%0 Journal Article
%T Do Institutional Investors Herd in Emerging Markets? Evidence from the Taiwan Stock Market
%A Jonchi Shyu
%A Hsin-Ming Sun
%J Asian Journal of Finance & Accounting
%D 2011
%I 
%R 10.5296/ajfa.v2i2.456
%X This study employs daily trading data to examine the herding behavior of institutional investors in Taiwan¡¯s stock market. Our results show evidence of herding for institutional investors; indeed, they would follow both other institutional trades and their own trades. We also find that institutional investors are not driven principally by impulse or instinct and that ¡°herded into¡± stocks do not exhibit unusual return reversals. Moreover, the intensity of herding is negatively related to firm size, which suggests that institutional herding in Taiwan¡¯s stock market is driven primarily by information cascades. Keywords: Institutional investor, Herding behavior, Information cascade, Emerging markets JEL Classifications: G11, G20, N25
%U http://www.macrothink.org/journal/index.php/ajfa/article/view/456