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Herding and retail investors’ decisions: A review literature

Khalid Mousa ALHarbi, Nik Intan Norhan BT. Abdul Hamid

Article ID: 1900
Vol 9, Issue 4, 2024, Article identifier:

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The main purpose of this paper is to review the existing literature of herding behavior and its relationship with retail investors’ decisions as well as its impact too to understand trend in the literature and some aspects relate to herd behavior. Herding occurs when individuals surrender their decision to a group and neglect their own beliefs to replicate others’ thoughts, feelings and actions. The study employed Prisma framework to review literature. It relied on intensive databases and sources such as Google scholar, Emerald, Elsevier, Springer, Research gate and Scopus. Literature studies have revealed tremendous empirical investigations about the impact of herding on retail investors’ decisions in the developed and developing countries. However, those studies have been filled the gap in the literature which relate to the relationship between herding and retail investors’ decision. This study aims to fill this gap by reviewing the literature on the relationship between herding and retail investors’ decision to figure out the trend of herd behavior. Therefore, the highlighting and reviewing of herding and its impact on retail investors decision might enrich the literature and assist researchers to determine gap in the field as well as determine new area need to be investigated. 


herding; retail investors

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