Information Cascades, Short-Selling Constraints, and Herding in Equity Markets

dc.contributor.author Tiniç, Murat
dc.contributor.author Tiniç, Murat
dc.contributor.author Iqbal, Muhammad Sabeeh
dc.contributor.author Mahmud, Syed F.
dc.contributor.other International Trade and Finance
dc.date.accessioned 2020-07-30T11:54:18Z
dc.date.available 2020-07-30T11:54:18Z
dc.date.issued 2020
dc.department Fakülteler, İşletme Fakültesi, Uluslararası Ticaret ve Finans Bölümü en_US
dc.description.abstract This paper examines the relationship between informed trading and herding in Borsa İstanbul. Our firm-level cross-sectional analysis asserts that informed trading can significantly increase future herding levels. Furthermore, we show that the relationship between informed trading and herding intensifies under short-selling restrictions. Our results confirm the predictions of the informational cascades framework where the individuals disregard their private information to follow others. We show that information cascades are relevant both for buy-side herding and sell-side herding. Short-selling restrictions may reinforce the herding behaviour since informed investors may not be able to clear out potential price misalignments. en_US
dc.identifier.citationcount 3
dc.identifier.doi 10.1016/j.bir.2020.05.007 en_US
dc.identifier.issn 2214-8450 en_US
dc.identifier.issn 2214-8450
dc.identifier.scopus 2-s2.0-85088107163 en_US
dc.identifier.scopusquality Q1
dc.identifier.uri https://hdl.handle.net/20.500.12469/3094
dc.identifier.uri https://doi.org/10.1016/j.bir.2020.05.007
dc.identifier.wos WOS:000600892700005 en_US
dc.identifier.wosquality Q1
dc.institutionauthor Tiniç, Murat en_US
dc.language.iso en en_US
dc.publisher Borsa İstanbul Anonim Şirketi en_US
dc.relation.journal Borsa Istanbul Review en_US
dc.relation.publicationcategory Makale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı en_US
dc.rights info:eu-repo/semantics/openAccess en_US
dc.scopus.citedbyCount 6
dc.subject Herding en_US
dc.subject Informational cascades en_US
dc.subject Informed trading en_US
dc.subject Short-selling restrictions en_US
dc.title Information Cascades, Short-Selling Constraints, and Herding in Equity Markets en_US
dc.type Article en_US
dc.wos.citedbyCount 6
dspace.entity.type Publication
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relation.isOrgUnitOfPublication 16202dfd-a149-4884-98fb-ada5f8c12918
relation.isOrgUnitOfPublication.latestForDiscovery 16202dfd-a149-4884-98fb-ada5f8c12918

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