This paper explores the role mutual fund herding plays on the return comovement in Chinese stocks. The results show … that mutual fund herding significantly reduces the return comovement among Chinese stocks, providing evidence for the … existence of a rational herding behavior by mutual funds. We find that the negative effect of mutual fund herding on return …

This paper investigates the existence of herding behavior in the Chinese mutual fund market from a time … switching approach, and explore the driving factors of herding under different regimes. Our results suggest that herding …. In addition, the observed herding behaviors are mainly driven by non-fundamentals. We also find that herding behavior is …