Article Details

A study on Factors Influencing the Herding Behavior of Indian Stock Market | Original Article

Nisha Sharma*, Priti Dubey, in International Journal of Information Technology and Management | IT & Management


Behavioral finance proposes that cognitive traits of investors impact their investment decisions which are not always rational, in contradiction to traditional finance. These cognitive traits of stock investors are influenced by their demographical profile and the financial information that they receive from various sources which in turn influences their stock investment decisions. Investors with similar demographic profile tend to follow a similar pattern with regard to their investment behavior biases. The main objective is to study the Factors Influencing the Herding Behavior of Indian Stock Market. Using the state space model, calculate the herding measure using the log cross-sectional standard deviation of beta of the market component (using the kalman filter approach).