| dc.description.abstract | The research aims to prove existence and measure the level of herding behavior in the market through the quantitative model. Along with that, the author proposes some solutions to reduce herd behavior on the market, in order to improve the efficiency of the market.
The research takes three months from March 2013 to May 2013 to complete the methodology. After reviewing of literature, related theories and former researchers, the model of Chang, Cheng and Khorana (2000) was used to apply and find data.
The existence of herd behavior in Vietnam stock market during years was found after processing the collected data. The data was analyzed by Excel and Eviews software. The findings indicate evidence of herd mentality in both upward and downward market conditions in Ho Chi Minh Stock Exchange (HOSE). However, in recent years, herding occurred only in downward market consensus. This may be due to the fear of potential loss when investors made irrational investment decisions in falling market.
Furthermore, due to the time constraint, the research only focuses on herd behavior in HOSE. Suggestions for further research on Ha Noi Stock Exchange (HNX) and other behavioral factors are also offered. | en_US |
