Empirical Analysis of Global Markets Herding on COVID-19 Effect

IF 3 Q2 BUSINESS

Vision-The Journal of Business Perspective Pub Date : 2023-03-25 DOI:10.1177/09722629221146653

Ooi Kok Loang, Zamri Ahmad

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引用次数: 0

Abstract

This article investigates the presence of herding on global stock markets during COVID-19. Cross-Sectional Absolute Deviation developed by Chiang and Zheng (2010) and Chang et al. (2000) examine market-wide herding. Results show that herding is prevalent in Brazil, Germany, India, Italy, Korea, China-Shanghai, China-Shenzhen and Turkey. During the epidemic, no evidence of herding was detected in France, Hong Kong, Indonesia, Japan, Malaysia, Poland, the United Kingdom and the United States. It has been shown that the United States and Chinese cross-market herding substantially influences all markets. The impact of analyst information (target price, EPS forecasts and revenue predictions) on herding is shown before the pandemic and weakening during the pandemic. It indicates that investors disregard expert recommendations and liquidate equities during the pandemic. The findings shed light on the occurrence and determinants of herding that causes investors’ to behave irrationally during COVID-19. Policymakers, government and regulators should formulate a more robust policy to monitor, control and oversee the naïve herding that drives fundamentals away from stock prices.

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全球市场羊群效应的实证分析

本文调查了COVID-19期间全球股市的羊群现象。蒋和郑(2010)以及Chang等人(2000)提出的横截面绝对偏差(Cross-Sectional Absolute Deviation)研究了市场范围内的羊群效应。结果表明，放牧在巴西、德国、印度、意大利、韩国、中国上海、中国深圳和土耳其普遍存在。疫情期间，在法国、香港、印度尼西亚、日本、马来西亚、波兰、英国和美国未发现放牧的证据。研究表明，美国和中国的跨市场羊群效应对所有市场都有重大影响。分析师信息(目标价、每股收益预测和收入预测)对羊群的影响在大流行之前显示出来，在大流行期间减弱。这表明，在疫情期间，投资者无视专家建议，变现股票。这些发现揭示了导致投资者在COVID-19期间非理性行为的羊群行为的发生和决定因素。政策制定者、政府和监管机构应制定更强有力的政策，以监测、控制和监督那些驱使基本面远离股价的naïve羊群行为。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Vision-The Journal of Business Perspective Multiple-

CiteScore

4.60

自引率

0.00%

发文量

121

期刊介绍： Vision-The Journal of Business Perspective is a quarterly peer-reviewed journal of the Management Development Institute, Gurgaon, India published by SAGE Publications. This journal contains papers in all functional areas of management, including economic and business environment. The journal is premised on creating influence on the academic as well as corporate thinkers. Vision-The Journal of Business Perspective is published in March, June, September and December every year. Its targeted readers are researchers, academics involved in research, and corporates with excellent professional backgrounds from India and other parts of the globe. Its contents have been often used as supportive course materials by the academics and corporate professionals. The journal has been providing opportunity for discussion and exchange of ideas across the widest spectrum of scholarly opinions to promote theoretical, empirical and comparative research on problems confronting the business world. Most of the contributors to this journal range from the outstanding and the well published to the upcoming young academics and corporate functionaries. The journal publishes theoretical as well as applied research works.