Investigating the Collective Behavior of Investors in the Tehran Stock Market Using the Trading Volume

Document Type : Research Paper

Authors

1 PhD Student in Financial Economics, University of Tehran, International Compus, Iran

2 Professor at the University of Tehran, Iran,

Abstract

Herding behavior or behaving like aggregation is one of the behavioral biases among investors, that can cause irregularities such as price bubbles and falls, increase in price fluctuations in the market and, in general, lack of balance in the capital market. Therefore, by identifying and studying this phenomenon, in addition to explaining one of the behavioral dimensions of the Iran capital market, it is possible to provide conditions for the implementation of optimal decisions for investors and market agents. In this study, the existence of herding behavior among investors of Tehran Stock Exchange using the volume of trading by Hachicha method, which is an initiative and innovation of the Huang and Salmon model, for the period 1394 to 1398 regarding 142 companies from companies Accepted in the Iran stock market, has been implemented. The results show that herding has existed continuously in the Iran stock market during the review period.
Classification: G12, G14, G40, G41

Keywords

References

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History

  • Receive Date: 18 May 2020
  • Revise Date: 20 July 2020
  • Accept Date: 07 September 2020

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