Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

<Previous Article In Volume
Next Article In Volume>

The Impact of the Herd Effect on Individual Investment Decisions

Authors
Wanqi Zhu1, *
1Sino-French Institute, Renmin University of China, 100872, Chongqing, China
*Corresponding author. Email: Zhuwanqi20021130@ruc.edu.cn
Corresponding Author
Wanqi Zhu
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_57How to use a DOI?
Keywords
Herd effect; Behavioral finance; Investment decisions
Abstract

The herding effect is widespread in the financial market, which not only has an important impact on individual investment decisions, but also often causes financial market volatility. Therefore, the purpose of this paper is to explore what specific effects of the herd effect on individuals and the market, and hope that it can help to avoid the disadvantages of the herd effect and better utilize the herd effect. Based on the current existing articles on the study of the herd effect, this study combs and summarizes the impact of the herd effect on individuals and the market, respectively. By reviewing the literature, this paper ultimately finds that the impact of the herd effect on individual investment decisions is both favorable and unfavorable, while the impact on the market is usually negative. The results of this research can be a favorable tool for investors to identify and rationally utilize the herd effect, which is of great practical significance for the healthy development of the market.

Copyright
© 2025 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.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_57How to use a DOI?
Copyright
© 2025 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  - Wanqi Zhu
PY  - 2025
DA  - 2025/02/24
TI  - The Impact of the Herd Effect on Individual Investment Decisions
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 547
EP  - 553
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_57
DO  - 10.2991/978-94-6463-652-9_57
ID  - Zhu2025
ER  -