COVID-19 pandemic ↔ Herd mentality

Relations (1)

cross_type 2.00 — strongly supporting 3 facts

The COVID-19 pandemic served as a catalyst for studying behavioral finance, where [1] links the event to the intensification of herd behavior, [2] notes its prevalence in market responses to the pandemic, and [3] highlights specific empirical findings regarding herding behavior across various stock markets during this period.

Facts (3)

Sources

Biases in Behavioral Finance - World Scholars Review worldscholarsreview.org Daria Azhyshcheva, Vi Dinh, Aanya Gothal, Abhinav Sisodiya · World Scholars Review 2 facts

claimInvestors exhibited increased hedging behavior in response to the COVID-19 pandemic, suggesting that herding behavior may be more prevalent in bear markets.

claimBogdan et al. (2022) found that herding behavior is most notable in emerging markets, followed by frontier markets and developed markets in European stock markets during the COVID-19 pandemic.

Influence of behavioral biases on investment decisions. The ... revistas.usc.gal Revistas USC 1 fact

claimThe cognitive biases known as Overconfidence and Herd Behavior intensify during prolonged financial crises, such as the COVID-19 pandemic.