Investigation of herding behavior in developed and developing countries: Does country governance factor matters?

Investigation of herding behavior in developed and developing countries: Does country governance factor matters?

Although numerous studies have been conducted on herding behaviours, only a limited number has focused on the governance factor that may influence herding activity. This paper examines whether countries’ governance influences herding decisions among investors. Applying the cross-sectional absolu...

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Main Authors: Mohd Nasarudin, Ahmad Fawwaz, Noordin, Bany Ariffin Amin, Law, Siong Hook, Yahya, Mohd Hisham
Format: Conference or Workshop Item
Language:English
Published: Universiti Tunku Abdul Rahman, 2017
Subjects:
HG4501 Stocks, investment, speculation
Online Access:http://irep.iium.edu.my/57831/
http://irep.iium.edu.my/57831/
http://irep.iium.edu.my/57831/13/57831_Investigation%20of%20Herding%20Behavior_complete.pdf
id iium-57831
recordtype eprints
spelling iium-578312018-03-01T05:42:08Z http://irep.iium.edu.my/57831/ Investigation of herding behavior in developed and developing countries: Does country governance factor matters? Mohd Nasarudin, Ahmad Fawwaz Noordin, Bany Ariffin Amin Law, Siong Hook Yahya, Mohd Hisham HG4501 Stocks, investment, speculation Although numerous studies have been conducted on herding behaviours, only a limited number has focused on the governance factor that may influence herding activity. This paper examines whether countries’ governance influences herding decisions among investors. Applying the cross-sectional absolute deviation (CSAD) method on data from 60 countries, the results on herding estimation based on the country level segmented into three panels reveal that the strict governance would help to minimize herding activity. Among countries with strict governance, only six report herding activity. However, the results show that herding activity is reported more often in countries with moderate or weak governance. Our results also suggest that herding activity will be practiced more in the country where the information dissemination is less efficient due to its less-strict governance level. Universiti Tunku Abdul Rahman, 2017-05 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/57831/13/57831_Investigation%20of%20Herding%20Behavior_complete.pdf Mohd Nasarudin, Ahmad Fawwaz and Noordin, Bany Ariffin Amin and Law, Siong Hook and Yahya, Mohd Hisham (2017) Investigation of herding behavior in developed and developing countries: Does country governance factor matters? In: The 19th Malaysian Finance Association Conference (MFAC) 2017 : Challenges and New Directions amidst Global Financial Uncertainty, 16th - 18th May 2017, 16-18 MAY 2017, Universiti Tunku Abdul Rahman Kampar. (Unpublished) http://www.mfa.com.my/current-issue/
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG4501 Stocks, investment, speculation
spellingShingle HG4501 Stocks, investment, speculation
Mohd Nasarudin, Ahmad Fawwaz
Noordin, Bany Ariffin Amin
Law, Siong Hook
Yahya, Mohd Hisham
Investigation of herding behavior in developed and developing countries: Does country governance factor matters?
description Although numerous studies have been conducted on herding behaviours, only a limited number has focused on the governance factor that may influence herding activity. This paper examines whether countries’ governance influences herding decisions among investors. Applying the cross-sectional absolute deviation (CSAD) method on data from 60 countries, the results on herding estimation based on the country level segmented into three panels reveal that the strict governance would help to minimize herding activity. Among countries with strict governance, only six report herding activity. However, the results show that herding activity is reported more often in countries with moderate or weak governance. Our results also suggest that herding activity will be practiced more in the country where the information dissemination is less efficient due to its less-strict governance level.
format Conference or Workshop Item
author Mohd Nasarudin, Ahmad Fawwaz
Noordin, Bany Ariffin Amin
Law, Siong Hook
Yahya, Mohd Hisham
author_facet Mohd Nasarudin, Ahmad Fawwaz
Noordin, Bany Ariffin Amin
Law, Siong Hook
Yahya, Mohd Hisham
author_sort Mohd Nasarudin, Ahmad Fawwaz
title Investigation of herding behavior in developed and developing countries: Does country governance factor matters?
title_short Investigation of herding behavior in developed and developing countries: Does country governance factor matters?
title_full Investigation of herding behavior in developed and developing countries: Does country governance factor matters?
title_fullStr Investigation of herding behavior in developed and developing countries: Does country governance factor matters?
title_full_unstemmed Investigation of herding behavior in developed and developing countries: Does country governance factor matters?
title_sort investigation of herding behavior in developed and developing countries: does country governance factor matters?
publisher Universiti Tunku Abdul Rahman,
publishDate 2017
url http://irep.iium.edu.my/57831/
http://irep.iium.edu.my/57831/
http://irep.iium.edu.my/57831/13/57831_Investigation%20of%20Herding%20Behavior_complete.pdf
first_indexed 2023-09-18T21:21:45Z
last_indexed 2023-09-18T21:21:45Z
_version_ 1777411928245665792

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