Herding Behavior in Karachi Stock Exchange

International Journal of Management Sciences and Business Research Vol. 2, Issue 2

10 Pages Posted: 22 Dec 2015

See all articles by Tariq Javed

Tariq Javed

Mohammad Ali Jinnah University (MAJU)

Nousheen Zafar

Mohammad Ali Jinnah University (MAJU)

Bilal Hafeez

Mohammad Ali Jinnah University (MAJU)

Date Written: Feburay 10, 2013

Abstract

This study aims at examining the existence of herding behavior of investors in Pakistani stock market. KSE 100 is selected as a sample for the study as it represents almost 86% of Karachi Stock Exchange. Monthly data for companies has been gathered for analysis. Results obtained fail to find any evidence of herding in Karachi stock exchange with significantly positive values for dichotomous variables representing extreme market conditions. Similarly the value for squared market returns is also found negative but insignificant. The study concludes that Herding behavior does not exist in Karachi Stock Exchange analyzing monthly returns data.

Suggested Citation

Javed, Tariq and Zafar, Nousheen and Hafeez, Bilal, Herding Behavior in Karachi Stock Exchange (Feburay 10, 2013). International Journal of Management Sciences and Business Research Vol. 2, Issue 2, Available at SSRN: https://ssrn.com/abstract=2706337

Tariq Javed (Contact Author)

Mohammad Ali Jinnah University (MAJU)

74 E
Blue Area, Jinnah Avenue
Islamabad, Punjab 46000
Pakistan

Nousheen Zafar

Mohammad Ali Jinnah University (MAJU)

74 E
Blue Area, Jinnah Avenue
Islamabad, Punjab 46000
Pakistan

Bilal Hafeez

Mohammad Ali Jinnah University (MAJU)

74 E
Blue Area, Jinnah Avenue
Islamabad, Punjab 46000
Pakistan

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