COVID-19 KÜRESEL SALGINI SIRASINDA BORSA İSTANBUL’DA SÜRÜ DAVRANIŞININ TEST EDİLMESİ

Abstract

The concept of herd behavior is based on the nature of decentralized acting investors’ pseudo-collaborative behaviors in the market. This study investigates the herd behavior phenomenon for Borsa Istanbul (BIST) amidst the new coronavirus outbreak. The whole period is split into symmetrical two discrete one-year sub-periods considering the median date of March 11th, 2020, the official announcement date of the first domestic COVID-19 case. The paper proceeds with the models based on the Cross-sectional mean absolute deviation (CSAD) and the Cross-sectional standard deviation (CSSD) test methodology to test for probable herd behavior, using daily stock closing prices of the BIST 100 index shares during the period from March 11th, 2019 to March 9th, 2021.