Investor mood, herding and the Ramadan effect

Gavriilidis, K., Kallinterakis, V. and Tsalavoutas, I. (2016) Investor mood, herding and the Ramadan effect. Journal of Economic Behavior and Organization, 132(Suppl.), pp. 23-38. (doi: 10.1016/j.jebo.2015.09.018)

110773.pdf - Accepted Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.



In view of evidence linking herding and social mood, we examine whether the positive mood documented during Ramadan translates into higher herding compared to non-Ramadan days. Drawing on a sample of seven majority Muslim countries, we report significant herding during Ramadan in most of our sample markets. Additionally, we show that herding appears significantly stronger within rather than outside Ramadan for most tests whereby its significance is manifested on both Ramadan- and non-Ramadan-days. Overall, herding significance within/outside Ramadan exhibits some variation in its levels across markets in relation to variables reflective of market states, both domestically (market returns; market volume) and internationally (US market returns; US investors’ sentiment; global financial crisis) market states.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Tsalavoutas, Professor Yannis and Kallinterakis, Dr Vasileios and Gavriilidis, Mr Costas
Authors: Gavriilidis, K., Kallinterakis, V., and Tsalavoutas, I.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Journal of Economic Behavior and Organization
Publisher:Elsevier B.V.
ISSN (Online):0167-2681
Published Online:23 October 2015
Copyright Holders:Copyright © 2016 Elsevier
First Published:First published in Journal of Economic Behavior and Organization 132(Suppl.):23-38
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

University Staff: Request a correction | Enlighten Editors: Update this record