Publication:
Unintentional herd behavior via the Google search volume index in international equity markets

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Issued Date

2022

Resource Type

Article

Language

eng

File Type

application/pdf

ISSN

10424431

DOI

10.1016/j.intfin.2021.101503

Rights Holder(s)

Scopus

Bibliographic Citation

Journal of International Financial Markets, Institutions and Money. Vol 77, No. (2022)

Suggested Citation

Wanidwaranan P., Padungsaksawasdi C. Unintentional herd behavior via the Google search volume index in international equity markets. Journal of International Financial Markets, Institutions and Money. Vol 77, No. (2022). doi:10.1016/j.intfin.2021.101503 Retrieved from: https://hdl.handle.net/20.500.14740/10134

Title

Unintentional herd behavior via the Google search volume index in international equity markets

Author(s)

Wanidwaranan P.
 Padungsaksawasdi C.

Abstract

We find that retail investor attention measured by the Google Search Volume Index helps promote herd behavior in 21 international equity markets. The proposed methodology with only one dummy variable in the herd detection model is more appropriate than prior models which include multiple dummy variables, yielding better interpretation, reliability, and validation. As the Google searches are informative and free, investors utilize the information and unknowingly make similar trading patterns, supporting unintentional herd behavior. Interestingly, the effect of retail investor attention seems to disappear in downward markets. We attribute this finding to the ostrich effect, in which investors are less attentive during downward markets because of their psychological discomfort. The robustness of our results is consistent with the main findings. © 2022 Elsevier B.V.

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URI

https://hdl.handle.net/20.500.14740/10134

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Scopus: Year 2022

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