The scientific novelty of research consists in proposing a new model of institutional interaction. The model can be used to develop strategies and solutions in the area of financial markets. The recommendations proposed by the author will improve institutional arrangements and strengthen cooperation between Russian and Asian financial institutions. / Научная новизна исследования состоит в предложении новой модели институционального взаимодействия. Модель может быть использована для разработки стратегий и решений в области финансовых рынков. Предложенные автором рекомендации позволят улучшить институциональные механизмы и укрепить сотрудничество между российскими и азиатскими финансовыми институтами.

In this paper, market participants’ tendency to form investor herds in the stocks listed on Nasdaq First North Growth Market of Sweden is examined for the period from 2018 to 2023. The models used in this study to detect herd behavior in stocks consist of two measures of dispersions, Cross-Sectional Standard Deviation of returns (CSSD) and Cross-Sectional Absolute Deviation of returns (CSAD), which were proposed by Christie and Huang (1995) and Chang, et al. (2000), respectively. An equally-weighted index consisting of all of the stocks that have traded on this market during the period is created and a quantitative analysis is conducted. Evidence showed absence of herd behavior when using both models, as well as when accounting for robustness tests consisting of small, mid-and large cap portfolios. Our results also support the prediction of rational asset pricing models, which suggest that stock return dispersions around the market returns increase during periods of market stress.