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Herding behavior and the information effect of firm’s ownership


Mohd Nasarudin, Ahmad Fawwaz and Hanijito, D. Agus and Amin Noordin, Bany Ariffin and Matemilola, Bolaji Tunde (2017) Herding behavior and the information effect of firm’s ownership. The Empirical Economics Letters, 16 (5). 349 - 355. ISSN 1681-8997


Available empirical evidences reveal that macroeconomic information influences investor’s herding decision, but very limited studies focus on the influence of firm’s ownership types on investor’s herding decision. This study challenges the importance of information dissemination at firm’s level on investor’s herding decision. By categorizing firms according to family and non-family ownership, this study investigates the existence of herding in 22 different countries. Applying the cross sectional absolute deviation (CSAD), we find existence of herding activity only in Greece, New Zealand and China. Our findings suggest that investors place less importance on firm’s information dissemination management.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: The Publisher
Keywords: Family ownership; Fundamental information; Herding behavior
Depositing User: Nurul Ainie Mokhtar
Date Deposited: 18 Mar 2019 09:04
Last Modified: 18 Mar 2019 09:04
URI: http://psasir.upm.edu.my/id/eprint/62026
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