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The Causes and Influences of Institutional Investors Herding Behavior in the Taiwan Stock Market

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Innovative Mobile and Internet Services in Ubiquitous Computing (IMIS 2019)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 994))

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Abstract

This study took the Taiwan stock market as samples to discuss the causes and influences of institutional investors herding behavior. The empirical period was from January 2007 to December 2017. The empirical results showed that: (1) The institutional investors generally had herding behavior; (2) The institutional investors had both intentional herding and spurious herding; (3) Herding behavior of the institutional investors presented a positive relationship with excess returns of the next period of individual stocks; (4) Market volatility would affect the herding behavior of the institutional investors; (5) The financial crisis would not affect the cause of herding behaviors of the institutional investors. But, However, it would cause changes in the influence of the institutional investors’ herd behavior on excess returns and market fluctuations. The above empirical results provided investors with new direction when selecting stocks.

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Acknowledgements

This study was supported by Asia University under Grant No. 106-Asia-18. We acknowledge the helpful comments and suggestions from the anonymous reviewers.

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Authors and Affiliations

  1. Department of Finance, Asia University, Taichung, Taiwan

    Kuei-Yuan Wang, Ying-Li Lin & Yu-Sin Huang

  2. Department of Health and Nutrition Biotechnology, Asia University, Taichung, Taiwan

    Chien-Kuo Han

Authors
  1. Kuei-Yuan Wang
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  2. Ying-Li Lin
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  3. Chien-Kuo Han
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  4. Yu-Sin Huang
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Corresponding author

Correspondence to Ying-Li Lin .

Editor information

Editors and Affiliations

  1. Faculty of Information Engineering, Department of Information and Communication Engineering, Fukuoka Institute of Technology, Fukuoka, Japan

    Leonard Barolli

  2. Technical University of Catalonia, Barcelona, Spain

    Fatos Xhafa

  3. School of Business, University of New South Wales, Canberra, ACT, Australia

    Omar K. Hussain

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Wang, KY., Lin, YL., Han, CK., Huang, YS. (2020). The Causes and Influences of Institutional Investors Herding Behavior in the Taiwan Stock Market. In: Barolli, L., Xhafa, F., Hussain, O. (eds) Innovative Mobile and Internet Services in Ubiquitous Computing . IMIS 2019. Advances in Intelligent Systems and Computing, vol 994. Springer, Cham. https://doi.org/10.1007/978-3-030-22263-5_70

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