Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023)

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Herding Behavior and Investor Investment Decisions in Capital Market

Authors
Dian Kurnianingrum1, *, Nugraha Nugraha1, Disman Disman1, Budi Supriatono Purnomo1
1Universitas Pendidikan Indonesia, Bandung, Indonesia
*Corresponding author. Email: dian_k@upi.edu
Corresponding Author
Dian Kurnianingrum
Available Online 26 June 2024.
DOI
10.2991/978-94-6463-443-3_22How to use a DOI?
Keywords
herding; investor; financial behavior
Abstract

The paradigm of conventional financial science assumes that market participants are rational in explaining financial markets. Sadly, it was later discovered that the aggregate capital market, the average rate of return, and the behavior of traders did not conform to these assumptions. Herding is a behavioral bias that can influence individual and institutional investors’ investment decisions. The fear of getting a loss on an investment will encourage human instincts to follow the information conveyed by the news or other investors, even though this step is not necessarily correct. This study consists of a literature review. Researchers compiled credible articles that explored the impact of herding tendency on investors’ investment decisions. The journal is then classified as empirical, conceptual, and literary. In the first part, this paper discusses the effect of herding behavior and the factors causing herding behavior in the financial market. Then this paper continued to discuss research related to herding behavior from early 1990. As a closing, researcher explain study discusses how to identify the occurrence of herding behavior in the financial market.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
26 June 2024
ISBN
978-94-6463-443-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-443-3_22How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Dian Kurnianingrum
AU  - Nugraha Nugraha
AU  - Disman Disman
AU  - Budi Supriatono Purnomo
PY  - 2024
DA  - 2024/06/26
TI  - Herding Behavior and Investor Investment Decisions in Capital Market
BT  - Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023)
PB  - Atlantis Press
SP  - 147
EP  - 155
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-443-3_22
DO  - 10.2991/978-94-6463-443-3_22
ID  - Kurnianingrum2024
ER  -