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1 – 10 of over 2000Yu‐Fen Chen, Sheng‐Yung Yang and Fu‐Lai Lin
The purpose of this paper is to: investigate whether the foreign institutional investors in Taiwan herd towards the stocks in the same industry; identify the causes of industrial…
Abstract
Purpose
The purpose of this paper is to: investigate whether the foreign institutional investors in Taiwan herd towards the stocks in the same industry; identify the causes of industrial herding; analyze whether herding behavior impacts future industrial returns; and trace the changing pattern of industrial herding, especially during the 2007‐2008 financial crisis.
Design/methodology/approach
This paper applies Sias' herding measure to identify foreign institutional industrial herding behavior. Moreover, to identify the causes and impacts of herding, the authors use regression models to analyze the relationship between foreign institutional demand for stocks in some particular industries and industrial returns, controlling industrial market capitalization, the number of firms in the industry and industrial speculative intensity. The above methods are applied to the full sample period, as well as two sub‐periods, respectively, to trace the time‐varying trading behavior.
Findings
First, on average, foreign institutional investors herd in the Taiwan securities market. They follow each other into and out of the same industries. Second, they were momentum traders in the tranquil period from 2002 to 2006 and contrarian traders in the period of 2007‐2008 financial crisis. Third, such herding behavior has positive impacts on future industrial returns both in the tranquil period as well as in turbulent time. The authors thus conclude that foreign institutional investors demonstrated contrarian trading strategies to stabilize future industrial returns in the financial crisis period; they buy past losers to support the prices and sell past winners to suppress the price volatility.
Originality/value
This paper investigates foreign institutional herding behavior in an emerging market, Taiwan on the micro setting of industrial base. It identifies the causes and impacts of foreign institutional industrial herding from the outlook of information‐base versus non‐information‐base trading. It also traces time‐varying herding behavior, especially during the 2007‐2008 financial crisis. This paper provides useful information to investors participating in emerging markets like Taiwan.
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Ganesh R., Naresh Gopal and Thiyagarajan S.
The purpose of this paper is to examine industry herding among the institutional investors and to find whether their herding behaviour is intentional or unintentional.
Abstract
Purpose
The purpose of this paper is to examine industry herding among the institutional investors and to find whether their herding behaviour is intentional or unintentional.
Design/methodology/approach
The study uses Lakonishok et al. (1992) model to examine the presence of industry herding behaviour among institutional investors. To determine whether the herding observed is intentional or unintentional, herding measure is regressed with volatility, volume, beta and return. The period of the study is from 1 April 2005-31 March 2015.
Findings
The findings of the study showed that though institutional investors have herding tendency towards most of the industries, in the overall period industry herding was not significant. The herding found in some industrial sectors was linked to economic performance of those sectors in India during the period of study and hence the herding was unintentional in nature.
Research limitations/implications
This is the first attempt to study industry herding among institutional investors and their intent in Indian market ever since the country opened its market to foreign investors in a big way. Present study is limited to the use of only bulk/block data instead of the entire trading data for the period.
Originality/value
This study is the first attempt to investigate industry herding behaviour of institutional investors in the market using their bulk and block trading data. The herding observed in well performing industries has been shown to be unintentional and hence rational. The results indicate that the entry of big institutional investors, including foreign institutions into the Indian market has not destabilised the market by irrational herding.
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Yu-Fen Chen, Thomas C. Chiang, Fu-Lai Lin and Sheng-Yung Yang
This chapter examines herd behavior across national borders. A dynamic latent factor model with Gibbs sampling is used to decompose the national herd behavior into the world…
Abstract
This chapter examines herd behavior across national borders. A dynamic latent factor model with Gibbs sampling is used to decompose the national herd behavior into the world, regional, and country-specific components. Testing the daily data from 2000 through 2014 for 47 countries, we find that the impact of world factor on national herd behavior is short-lived. This study indicates that world and regional factors play a significant role in explaining the variations of national herd behavior, constituting 33% of the herding variability. The significance of world and regional components is likely to produce a biased herding estimator.
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Ganesh R., Naresh G. and Thiyagarajan S.
The purpose of this paper is to examine the mimicking behaviour of institutional investors in the stock market.
