Document Type : Research Paper
Authors
1
Associate Professor, Department of Economic Development and Planning, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran
2
Professor, Department of Economic Development and Planning, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran
3
MA in economics, Department of Economic Development and Planning, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran
Abstract
The main goal of this study is to investigate herd behavior in 9 groups of industries in Tehran Stock Exchange. In this regard, the herd behavior of the companies in the Tehran Stock Exchange from 2015 to 2023 in the ups and downs of the market and in daily and weekly frequencies has been investigated using the method of Chang et al (2000). The results show that there is significant herd behavior in almost all groups, which indicates the existence of herd behavior in the whole market. According to the results in most industries herd behavior has been identified in the ascending periods of the daily and weekly time frames which can be one of the factors of the stock market rises, such as the rise of the years 2018 to the middle of 2019, which caused large bubbles in the stock prices. Also, in the group of car manufacturing companies, the most herd behavior, and in the group of oil refining companies, the least herd behavior has been observed. The results show that there is more herd behavior in the daily period than in the weekly period, which corresponds to the emotional contagion aspect of this behavior. In this study, by dividing the entire period into downward and upward periods, the existence of symmetry in herd behavior has been investigated, the results indicate asymmetry in many groups,which can be due to the one-sidedness of the market or cognitive factors like loss aversion according to Kahneman and Tversky's Perspective Theory.
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