castrated Angora goats were slaughtered and their adrenal glands were removed. In the analysis of each group, IFN-γ expression was found in the cytoplasm of cells in the adrenal cortex and medulla. The adrenal glands of the castrated group showed a decrease in IFN-γ expression in the zona fasciculata. A distinct brown staining was seen in the cytoplasm of TNF-α-positive responsive secretory cells. TNF-α expression was found to be increased in the zona glomerulosa, zona fasciculata and zona reticularis of the adrenal gland in the castrated group. Accordingly, androgen hormone deficiency was able to increase TNF-α expression, whereas it did not significantly affect IFN-γ expression in the adrenal tissue of the Angora goat.

Stock market liberalization and institutional herding: Evidence from the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connects

Using the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connects (the Connects) as exogenous shocks to the liberalization of China's A-share markets, we study the impact of stock market liberalization on the herding behavior of domestic institutional investors. We find a robust and negative impact of the Connects on the level of institutional herding in connected Chinese A-share stocks. The impact is more pronounced for firms with smaller market capitalizations, less analyst coverage, or higher stock illiquidity, i.e., firms with higher information asymmetry. Moreover, the Connects improve the transparency of connected firms by improving audit quality, decreasing earnings management, and reducing stock price synchronicity. The improvement is greater for stocks that are more intensively traded by Hong Kong investors. Finally, the Connects amplify the price impact of institutional herding without causing price reversals. Overall, our results suggest that the Connects reduce the institutional herding in connected A-share stocks by reducing information asymmetry.

Detection of Subclinical Ketosis in Urine of Cattle and Buffaloes

Background: Subclinical ketosis (SCK) in dairy cows is a common metabolic disorder and a strong determinant of the health and performance of cows throughout lactation. Considerable amount of milk loss takes place with SCK incidence in dairy animals. Greater benefits are to be gained by monitoring the cows for SCK. The current study was aimed to find out incidence of SCK by urine test strip (Keto-Diastix). Methods: The present investigation was carried out on crossbred and Sahiwal cows and Murrah buffaloes (n=180) of the institute herd and rural dairy farms (n=97) around Karnal. The urine samples were tested for subclinical ketosis (SCK) 5-60 days postpartum from August 2019 to March 2020. Meteriological data on wet and dry bulb temperature and ambient temperature was collected and THI was calculated. Data of SCK incidence was classified based on stages of early lactation (5-20, 21-40 and 41-60d), parity (I, II, III and above), seasons (hot-humid, autumn, winter and spring) and milk production level ( less than 10kg, 10-20 kg and greater than 20 kg/d). Milk yield and environment variables were recorded during the experiment. Urine ketone and glucose level was detected by keto-Diastix to find out incidence of SCK. Result: Mean level of ketone bodies in urine was higher (P less than 0.01) in high yielding cows as compared to the medium yielders; however it did not vary in buffaloes. Ketone bodies in urine were high (P less than 0.01) in crossbred cows than that of buffaloes and Sahiwal cows. Urine glucose level did not vary among cows and buffaloes. It is concluded that high producing crossbred cows are more vulnerable to SCK between 41-60d of lactation and in III parity and above due to peak milk production. Sahiwal cows and buffaloes suffer less from SCK probably due to medium level of milk production. Factors like high milk yield, higher parity and hot-humid stress makes the animal more vulnerable to SCK. The screening of urine samples of animals at monthly intervals may be practiced by the farmers to monitor the incidence of SCK.

Effect of Chlorophytum borivilianum supplementation on milk production, composition and fatty acid profile in crossbred cows during hot-humid season.

The present investigation was carried out to test the efficacy of Chlorophytum borivilianum (CB) supplementation on milk production, composition, and fatty acid profile in crossbred (KF) cows. Eighteen crossbred cows were selected randomly from the institute herd and divided as control (n = 6), treatment 1 (T1, n = 6) and treatment 2 (T2, n = 6) based on body weight (av. 410.45, 424.47, 414.45 kg) and milk yield (av. 15.17, 15.80, 15.95 kg/d), respectively. The CB was supplemented at low dose at a dose rate of 40 mg/kg BW/day (T1) and high dose at a dose rate of 80 mg/kg BW/day (T2) during hot-humid (HH) season. The parameters like milk yield, dry matter intake (DMI), and body weight were recorded and milk composition viz., milk fat, solid not fat (SNF), protein, and fatty acid profile, somatic cell count (SCC), and plasminogen were estimated. Temperature humidity index (THI) was calculated to assess the level of heat stress on animals during hot-humid (HH) season. Body weight of crossbred cows did not vary between the groups during HH season. C. borivilianum supplementation in higher dose (80 mg/kg BW/day) increased DMI (per 100 kg BW) (p < 0.01) in T2 group KF cows in comparison to T1 and control group. The supplementation of CB in high dose increased milk yield, milk fat, protein, plasminogen and decreased SCC in comparison to low dose and control. Further, ratio of saturated to unsaturated fatty acids (SFAs:UFAs) was significantly reduced (p < 0.01) due to CB supplementation at higher dose in comparison to lower dose. It was concluded that supplementation of C. borivilianum at a dose rate of 80 mg/kg BW/day was found effective to augment milk production. The reduced saturated fatty acid, milk SCC, and the increase in unsaturated fatty acid content of milk, milk plasminogen suggest that its supplementation could be used in improving the mammary health and quality of milk production in dairy animals.

Political uncertainty and institutional herding

Political uncertainty is a key determinant of investment decisions. Specifically, the uncertainty that surrounds government policy makes beliefs noisier and depresses stock prices. In this paper, we explore whether institutional investors herd, i.e., mimic each other's trades, in response to political uncertainty. Using U.S. institutional investors' quarterly holding data from 1985 through 2019, we find evidence consistent with our conjecture. We also find that the results are stronger in times of low presidential popularity, and among companies that are politically sensitive. Overall, the findings suggest that the effect of political uncertainty on financial markets is larger than previously thought.