Examining herding in the BSE100 pre and during pandemic era: does governance matter?

Mohd Nasarudin, Ahmad Fawwaz and Ateeq, Lubainah (2022) Examining herding in the BSE100 pre and during pandemic era: does governance matter? Journal of Development Economics and Finance, 3 (1). pp. 189-204. ISSN 2582-5194

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Abstract

This study investigates herding towards market consensus in the Indian market by examining the stocks that constituted the Bombay Stock Exchange 100 (BSE100) pre and during pandemic situations using the Cross Section Absolute Deviations of Return (CSAD). We document a stronger herding activity during the pandemic against the period before the COVID-19 discovery. We also examine if governance scores influence herding decisions on the firms and reported no herding activity in the period before the pandemic. The findings on firms with lower governance scores indicate less severe herding activity during the pandemic time. Herding is more perilous among firms with higher governance scores during pandemic time suggesting rational herding practice with investors imitating the market movement only on selected firms with lesser governance risk but refuse to follow the sentiment on a perceived riskier investment

Item Type:	Article (Journal)
Uncontrolled Keywords:	Herding, Governance, COVID-19, BSE100.
Subjects:	H Social Sciences > HG Finance > HG4501 Stocks, investment, speculation
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Finance Kulliyyah of Economics and Management Sciences
Depositing User:	Dr Ahmad Fawwaz Mohd Nasarudin
Date Deposited:	07 Jun 2022 15:08
Last Modified:	07 Jun 2022 15:08
URI:	http://irep.iium.edu.my/id/eprint/98219

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