A model to explain the dynamic characters of earnings management was developed based on the interactionamong several firms’ disclosure policies. Under the condition of incomplete information, each firm’s earnings ma...A model to explain the dynamic characters of earnings management was developed based on the interactionamong several firms’ disclosure policies. Under the condition of incomplete information, each firm’s earnings man-agement will be influenced by the earnings disclosure policies of other firms. It can lead to "herd behavior" of earningsmanagement. This paper studies the relationship between earnings manipulation and rights issue policy based on thedistribution of earnings after management. The results indicate that Chinese listed companies trend towards controllingROE in the narrow ranges just above 6% and 10% .Therefore, "herd behavior" exists in the earnings management.展开更多
In the context of vigorously developing China＇s securities market institutional investors in the period of economic transition, this paper does the empirical research on the herd behavior from the view of the interac...In the context of vigorously developing China＇s securities market institutional investors in the period of economic transition, this paper does the empirical research on the herd behavior from the view of the interaction between individual and institutional investors. This paper adopts the standard deviation of trading volume the cross-section to measure herd behavior. The results show that no matter what the market is in bull status and bear status, institutional investors perform herd behavior and with the expansion of the shareholding scale in a bull market, the herd behavior is higher, which suggests that the vigorous development of institutional investors has not eliminated herd behavior. This paper further confirms that there is the endogenous volatility in the market based on an artificial stock market. Finally it is demonstrated the herd behavior of institutional investors cause abnormal fluctuations in the market.展开更多
This study examines herding behavior in the Pakistani Stock Market under different market conditions,focusing on the Ramadan effect and Crisis period by using data from 2004 to 2014.Two regression models of Christie a...This study examines herding behavior in the Pakistani Stock Market under different market conditions,focusing on the Ramadan effect and Crisis period by using data from 2004 to 2014.Two regression models of Christie and Huang(Financ Analysts J 51:31-37,1995)and Chang et al.,(J Bank Finance 24:1651-1679,2000)are used for herding estimations.Results based on daily stock data reveal that there is an absence of herding behavior during rising(up)and falling(down)market as well as during high and low volatility in market.While herding behavior is detected during low trading volume days.Yearly analysis shows that herding existed during 2005,2006 and 2007,while it is not evident during rest of the period.However,herding behavior is not detected during Ramadan.Furthermore,during financial crisis of 2007-08,Pakistani Stock Market exhibits herding behavior due to higher uncertainty and information asymmetry.展开更多
Herd behavior in financial markets often leads to unjustified macroscopic phenomena.However,despite existing studies on modeling herd behavior,how it varies across individual agents and over time remains unclear.We sh...Herd behavior in financial markets often leads to unjustified macroscopic phenomena.However,despite existing studies on modeling herd behavior,how it varies across individual agents and over time remains unclear.We show that herd behavior in mutual fund companies can be understood from the functional networks representing interactions inferred from investment similarities.Specifically,in this paper,the spatial characteristics of herd behavior stand for the topology relationships of observations in networks.We analyze the collective dynamics of mutual fund investment from 2003 to 2019 in China using the language of network science and show that herding behavior accompanies this industry's development but dwindles after the 2015 Chinese market crash.By integrating community detection analysis,we found an increased degree of coherence in the collective herding behavior of the system,even though the localization of herding behavior decreases for clusters of mutual fund companies when the systemic risk builds up.Further analysis showed that herding behavior impacts the payoff of individual fund companies differently across years.The spatial-temporal changes of herding behavior between mutual funds presented in this paper shed light on the debate of individual versus systemic risk and,thus,could interest regulators and investors.展开更多
This study investigates how financial literacy and behavioral traits affect the adoption of electronic payment(ePayment)services in Japan.We construct a financial literacy index using a representative sample of 25,000...This study investigates how financial literacy and behavioral traits affect the adoption of electronic payment(ePayment)services in Japan.We construct a financial literacy index using a representative sample of 25,000 individuals from the Bank of Japan’s 2019 Financial Literacy Survey.We then analyze the relationship between this index and the extensive and intensive usage of two types of payment services:electronic money(e-money)and mobile payment apps.Using an instrumental variable approach,we find that higher financial literacy is positively associated with a higher likelihood of adopting ePayment services.The empirical results suggest that individuals with higher financial literacy use payment services more frequently.We also find that risk-averse people are less likely to adopt and use ePayment services,whereas people with herd behavior tend to adopt and use ePayment services more.Our empirical results also suggest that the effects of financial literacy on the adoption and use of ePayment differ among people with different behavioral traits.展开更多
文摘A model to explain the dynamic characters of earnings management was developed based on the interactionamong several firms’ disclosure policies. Under the condition of incomplete information, each firm’s earnings man-agement will be influenced by the earnings disclosure policies of other firms. It can lead to "herd behavior" of earningsmanagement. This paper studies the relationship between earnings manipulation and rights issue policy based on thedistribution of earnings after management. The results indicate that Chinese listed companies trend towards controllingROE in the narrow ranges just above 6% and 10% .Therefore, "herd behavior" exists in the earnings management.
