Herding Behavior of Ghana Stock Market Participants: A Daily Analysis

This study investigates the herding behavior of Ghana stock market participants and its impact on stock returns. Using panel data of 38 equities listed on the Ghana stock market, the data spans from 2011 to 2019. Fixed effect model was used for all estimations. Overall, the study results failed to i...

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Bibliographic Details
Published in:The journal of applied business and economics 2021-09, Vol.23 (5), p.46-73
Main Authors: Boadi, Isaac, Doku, James Ntiamoah, Osarfo, Daniel, Kubaje, Thompson Aneyire, Mensah, Samuel, Ackah, Peter, Abdul-Samad, Siddique
Format: Article
Language:English
Subjects:
Arbitrage
Behavior
Behavioral economics
Decision making
Efficient markets
Emerging markets
Hypotheses
International finance
Investments
Literature reviews
Regulation
Reputation management
Securities markets
Stock exchanges
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Summary:This study investigates the herding behavior of Ghana stock market participants and its impact on stock returns. Using panel data of 38 equities listed on the Ghana stock market, the data spans from 2011 to 2019. Fixed effect model was used for all estimations. Overall, the study results failed to indicate evidence of herding behavior in the Ghana stock market. This result further indicates that at low levels, the market participants herd but at higher levels, there is the absence of herding behavior. In bull market conditions, market participants act in unison only at high levels. The result validates the assumption of the rational asset pricing model.
ISSN:1499-691X
1499-691X
DOI:10.33423/jabe.v23i5.4563