Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners?
This paper examines the influence of China’s cross-sectional dispersion of returns on local markets, as well as its major trading partners. With the cross-sectional average deviation method, we have reported some significant and insignificant results, as well as for tranquil and turbulent phases of...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/88073/ http://psasir.upm.edu.my/id/eprint/88073/1/ABSTRACT.pdf |
| _version_ | 1848860547948216320 |
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| author | Chong, Oiping Amin Noordin, Bany Ariffin Matemilola, Bolaji Tunde McGowan, Carl B. |
| author_facet | Chong, Oiping Amin Noordin, Bany Ariffin Matemilola, Bolaji Tunde McGowan, Carl B. |
| author_sort | Chong, Oiping |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper examines the influence of China’s cross-sectional dispersion of returns on local markets, as well as its major trading partners. With the cross-sectional average deviation method, we have reported some significant and insignificant results, as well as for tranquil and turbulent phases of the Chinese stock market. It seems that the cross-sectional dispersion of returns in China has influenced markets in countries in the greater China region and some other Asian countries but not markets in Europe or the United States. Although China’s cross-sectional dispersion of returns plays a role in influencing the country’s trading partners, which are categorised as having high, medium or low trade volumes, it does not cause any of these groups to herd around its market. Thus we conclude that although China is the world's second-largest economy after that of the United States, China's role in stock trading is still unmatched by the United States. |
| first_indexed | 2025-11-15T12:46:59Z |
| format | Article |
| id | upm-88073 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:46:59Z |
| publishDate | 2020 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-880732022-05-24T04:29:49Z http://psasir.upm.edu.my/id/eprint/88073/ Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners? Chong, Oiping Amin Noordin, Bany Ariffin Matemilola, Bolaji Tunde McGowan, Carl B. This paper examines the influence of China’s cross-sectional dispersion of returns on local markets, as well as its major trading partners. With the cross-sectional average deviation method, we have reported some significant and insignificant results, as well as for tranquil and turbulent phases of the Chinese stock market. It seems that the cross-sectional dispersion of returns in China has influenced markets in countries in the greater China region and some other Asian countries but not markets in Europe or the United States. Although China’s cross-sectional dispersion of returns plays a role in influencing the country’s trading partners, which are categorised as having high, medium or low trade volumes, it does not cause any of these groups to herd around its market. Thus we conclude that although China is the world's second-largest economy after that of the United States, China's role in stock trading is still unmatched by the United States. Elsevier 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/88073/1/ABSTRACT.pdf Chong, Oiping and Amin Noordin, Bany Ariffin and Matemilola, Bolaji Tunde and McGowan, Carl B. (2020) Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners? Journal of International Financial Markets Institutions & Money, 65. art. no. 101168. pp. 1-11. ISSN 1042-4431 https://www.sciencedirect.com/science/article/pii/S1042443119302495#:~:text=Although%20China's%20cross%2Dsectional%20dispersion,to%20herd%20around%20its%20market. 10.1016/j.intfin.2019.101168 |
| spellingShingle | Chong, Oiping Amin Noordin, Bany Ariffin Matemilola, Bolaji Tunde McGowan, Carl B. Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners? |
| title | Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners? |
| title_full | Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners? |
| title_fullStr | Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners? |
| title_full_unstemmed | Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners? |
| title_short | Can China’s cross-sectional dispersion of stock returns Cause or influence the herding behaviour of traders in other local markets and China’s trading partners? |
| title_sort | can china’s cross-sectional dispersion of stock returns cause or influence the herding behaviour of traders in other local markets and china’s trading partners? |
| url | http://psasir.upm.edu.my/id/eprint/88073/ http://psasir.upm.edu.my/id/eprint/88073/ http://psasir.upm.edu.my/id/eprint/88073/ http://psasir.upm.edu.my/id/eprint/88073/1/ABSTRACT.pdf |