Abstract
Purpose
The purpose of this paper is to examine the mimicking behaviour of institutional investors in the stock market.
Design/methodology/approach
The study focusses on examining the herding behaviour among institutional investors in the stock market by considering the bulk and block trade on the constituent NIFTY 50 index during the period 2005–2015 using Lakonishok–Schleifer–Vishny (1992) model. The study also aims to find out whether their herding behaviour is intentional or unintentional in nature.
Findings
The findings of the study showed no sign of herding behaviour in the market; out of 50 constituent stocks of NIFTY 50, there was significant herding in 15 stocks, with buy herding in 11 stocks and sell herding in four stocks, and remaining 35 stocks were totally free from herding behaviour. In addition, the results proved that the herding behaviour observed on the stocks is of unintentional in nature.
Research limitations/implications
Present study is limited to the use of constituent stocks of the Benchmarking Index NIFTY 50.
Originality/value
This study is the first attempt to investigate the herding behaviour of institutional investors in the market using bulk and block trade and also to explore their intent in herding behaviour.
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Julia S.P. Loe, Ilan Kelman, Daniel B. Fjærtoft and Nina Poussenkova
The purpose of this paper is to identify and discuss perceptions of petroleum-related corporate social responsibility (CSR) among local and regional authorities, local peoples…
Abstract
Purpose
The purpose of this paper is to identify and discuss perceptions of petroleum-related corporate social responsibility (CSR) among local and regional authorities, local peoples (indigenous and non-indigenous) and representatives of petroleum companies working or living in the Nenets Autonomous Okrug (NAO) in the Russian Arctic. Although the CSR literature comprises a broad spectrum of approaches, an underrepresentation of perspectives from non-business stakeholders has been suggested. The paper seeks to redress this gap.
Design/methodology/approach
The data are obtained through 34 in-depth, semi-structured interviews conducted and qualitatively analysed to extrapolate perceptions, views and expectations of petroleum-related CSR in NAO. By exploring needs, wants and expectations, differences are identified between short-term expectations and long-term perspectives.
Findings
A central feature of the authors’ findings is the wide variation in the responses not only between community groups and sectors but also within them. The complexity identified is an argument in favour of local involvement to understand local contexts and suggests avoiding “one-size fits all” CSR approaches. Challenges and opportunities are identified for the petroleum companies in dealing with different stakeholders and diverging interests.
Research limitations/implications
The importance of local context means that caution is advised when considering the transferability or generalisability of lessons, within NAO and elsewhere in and outside the Russian Arctic. Furthermore, fundamental motivations are not always transparent from interviews.
Originality/value
Although a rich literature exists on CSR, this is perhaps the first study providing a cross-sectoral analysis of people’s perceptions, including those of non-business stakeholders, in this region.
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Fotini Economou, Konstantinos Gavriilidis, Bartosz Gebka and Vasileios Kallinterakis
The purpose of this paper is to comprehensively review a large and heterogeneous body of academic literature on investors' feedback trading, one of the most popular trading…
Abstract
Purpose
The purpose of this paper is to comprehensively review a large and heterogeneous body of academic literature on investors' feedback trading, one of the most popular trading patterns observed historically in financial markets. Specifically, the authors aim to synthesize the diverse theoretical approaches to feedback trading in order to provide a detailed discussion of its various determinants, and to systematically review the empirical literature across various asset classes to gauge whether their feedback trading entails discernible patterns and the determinants that motivate them.
Design/methodology/approach
Given the high degree of heterogeneity of both theoretical and empirical approaches, the authors adopt a semi-systematic type of approach to review the feedback trading literature, inspired by the RAMESES protocol for meta-narrative reviews. The final sample consists of 243 papers covering diverse asset classes, investor types and geographies.
Findings
The authors find feedback trading to be very widely observed over time and across markets internationally. Institutional investors engage in feedback trading in a herd-like manner, and most noticeably in small domestic stocks and emerging markets. Regulatory changes and financial crises affect the intensity of their feedback trades. Retail investors are mostly contrarian and underperform their institutional counterparts, while the latter's trades can be often motivated by market sentiment.
