Herding Bias And Investment Performance

One fundamental question remain unanswered, are investments free from behavioural biases? This study sought to evaluate the effects of herding bias on investment performance. The study was guided by the herding theory. The study results indicate that herding behaviour has a statistically significant influence on investment performance. This means that investors imitating the observed actions of others or the movements of the market instead of following her own beliefs and available information.