This study aims to explore the relationship between the

\r\ndisposition effect and herding behavior of investors trading Taiwanese

\r\ninformation technology stocks. This study differs from previous

\r\nliterature in two aspects. First, in contrast with the earlier studies that

\r\nfocused on investigating investors’ herding behavior, this study

\r\nexplores the possibility that the disposition effect drives investors’

\r\nherding behavior. Additionally, it takes an in-depth look at the

\r\ninterdependence between the disposition effect and herding behavior

\r\nof investors, including lead-lag relationship and volatility transmission

\r\neffect. Empirical results show that investors trading Taiwan’s

\r\ninformation technology stocks exhibit pronounced herding behavior

\r\nand that the disposition effect has a great impact on their herding

\r\nbehavior.<\/p>\r\n","references":"

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