An Examination of Herding Behavior in the Brazilian Equity Market

The aim of the present study is to investigate herding behavior in the Brazilian stock market. This bias is quite common in times of market downturns and can cause investors to suffer large losses. It is very difficult to effectively identify its real occurrence. Through the method of Chang et al. (...

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Autores principales:	Patrícia Fernanda Correia Lima Signorelli, Eduardo Camilo-da-Silva, Claudio Henrique da Silveira Barbedo
Formato:	article
Lenguaje:	EN PT
Publicado:	FUCAPE Business School 2021
Materias:	herd behavior market microstructure behavioral finance Business HF5001-6182
Acceso en línea:	https://doaj.org/article/0670d23aef5148b8be45137e9b3b084e
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id	oai:doaj.org-article:0670d23aef5148b8be45137e9b3b084e
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spelling	oai:doaj.org-article:0670d23aef5148b8be45137e9b3b084e2021-11-11T15:48:08ZAn Examination of Herding Behavior in the Brazilian Equity Market1807-734X10.15728/bbr.2021.18.3.1https://doaj.org/article/0670d23aef5148b8be45137e9b3b084e2021-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=123068387001https://doaj.org/toc/1807-734XThe aim of the present study is to investigate herding behavior in the Brazilian stock market. This bias is quite common in times of market downturns and can cause investors to suffer large losses. It is very difficult to effectively identify its real occurrence. Through the method of Chang et al. (2000), it is possible to show that the occurrence of herd behavior is associated with the following phenomena: high trading volume; high volatility, market downturn; and misbalancing of orders. The main contribution of the paper is to identify that herding behavior reacts asymmetrically to the sign of past shocks. The results suggest that an intense selling movement can generate uncertainty in agents, causing them to imitate others in imminent loss periods.Patrícia Fernanda Correia Lima SignorelliEduardo Camilo-da-SilvaClaudio Henrique da Silveira BarbedoFUCAPE Business Schoolarticleherd behaviormarket microstructurebehavioral financeBusinessHF5001-6182ENPTBBR: Brazilian Business Review, Vol 18, Iss 3, Pp 236-254 (2021)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	herd behavior market microstructure behavioral finance Business HF5001-6182
spellingShingle	herd behavior market microstructure behavioral finance Business HF5001-6182 Patrícia Fernanda Correia Lima Signorelli Eduardo Camilo-da-Silva Claudio Henrique da Silveira Barbedo An Examination of Herding Behavior in the Brazilian Equity Market
description	The aim of the present study is to investigate herding behavior in the Brazilian stock market. This bias is quite common in times of market downturns and can cause investors to suffer large losses. It is very difficult to effectively identify its real occurrence. Through the method of Chang et al. (2000), it is possible to show that the occurrence of herd behavior is associated with the following phenomena: high trading volume; high volatility, market downturn; and misbalancing of orders. The main contribution of the paper is to identify that herding behavior reacts asymmetrically to the sign of past shocks. The results suggest that an intense selling movement can generate uncertainty in agents, causing them to imitate others in imminent loss periods.
format	article
author	Patrícia Fernanda Correia Lima Signorelli Eduardo Camilo-da-Silva Claudio Henrique da Silveira Barbedo
author_facet	Patrícia Fernanda Correia Lima Signorelli Eduardo Camilo-da-Silva Claudio Henrique da Silveira Barbedo
author_sort	Patrícia Fernanda Correia Lima Signorelli
title	An Examination of Herding Behavior in the Brazilian Equity Market
title_short	An Examination of Herding Behavior in the Brazilian Equity Market
title_full	An Examination of Herding Behavior in the Brazilian Equity Market
title_fullStr	An Examination of Herding Behavior in the Brazilian Equity Market
title_full_unstemmed	An Examination of Herding Behavior in the Brazilian Equity Market
title_sort	examination of herding behavior in the brazilian equity market
publisher	FUCAPE Business School
publishDate	2021
url	https://doaj.org/article/0670d23aef5148b8be45137e9b3b084e
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An Examination of Herding Behavior in the Brazilian Equity Market

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