Financial herding behavior linked to information availability and cognitive profiles
The article explores how the amount of financial information available and investors' thinking styles affect their tendency to follow the crowd when making investment decisions. The researchers conducted an experiment with different levels of information and found that the number of previous transactions in the market plays a key role in influencing investors to herd. They also discovered that when there is a lot of uncertainty, investors are more likely to follow the herd, regardless of their individual thinking styles. Additionally, the study suggests that not all public information is equally important to investors. Overall, the findings highlight the complex relationship between information availability, cognitive profiles, and herding behavior among investors.