Information cascades, short-selling constraints, and herding in equity markets

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buir.contributor.authorIqbal, Muhammad Sabeeh
dc.citation.epage357en_US
dc.citation.issueNumber4en_US
dc.citation.spage347en_US
dc.citation.volumeNumber20en_US
dc.contributor.authorTiniƧ, M.
dc.contributor.authorIqbal, Muhammad Sabeeh
dc.contributor.authorMahmud, S. F.
dc.date.accessioned2021-02-19T06:34:12Z
dc.date.available2021-02-19T06:34:12Z
dc.date.issued2020-05
dc.departmentDepartment of Managementen_US
dc.description.abstractThis paper examines the relationship between informed trading and herding in Borsa_Istanbul. Our firm-level cross-sectional analysis assertsthat informed trading can significantly increase future herding levels. Furthermore, we show that the relationship between informed trading andherding intensifies under short-selling restrictions. Our results confirm the predictions of the informational cascades framework where the in-dividuals 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.doi10.1016/j.bir.2020.05.007en_US
dc.identifier.issn2214-8450
dc.identifier.urihttp://hdl.handle.net/11693/75471
dc.language.isoEnglishen_US
dc.publisherElsevieren_US
dc.relation.isversionofhttps://doi.org/10.1016/j.bir.2020.05.007en_US
dc.source.titleBorsa Istanbul Reviewen_US
dc.subjectInformed tradingen_US
dc.subjectHerdingen_US
dc.subjectInformational cascadesen_US
dc.subjectShort-selling restrictionsen_US
dc.titleInformation cascades, short-selling constraints, and herding in equity marketsen_US
dc.typeArticleen_US
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