Stock Price Synchronicity and Herd Behavior of Decision on the Capital Market: Testing Moderating Role of Institutional Shareholders

Behavioral functions in the field of financial market today is considered as one of the important bases in financial decision making and management. Knowing the criteria and processes influencing decision making can be useful to the dynamics and effectiveness of free flow of information to control risk and achieve greater returns. Investors are classified as one of the most important pillars of the capital market, ranging from perceptual decisions to emotional / collective and collective behaviors such as mass decision-making, which can upset capital market equilibrium according to market conditions and changes. The purpose of this research is Stock Price Synchronicity and Herd Behavior of Decision on the Capital Market: Testing Moderating Role of Institutional Shareholders. This study examined 102 stock exchange companies in the period 2014 to 2018. In this study, in order to measure and test the research hypotheses while using regression assumptions and testing hybrid models, multiple regression was used to test the research hypotheses. The results of testing the research hypotheses showed that stock price synchronicity has a negative and significant effect on the mass behaviors of shareholders and despite the institutional shareholders as a moderating variable, this effect is intensified in a negative direction.