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Home > Role of Culture and Macroeconomic Shocks in Driving Herding Behavior: Evidence from Developed, Emerging and Frontier Stock Markets

Role of Culture and Macroeconomic Shocks in Driving Herding Behavior: Evidence from Developed, Emerging and Frontier Stock Markets

Thesis Info

Access Option

External Link

Author

Javaira, Zuee

Program

PhD

Institute

International Islamic University

City

Islamabad

Province

Islamabad.

Country

Pakistan

Thesis Completing Year

2018

Thesis Completion Status

Completed

Subject

Finance

Language

English

Link

http://prr.hec.gov.pk/jspui/bitstream/123456789/13900/1/Zuee%20Javaira.pdf

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676724994644

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The basic purpose of this research is to investigate herding behavior, the role of culture, the effect of macroeconomic shocks on herding behavior, and the existence of contagion of herding due to the crisis and extreme shocks in the market. This study investigates the herding behavior towards market consensus in a set of Developed, Emerging and Frontier Markets of Asia, Asia Pacific and Europe. For the identification of herding behavior towards market consensus this study employs return dispersion models and the state space model. The time variation in herding behavior is identified by estimating return dispersion model through Kalman filter estimation. One of the main objective of this research is to determine the role of culture in driving herding behavior. This study employs Hofstede’s six cultural dimensions of culture and introduces them as an explanatory variable in the return dispersion model. This study utilizes ARIMA residuals of macroeconomic variables and introduce them in state space model to figure out the effect of unexpected shocks of this variable on investor herding behavior. This study focuses on behavioral link namely contagion of herding (pure contagion) in a given set of market and determines the cross country linkages of each market with a global leader (US) through extreme shocks in macroeconomic components or crisis. For the said purpose conditional correlation between herding measures is generated through diagonal VECH bivariate GARCH (1,1) model. The major findings of the study report significant effect of herding behavior in the majority of the markets. state space model measure provide better results for all measure. Culture play a significant role in the determination of herding behavior. The presence of cultural dimensions changes the magnitude of the herding behavior in sample countries. The herding behavior of investor is affected by some macroeconomic shocks hitting the specific market. But macroeconomic shocks do not seem to play a major role in defining herding behavior in most of the markets. Majority of the markets exhibit a strong correlation with US market which is seen as turning points of herding measure during a global financial crisis of 2007-2009. This correlation also increased due to some specific macroeconomic shocks. This study provides a complete analytical framework in developed emerging and frontier markets of Asia, Asia Pacific and Europe, where economic, cultural, behavioral and external factors are simultaneously integrated to provide a better explanation of herding behavior. Therefore, in its unique design, this research is an attempt towards bridging a gap between, cultural finance, behavioral finance, and standard finance.
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مولوی محمد اسمٰعیل میرٹھی

مولوی محمد اسمٰعیل میرٹھی

            بقول علامہ مرحوم، مولانا حالی کے بعد کسی نے سننے کے لائق کچھ کہا ہے، تو وہ مولوی محمد اسمٰعیل صاحب میرٹھی ہیں، افسوس کہ دوسرا حالی بھی اس مہینہ ہماری دنیا سے رخصت ہوگیا، مرحوم کا سہل و رواں کلام ہمارے بچوں کا ابتدائی سبق تھا، وہ اپنی پیرانہ سالی کی مرتعش زبان سے چھوٹے چھوٹے بچوں کو اس پیار سے سمجھاتے تھے کہ وہ نصیحت کی گرانباری کو کھلونا سمجھ کر اٹھا لیتے تھے، افسوس کہ یہ کھلونے بنانے والا بھی اب نہ رہا، سرکاری خدمت سے گوشہ نشین ہوکر وہ ہمہ تن علمی خدمات میں مصروف ہوگئے تھے، تدوین کلام خسرو کے سلسلہ میں قران السعدین کی تقریظ و تحشیہ سے فارغ ہوکر حیات خسرو کی ترتیب میں مصروف تھے، اس کے علاوہ قواعد اردو اور لغات اردو کی تکمیل کا کام شروع ہورہا تھا، جو افسوس کہ ناتمام رہا، میرٹھ میں ایک مدرسہ بنات المسلمین بھی آپ کے اعمال حسنہ کی یادگار ہے۔ (سید سليمان ندوی، نومبر ۱۹۱۷ء)

