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Herding behaviour in the capital market: What do we know and what is next?

Author

Listed:
  • Puput Tri Komalasari

    (Airlangga University)

  • Marwan Asri

    (Gadjah Mada University)

  • Bernardinus M. Purwanto

    (Gadjah Mada University)

  • Bowo Setiyono

    (Gadjah Mada University)

Abstract

Herding behaviour in the financial market has been popular as a theoretical concept since the 1990s. Many articles have studied and discussed herding behaviour in the capital market, but research examining the causes or factors that trigger herding behaviour is minimal. The research themes are relatively underdeveloped because the majority of empirical research still struggles to answer the question of whether herding behaviour is found in the capital market or not. It has impeded our understanding and the development of a comprehensive theoretical framework of herding behaviour. The purpose of this paper is to conduct a bibliometric analysis and systematic literature review to provide an overview of the research findings, analyse the research profile, and guide the researcher to the most influential works and results related to herding behaviour. Based on 279 articles taken from the Scopus database, we mapped the co-occurrence of research through keywords analysis. This paper's main contribution is to build a structure of knowledge for herding behaviour in the capital market, elaborate and classify empirical research into relevant dimensions that can be used as a reference for comprehensively developing herding behaviour research. Finally, this systematic literature review's results may provide insight into future research prospects about herding behaviour.

Suggested Citation

  • Puput Tri Komalasari & Marwan Asri & Bernardinus M. Purwanto & Bowo Setiyono, 2022. "Herding behaviour in the capital market: What do we know and what is next?," Management Review Quarterly, Springer, vol. 72(3), pages 745-787, September.
  • Handle: RePEc:spr:manrev:v:72:y:2022:i:3:d:10.1007_s11301-021-00212-1
    DOI: 10.1007/s11301-021-00212-1
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    Keywords

    Bibliometric analysis; Capital markets; Herding behaviour; Informational cascade; Systematic literature review;
    All these keywords.

    JEL classification:

    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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