Herding Behavior in Stock Market: An Empirical Study of Energy Sector of BRICS Nations

Abstract

This paper attempts to study the herding behaviour of Energy sector stocks toward the Market & equal-weighted average portfolio of the sector of BRICS. This study uses Closing price data from January 1st 2017 to December 31st 2022, of all fossil fuel companies from the energy sector of BRICS for those data was available. Those Companies were removed from a sample which was listed during the study period or delisted at any time during the study period. Nine companies selected from Brazil, 11 from Russia, one from India, 33 from China & 3 from South Africa are taken as a sample in this study. CSAD by Chang et al. (2000) & CSSD by Christie and Huang (1995) methodology for analysis of the herding behaviour is used in this study. The results show the herding behaviour during the study period in some countries of BRICS using the CSSD method & CSAD. Mostly found in China.