Does Mood Affect Trading Behavior?
| Autor: | Markku Kaustia, Elias Rantapuska |
|---|---|
| Rok vydání: | 2011 |
| Předmět: |
Economics and Econometrics
Seasonal affective disorder (SAD) Affect (psychology) jel:D03 0502 economics and business Mood medicine Econometrics Economics Day length 050207 economics ta512 Weather Stock (geology) Stock trading 050208 finance Actuarial science Stock market 05 social sciences Contrast (statistics) jel:G12 medicine.disease jel:G11 Trading behavior Variation (linguistics) mood seasonal affective disorder (SAD) weather trading behavior stock market Finance |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.1875645 |
| Popis: | We test whether investor mood affects trading with data on all stock market transactions in Finland, utilizing variation in daylight and local weather. We find some evidence that environmental mood variables (local weather, length of day, daylight saving and lunar phase) affect investors' direction of trade and volume. The effect magnitudes are roughly comparable to those of classical seasonals, such as the Monday effect. The statistical significance of the mood variables is weak in many cases, however. Only very little of the day-to-day variation in trading is collectively explained by all mood variables and calendar effects, but lower frequency variation seems connected to holiday seasons. |
| Databáze: | OpenAIRE |
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