基金supported by the National Nature Science Foundation under Grant No.71201124
文摘In the context of vigorously developing China＇s securities market institutional investors in the period of economic transition, this paper does the empirical research on the herd behavior from the view of the interaction between individual and institutional investors. This paper adopts the standard deviation of trading volume the cross-section to measure herd behavior. The results show that no matter what the market is in bull status and bear status, institutional investors perform herd behavior and with the expansion of the shareholding scale in a bull market, the herd behavior is higher, which suggests that the vigorous development of institutional investors has not eliminated herd behavior. This paper further confirms that there is the endogenous volatility in the market based on an artificial stock market. Finally it is demonstrated the herd behavior of institutional investors cause abnormal fluctuations in the market.
文摘This study examines herding behavior in the Pakistani Stock Market under different market conditions,focusing on the Ramadan effect and Crisis period by using data from 2004 to 2014.Two regression models of Christie and Huang(Financ Analysts J 51:31-37,1995)and Chang et al.,(J Bank Finance 24:1651-1679,2000)are used for herding estimations.Results based on daily stock data reveal that there is an absence of herding behavior during rising(up)and falling(down)market as well as during high and low volatility in market.While herding behavior is detected during low trading volume days.Yearly analysis shows that herding existed during 2005,2006 and 2007,while it is not evident during rest of the period.However,herding behavior is not detected during Ramadan.Furthermore,during financial crisis of 2007-08,Pakistani Stock Market exhibits herding behavior due to higher uncertainty and information asymmetry.
文摘Herd behavior in financial markets often leads to unjustified macroscopic phenomena.However,despite existing studies on modeling herd behavior,how it varies across individual agents and over time remains unclear.We show that herd behavior in mutual fund companies can be understood from the functional networks representing interactions inferred from investment similarities.Specifically,in this paper,the spatial characteristics of herd behavior stand for the topology relationships of observations in networks.We analyze the collective dynamics of mutual fund investment from 2003 to 2019 in China using the language of network science and show that herding behavior accompanies this industry's development but dwindles after the 2015 Chinese market crash.By integrating community detection analysis,we found an increased degree of coherence in the collective herding behavior of the system,even though the localization of herding behavior decreases for clusters of mutual fund companies when the systemic risk builds up.Further analysis showed that herding behavior impacts the payoff of individual fund companies differently across years.The spatial-temporal changes of herding behavior between mutual funds presented in this paper shed light on the debate of individual versus systemic risk and,thus,could interest regulators and investors.
基金National Foundation for Science and Technology Development(No.502.01-2020.308).
文摘This study investigates how financial literacy and behavioral traits affect the adoption of electronic payment(ePayment)services in Japan.We construct a financial literacy index using a representative sample of 25,000 individuals from the Bank of Japan’s 2019 Financial Literacy Survey.We then analyze the relationship between this index and the extensive and intensive usage of two types of payment services:electronic money(e-money)and mobile payment apps.Using an instrumental variable approach,we find that higher financial literacy is positively associated with a higher likelihood of adopting ePayment services.The empirical results suggest that individuals with higher financial literacy use payment services more frequently.We also find that risk-averse people are less likely to adopt and use ePayment services,whereas people with herd behavior tend to adopt and use ePayment services more.Our empirical results also suggest that the effects of financial literacy on the adoption and use of ePayment differ among people with different behavioral traits.
