Document Type

Article

Publication Date

2016

Subject: LCSH

Stock exchanges

Disciplines

Economics

Abstract

This study examines herding behavior in all industrial sectors of the Turkish stock market. Applying the methodology of Chang et al. (2000) to the Turkish sectoral daily stock prices from 2002 to 2014, we found strong evidence of herding. This evidence did not disappear even after we controlled for market regimes and firm fundamentals. Investor herding is asymmetric in all sectors; even though herding is prevalent in both rising and falling markets, it is more pronounced in rising markets. In the financial, services, and technology sectors herding is detected only in the highly volatile markets. In contrast, in low-volatility markets we confirm herding only in the services sector.

Comments

(C) North American Business Press. Posted by permission of the publisher. Any individuals or persons wishing to use content from a North American Business Press journal, other than the author, must contact North American Business Press for explicit reproduction approval.

Publisher Citation

Cakan, E., & Balagyozyan, A. (2016). Sectoral Herding: Evidence from an Emerging Market. Journal of Accounting and Finance, 16(4), 87.

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Economics Commons

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