Show simple item record

dc.contributor.authorRahman, A.
dc.contributor.authorChowdhury, H.
dc.contributor.authorSadique, Shibley
dc.date.accessioned2017-01-30T15:09:56Z
dc.date.available2017-01-30T15:09:56Z
dc.date.created2015-10-07T03:43:48Z
dc.date.issued2015
dc.identifier.citationRahman, A. and Chowdhury, H. and Sadique, S. 2015. Herding where retail investors dominate trading: The case of Saudi Arabia. The Quarterly Review of Economics and Finance. 57: pp. 46-60.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/43749
dc.identifier.doi10.1016/j.qref.2015.01.002
dc.description.abstract

We investigate herding in the Saudi stock market, where more than 95% of the total trading is initiatedby the individual investors. Based on readily available stock data, we find evidence of pervasive herdingamong the market participants. Although herding is prevalent irrespective of market conditions, it tendsto get stronger in periods when the market rises and the trading activity intensifies. Traders are foundto be indifferent to important stock categories in their herd behavior. Further analysis suggests that thecorrelated behavior of Saudi traders is unlikely to be induced by the common movements in fundamentals.Considering the unique composition of the market clientele, we interpret these findings as constitutingmarket level evidence supporting a commonly held belief in the literature that the individual investorsare more likely to be noise traders.

dc.publisherElsevier
dc.subjectDispersion of return
dc.subjectRetail investors
dc.subjectDispersion of beta
dc.subjectMarket-wide herding
dc.subjectSaudi stock marketa
dc.titleHerding where retail investors dominate trading: The case of Saudi Arabia
dc.typeJournal Article
dcterms.source.volume57
dcterms.source.startPage46
dcterms.source.endPage60
dcterms.source.titleThe Quarterly Review of Economics and Finance
curtin.departmentCurtin Sarawak
curtin.accessStatusFulltext not available


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record