Can agents sensitive to cultural, organizational and environmental issues avoid herding?

- The main contribution of this paper is based on the incorporation of a wide range of organizational and environmental variables (in addition to cultural variables) that may affect herding behavior. It is interesting to know which organizational or environmental issues are able to mitigate or correct herding behavior and which factors can enhance or catalyze herding practices.
- Some of these act as catalysts, for example governance and technology.
- Others may have a corrective effect on herding behavior, such as the development of financial markets (both equity and non-equity markets), business style, and education and training.
- We analyze herding behavior in 35 international stock markets.
- Our results may shed light on the extent to which herding behavior may be avoidable if it is not considered appropriate.

Our findings indicate that herding behavior is affected not only by the cultural variables already discussed in the literature but also by other variables associated with organizational and environmental issues such as governance, technology, education and training, business style and conditions, and the development of equity and non-equity markets. Some of these act as catalysts, for example governance and technology. Others may have a corrective effect, such as the development of financial markets, business style, and education and training. If corrective factors are sufficiently developed, intentional herding practices could be reduced in the future.