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Market-wide Herding and the Impact of Institutional Investors in the Indian Capital Market

Author

Listed:
  • M.V. Lakshman

    (Lakshman M.V., Associate Professor, Administrative Staff College of India, Hyderabad, India.)

  • Sankarshan Basu

    (Sankarshan Basu (corresponding author), Professor, Finance & Control, Indian Institute of Management, Bangalore, India. E-mail: sankarshanb@iimb.ernet.in)

  • R. Vaidyanathan

    (R. Vaidyanathan, Professor, Finance & Control, Indian Institute of Management, Bangalore, India.)

Abstract

The article tries to identify the presence of ‘market-wide herding’ in the Indian capital market and whether institutional investors impact such herding. In particular, the article looks at the impact of Foreign Institutional Investors flows as well as mutual funds on herding. The work also looks at the the impact of index return and volatility on herding. JEL Classification: G140, G180, C580, G120

Suggested Citation

  • M.V. Lakshman & Sankarshan Basu & R. Vaidyanathan, 2013. "Market-wide Herding and the Impact of Institutional Investors in the Indian Capital Market," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 12(2), pages 197-237, August.
    • Handle: RePEc:sae:emffin:v:12:y:2013:i:2:p:197-237
    DOI: 10.1177/0972652713494046
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    References listed on IDEAS

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    Cited by:

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    2. Choi, Nicole & Skiba, Hilla, 2015. "Institutional herding in international markets," Journal of Banking & Finance, Elsevier, vol. 55(C), pages 246-259.
    3. Aytaç, Beysül & Coqueret, Guillaume & Mandou, Cyrille, 2018. "Herding behavior among wine investors," Economic Modelling, Elsevier, vol. 68(C), pages 318-328.
    4. Li, Jie & Zhang, Yongjie & Feng, Xu & An, Yahui, 2019. "Which kind of investor causes comovement?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 61(C), pages 1-15.

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