This study shows that the level of herding in an industry can be the basis for a profitable investment strategy. Using data from the Taiwanese stock market wherein the presence of investor herding has already been documented, we find that industries that experience high level of herding yield...

To insure a proper and meaningful productivity assessment of DMUs with different production technologies, this article develops a difference-based profit metafrontier Luenberger productivity indicator. Adopting the proposed model, we empirically measure the profit inefficiency and examine the...