Investors' Imitation Behaviour: A Comparison of Islamic and Conventional Banks Stocks

Authors

  • Muhammad Iqbal Department of Economics, University of Vienna, Austria

Keywords:

Herding, Stock market, Islamic banking

Abstract

This study aim is to investigate the existence of herding behavior in the banking sector; conventional banking and Islamic banking sectors. By using daily data, Cross-sectional Standard deviation (CSSD) and Cross-sectional Absolute Deviation (CSAD) based methods are employed to estimate herding behavior in the aforesaid market. The study finds no evidence of herding behavior for investors in conventional banks as well as for investors in Islamic banks. The study also highlights the non-existence of herding behavior in extreme market conditions for both types of banks.

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Published

2021-01-27