Empirical study of herding behavior impacts on South Asia Nation
This paper investigates the dynamic relationship between Sri Lanka and Pakistan’s stock markets and its interdependent with India and China given the later hefty involvement in the former economic activity. The study investigate the potential macro herding across the four countries and also try to e...
| Main Authors: | , |
|---|---|
| Format: | Proceeding Paper |
| Language: | English English English |
| Published: |
2019
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/79182/ http://irep.iium.edu.my/79182/1/New%20Doc%202020-02-26%2011.55.30.pdf http://irep.iium.edu.my/79182/13/PAPER%20FOR%20ICFM.pdf http://irep.iium.edu.my/79182/19/fawwaz.pdf |
| _version_ | 1848788730979024896 |
|---|---|
| author | Alom, Shahedin Mohd Nasarudin, Ahmad Fawwaz |
| author_facet | Alom, Shahedin Mohd Nasarudin, Ahmad Fawwaz |
| author_sort | Alom, Shahedin |
| building | IIUM Repository |
| collection | Online Access |
| description | This paper investigates the dynamic relationship between Sri Lanka and Pakistan’s stock markets and its interdependent with India and China given the later hefty involvement in the former economic activity. The study investigate the potential macro herding across the four countries and also try to examine the spillover effect especially from superior market towards its developing counterpart. The Cross Sectional Absolute Deviation (CSAD) is utilized to test for herding and it suggested that while herding exist in China, Sri Lanka and Pakistan pre-crisis period, only Pakistan have herding after the subprime crisis. Testing industrial herding across the countries revealed that investors do not emphasize sectoral influence over herding decision. However, as we consider the spillover effects between countries and test for herding in selected industry with higher percentage of trade among them, it reveals herding existence in several diferent industry pre and post crisis. The findings confirms the existence of herding in individuals market except for India and also across market in selected industry due to spillover effects. |
| first_indexed | 2025-11-14T17:45:29Z |
| format | Proceeding Paper |
| id | iium-79182 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T17:45:29Z |
| publishDate | 2019 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-791822020-12-16T09:36:46Z http://irep.iium.edu.my/79182/ Empirical study of herding behavior impacts on South Asia Nation Alom, Shahedin Mohd Nasarudin, Ahmad Fawwaz HG4501 Stocks, investment, speculation This paper investigates the dynamic relationship between Sri Lanka and Pakistan’s stock markets and its interdependent with India and China given the later hefty involvement in the former economic activity. The study investigate the potential macro herding across the four countries and also try to examine the spillover effect especially from superior market towards its developing counterpart. The Cross Sectional Absolute Deviation (CSAD) is utilized to test for herding and it suggested that while herding exist in China, Sri Lanka and Pakistan pre-crisis period, only Pakistan have herding after the subprime crisis. Testing industrial herding across the countries revealed that investors do not emphasize sectoral influence over herding decision. However, as we consider the spillover effects between countries and test for herding in selected industry with higher percentage of trade among them, it reveals herding existence in several diferent industry pre and post crisis. The findings confirms the existence of herding in individuals market except for India and also across market in selected industry due to spillover effects. 2019-07-11 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/79182/1/New%20Doc%202020-02-26%2011.55.30.pdf application/pdf en http://irep.iium.edu.my/79182/13/PAPER%20FOR%20ICFM.pdf application/pdf en http://irep.iium.edu.my/79182/19/fawwaz.pdf Alom, Shahedin and Mohd Nasarudin, Ahmad Fawwaz (2019) Empirical study of herding behavior impacts on South Asia Nation. In: 1st International Conference on Financial Markets (ICFM 2019), 11th-12th July 2019, Kuala Lumpur. (Unpublished) |
| spellingShingle | HG4501 Stocks, investment, speculation Alom, Shahedin Mohd Nasarudin, Ahmad Fawwaz Empirical study of herding behavior impacts on South Asia Nation |
| title | Empirical study of herding behavior impacts on South Asia Nation |
| title_full | Empirical study of herding behavior impacts on South Asia Nation |
| title_fullStr | Empirical study of herding behavior impacts on South Asia Nation |
| title_full_unstemmed | Empirical study of herding behavior impacts on South Asia Nation |
| title_short | Empirical study of herding behavior impacts on South Asia Nation |
| title_sort | empirical study of herding behavior impacts on south asia nation |
| topic | HG4501 Stocks, investment, speculation |
| url | http://irep.iium.edu.my/79182/ http://irep.iium.edu.my/79182/1/New%20Doc%202020-02-26%2011.55.30.pdf http://irep.iium.edu.my/79182/13/PAPER%20FOR%20ICFM.pdf http://irep.iium.edu.my/79182/19/fawwaz.pdf |