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Herd Mentality Amongst Equity Investors During COVID-19: Evidences from Saudi Arabia

Author

Listed:
  • Faisal Alnori

    (Faculty of Economics and Administration, Department of Finance, King Abdulaziz University, Jeddah, Saudi Arabia,)

  • Moid U. Ahmad

    (Department of Finance, University Business School, Chandigrah University, India.)

Abstract

The behaviour of individual equity investors during pandemics needs to be probed for better decision making. This study investigates the herd mentality amongst equity investors in Saudi Arabia in the context of COVID-19 (March 2020 to June 2021). The study is based on 326 responses and uses regression analysis as the anchor analytical technique. Additionally, the interaction of herding behaviour is probed in relation to overconfidence, emotions and independent decision making through a moderation analysis. The study found a negative moderating influence of age, gender and level of education on the herding behaviour of individual equity investors.

Suggested Citation

  • Faisal Alnori & Moid U. Ahmad, 2022. "Herd Mentality Amongst Equity Investors During COVID-19: Evidences from Saudi Arabia," International Journal of Economics and Financial Issues, Econjournals, vol. 12(4), pages 40-46, July.
    • Handle: RePEc:eco:journ1:2022-04-6
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    References listed on IDEAS

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    Cited by:

    1. Faisal Alnori, 2024. "How Corporate Liquidity Reacts to COVID-19 Outbreak? Evidence from Listed Corporations in Saudi Arabia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 16(5), pages 1-40, May.

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    More about this item

    Keywords

    Equity investor; Behavioural finance; COVID-19; Herd mentality;
    All these keywords.

    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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