Open AccessHerding behaviour and sentiment: Evidence in a small European market
Author(s) -
Elisabete Vieira,
Márcia Sofia Valente Pereira
Publication year - 2015
Publication title -
revista de contabilidad
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.378
H-Index - 18
eISSN - 1988-4672
pISSN - 1138-4891
DOI - 10.1016/j.rcsar.2014.06.003
Subject(s) - herding , portuguese , humanities , stock market , phenomenon , economics , philosophy , geography , psychology , linguistics , forestry , context (archaeology) , archaeology , epistemology
This work studies herding behaviour in a small European market, by analysing the stocks that constituted the Portuguese stock PSI-20 index, for the period between 2003 and 2011. The two different approaches used to measure herding intensity led to different results, suggesting that measurements of the herding phenomenon are sensitive to the method used. Consequently, there is a need for further research into the methodology used to test this phenomenon. Additionally, the study analyses the relationship between herd behaviour and investor sentiment, an area that has been little explored. In applying causality tests to the impact of sentiment on herd behaviour, only weak evidence is found that sentiment influences herding