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This paper investigates institutional herding behaviours in the U.S. Treasury market. We find that the level of herding is higher for bonds with a longer time to maturity and this pattern is significant only for buy herding, not sell herding. This term structure of herding is stronger for funds with a shorter investment horizon. These patterns remain strong for Treasury Inflation‐Protected Securities and for Treasuries with high coupon rates. Overall, our findings support investors' short‐termism as a channel for the term structure of herding and are inconsistent with other herding explanations, such as spurious herding, reputational concerns and information cascades. [ABSTRACT FROM AUTHOR]

The paper investigates strategic interactions between an independent analyst and an affiliated analyst in the context of issuing stock recommendations. Compared to the independent analyst, the affiliated analyst has superior information, but faces a conflict of interest. I show that the independent analyst disciplines the affiliated analyst's biased forecasting behavior. Meanwhile, the independent analyst sometimes herds with the affiliated analyst to improve his recommendation accuracy. Because of the affiliated analyst's conflict of interest, the value the independent analyst expects to derive from his ex post herding option is endogenous and can motivate him to acquire more information up front. As a result, herding and disciplining not only coexist, but also mutually reinforce each other. That is, there is an endogenous complementarity between the independent analyst's ex ante disciplining role and his ex post herding behavior in equilibrium. [ABSTRACT FROM AUTHOR]

We examine how the culture of origin of sell-side financial analysts in the United States influences their forecasting. We find that analysts from individualistic cultures are more likely to issue bold earnings forecasts and stock recommendations than analysts from collectivist cultures. Individualistic (collectivist) analysts' tendency to overweight (underweight) their private information at least partly explains the results. The effect of culture decreases with the analysts' professional skills and their exposure to the U.S. culture but increases with task difficulty. For market consequences, short-window market reactions are stronger to bold reports by collectivist analysts than to those by individualistic analysts, consistent with the analysts' differential weighting of their private information. On average, however, a higher level of analyst individualism is associated with lower stock price synchronicity of the firm covered, indicating that more firm-specific information is impounded in the stock price. Our study extends research on the effect of national culture in the capital market by demonstrating how individualism, a central element of culture, affects analysts' information processing and the value of their work. [ABSTRACT FROM AUTHOR]

This paper examines the collective fraudulent behaviors taking place during the residential real estate bubble in the United States from 2002 to 2006 and the influence of others' choices on decision making leading to a herd mentality. The antecedents of collective fraud are discussed in terms of the sociological theory behind human herding and the fraudulent behaviors during the real estate bubble are examined. Using archival witness testimony as a primary basis for analysis, this paper argues that without wide-spread collective fraud, the bubble may not have developed and the herd mentality may have dissipated without the consequences of financial disaster. The aim of an analysis of this nature is to offer a plausible explanation of some of the preconditions to the event under study. [ABSTRACT FROM AUTHOR]

Mere observation of others' choices can be informative about product quality. This paper develops an individual-level dynamic model of observational learning and applies it to a novel data set from the U.S. kidney market, where transplant candidates on a waiting list sequentially decide whether to accept a kidney offer. We find strong evidence of observational learning: patients draw negative quality inferences from earlier refusals in the queue, thus becoming more inclined towards refusal themselves. This self-reinforcing chain of inferences leads to poor kidney utilization despite the continual shortage in kidney supply. Counterfactual policy simulations show that patients would have made more efficient use of kidneys had the concerns behind earlier refusals been shared. This study yields a set of marketing implications. In particular, we show that observational learning and information sharing shape consumer choices in markedly different ways. Optimal marketing strategies should take into account how consumers learn from others. [ABSTRACT FROM AUTHOR]

Purpose: This study explores the economic impact of the COVID-19 crisis on herding behaviour in the Australian equity market by considering liquidity, government interventions and sentiment contagion. Design/methodology/approach: This study utilizes a daily dataset of the top 500 stocks in the Australian market from January 2009 to December 2021. Both predictive regression and portfolio approaches are employed to consider the impact of COVID-19 on herding intention. Findings: This study confirms that herding propensity is more pronounced at the beginning of the crisis and becomes less significant towards later phases when reverse herding is more visible. Investors herd more toward sectors with less available information on financial support from the government during the financial meltdown. Conditioning the stock liquidity, herding is only detectable during highly liquid periods and high-liquid stocks, which is more observable during the initial phases of the crisis. Further, the mood contagion from the United States (US) market to Australian market and asymmetric herding intention are evident during the pandemic. Originality/value: This is the first study to shed further light on the impact of a health crisis on the trading behaviour of Australian investors, which is driven by liquidity, public information and sentiment. Notwithstanding the theoretical contributions to the prior literature, several practical implications are proposed for businesses, policymakers and investors during uncertainty periods. [ABSTRACT FROM AUTHOR]

