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Fast profits: Investor sentiment and stock returns during Ramadan

Bialkowski, Jedrzej; Etebari, Ahmad and Wisniewski, Tomasz Piotr (2012). Fast profits: Investor sentiment and stock returns during Ramadan. Journal of Banking and Finance, 36(3) pp. 835–845.

DOI (Digital Object Identifier) Link: https://doi.org/10.1016/j.jbankfin.2011.09.014
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Abstract

Observed by more than 1.5 billion Muslims, Ramadan is one of the most celebrated religious traditions in the world. We investigate stock returns during Ramadan for 14 predominantly Muslim countries over the years 1989–2007. The results show that stock returns during Ramadan are significantly higher and less volatile than during the rest of the year. No discernible declines in market liquidity are recorded. We find these results consistent with a notion that Ramadan positively affects investor psychology, as it promotes feelings of solidarity and social identity among Muslims world-wide, leading to optimistic beliefs that extend to investment decisions.

Item Type: Journal Item
Copyright Holders: 2011 Elsevier
ISSN: 0378-4266
Keywords: Ramadan effect; Behavioral finance; Market efficiency; Religion
Academic Unit/School: Faculty of Business and Law (FBL) > Business > Department for Accounting and Finance
Faculty of Business and Law (FBL) > Business
Faculty of Business and Law (FBL)
Item ID: 55385
Depositing User: Tomasz Wisniewski
Date Deposited: 11 Jun 2018 12:44
Last Modified: 07 Dec 2018 19:02
URI: http://oro.open.ac.uk/id/eprint/55385
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