WASET
	%0 Journal Article
	%A Chih-Hsiang Chang
	%D 2013
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 79, 2013
	%T The Relationship between the Disposition Effect and Herding Behavior: Evidence from Taiwan’s Information Technology Stocks
	%U https://publications.waset.org/pdf/16367
	%V 79
	%X This study aims to explore the relationship between the
disposition effect and herding behavior of investors trading Taiwanese
information technology stocks. This study differs from previous
literature in two aspects. First, in contrast with the earlier studies that
focused on investigating investors’ herding behavior, this study
explores the possibility that the disposition effect drives investors’
herding behavior. Additionally, it takes an in-depth look at the
interdependence between the disposition effect and herding behavior
of investors, including lead-lag relationship and volatility transmission
effect. Empirical results show that investors trading Taiwan’s
information technology stocks exhibit pronounced herding behavior
and that the disposition effect has a great impact on their herding
behavior.

	%P 1971 - 1975