Open-range cattle herding was a lucrative activity before plantation agriculture developed in the South Carolina backcountry. In this paper, the material record associated with two residences occupied by colonial frontier cattle raisers is summarized. British settlers and enslaved West Africans inhabited the Catherine Brown cowpen and the Thomas Howell site. Typical of frontier conditions, the material record at these sites revealed a juxtaposition of formative consumerism and folk traditions. Archaeological information indicates that despite wealth and the use of imported consumer goods, the two households relied upon impermanent architecture, used local ceramics, and supplemented their diets with wild game. [ABSTRACT FROM AUTHOR]

Understanding both domestication processes and agricultural practices is an interdisciplinary endeavor. Ethnographic research is potentially helpful for reconstructing past events. Such knowledge is also crucial for documenting the links between biological and cultural diversity, as well as for future purposes such as innovation in food production and sustainability. Here, we review six ethnographic case studies in different pastoral socioecological systems of the American continent. The livestock species involved include the native South American camelids and Arctic reindeer, as well as some Old World species (mainly goats, sheep, and cattle). Starting with the Columbian exchange (15th-16th centuries) and continuing up to the present, Old World herbivores launched novel uses of the local flora which resulted in entirely new livelihoods and cultures, i.e., pastoralism with its variants. Three of these case studies approach specifically how herding ecologies (human-animal-plant relationships) stirred specific management practices (human-plant relationships) that in some instances have moved toward conscious human selection of plant phenotypes. The other examples correspond to three potential instances of similar ongoing processes that we propose on the basis of ethnobotanical and ethnozoological data that were produced separately by other authors. Based on the studies we have reviewed, along with additional information from other parts of the world, we are able to conclude that: (a) New World pastoralist societies are/have been continuously adding species to the humanity's portfolio of useful plants; (b) animals have been aiding in this processes in different ways; and, (c) how human-animal-plant relationships unfold in the present could have been similar in the past, thus analogies may be proposed for explaining prehistoric multispecies interactions and their outcomes. With our review, we intend to bring more attention to contemporary pastoralists as plant managers, animals as agents in human-plant interactions, and domestication as a behavioral complex and multispecies process that is as important in the present or future as it was in the past. Our understanding of food production practices is not only fundamental for improving our current frameworks of governance, conservation, and restoration of useful species populations, but also of biocultural diversity altogether. [ABSTRACT FROM AUTHOR]

Our study investigates the market-wide herding behavior in the U.S. equity REIT market. Utilizing the quantile regression method, we find that herding is more likely to be present in the high quantiles of the REIT return dispersion. This implies that REIT investors tend to herd under turbulent market conditions. Our results also support the asymmetry of herding behaviors, that is, herding is more likely to occur and becomes stronger in declining markets than in rising markets. In addition, our findings show that the current financial crisis has caused a change in the circumstances under which herding can occur, as we find that during the current crisis REIT investors may not start to herd until the market becomes extremely turbulent whereas during the relatively normal period before the crisis, investors tend to herd when the market is moderately turbulent. Finally, we find that compared with the case of the 'pre-modern' era, REIT investors are more likely to herd in the 'modern' era, during which herding usually occurs when the market becomes tumultuous. This implies that the switch of REITs from passive externally managed entities into active self-managed ones has made the investors more responsive to market sentiment. [ABSTRACT FROM AUTHOR]

ABSTRACT Using more than 25 000 corporate profit forecasts for Canada, the United Kingdom and the United States, we find strong evidence of an anti-herding behaviour. Apparently, corporate profit forecaster intentionally scatter their forecasts around the consensus forecast. We also document that the cross-sectional heterogeneity of forecasts with regard to anti-herding translates into cross-sectional heterogeneity with regard to forecast accuracy. Forecasters who anti-herd have a substantially higher forecast accuracy that may help to explain the rational bias in macroeconomic forecasting. Copyright © 2012 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Recent price trends in housing markets may reflect herding of market participants. A natural question is whether such herding, to the extent that it occurred, reflects herding in forecasts of professional forecasters. Using survey data for Canada, Japan, and the United States, we did not find evidence of forecaster herding. On the contrary, forecasters anti-herd and, thereby, tend to intentionally scatter their forecasts around the consensus forecast. The extent of anti-herding seems to vary over time. For Canada and the United States, we found that more pronounced anti-herding leads to lower forecast accuracy. [ABSTRACT FROM AUTHOR]