Herding Behaviour in Asutralian stock market: Evidence on COVID-19 effect

This is the first article in investigating how COVID-19 affects Oceania's financial markets. Specifically, we investigate if COVID-19 pandemic has an effect on herding behaviour in the Australian stock market. Using a sample of all firms listed over the period from 10 June 2008 to 19 June 2020, we find evidence that COVID-19 pandemic increases herding behaviour. The results report that herding behaviour manifests during crisis and extreme periods.

Automated summary

The study shows that the COVID-19 pandemic increases herding behavior in the Australian stock market, especially during crisis and extreme periods.