Herd Behaviour of Institutional and Individual Investors in the Context of Economic Governance: Evidence from Romanian Stock Market
Herd Behaviour of Institutional and Individual Investors in the Context of Economic Governance: Evidence from Romanian Stock Market

Summary/Abstract: The primary objective of this paper is to examine the herding phenomena in what concerns institutional and individual investors focusing on the Romanian capital market. Despite the fact that there are a multitude of studies that concentrate on the stock markets, few of them analyzed the tendency of the herd behavior in the European Union countries, and particular for the Romanian case. Our empirical results suggest that institutional investors tend to mimic the behavior of other investors, while this statement is not valid in respect to the individual investors. Consequently, our study is relevant on two levels since that, on one hand, focus on the Romanian capital market and on the other hand verifies the existence of herding behavior using an updated version of CSAD developed by Chang et all (2000).

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