This paper selects 64 quarters of institutional investor data from 2005 to 2020 as a sample, and uses the LSV model to measure the herding behaviour of institutional investors. The static panel model of the effect is used to explore the performance of institutional investors' herd behaviour under good news and bad news, and the impact on the cumulative excess returns of stocks in a certain period of time in the future. The study found that Chinese institutional investors have irrational herd behaviour, and naturally show significant buying herd behaviour when external information is favourable, and show significant selling herd behaviour under bad information. The degree of buying herd behaviour on good news is lower than that of selling herd behaviour on bad news, and as the number of securities analysts tracking stocks in the market increases, the information is more fully exposed. 

Yingjun Zhao. Institutional Investors Herding Behaviour under Analysts Rating. Academic Journal of Business & Management (2022) Vol. 4, Issue 6: 47-52. https://doi.org/10.25236/AJBM.2022.040608.

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