How ‘High’ on Herding are Cannabis Stocks?

40 Pages Posted: 13 Jan 2020

See all articles by Panagiotis Andrikopoulos

Panagiotis Andrikopoulos

Centre for Financial and Corporate Integrity (CFCI), Coventry University

Vasileios Kallinterakis

University of Liverpool - Management School (ULMS)

Date Written: December 22, 2019

Abstract

We present the first study on investors’ behaviour in the nascent cannabis industry by examining herding among North American cannabis stocks. Canadian-listed cannabis stocks herd strongly across all market states and sectors, and for most capitalization-segments, unlike their US-listed counterparts whose herding appears more limited. Cannabis-legalization announcements rarely induce herding, while cross market herding between US- and Canadian-listed cannabis stocks is very weak. Herding is significant among US-listed Canadian cannabis stocks, yet absent among US domestic cannabis stocks. We attribute Canadian cannabis stocks’ stronger herding to their industry’s mature institutional environment that encourages investors to herd more confidently on them.

Keywords: herding; cannabis industry; retail investors; North America

JEL Classification: G15; G18; G40; G41

Suggested Citation

Andrikopoulos, Panagiotis and Kallinterakis, Vasileios, How ‘High’ on Herding are Cannabis Stocks? (December 22, 2019). Available at SSRN: https://ssrn.com/abstract=3508297 or http://dx.doi.org/10.2139/ssrn.3508297

Panagiotis Andrikopoulos (Contact Author)

Centre for Financial and Corporate Integrity (CFCI), Coventry University ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom
+44(0)247 765 7920 (Phone)

Vasileios Kallinterakis

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

Chatham Street
Liverpool, L69 7ZH
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
34
Abstract Views
200
PlumX Metrics