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Covid-19 and herding in global equity markets

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  • Rubesam, Alexandre
  • Raimundo, Gerson de Souza

Abstract

We investigate herding in ten equity markets during the COVID-19 pandemic using a methodology that considers movements in assets due to changes in fundamentals. We find heterogeneous patterns in herding across the ten countries during the pandemic, but overall, there is limited evidence of herding during this period, with only Italy, Sweden, and the United States displaying signs of herding. A cross-sectional analysis reveals that herding measures during the pandemic are negatively associated with stricter governmental actions that restrict mobility, and positively associated with economic support measures.

Suggested Citation

  • Rubesam, Alexandre & Raimundo, Gerson de Souza, 2022. "Covid-19 and herding in global equity markets," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:beexfi:v:35:y:2022:i:c:s2214635022000284
    DOI: 10.1016/j.jbef.2022.100672
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    Cited by:

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    2. Lang, Chunlin & Hu, Yang & Corbet, Shaen & Hou, Yang (Greg), 2024. "Tail risk connectedness in G7 stock markets: Understanding the impact of COVID-19 and related variants," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).
    3. Filip, Angela Maria & Pochea, Maria Miruna, 2023. "Intentional and spurious herding behavior: A sentiment driven analysis," Journal of Behavioral and Experimental Finance, Elsevier, vol. 38(C).
    4. Hong, Hui & Jiang, Lijun & Zhang, Cheng & Yue, Zhonggang, 2024. "Do conventional and new energy stock markets herd differently? Evidence from China," Research in International Business and Finance, Elsevier, vol. 67(PA).

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