Investigating the Effects of Time Variables of Gold, Crude Oil and Foreign Exchange Markets on Herding Behavior in Tehran Stock Foreign Exchange

This study endeavors to investigate herding behavior in the Iranian stock market and its association with the crude oil, foreign exchange, and gold markets, given the interplay between these financial domains. To accomplish this, monthly data spanning from 2011 to 2020 for the Tehran Stock Exchange and foreign exchange were utilized. The results of the study, based on two criteria for elucidating herding behavior, establish the presence of such behavior in both the stock market and the crude oil, gold, and foreign exchange markets. Furthermore, the findings indicate that herding behavior s impact varies across different time periods, and this impact differs during periods of market growth and decline. Consequently, gold emerges as a crucial asset influencing herding behavior. It is also noteworthy that during periods of stock market decline, herding behavior remains unaffected by the foreign exchange and crude oil markets. In these phases, predicting investor behavior and investment risks within the stock market can be undertaken without factoring in the dynamics of the exchange and crude oil markets.