Summary of literature review


Data Frequency

Main findings

Lakonishok et al. [20]


The study presents negative evidences of herding among US pension fund managers.

Nofsinger and Sias [2]


The results of the study reported herding behavior among institutional and individual investors. And, institutional investors herding affect prices more than the individual investors.

Choe et al. [21]


Found support for herding behavior by foreign investors in Korean stock market. Although herding behavior has not contributed to destabilization of prices for the entire period of study.

Oehler and Chao [22]


Reported evidences of strong herding behavior in German bond markets and specially the herding behavior was found stronger in stock market than in bond markets

Hwang and Salmon [9]


The study evidences of herding behavior in US and Korean market and against widely believed herding falls during Asian and Russian crises period.

Kim and Nofsinger [23]


The empirical study reported herding behavior in Japan and presented evidences of large price movements in stock market as a result of herding.

Wylie [24]

Half yearly

The study reported significant herding behavior among fund managers especially in UK large and small stocks

Demirer and Kutan [25]


The study examined herding behavior in Chinese market using both firm and sectorial level data. The findings of the study indicate negative evidences of herding in Chinese stock markets.

Caporale et al. [26]

Daily, weekly and monthly

Provided evidences of herding behavior in Athens stock market

Caparrelli et al. [27]


The study reported herding under extreme market conditions in Italian stock market.

Chiang and Zheng [16]


The study investigated herding behavior in Chinese stock markets. And the results of the study reported, evidences of herding in both Shanghai and Shenzhen A share market and no evidences of herding was reported in B share market

Fu and Lin [28]


Reported evidences of herding behavior Chinese stock market and herding are more prevalent in up markets than in down markets.

Kremer and Nautz [29]


This paper investigated herding behavior in German stock market. Using a comprehensive database the study provided evidences of herding behavior among institutional investors and the intensity of herding depending on the stock characteristics.

Galariotis et al. [1]


The study investigated herding behavior toward market consensus for leading stocks of US and UK markets. The results indicate herding behavior during release of macroeconomic information and spillover effect from US to UK market.