Herd behaviour in financial markets: an experimental approach
This thesis uses the experimental approach to examine the existence, the characteristics and the consequences of herd behaviour in financial markets. We conduct three experiments, which are asset market (Smith, Suchanek and Williams, 1988), information cascade (Anderson and Holt, 1997) and Holt and...
| Main Author: | |
|---|---|
| Format: | Thesis (University of Nottingham only) |
| Language: | English |
| Published: |
2020
|
| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/59555/ |
| _version_ | 1848799645961027584 |
|---|---|
| author | Nguyen, Thien Kim |
| author_facet | Nguyen, Thien Kim |
| author_sort | Nguyen, Thien Kim |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This thesis uses the experimental approach to examine the existence, the characteristics and the consequences of herd behaviour in financial markets. We conduct three experiments, which are asset market (Smith, Suchanek and Williams, 1988), information cascade (Anderson and Holt, 1997) and Holt and Laury (2002). We found that herd behaviour due to information asymmetry and reputation presences in all experimental financial markets. Participants decided to follow the market since they believe other participants have more information, or other participants performed better than themselves. Interestingly, herd behaviour is not a threat for price bubbles, volatility and market efficiency. Individual characteristics and personalities are found to be significantly correlated with herding decisions. The thesis includes four essays, in which each essay presents the results from one of the three experiments. The last essay analyses the impacts of the big five personality traits on investment decisions. The results from this thesis are beneficial for investors, academics and policy-makers. |
| first_indexed | 2025-11-14T20:38:58Z |
| format | Thesis (University of Nottingham only) |
| id | nottingham-59555 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:38:58Z |
| publishDate | 2020 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-595552025-02-28T14:44:01Z https://eprints.nottingham.ac.uk/59555/ Herd behaviour in financial markets: an experimental approach Nguyen, Thien Kim This thesis uses the experimental approach to examine the existence, the characteristics and the consequences of herd behaviour in financial markets. We conduct three experiments, which are asset market (Smith, Suchanek and Williams, 1988), information cascade (Anderson and Holt, 1997) and Holt and Laury (2002). We found that herd behaviour due to information asymmetry and reputation presences in all experimental financial markets. Participants decided to follow the market since they believe other participants have more information, or other participants performed better than themselves. Interestingly, herd behaviour is not a threat for price bubbles, volatility and market efficiency. Individual characteristics and personalities are found to be significantly correlated with herding decisions. The thesis includes four essays, in which each essay presents the results from one of the three experiments. The last essay analyses the impacts of the big five personality traits on investment decisions. The results from this thesis are beneficial for investors, academics and policy-makers. 2020-07-21 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en arr https://eprints.nottingham.ac.uk/59555/1/Thesis_KIM%20thien%20NGUYEN_4257314_Revised.pdf Nguyen, Thien Kim (2020) Herd behaviour in financial markets: an experimental approach. PhD thesis, University of Nottingham. Investments Psychological aspects; Decision making Economic aspects; Herd behaviour |
| spellingShingle | Investments Psychological aspects; Decision making Economic aspects; Herd behaviour Nguyen, Thien Kim Herd behaviour in financial markets: an experimental approach |
| title | Herd behaviour in financial markets: an experimental approach |
| title_full | Herd behaviour in financial markets: an experimental approach |
| title_fullStr | Herd behaviour in financial markets: an experimental approach |
| title_full_unstemmed | Herd behaviour in financial markets: an experimental approach |
| title_short | Herd behaviour in financial markets: an experimental approach |
| title_sort | herd behaviour in financial markets: an experimental approach |
| topic | Investments Psychological aspects; Decision making Economic aspects; Herd behaviour |
| url | https://eprints.nottingham.ac.uk/59555/ |