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Herding in financial markets: a review of the literature

Spyros Spyrou (Department of Accounting and Finance, Athens University of Economics & Business, Athens, Greece)

Review of Behavioral Finance

ISSN: 1940-5979

Article publication date: 25 November 2013




The purpose of this paper is to provide a review of theory and empirical evidence on herding behavior in financial markets.


Review and discussion of the literature.


More than two decades of empirical and theoretical research have provided a significant insight on investor herding behavior.

Research limitations/implications

The discussion indicates that there are still open issues and areas with inconclusive evidence, e.g. the author knows relatively little for markets other than equity markets.

Practical implications

The paper may need empirical methodologies to evaluate herding that address current limitations.


The paper reviews recent empirical evidence and identifies open issues for future research.



Spyros Spyrou acknowledges financial support from the Research Centre at Athens University of Economics and Business (RC-AUEB).


Spyrou, S. (2013), "Herding in financial markets: a review of the literature", Review of Behavioral Finance, Vol. 5 No. 2, pp. 175-194.



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