This paper examines intentional herding among institutional investors with a particular focus on the technology sector … technology stockholdings of 115 large institutional investors, we test the presence of herding by examining linear dependence and … herding, we use Geweke (1982) type causality tests that allow us to disentangle spurious herding from intentional herding via …

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 …

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 …

Exiting studies document that institutional herding has a stabilizing effect on stock prices, as stock returns over one …- to three-quarter horizons are positively correlated with herding. The literature also shows that short-term institutions … herding. Our results show that herding by short-term institutions promotes price discovery. In contrast, herding by long …

Using the herding measures of Lakonishok, Shleifer and Vishny (1992) (LSV) and 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 about 2.5 times stronger. We observe that herding is stronger in small than in medium and large capitalization …

We find substantial herding in U.S. corporate bonds among bond fund managers, much higher than that previously … documented for the equity market. Herding is generally stronger among illiquid bonds, and buy herding and sell herding are driven … by different factors. In particular, sell herding increases on negative news about bond ratings and corporate earnings …

Do corporate bond funds have a real impact on firm policies? In this paper, we examine whether fund herding alters the …-level measure of herding by U.S. bond mutual funds from 1998 to 2018, we find that fund herding in a firm’s existing bonds increases …, for buy herding over sell herding, and can lead firms to substitute bank loans for bonds. The results are robust to …