Institutional Herding in a Transition Economy: Evidence from Bulgaria

  • Nikolay Yordanov PhD candidate
Keywords: institutional trading, institutional herd behaviour, Bulgarian stock exchange


The present paper examines whether Bulgarian institutional investors engage in herd behaviour. For this purpose, we use quarterly data for funds' holdings. The results reveal that the trades of institutional investors are intertemporally dependent, and that herd behaviour is present. Further, we test whether herding is due to intent or not. Our results reveal that herding is conditional upon the market direction, market-wide volatility, investors' economic sentiment, and market volume. Thus, we draw the conclusion that herding is intentional.


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How to Cite
Yordanov, N. (2023). Institutional Herding in a Transition Economy: Evidence from Bulgaria. Vanguard Scientific Instruments in Management, 19, 176-198. Retrieved from[]=513