Citation:

Rifka Indi. "The Bibliometric Analysis of Herding Behavior" International Research Journal of Economics and Management Studies, Vol. 4, No. 6, pp. 143-150, 2025.

Abstract:

Herd behavior is a pervasive phenomenon influencing decision-making across financial markets, economics, management, and social psychology. This study presents a comprehensive bibliometric analysis of research on herd behaviour from 1974 to 2025, encompassing 1,418 scholarly documents sourced from the Scopus database. Employing tools such as VOSviewer and Bibliometrics, the analysis reveals the intellectual structure, thematic evolution, and key contributors shaping the field. Six major research clusters emerge, spanning behavioral finance, digital assets, institutional herding during crises, the impact of social media and machine learning, methodological advancements, and interdisciplinary approaches in emerging markets. This study fills a critical gap by offering a systematic, data-driven overview that informs both academic inquiry and practical policy development. The findings provide a valuable foundation for future research on herd behavior’s implications for market efficiency, investor psychology, and regulatory frameworks in an increasingly complex and digitalized global economy.

References:

[1] Acemoglu, D., Ozdaglar, A., & Ozbay, E. Y. (2011). Bayesian learning in social networks. The Review of Economic Studies, 78(4), 1201–1236. https://doi.org/10.1093/restud/rdr004
[2] Anderson, L. R., & Holt, C. A. (1997). Information cascades in the laboratory. The American Economic Review, 87(5), 847–862. https://www.jstor.org/stable/2951325
[3] Avery, C., & Zemsky, P. (1998). Multidimensional Uncertainty and Herd Behavior in Financial Markets. The American Economic Review, 88(4), 724–748. http://www.jstor.org/stable/117003
[4] Banerjee, A. V. (1992). A simple model of herd behavior. The Quarterly Journal of Economics, 107(3), 797–817. https://doi.org/10.2307/2118364
[5] Bikhchandani, S., Hirshleifer, D., & Welch, I. (1992). A theory of fads, fashion, custom, and cultural change as informational cascades. Journal of Political Economy, 100(5), 992–1026. https://doi.org/10.1086/261849
[6] Bikhchandani, S., & Sharma, S. (2001). Herd behavior in financial markets. IMF Staff Papers, 47(3), 279–310. https://ssrn.com/abstract=3923377
[7] Blasco, N., Corredor, P., & Ferreruela, S. (2012). Does herding affect volatility? Implications for the Spanish stock market. Quantitative Finance, 12(2), 311–327. https://doi.org/10.1080/14697688.2010.516766
[8] Bouri, E., Jain, A., Roubaud, D., & Kristoufek, L. (2019). Cryptocurrencies as an alternative investment asset? Evidence from Bitcoin. Finance Research Letters, 31, 259–265. https://doi.org/10.1016/j.frl.2018.12.012
[9] Celen, B., & Kariv, S. (2004). Observational learning under imperfect information. Games and Economic Behavior, 47(1), 72–86. https://doi.org/10.1016/S0899-8256(03)00179-9
[10] Chang, E. C., Cheng, J. W., & Khorana, A. (2000). An examination of herd behavior in equity markets: An international perspective. Journal of Banking & Finance, 24(10), 1651–1679. https://doi.org/10.1016/S0378-4266(99)00096-5
[11] Chiang, T. C., & Zheng, D. (2010). An empirical analysis of herd behavior in global stock markets. Journal of Banking & Finance, 34(8), 1911–1921. https://doi.org/10.1016/j.jbankfin.2009.12.014
[12] Christie, W. G., & Huang, R. D. (1995). Following the pied piper: Do individual returns herd around the market? Financial Analysts Journal, 51(4), 31–37. https://doi.org/10.2469/faj.v51.n4.1918
[13] Corbet, S., Larkin, C., & Lucey, B. (2020). The contagion effects of the COVID-19 pandemic: Evidence from gold and cryptocurrencies. Finance Research Letters, 35, 101554. https://doi.org/10.1016/j.frl.2020.101554
[14] Dasgupta, A., Prat, A., & Verardo, M. (2011). Institutional trade persistence and long-term equity returns. The Journal of Finance, 66(2), 635–653. http://www.jstor.org/stable/29789791
[15] Devenow, A., & Welch, I. (1996). Rational herding in financial economics. European Economic Review, 40(3-5), 603–615. https://doi.org/10.1016/0014-2921(95)00073-9
[16] Donthu, N., Kumar, S., Mukherjee, D., Pandey, N., & Lim, W. M. (2021). How to conduct a bibliometric analysis: An overview and guidelines. Journal of Business Research, 133, 285–296. https://doi.org/10.1016/j.jbusres.2021.04.070
[17] Economou, F., Kostakis, A., & Philippas, N. (2011). Cross-country effects in herding behaviour: Evidence from four South European markets. Journal of International Financial Markets, Institutions and Money, 21(3), 443–460. https://doi.org/10.1016/j.intfin.2011.01.005
[18] Golub, B., & Jackson, M. O. (2010). Naive learning in social networks and the wisdom of crowds. American Economic Journal: Microeconomics, 2(1), 112–149. https://doi.org/10.1257/mic.2.1.112
[19] Graham, J. R. (1999). Herding among investment newsletters: Theory and evidence. The Journal of Finance, 54(1), 237–268. https://doi.org/10.1111/0022-1082.00103
[20] Hwang, S., & Salmon, M. (2004). Market stress and herding. Journal of Empirical Finance, 11(4), 585–616. https://doi.org/10.1016/j.jempfin.2004.04.003
[21] Huang, D., Guo, H., Ma, D., & Zhang, W. (2021). Machine learning in cryptocurrency market: Risk factors and prediction. Journal of Financial Data Science, 3(2), 10–27. http://dx.doi.org/10.2139/ssrn.3183792
[22] Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. London: Macmillan.
[23] Keynes, J. M. (1936). The General Theory of Employment, Interest, and Money. London: Macmillan.
[24] Lyócsa, Š., Baumöhl, E., Vasa, L., & Výrost, T. (2021). Fear of missing out and herding in Reddit’s WallStreetBets: Evidence from the GameStop short squeeze. Finance Research Letters, 43, 101945. https://doi.org/10.1016/j.frl.2021.101945
[25] Muchnik, L., Aral, S., & Taylor, S. J. (2013). Social influence bias: A randomized experiment. Science, 341(6146), 647–651. https://doi.org/10.1126/science.1240466
[26] Prosad, J. M., Kapoor, S., & Sengupta, J. (2012). An examination of herd behavior: An empirical evidence from the Indian equity market. International Journal of Trade, Economics and Finance, 3(2), 154–157.
[27] Scharfstein, D. S., & Stein, J. C. (1990). Herd behavior and investment. The American Economic Review, 80(3), 465–479. https://www.jstor.org/stable/2006678

Keywords:

Herd Behavior; Behavioral Finance; Bibliometric Analysis.