Herd behaviour in foreign exchange market
Abstract This study examines the presence of herding behaviour in the forex market of Pakistan. By analysing the daily returns of the top six traded currencies from January 2015 to December 2019, the current research explores the behaviour of investors towards investment in currencies. Data is anal...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2022-09-01
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| Series: | Journal of Economic Structures |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40008-022-00270-y |
| _version_ | 1818064774851723264 |
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| author | Anam Yasir Umar Safdar Yasir Javaid |
| author_facet | Anam Yasir Umar Safdar Yasir Javaid |
| author_sort | Anam Yasir |
| collection | DOAJ |
| description | Abstract This study examines the presence of herding behaviour in the forex market of Pakistan. By analysing the daily returns of the top six traded currencies from January 2015 to December 2019, the current research explores the behaviour of investors towards investment in currencies. Data is analysed using the model proposed by Chang et al. (2000). Results of estimation techniques provide evidence of herd behaviour among investors. Findings suggest that investors do not rely on their own decision-making; rather they follow the patterns of others. Furthermore, this imitating behaviour in same in up and down market events. Findings of this study provide significant insights for future researchers about decision-making of investors in forex market. |
| first_indexed | 2024-12-10T14:41:21Z |
| format | Article |
| id | doaj.art-7a3c448dba0047b881e833797414f2aa |
| institution | Directory Open Access Journal |
| issn | 2193-2409 |
| language | English |
| last_indexed | 2024-12-10T14:41:21Z |
| publishDate | 2022-09-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal of Economic Structures |
| spelling | doaj.art-7a3c448dba0047b881e833797414f2aa2022-12-22T01:44:40ZengSpringerOpenJournal of Economic Structures2193-24092022-09-0111111210.1186/s40008-022-00270-yHerd behaviour in foreign exchange marketAnam Yasir0Umar Safdar1Yasir Javaid2School of Business Administration, National College of Business Administration & EconomicsSchool of Business Administration, National College of Business Administration & EconomicsACCA_UKAbstract This study examines the presence of herding behaviour in the forex market of Pakistan. By analysing the daily returns of the top six traded currencies from January 2015 to December 2019, the current research explores the behaviour of investors towards investment in currencies. Data is analysed using the model proposed by Chang et al. (2000). Results of estimation techniques provide evidence of herd behaviour among investors. Findings suggest that investors do not rely on their own decision-making; rather they follow the patterns of others. Furthermore, this imitating behaviour in same in up and down market events. Findings of this study provide significant insights for future researchers about decision-making of investors in forex market.https://doi.org/10.1186/s40008-022-00270-yEfficient market hypothesisBehavioural financeHerdingAsymmetric behaviour |
| spellingShingle | Anam Yasir Umar Safdar Yasir Javaid Herd behaviour in foreign exchange market Journal of Economic Structures Efficient market hypothesis Behavioural finance Herding Asymmetric behaviour |
| title | Herd behaviour in foreign exchange market |
| title_full | Herd behaviour in foreign exchange market |
| title_fullStr | Herd behaviour in foreign exchange market |
| title_full_unstemmed | Herd behaviour in foreign exchange market |
| title_short | Herd behaviour in foreign exchange market |
| title_sort | herd behaviour in foreign exchange market |
| topic | Efficient market hypothesis Behavioural finance Herding Asymmetric behaviour |
| url | https://doi.org/10.1186/s40008-022-00270-y |
| work_keys_str_mv | AT anamyasir herdbehaviourinforeignexchangemarket AT umarsafdar herdbehaviourinforeignexchangemarket AT yasirjavaid herdbehaviourinforeignexchangemarket |