Does mood affect trading behavior?
- 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.
Author: | Markku Kaustia, Elias Rantapuska |
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URN: | urn:nbn:de:hebis:30:3-293731 |
URL: | http://ssrn.com/abstract=2209665 |
DOI: | https://doi.org/10.2139/ssrn.2209665 |
Parent Title (German): | SAFE working paper series ; No. 4 |
Series (Serial Number): | SAFE working paper (4) |
Publisher: | Goethe-Univ., House of Finance, Sustainable Architecture for Finance in Europe, SAFE |
Place of publication: | Frankfurt am Main |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2013 |
Date of first Publication: | 2012/11/09 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2013/04/17 |
Tag: | mood; seasonal affective disorder (SAD); stock market; trading behavior; weather |
Issue: | Version 9 November 2012 |
Page Number: | 53 |
HeBIS-PPN: | 337747679 |
Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF) | |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |