A Study of the Herding Effect of Chinese Open-End Funds at the Industry Level

DOI

10.2991/978-94-6463-246-0_17How to use a DOI?

Keywords

finance; herding behavior; open-end funds; investment style

Abstract

In recent years there has been a growing perception among investors that there is a huddle of institutional investors in A-shares. To investigate this problem this paper applies a modification of the classical LSV model, which studies herd behaviour, to the industry level. By analyzing the data of open-end funds in various industries from March 2009 to December 2017, this paper investigates the extent and distribution characteristics of institutional investors’ herding behavior at the industry level, and explores the driving forces of herding behavior at the industry level. It is found that Chinese open-end funds indeed have significant herding behavior at the industry level. As herding behaviour in the securities market may exacerbate stock market volatility, this phenomenon deserves the attention of regulators.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xianming Chen
PY  - 2023
DA  - 2023/09/26
TI  - A Study of the Herding Effect of Chinese Open-End Funds at the Industry Level
BT  - Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
PB  - Atlantis Press
SP  - 151
EP  - 157
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-246-0_17
DO  - 10.2991/978-94-6463-246-0_17
ID  - Chen2023
ER  -