Guo, J, Holmes, P orcid.org/0000-0002-7812-341X and Altanlar, A orcid.org/0000-0002-6301-8422 (2020) Is Herding Spurious or Intentional? Evidence from Analyst Recommendation Revisions and Sentiment. International Review of Financial Analysis, 71. 101539. ISSN 1057-5219
Abstract
Using institutional holdings data for 1993–2015, we investigate whether institutional herding is spurious or intentional by analysing the impact on herding of analyst recommendation revisions and sentiment. In addition to examining their effect separately, we consider the impact of their interaction. Utilising the Sias method, we develop competing hypotheses concerning spurious and intentional herding, an issue of direct interest to fund investors, given the principal-agent relationship inherent in fund management. Results strongly suggest herding is spurious. Analysis of the relationship between herding and subsequent returns, and findings from robustness tests add further support.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020, Elsevier. All rights reserved. This is an author produced version of an article published in International Review of Financial Analysis. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Herding; Sentiment; Analyst recommendation revisions; Institutional investors; Information |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 01 Jun 2020 13:55 |
Last Modified: | 15 Dec 2021 01:38 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.irfa.2020.101539 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:161387 |