Purpose

Herd behavior has been studied herein and tested based on primary respondents from Indian markets.

Design/methodology/approach

The paper expounds the empirical evidence by applying the cross-sectional absolute deviation method and reporting on herd behavior among decision-makers who are engaged in trading in the Indian stock market. Further, the study attempts to analyze the market-wide herding in the Indian stock market using 2230 daily, 470 weekly and 108 monthly observations of Nifty 50 stock returns for a period of nine years from April 1, 2009 to March 31, 2018 during the normal market conditions, extreme market conditions and in both increasing and decreasing market conditions.

Findings

In a span of a decade witnessing different market cycles, the authors’ results exhibit that there is no evidence of herding in any market condition in Indian stock market primarily due to the dominance of institutional investors and secondly because of low market participation by individual investors.

Originality/value

The results reveal that there is no impact of herd behavior on the stock returns in the Indian equity market during the normal market conditions. It highlights that the participation of individuals who are more prone to herding is more evident for short-run investments, contrary to long-term holdings.

中文翻译：

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羊群效应对印度股市收益的影响：实证研究

目的

此处研究了羊群行为，并根据印度市场的主要受访者进行了测试。

设计/方法/方法

本文通过应用横截面绝对偏差方法和报告在印度股票市场进行交易的决策者的从众行为来阐述经验证据。此外，该研究试图通过对 2009 年 4 月 1 日至 2018 年 3 月 31 日 9 年期间 Nifty 50 股票回报的 2230 次每日、470 次每周和 108 次每月观察来分析印度股市的全市场羊群效应。正常市场条件、极端市场条件以及增加和减少的市场条件。

发现

在见证不同市场周期的十年间，作者的结果表明，在印度股市的任何市场条件下，没有证据表明存在羊群效应，这主要是由于机构投资者的主导地位，其次是因为个人投资者的市场参与度低。

原创性/价值

结果表明，在正常市场条件下，羊群行为对印度股市的股票收益没有影响。它强调，与长期持有相反，更倾向于从众的个人的参与在短期投资中更为明显。