Exchange Rates, Gold Coin Prices, and Herding in the Stock Market


Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran


This study investigated the occurrence of herding in the Iranian stock market and the effects of gold prices and currency exchange rates on this phenomenon. For this purpose, the rate at which herding occurs in the Tehran Stock Exchange was calculated and analyzed, after which stock price data were classified based on gold prices and currency exchange rates. Herding under different exchange rates and gold price returns was also examined. Results showed that herding in the stock market was significant at the 1% level during sharp changes in gold and currency prices.