عرب عہد جاہلیت میں ’’طلاق‘‘ کا تصور: تحقیقی جائزہ

Conjugal life is an important aspect of human society, on which a prosperous life depends. Almost every Culture, civilization and religion Legislate for family life. There is a part of these laws to end the marital relationship which is denoted by "DIVORCE". Divorce is mentioned in detail in Islamic Sharia, in order to understand them truly one has to genuinely consider and understand the concept of divorce in Pre-Islamic period of ignorance. There were several specific terms for divorce that were used in the Arab culture for example Talᾱq, Īela and Khula etc. But generally decent people use the word "طلاق"(Talᾱq) to end the marital relationship. There were some common causes and reasons for divorce in Arabs before Islam for example lack of mental harmony, infertility, bigotry, family feud and apostasy etc. The divorced women become more and more vulnerable socially and economically in ancient Arab and consequently their children less attention, love and affection of their mothers turning them into rebellious, nonconformist and ruthless individuals crossing all limits of oppression and we often see examples of such incidents in Arabs before dawn of Islam. These cruel customs and practices were uprooted through teachings of Islam which is based on justice, equality and basic human rights.

Ethnopharmacological Studies of Jsminum Sambac L. Aition, Olea Europael. and Olea Ferruginea Royal

The present investigation was carried out to explore the ethnopharmacological potential of ethnobotanically important three plants, Olea europaea L., O. ferruginea Royle and J. sambac (L.) Aiton belonging to family Oleaceae. The stem and leaf powder of all these plants were macerated in polar and non-polar solvents, i.e. distilled water, ethanol, chloroform and n-hexane, respectively. Maximum percentage yield was obtained in the stem aqueous extract of Olea ferruginea (13.11%) while least in stem chloroform extracts of Jasminum sambac (2.1%). The phytochemical analysis revealed the presence of alkaloids, anthraquinines, tannins, flavonoids, reducing sugars, cardiac glycosides, saponins and terpenoids in moderate quantity in Olea europaea and O. ferruginea while least amount in Jasminum sambac which was further confirmed by FTIR analysis. The antimicrobial activity of plant extracts was checked against Bacillus subtilis, Staphylococcus aureus, Pseudomonas aeruginosa and Escherichia coli and found maximum with stem ethanol extract of Olea europaea, i.e. 38.07±2.76 mm against P. aeruginosa while minimum by stem chloroform extract of Olea ferruginea, i.e. 5.23±1.08 mm against E. coli. The stem aqueous extract of Olea europaea, stem n- hexane extract of Olea ferruginea and stem ethanol extract of Jasminum sambac showed MIC at 1.25mg/mL. The antioxidant analysis concluded that ethanol leaf extract of Olea ferruginea demonstrated IC50 value 12 μg/mL (DPPH scavenging activity). Significant metal chelating activity was observed by stem chloroform extract of Olea europaea 98.06±1.61%. Ethanol stem extract of Olea europaea presented maximum % inhibition of peroxidation (91.72±1.60 %) as compared to other extracts of Olea ferruginea and Jasminum sambac. Maximum amount of total phenolic contents were found in the leaf ethanol extracts of (142.97±1.67 GAE μg/mL). Leaf ethanol extract of Olea ferruginea and Olea europaea presented maximum total antioxidant activity (1.551±0.657 AE μg/mL) and (1.493±0.762) respectively. Molecular identification of universal FMDV was accomplished using Reverse Transcriptase Chain Reaction (RT-PCR). BHK-21 cells were used to check toxicity of different extracts of tested plants while their antiviral potency was also examined against FMDV. It was observed that alcohol leaf extracts of Olea europaea had potent antiviral activity at concentration range of 31.25μg/mL to 250μg/mL with CSP ranging from 51% to 63% followed by activity of chloroform extracts where cell survival percentage was observed 54% and xiii 57% at concentration 31.25μg/mL and 62.5μg/mL respectively. The n-hexane leaf extract of O. europaea exhibited antiviral activity at concentration of 15.62μg/mL to 125μg/mL. CSP in aqueous extracts was 50% at concentration range of 31.25μg/mL and 62.5μg/mL, respectively. All stem extracts of Jasminum sambac were found non-toxic to BHK-21 cells at different concentrations but had no antiviral potential against FMDV at the same concentration range. On the basis of the results obtained in the present studies, the traditional use of the three targeted plants of family Oleaceae as food, fodder, feed and medicine seems appropriate and thus is justified.