Close communications: Hedge funds, brokers and the emergence of herding

Simple item page
dc.cclicenceN/Aen
dc.contributor.authorKellard, N.en
dc.contributor.authorMillo, Y.en
dc.contributor.authorSimon, J.en
dc.contributor.authorEngel, Oferen
dc.date.acceptance2017-01-01en
dc.date.accessioned2018-10-31T14:00:25Z
dc.date.available2018-10-31T14:00:25Z
dc.date.issued2016-03-09
dc.description.abstractWe examine how communication, evaluation and decision-making practices among competing market actors contribute to the establishment of herding and whether this has impact on market wide phenomena such as prices and risk. Data is collected from interviews and observations with hedge fund industry participants in Europe, the United States and Asia. We examine both contemporaneous and biographical data, finding that decision making relies on an elaborate two-tiered structure of connections among hedge fund managers and between them and brokers. This structure is underpinned by idea sharing and development between competing hedge funds leading to ‘expertisebased’ herding and an increased probability of over-embeddedness. We subsequently present a case study demonstrating the role that communication between competing hedge funds plays in the creation of herding and show that such trades affect prices by introducing an additional risk: the disregarding of information from sources outside the trusted connections.en
dc.exception.reasonIn my previous institution, this system was not availableen
dc.explorer.multimediaNoen
dc.funderN/Aen
dc.identifier.citationKellard, N., Millo, Y., Simon, J.and Engel, O. (2017) Close communications: hedge funds, brokers and the emergence of herding. British Journal of Management, 28 (1). pp. 84- 101en
dc.identifier.doihttps://doi.org/10.1111/1467-8551.12158
dc.identifier.issn1045-3172
dc.identifier.urihttp://hdl.handle.net/2086/16952
dc.language.isoenen
dc.peerreviewedYesen
dc.projectidN/Aen
dc.publisherWileyen
dc.researchgroupCentre for Computing and Social Responsibility
dc.titleClose communications: Hedge funds, brokers and the emergence of herdingen
dc.typeArticleen

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Engel_Close communications hedge funds_2015_author_LSERO.pdf
Size:
612.01 KB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
4.2 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

School of Computer Science and Informatics