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The Study on Herd Behavior in Colombo Stock Exchange

Show simple item record Wijesinghe, D.C. Weligamage, S. 2016-12-19T04:55:40Z 2016-12-19T04:55:40Z 2016
dc.identifier.citation Wijesinghe, D.C. and Weligamage, S. 2016. The Study on Herd Behavior in Colombo Stock Exchange. 4th Students’ International Conference on Business (SICB 2016), Faculty of Commerce & Management Studies, University of Kelaniya, Sri Lanka. p 04. en_US
dc.identifier.issn 2536-8877
dc.description.abstract Traditional Finance theory presumed that equity market participants take decisions based on rational platforms. However, recent market incidents witnessed that investor’s decision making process is fueled with irrational behaviors like herding. This study attempts to examine the herd behavior among investors in Colombo Stock Exchange (CSE). During the Civil war time period Colombo bourse significantly impaired investors sentiment and gloomy outlook witnessed. Benchmark Index dragged down by 40% which implies that investors’ sentiment largely weigh on uncertain country’s outlook. Cease of war situation in country which resulted in upliftment in the performances of Colombo Stock exchange and bench mark index surpassed key physiological point barriers. Researchers believed that time interval accurately captured the market fluctuations during the Sri Lanka civil war situation. Thestudy further attempts to detect the herding in bull and bear phrases in market. Long term bull run of CSE tandem with positive sentiment over future aspects of country and improving macroeconomic fundamentals. S& P SL 20 Index which was previously known as Milanka is used as a sample of the study. Daily counter returns of the S& P SL 20 index during the period of 2008-2010 has been gathered for analysis. This Study employed two empirical methods named Cross Sectional Absolute Deviation Return (CSAD) and Cross Sectional Standard deviation (CSSD) Method. All share price index is used as the proxy for market returns and S& P SL 20 individual counter returns used as a market portfolio returns assuming that blue chip counters are quickly respondent to the market moving news effect due to their high liquidity. en_US
dc.language.iso en en_US
dc.publisher Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka en_US
dc.subject CSE en_US
dc.subject Herd Behavior en_US
dc.subject Investor Decision en_US
dc.subject Irrational en_US
dc.title The Study on Herd Behavior in Colombo Stock Exchange en_US
dc.type Article en_US

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