Key points are not available for this paper at this time.
This paper examines herding behaviour in leading African economies under periods of market distress. It also explores the potential spillover effect from South Africa and the influence of international investor sentiment. Using weekly and monthly data from February 2002 to October 2023, we find evidence of significant investor herding in Nigeria, Egypt and Kenya in the pre-crisis period and spillover effects from South Africa. However, international investor sentiment does seem to exert any significant effect. Our findings have significant implications for both investors and policymakers on strategies and interventions that may help maximize portfolio performance and enhance financial stability.
Swart et al. (Mon,) studied this question.