Investigation the impact of herding behavior of fund managers on their risk taking in Tehran Stock Exchange

Today, herding behavior is one of the important behaviors among investment corporation, fund managers and investors which can play an important role in taking risk and return of stocks and portfolio. The purpose of this research is investigating the impact of herding behavior on the risk taking of fund managers. Statistical population of research is fund managers whom their fund has been listed in Tehran Stock Exchange. Structural equations modelling with the partial least squares (PLS) has been used in order to test hypotheses. Results show that all of the hypotheses have been confirmed. The results indicate that there is a negative relationship between risk taking and herding behavior of fund managers.