From euphoria to panic: The role of herd behavior in recent crises

Identifier:  TFG:10224

Handle: https://hdl.handle.net/20.500.11797/TFG10224

Authors:  Vilella Rodríguez, Mar

Abstract:
This research examines herd behavior in financial markets during the dot-com crisis, the subprime crisis, and the COVID-19 pandemic, within the framework of behavioral finance. By analyzing the S&P 500 index using the CSSD and CSAD indicators—and incorporating trading volume—investor behavior is evaluated across different phases of each crisis. The results show a general absence of herd behavior, although it was detected in certain specific situations. The study concludes that psychological and social factors can influence investor decisions and alter market efficiency.