Did the Covid-19 Pandemic Trigger Herding Behavior?

Authors

  • Puput Tri Komalasari Department of Management, Faculty of Economics and Business, Airlangga University, Jl. Airlangga 4-6, Surabaya
  • Zahrin Haznina Qalby Department of Management, Faculty of Economics and Business, Airlangga University, Jl. Airlangga 4-6, Surabaya https://orcid.org/0000-0002-1351-7434
  • Vanessa Ryan Alhaqi Department of Management, Faculty of Economics and Business, Airlangga University, Jl. Airlangga 4-6, Surabaya

DOI:

https://doi.org/10.21632/irjbs.17.2.129-142

Keywords:

COVID-19, Herding Behavior, Mutual Fund, Reverse Herding

Abstract

This study aims to examine the influence of the COVID-19 pandemic on mutual fund herding in Indonesia. The research population comprises open-end mutual funds in Indonesia. By adopting the purposive sampling method, we selected the stock mutual funds registered from 2017 to 2022 as our research sample. We define the 2017-2019 period as before COVID-19 and 2020-2022 as during COVID-19. This study employs CSAD and CSSD as proxies for return dispersion by considering two types of indices as benchmarks, namely LQ45 and IDX Composite. Our study found that COVID-19 did trigger mutual fund herding. However, we failed to find herding behavior when there is a large market movement. Instead, we found reverse herding. 

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Submitted

06/22/2024

Accepted

10/21/2024

Published

10/30/2024

How to Cite

Komalasari, P. T., Qalby, Z. H., & Alhaqi, V. R. (2024). Did the Covid-19 Pandemic Trigger Herding Behavior?. International Research Journal of Business Studies, 17(2), 129-142. https://doi.org/10.21632/irjbs.17.2.129-142

Issue

Vol. 17 No. 2 (2024): August - November 2024

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Copyright (c) 2024 Puput Tri Komalasari, Zahrin Haznina Qalby, Vanessa Ryan Alhaqi (Author)

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite

Komalasari, P. T., Qalby, Z. H., & Alhaqi, V. R. (2024). Did the Covid-19 Pandemic Trigger Herding Behavior?. International Research Journal of Business Studies, 17(2), 129-142. https://doi.org/10.21632/irjbs.17.2.129-142