An analysis of herd behavior in Latin American stock markets

Main Article Content

Juan Benjamín Duarte Duarte
Laura Daniela Garcés Carreño
Katherine Julieth Sierra Suárez

Keywords

Herd Behavior, Latin America Stock Markets, Variation in Returns

Abstract

This research investigates whether the major stock markets in Latin America (Brazil, Mexico, Chile, Colombia, Peru and Argentina) exhibited herd behavior over the period January 2, 2002 to June 30, 2014, using the variation in the returns overall and by sector in the most representative stock market index in each country, using the model proposed by Christie y Huang (1995). The results do not reveal any herd behavior in the total market, or in the sectors of the markets examined in the study.

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