A Study on the Mechanisms of the Herding Effect from a Social Finance Perspective—A Dual-Case Comparison Based on East Buy and Dogecoin

DOI

10.2991/978-94-6239-801-6_39How to use a DOI?

Keywords

Social Finance; Herding Effect; East Buy; Dogecoin; Sentiment Analysis

Abstract

With the close integration of social media and financial markets, “social finance” has been quietly altering the mechanisms governing asset valuation. The main indicators to calculate intrinsic value have changed, moving towards more expressive ways through narratives centered around faith and emotion as in previous years. Behavioral finance theory mostly studies macro-level information cascades and seldom examines the micro-level drivers of herding behavior under the influence of “super individuals”. This paper adopts a two-case comparative design, using the Baidu Search Index as a proxy for public sentiment in events triggered by second-hand market transactions, to systematically examine the structural differences of the herding effect among different driving logics. The present study selects East Buy (1797.HK) as the “emotional resonance” example and uses text-sentiment analysis to evaluate changes in fan communities’ emotions; it selects Dogecoin (DOGE) as the “signal following” case and applies a high-frequency event study method to analyze the impact of Elon Musk’s tweets at that time. Based on these results, it can be inferred that the herding effect in East Buy comes from “emotional resonance” in parasocial interactions, and such effects span several consecutive periods; the Dogecoin herding effect stems from rational blind obedience to authoritative signals, characterized by sharp but short-lived price reactions.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xuhao Zhang
PY  - 2026
DA  - 2026/10/23
TI  - A Study on the Mechanisms of the Herding Effect from a Social Finance Perspective—A Dual-Case Comparison Based on East Buy and Dogecoin
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 348
EP  - 359
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_39
DO  - 10.2991/978-94-6239-801-6_39
ID  - Zhang2026
ER  -