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Gender and Herding

Zheng, Z.; Tang, K.; Liu, Y.; Guo, M.

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Authors

Z. Zheng

K. Tang

Y. Liu



Abstract

This study uses a unique dataset from a large anonymous brokerage firm to examine the herding behavior of Chinese individual investors. The empirical evidence reveals that females are more inclined to follow the behavior of ‘same-sex’ investors. Market conditions and stock characteristics affect females and males similarly in that individual investors herd more intensively in the bull market, on stocks with better liquidity and larger market capitalization. By using individual-level herding measurements and examining the consequences of intensive herding, we show that the lower portfolio turnover of females is the main source of difference in herding between genders. However, females lose more due to their intensive herding tendency, as herding has a greater negative impact on trading than overconfidence in the Chinese stock market.

Citation

Zheng, Z., Tang, K., Liu, Y., & Guo, M. (2021). Gender and Herding. Journal of Empirical Finance, 64, 379-400. https://doi.org/10.1016/j.jempfin.2021.10.005

Journal Article Type Article
Acceptance Date Oct 7, 2021
Online Publication Date Oct 22, 2021
Publication Date 2021-12
Deposit Date Oct 7, 2021
Publicly Available Date Mar 28, 2024
Journal Journal of Empirical Finance
Print ISSN 0927-5398
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 64
Pages 379-400
DOI https://doi.org/10.1016/j.jempfin.2021.10.005
Public URL https://durham-repository.worktribe.com/output/1231538

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