<![CDATA[Herding behavior is one of the phenomena that is often researched and studied in the capital market, especially in stock trading. Herding behavior is an investor attitude where investors do not take into account the information available but rather follow market trends and other investors decisions in buying and selling stocks. This study was conducted to observe herding behavior on the Indonesia Stock Exchange when daily market volatility is high during 2021-2023. Herding is expected to be more pronounced during periods of extreme market conditions, which are characterized by increased uncertainty and significant market fluctuations (volatility). High stock price volatility indicates unusual supply and demand characteristics of stocks in the capital market. Over the past century, stocks have typically moved less than 1 percent up or down in daily trading. Therefore, herding behavior is observed when the daily volatility of the market is out of the ordinary, namely when market volatility rises or falls above 1%. In this study, market volatility is represented by the Jakarta Composite Index (JCI). The object of research is grouped into three parts: large capitalization stocks represented by constituents of the IDX30 index, small and medium capitalization stocks represented by constituents of the PEFINDO25 index, and the combined constituents of the two indices. The method used in this study uses the cross-sectional absolute deviation (CSAD) to find the return dispersion value of the various stock capitalization's and then see its relationship with market returns using multiple linear regression analysis. The results of this study indicate that no herding behavior was found in the three research groups. This means that investors on the Indonesia Stock Exchange during the observation period acted rationally in making investment decisions.]]>
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