Asia-Pacific Financial Markets

, Volume 23, Issue 2, pp 203–227 | Cite as

The Effects of Analysts’ Herding on Traders: Evidence from the Taiwan Stock Market



The primary aim of this study is to carry out an investigation into the effects of analysts’ herding on different types of traders in Taiwan stock market. Our empirical results reveal that smaller traders are more readily affected by analyst herding, essentially as a result of their lack of experience and their lack of access to relevant information sources, which leads to them reacting directly to the central point of the recommendations made by the analysts. Our findings also reveal that both small and large traders are affected by analyst herding in the recommendations provided by the analysts relating specifically to buying. As for the evidence on analyst herding in recommendations relating to selling, larger traders are invariably found to have made use of their informational advantages to act in advance of such recommendations.


Herding Analysts Stock recommendations  Abnormal trading volume Brokers 

JEL Classification

G11 G12 G24 G28 


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Copyright information

© Springer Japan 2016

Authors and Affiliations

  1. 1.The Faculty of International BusinessI-Shou UniversityKaohsiung CityTaiwan, ROC

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