Does herding exist in lottery stocks? Evidence from the Indian stock market

Does herding exist in lottery stocks? Evidence from the Indian stock market

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In this paper, we investigate the presence of herd behaviour among lottery stocks using Max, skewness and idiosyncratic click here volatility in the Indian stock market during the period January 2000 to December 2018.We demonstrate that the herd behaviour is non-existent across proxies of lottery-stocks MAX and skewness and find that the herd behaviour is present among highly idiosyncratic here stocks.This sheds light on why herding is not detected in the prior studies as it may be concentrated among stocks with certain characteristics.Further, it provides evidence of adverse herding.