1. Introduction
One of confound empirical findings reported in recent finance literature is the presence of abnormally high stock returns on the day before holidays. In this paper, we are trying to investigate the holiday effects in a novel context. Specifically, we attempt to test the presence of holiday effect for a sub-group of stocks namely, the cross-listing stocks. We are interested in the holiday effects for the US stocks that are listed in a forging stock exchange. Both academic and practitioners in the field of finance have investigated the holiday effects. In one hand, practitioners have documented the holiday effects on U.S. stocks for a long period of time (e.g., Merrill (1965) and Fosback (1976)). In the other hand, the
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2. Hypothesis development
∗ H1: the holiday effects will be more pronounced for stocks listed in US exchanges only compare to cross-listing stocks.
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3-Literature Review
The topic of holiday effects has been studied extensively using both US markets data and international markets data
3.1 Holiday Effect in US Markets Ariel (1990) documents that the average preholiday return for the period from 1963-1982, using both the CRSP value-weighted and equally weighted index, is nine to 14 times higher than the mean return on the remaining days. Using a nighty years worth of data (1897-1986), Lakonishok and Smidt (1988) conclude that the preholiday rate of return is 23 times larger than the regular daily rate of return. Liano el al. (1992) provides an evidence of the presence of the holiday effects in OTC market. Finally, all previous studies document that pre-holiday returns are not a manifestation of other calendar anomalies.
3.2 Holiday Effect in International Markets The pre holiday effects are also documented in the international stock exchanges. Mills and Coutts (1995), Arsad and Coutts (1997) and Meneu and Pardo (2001) who observe a pre-holiday effect in the FT-SE Mid 250 index, FT 30 index, and IBEX indices, respectively. Moreover, Kim and Park (1994) the holiday effect is also present in the U.K. and Japanese stock markets. Ziemba (1989) finds significant
The weekly performance of IBM stock presented a contestant growth. One highlight of the falling of stock price in the 6th week in the investment period was when IBM presented the 3rd quarter financial report. The investors weren’t satisfied with the profit report which they expected to be better especially when other IT companies were doing well in the 3rd quarter. One mistake I made was that I didn’t follow closely to the financial report of the company; therefore, I missed the peak of the stock price. From this experience, I learned that financial reports and current news are important indicators of the stock price. By following closely to the current event and analyzing the financial report, investors can maximize the profit and also become more familiar to the market.
The research shows that the earnings announcements of firms within an industry can impact the share prices of other firms in the same industry. This effect has been labelled as the ‘information transfer effect’. The ‘information transfer effect’ highlights the belief that share prices react to public information emanating from various sources—including
This strategy does not have any impact on locking-in retailers. Also, this could be easily duplicated by another competitor for the second major holiday, which is 4th of July. For example, another competitor would copy the idea of using coupons to sell their product and use it for the upcoming holiday.
In order to study how stock prices react to these events, approximate three years of continuous daily stock price are chose, beginning at 17th March 2008 and ending more than three months after the final event at 22nd April 2011. In addition, SHANGHAI Stock Exchange Index (SSE) is adopted as a proxy of the market portfolio.
The second and chief objective is to assess the impact of the crisis on the foreign exchange and stock markets. The report answers why the crisis adversely affected the Latin American market indices while the US market indices continued to rise.
Around the holidays the opportunities for attacks from terrorist is prominent because of the amount of people in stores and malls. The holiday season usually begins before the week of Thanksgiving. Therefore, everybody should be alert and vigilant to all suspicious activities during this time frame and afterward. However, officially, the holiday season for shoppers start the evening of Thanksgiving and thereafter. During the holiday season both men and women, boys and girls love
They also say that there is a story that after one year of this and businesses beine in debt or their numbers being red that after Thanksgiving this problem was resolved because so many people spent money on gifts for family for the upcoming Holiday season, thus turning to numbers from red to
The holiday season was designed to bring joy and excitement to the masses after a busy year of trial and tribulations. While for many people it does just that, there is still many others who end up creating debt problems related to the holidays. These debt problems not only put a damper on the season to be jolly, but they also make the subsequent months and years more difficult to handle financially.
Holidays have always been known to affect our consumer culture for many years, but how it all began eludes many people and very few studies have been completed on it. Even though some say that the subject is too broad to precisely identify how holidays, especially Christmas, directly affect our market, I have found that people’s values, expectations and rituals related to holidays can cause an excessive amount of spending among our society. Most people are unaware that over the centuries holidays have become such a profitable time of year for industries that they now starting to promote gift ideas on an average of a month and a half ahead of actual holiday dates to meet consumer demands.
The first law of forecasting is to assume the future will behave like the past .Event at that, there is a limit to how accurate the forecast can be even when using pass data. This research paper aims to forecast Walmart stock prices over a two year period. But because stock prices are more substantial when they are presented either in monthly or weekly data, the paper will be forecasting over two years but on a monthly basis i.e. Walmart stock prices is forecasted over a 24 month period.
The weak-form efficiency cannot explain January effect. In semi-strong-form efficient market, to test this hypothesis, researchers look at the adjustment of share prices to public announcements such as earnings and dividend announcements, splits, takeovers and repurchases. As time goes, later tests tend to be not supportive to EMH. For instance, semi-strong-form efficiency cannot explain the pricing/earning effect. In strong-form efficiency, the highest level of market efficiency, Fama (1991) pointed out the immeasurability of market efficiency and suggested that it must be tested jointly with an equilibrium model of expected. However, perfect efficiency is an unrealistic benchmark that is unlikely to hold in practice.
Numerous studies have confirmed a "January Effect". This effect is that returns for the month of January tend quite constantly to surpass returns for any other of the eleven months. This January effect seems most prominent during the first five trading days in January and the last trading day in December. nevertheless, the January effect continues to persist throughout the month. In addition, this January effect seems to have a greater effect on the shares of smaller companies than on the shares of larger firms. It emerges that much of the January effect can be explained by the tendency for December transactions to be seller initiated and complete at bid prices while January transactions are buyer commence and execute at offer prices.
The tradition is indeed a positive practice for the economy of a country, simultaneously, gives the possibility to millions of hard workers to recover their lost through the year, and to bring back their numbers. Also it gives the opportunity to small business to create more profits through advertising their products.
With the recurrence of holiday big ‘deal’ sales such as Black Friday and Cyber Monday, you can at least plan your optimization efforts in advance of the holiday influx in traffic. It’s important to understand the traffic mix at these holiday sales of the year and when running your analysis, make sure you either account or exclude for the changes in response that affect your ongoing testing
Both that and another - fine opportunity to sum up the results and to construct plans for the future. The scenario and form of carrying out these holidays in many respects depend on corporate culture - in one company on "hurrah" will pass a skit, in another can cause disappointment: holiday for us, why our forces? Let there will be surprises, but it isn't necessary coercions. Also you remember that it not simply entertaining action (though entertainments too are necessary, and it is always difficult to consider different interests and tastes of employees).