. By developing a simple model of trading behavior, we show that the traditionally used herding measure produces biased … German mutual fund market, our measure provides new insights into fund manager herding that would have been undetected under …

Using the traditional herding measure of Lakonishok, Shleifer and Vishny (1992) (LSV) and the more recent measure of … Frey, Herbst and Walter (2007) (FHW), we assess herding by French equity mutual funds between 1999 and 2005. We show that … LSV herding amounts to 6.5%, while FHW herding is approximately 2.5 times stronger. We find that herding is stronger in …

This study examines whether mutual funds herd in industries and the extent to which such herding impacts industry … valuations. Using two herding measures proposed by Lakonishok et al. (1992) and Sias (2004) we document that mutual funds herd in … industries. We show that industry herding is not driven by fund flows and that it is not a manifestation of individual stock …

Recent research has shown that institutional herding is a relevant phenomenon in stock markets. Do institutional … equivalent by institutional investors. Consequently, we construct "bond groups" consisting of similar bonds and analyze herding … at a "bond group" level. Our results indicate that there is strong evidence of herding, albeit it is weaker than in stock …

finance. A broadly discussed behavioural bias is herding, i.e. the tendency of investors to imitate each others’ decisions …. Herding is a phenomenon with far-reaching implications for financial markets, but its importance becomes even larger if it is … undoubtedly herd, with the extent of herding being irrelevant to the price movements observed in the market. Managers herd …

find strong evidence that mutual funds herd into or out of stocks following the herd of hedge funds: mutual funds’ herding … measure is positively related to last quarter’s hedge fund herding. In contrast, hedge funds do not follow mutual funds …. Mutual funds’ following of hedge funds leads to a sharp price reversal in the next quarter, whereas hedge fund herding itself …

investments. Our results indicate prevalence of herding and overconfidence in professional analysts. We also find that analysts …

In this analysis of investment manager performance, two questions are addressed. First, do managers that actively trade …