Herd Behaviour and Cascading in Capital Markets: A Review and Synthesis

By David A. Hirshleifer, Siew Hong Teoh. 2003

836 citations recorded by the source corpus.

Subfields: Accounting, Finance, Safety Research

View Paper: https://www.semanticscholar.org/paper/5dd7f8a4b517a91a5c6d4986ac73d34efefa5d98

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. David A. Hirshleifer
2. Siew Hong Teoh
3. Charles M. C. Lee
4. Stephen Glaeser
5. Marc Orlitzky
6. Suresh G.
7. A. Mobarek
8. Brent D. Goldfarb

In Finance

1. David A. Hirshleifer
2. Siew Hong Teoh
3. Charles M. C. Lee
4. Stephen Glaeser
5. Marc Orlitzky
6. Suresh G.
7. Yi Zhang
8. Guohua Jiang

In Safety Research

1. Siew Hong Teoh
2. David A. Hirshleifer
3. Marc Orlitzky
4. Stephen Glaeser
5. Suresh G.

Citations in the corpus

• Thought and Behavior Contagion in Capital Markets (2008, positive): “We can distinguish an informational hierarchy and a payoff hierarchy in sources of convergence or divergence (see also Hirshleifer and Teoh (2003a)).”
• Dynamic correlation analysis of financial contagion: Evidence from the Central and Eastern European markets☆ (2011, background): “The herding behavior can occur because investors are following other investors, which has been characterized by Hirshleifer and Teoh (2003) as “Convergence of behaviors”.”
• Board Interlocks and Earnings Management Contagion (2013, background): “A growing set of studies provide evidence that firms’ corporate actions are significantly affected by other companies through social networks (see, e.g., the reviews of Hirshleifer and Teoh, 2003, 2009).”
• Investors’ trading activity: A behavioural perspective and empirical results (2011, background): “This phenomenon is referred to as herding (Hirshleifer and Teoh, 2003).”
• Information Uncertainty and Expected Returns (2005, background): “See Hirshleifer and Teoh (2003) for a good synthesis of herding behavior and cascading studies in capital market settings.”
• A cross-country analysis of herd behavior in Europe (2014, background): “…underlying causes of this behavior are portrayed as being either ‘rational’ (i.e., the investor follows the majority believing that they possess superior information or analytical skills) or ‘irrational’ (i.e., the investor acts without any rational consideration) (see Hirshleifer and Teoh, 2003).”
• The Walk-down to Beatable Analyst Forecasts: The Role of Equity Issuance and Insider Trading Incentives* (2004, neutral): “Using survey data, Hutton (2003) finds that firms where managers indicated that they provide active guidance to analysts are less likely to experience negative earnings surprises.”