Herding and the Thin Trading Bias in a Start-Up Market: Evidence from Vietnam

33 Pages Posted: 14 Mar 2008

Date Written: September 2007

Abstract

Research in behavioural finance has denoted the significant presence of herd behaviour in emerging capital markets. However, although the latter are typified by substantial levels of thin trading, its impact over the measurement of herding has been the subject of very little attention. We address this issue in the context of the Vietnamese market and our results indicate that correcting for thin trading leads to the depression of the herd's significance. Our findings are suggestive of thin trading introducing a bias over herding estimations which we interpret through existing literature evidence related to the illiquid structures of emerging markets.

Keywords: herding, thin trading, Vietnam

JEL Classification: G10, G15

Suggested Citation

Kallinterakis, Vasileios, Herding and the Thin Trading Bias in a Start-Up Market: Evidence from Vietnam (September 2007). Available at SSRN: https://ssrn.com/abstract=1105976 or http://dx.doi.org/10.2139/ssrn.1105976

Vasileios Kallinterakis (Contact Author)

Durham Business School ( email )

Mill Hill Lane
Durham, Durham DH1 3LB
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
547
Abstract Views
2,202
Rank
93,116
PlumX Metrics