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Investor attention to the Eurozone crisis and herding effects in national bank stock indexes

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  • Peltomäki, Jarkko
  • Vähämaa, Emilia

Abstract

In this study, we investigate the relation between investor attention to the Eurozone crisis and herding effects in national bank stock indexes across Europe. We especially focus on two different groups of European countries: non-EMU member countries and EMU member countries. Our results suggest that an increased investor attention to the Eurozone crisis decreased herding effects in the EMU region in the following week, but the effect was temporary as the effect became the opposite with a two-week lag. Herding effects in the EMU region affected herding effects in the non-EMU region, but not vice versa.

Suggested Citation

  • Peltomäki, Jarkko & Vähämaa, Emilia, 2015. "Investor attention to the Eurozone crisis and herding effects in national bank stock indexes," Finance Research Letters, Elsevier, vol. 14(C), pages 111-116.
    • Handle: RePEc:eee:finlet:v:14:y:2015:i:c:p:111-116
    DOI: 10.1016/j.frl.2015.05.009
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    Cited by:

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    More about this item

    Keywords

    Financial crisis; Herding effects; Bank stocks;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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