Originality/value
The authors provide a detailed overview of various possible theoretical determinants, both behavioural and non-behavioural, of feedback trading, as well as a comprehensive overview and synthesis of the empirical literature. The authors also propose a series of possible directions for future research.
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Ruby Roy Dholakia, Jingyi Duan and Nikhilesh Dholakia
The purpose of this paper is to explore how art production and marketing in China is attempting to move up the value chain as increasing number of Chinese replica-selling…
Abstract
Purpose
The purpose of this paper is to explore how art production and marketing in China is attempting to move up the value chain as increasing number of Chinese replica-selling galleries seek to break free from the image of Chinese art towns as skilled but imitative centres of art production.
Design/methodology/approach
In-depth interviews were conducted among seven gallery owners in Wushipu art village over three weeks to discover how art production in China has evolved and to chart its future growth.
Findings
In the Chinese setting with its distinctive cultural patterns, tensions between the emergent national pride in original art and the facile and commercial moneymaking potential of simply selling industrially produced art are revealed.
Practical implications
The changing dynamics of arts markets in China provide marketers and researchers a glimpse into a parallel trend: the gradual but rising shift to innovation, originality and luxury occurring in the China-based manufacturing centres of material goods.
Social implications
The attempts to break from the imitative mass production of art and strike a balance between creating and meeting the art needs of the Chinese consumer indicate how domestic market priorities and economic growth are likely to serve as the new fuel for contemporary China’s socioeconomic development.
Originality/value
Via an interpretive look at contemporary Chinese modes of arts production and marketing, the paper revisits the antagonism between the creation of original art and the production of industrial art in a context not well-known in the west, the massive art production centres of China.
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The purpose of this paper is to explore the role of emotion in learning, specifically, e‐learning and its relationship to the phenomenon called energetic learning.
Abstract
Purpose
The purpose of this paper is to explore the role of emotion in learning, specifically, e‐learning and its relationship to the phenomenon called energetic learning.
Design/methodology/approach
After first presenting operation definitions, the paper looks through the lens of new findings in neuroscience to build an understanding of the role of emotions in learning, then focuses specifically on how e‐learning systems contribute to energetic learning, providing examples of e‐learning platforms and software programs currently available that have specific attributes contributing to energetic learning.
Findings
With technology comes a natural excitement in terms of connectivity and its support of self‐driven, experiential learning which is part of the evolutionary heritage. As the understanding of the neuroscience and biology of human learning advances, the personal needs of individual learners are being begun to understand better. Bringing these needs together with e‐learning system capabilities will offer a significant jump in the learning rate and efficiency as we move into a future filled with change, uncertainty, complexity and anxiety.
Originality/value
The paper introduces the concept of energetic learning with specific focus on the contribution of e‐learning to energetic learning.
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Shangkun Liang, Rong Fu and Yanfeng Jiang
Independent directors are important corporate decision participants and makers. Based on the Chinese cultural background, this paper interprets the listing order of independent…
Abstract
Purpose
Independent directors are important corporate decision participants and makers. Based on the Chinese cultural background, this paper interprets the listing order of independent directors as independent directors’ status, exploring their influence on the corporate research and development (R&D) behavior.
Design/methodology/approach
This paper studies A-share listed firms in China from 2008 to 2018 as the sample. The main method is ordinary least square (OLS) regression. We also use other methods to deal with endogenous problems, such as the firm fixed effect method, change model method, two-stage instrumental variable method, and Heckman two-stage method.
Findings
(1) Higher independent directors’ status attribute to more effective exertion of supervision and consultation function, and positively enhance the corporate R&D investment. The increase of the independent director’ status by one standard deviation will increase the R&D investment by 4.6%. (2) The above effect is more influential in firms with stronger traditional culture atmosphere, higher information opacity and higher performance volatility. (3) High-status independent directors promote R&D investment by improving the scientificity of R&D evaluation and reducing information asymmetry. (4) The enhancing effect of independent director’ status on R&D investment is positively associated with the firm’s patent output and market value.
Originality/value
This paper contributes to understanding the relationship between the independent directors’ status and their duty execution from an embedded cultural background perspective. The findings of the study enlighten the improvement of corporate governance efficiency and the healthy development of the capital market.
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