The impacts of stock characteristics and regulatory change on mutual fund herding in Taiwan.

Hou, Tony Chieh-Tse; McKnight, Phillip J.; Weir, Charlie

Abstract

This article analyses the trading activity of Taiwanese open-end equity mutual fund herding behaviour over the period of 1996-2008. We found evidence of both directional and directionless herding. We also found that sell-side fund herding leads to price stabilization, whereas buy-side herding results in prices adjusting slowly. We found that the abolition of qualified foreign institutional investor (QFII) has reduced directionless and sell-side herding but has had no effect on buy-side herding.

Citation

HOU, T.C-T., MCKNIGHT, P.J. and WEIR, C. 2014. The impacts of stock characteristics and regulatory change on mutual fund herding in Taiwan. Applied financial economics [online], 24(3), pages 175-186. Available from: https://doi.org/10.1080/09603107.2013.866201

• Journal Article Type: Article
• Acceptance Date: Jan 20, 2014
• Online Publication Date: Jan 20, 2014
• Publication Date: Feb 1, 2014
• Deposit Date: Oct 4, 2016
• Publicly Available Date: Oct 4, 2016
• Journal: Applied financial economics
• Print ISSN: 0960-3107
• Electronic ISSN: 1466-4305
• Publisher: Taylor and Francis
• Peer Reviewed: Peer Reviewed
• Volume: 24
• Issue: 3
• Pages: 175-186
• DOI: https://doi.org/10.1080/09603107.2013.866201
• Keywords: Mutual funds; Herding; Regulatory change; Taiwan
• Public URL: http://hdl.handle.net/10059/1859
• Contract Date: Oct 4, 2016