An empirical analysis of herd behavior in the Singapore stock market

Abstract

This paper examines herd behavior in the Singapore markets by using daily data from January 2002 to December 2012. Evidence of herd behavior is found in the Singapore market and is present in both the bull and bear markets, but it is more significant in the falling market. During periods of financial crisis, I find particularly strong evidence of herd behavior in the Singapore market. Among 10 industries, the impact of herd behavior on the financial industry is the most significant, and that on the health care and consumer services is relatively significant.