Determinants Of Herd Behaviours: Evidence From Pakistani Stock Exchange

Abstract

When it comes to making investing decisions, the herd behaviour of individual investors has piqued the curiosity of market researchers. This study examines the impact of overconfidence, self-attribution, the illusion of control, and information ambiguity on herding behaviour. A multiple regression analysis established the connection between herd mentality and behavioural biases. The correlation between herd behaviour and hubris, self-attribution, the illusion of control, information ambiguity, and age was
discovered. In light of these findings, which provide crucial information on the behaviour of individual investors, stakeholders in the stock market, including institutional and foreign investors, market regulators, and firm management, can adjust their actions and
regulations.