<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper investigates herding behavior of investors in three frontier Nordic countries from July 1, 2002 until July 30, 2021, under different market conditions and during three crises that occurred in this period. As estimation methods, we use both OLS and quantile regression and determine that both up and down market, high and low volatility induce a weak herding behavior for at least one quantile in almost all Nordic countries examined, except for Latvia. At the same time, we find that crises determine a more prominent herding behavior in Nordic countries, but do not influent the behavior of investors from Latvia, that tend to remain rational even in stressful conditions.</p>
</abstract>

This paper investigates herding behavior of investors in three frontier Nordic countries from July 1, 2002 until July 30, 2021, under different market conditions and during three crises that occurred in this period. As estimation methods, we use both OLS and quantile regression and determine that both up and down market, high and low volatility induce a weak herding behavior for at least one quantile in almost all Nordic countries examined, except for Latvia. At the same time, we find that crises determine a more prominent herding behavior in Nordic countries, but do not influent the behavior of investors from Latvia, that tend to remain rational even in stressful conditions.

Herding Behavior in Frontier Nordic Countries

Studia Universitatis Babes-Bolyai Oeconomica

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Herding Behavior in Frontier Nordic Countries"}

This paper investigates herding behavior of investors in three frontier Nordic countries from July 1, 2002 until July 30, 2021, under different market...

Herding Behavior in Frontier Nordic Countries

Published Online: May 08, 2023

Page range: 21 - 41

DOI: https://doi.org/10.2478/subboec-2023-0002

Keywords
Herding behavior, Market states, Financial Crises, Cross-sectional absolute deviation of returns

© 2023 Arina Ivasiuc, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Herding Behavior in Frontier Nordic Countries

Published Online: May 08, 2023

Page range: 21 - 41

DOI: https://doi.org/10.2478/subboec-2023-0002

KeywordsHerding behavior, Market states, Financial Crises, Cross-sectional absolute deviation of returns

© 2023 Arina Ivasiuc, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
Herding behavior, Market states, Financial Crises, Cross-sectional absolute deviation of returns