Institutional Herding and Mood

55 Pages Posted: 5 Nov 2017

See all articles by Konstantinos Gavriilidis

Konstantinos Gavriilidis

Stirling Management School; University of Stirling

Vasileios Kallinterakis

University of Liverpool - Management School (ULMS)

Belma Ozturkkal

Kadir Has University Istanbul, Turkey

Date Written: October 31, 2017


Drawing on a unique data set of daily portfolio holdings for Turkish mutual funds we investigate the relationship between mood and institutional herding on the premises of various established mood proxies (weekend effect; holiday effect; Ramadan; sunshine; new/full moon) for the January 2002-August 2008 period. Results indicate that fund managers in Turkey herd significantly, with their herding growing in magnitude as the number of active funds per stock rises and appearing stronger on the buy- than the sell-side. Although the relationship of mood with institutional herding occasionally assumes the correct sign as per theoretical expectations, institutional herding is found to be insignificantly different across various mood states, thus denoting that mood does not impact the propensity of fund managers to herd.

Keywords: herding, mood, fund managers, Turkey

JEL Classification: G15, G23, G40, G41

Suggested Citation

Gavriilidis, Konstantinos and Gavriilidis, Konstantinos and Kallinterakis, Vasileios and Ozturkkal, Belma, Institutional Herding and Mood (October 31, 2017). Available at SSRN: or

Konstantinos Gavriilidis (Contact Author)

Stirling Management School ( email )

Stirling University
Stirling, sTIRLING FK9 4LA
United Kingdom

University of Stirling ( email )

Stirling, Scotland FK9 4LA
United Kingdom

Vasileios Kallinterakis

University of Liverpool - Management School (ULMS) ( email )

Chatham Street
Liverpool, L69 7ZH
United Kingdom

Belma Ozturkkal

Kadir Has University Istanbul, Turkey ( email )

Kadir Has Caddesi Cibali
+90 212 533 5765 (Phone)

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