IDEAS home Printed from https://ideas.repec.org/a/eas/buseco/v23y2020i23p107-116.html
   My bibliography  Save this article

Herding Behaviour In Financial Markets: A Literature Review

Author

Listed:
  • Cumhur ÅžAHÄ°N

Abstract

According to the classical finance theory it is assumed that investors show rational behaviour in order to achieve maximum gain.but this approach has changed since 1980s. There are a lot of academic studies emphasizing the determining effect of human psychology in financial decisions. Behavioral finance considers the interaction between emotions and investors decisions. According to the New financial approach investors show irrational behaviours and take prejudices into the account for investment decisions as opposed to traditional perspective. Behavioral finance analyzes the market anomalies which conventional financial theories are inadequate to explain based on an assumption that individuals are not rational. While doing this, it benefits from the other sciences such as psychology, sociology, and antropology, etc. One type of behavioral finance is herd behavior. In this paper, domestic and foreign literature research on herd behavior in financial markets were analyzed.

Suggested Citation

  • Cumhur ÅžAHÄ°N, 2020. "Herding Behaviour In Financial Markets: A Literature Review," Eurasian Business & Economics Journal, Eurasian Academy Of Sciences, vol. 23(23), pages 107-116, February.
  • Handle: RePEc:eas:buseco:v:23:y:2020:i:23:p:107-116
    DOI: 10.17740/eas.econ.2020.V23-07
    as

    Download full text from publisher

    File URL: https://eurasianacademy.org/index.php/busecon/article/view/855
    Download Restriction: no

    File URL: https://libkey.io/10.17740/eas.econ.2020.V23-07?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eas:buseco:v:23:y:2020:i:23:p:107-116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kutluk Kagan Sumer (email available below). General contact details of provider: https://www.eurasianacademy.org/index.php/busecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.