A Survey in Investor Herding Behavior With Trading Volume Approach in Tehran Stock Exchange

Document Type : Research Paper


1 Assistant Prof. Faculty of Economic and Management, Semnan University, Semnan, Iran

2 MSc. in Business Management(Finance), Faculty of Economic and Management, Semnan University, Semnan, Iran


Herd behavior by investors in capital markets is a behavioral bias that can cause to undesirable effects such as bubble, crash and high fluctuation in stock price. This anomalies can disturb the equilibrium relations in stock market and lead to market inefficiency. Herd behavior is a condition that investors with rational or in rational reasons ignore private information and imitate from others. Many methods and models are provided by researchers to measuring the herd behavior of investors in stock markets. In this article we use Hwang and Salmon and CAPM methods with trading volume approach to measuring the herd behavior. Our study has conducted in a 36 -month period (July 2009 to June 2008) on 146 firms listed in Tehran Stock Exchange. We find evidence of continuous herding in Tehran stock exchange


Main Subjects

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