Internet postings and investor herd behavior

Evidence from China’s open-end fund market

Bibliographic Data

ID22234413
AuthorsShifen Zhou (Dongguan University of Technology), Xiaojun Liu (0000-0003-4672-8569, Hunan University of Finance and Economics, corresponding author)
Year2022
Volume9
Issue1
Publication date2022-12-09
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueHumanities and Social Sciences Communications (JOURNAL)
Journal identifiersISSN: 2662-9992 • E-ISSN: 2662-9992
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1057/s41599-022-01462-4
OpenAlexW4311981372
LanguageEN
Citations received1
References cited34

The popularity of social media facilitates the dissemination of private information, which has significant implications for investors’ behavior and market efficiency. This paper examines the dynamic dependence between internet postings and herd behavior in China’s open-end fund market by applying the DCC-GARCH and TVP-SV-VAR models. The results show that the relationship between internet postings and herd behavior is time-varying and asymmetric. Specifically, internet postings have a negative effect on herd behavior, and the effect is more pronounced in the short term. Additionally, herd behavior will increase postings and further weaken the herding effect through the internet postings channel. Our results also show that the increase and decrease of postings have asymmetric effects on herd behavior, and the increase of postings has a greater effect on herd behavior

Animal science · Biology · Business · China · Geography · Herd · Herd behavior · Herding · Popularity · The Internet · World Wide Web · Computer Science · Financial Markets and Investment Strategies · Media Influence and Politics · Psychology · Social Psychology · Stock Market Forecasting Methods

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