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DOES HERDING EXIST EVIDENCE FROM PAKISTANS STOCK EXCHANGE

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02 Pages : 13-23

http://dx.doi.org/10.31703/ger.2016(I-I).02      10.31703/ger.2016(I-I).02      Published : Dec 2016

Does Herding Exist? Evidence from Pakistan's Stock Exchange

Abstract

    Herding transpires when an investor imitates the decision of other stockholders or shadow market consensus (Rizzi, 2008). The Chartered Financial Analyst Institute affirms “Herding Behavior Bias” as the principal presumption influencing the investor’s decision. (Kunte, S.2015). Herding behavior contradicts the validity of an Efficient Market Hypothesis (Famma and Franch, 1970). The investigation of herd behavior in the Pakistan stock market is indispensable as the inconsistent behavior of stockholders stems from the inefficient assets pricing and resource misallocation. The study’s result affirms the existence of herd behavior in the stock exchange of Pakistan and contradicts rational assets pricing model and stock price efficiency theory.

    Herding Behavior, Stock Exchange, Investment Decision, Efficient Market, Asset Pricing.

    (1) Samreen Fahim Babar
    Assistant Professor,Department of Management Sciences,Bahria University, Islamabad, Pakistan.
    (2) Syeda Faizaq Urooj
    Assistant Professor,Department of Commerce,Federal Urdu University, Islamabad, Pakistan.
    (3) Khalid Usman
    Department of Management Sciences, Bahria University, Islamabad, Pakistan.
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Cite this article

APA

CHICAGO

    CHICAGO : Babar, Samreen Fahim, Syeda Faizaq Urooj, and Khalid Usman. 2016. "Does Herding Exist? Evidence from Pakistan's Stock Exchange." Global Economics Review, I (I): 13-23 doi: 10.31703/ger.2016(I-I).02

HARVARD

    HARVARD : BABAR, S. F., UROOJ, S. F. & USMAN, K. 2016. Does Herding Exist? Evidence from Pakistan's Stock Exchange. Global Economics Review, I, 13-23.

MHRA

    MHRA : Babar, Samreen Fahim, Syeda Faizaq Urooj, and Khalid Usman. 2016. "Does Herding Exist? Evidence from Pakistan's Stock Exchange." Global Economics Review, I: 13-23

MLA

    MLA : Babar, Samreen Fahim, Syeda Faizaq Urooj, and Khalid Usman. "Does Herding Exist? Evidence from Pakistan's Stock Exchange." Global Economics Review, I.I (2016): 13-23 Print.

OXFORD

    OXFORD : Babar, Samreen Fahim, Urooj, Syeda Faizaq, and Usman, Khalid (2016), "Does Herding Exist? Evidence from Pakistan's Stock Exchange", Global Economics Review, I (I), 13-23

TURABIAN

    TURABIAN : Babar, Samreen Fahim, Syeda Faizaq Urooj, and Khalid Usman. "Does Herding Exist? Evidence from Pakistan's Stock Exchange." Global Economics Review I, no. I (2016): 13-23. https://doi.org/10.31703/ger.2016(I-I).02