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Monday irrationality of investors in bursa Malaysia: The role of psychological biases

This study aims to investigate the role of psychological biases in determining the day-of-the-week Monday irrationality in Bursa Malaysia using daily data from 1 January 1999 until 30 December 2011. First, our findings proved the existence of Monday irrationality in Bursa Malaysia. Second, our analy...

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Main Authors: Brahmana, Rayenda, Chee-Wooi, Hooy, Zamri, Ahmad
Format: E-Article
Language:English
Published: Malaysian Economic Association 2015
Subjects:
HB Economic Theory
HM Sociology
Online Access:http://ir.unimas.my/id/eprint/12018/1/No%2019%20%28abstrak%29.pdf
http://ir.unimas.my/id/eprint/12018/
http://www.scopus.com/inward/record.url?eid=2-s2.0-84957933950&partnerID=40&md5=6b6ee5e2a5696b63a6b5349f41d8507d
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spelling my.unimas.ir.120182016-10-21T07:25:55Z http://ir.unimas.my/id/eprint/12018/ Monday irrationality of investors in bursa Malaysia: The role of psychological biases Brahmana, Rayenda Chee-Wooi, Hooy Zamri, Ahmad HB Economic Theory HM Sociology This study aims to investigate the role of psychological biases in determining the day-of-the-week Monday irrationality in Bursa Malaysia using daily data from 1 January 1999 until 30 December 2011. First, our findings proved the existence of Monday irrationality in Bursa Malaysia. Second, our analysis found significant relationships between psychological biases and Monday irrationality. Evidence was documented through the interactive model and day-by-day model. This study enriches the behavioural finance literature by falsifying the traditional utility function model. It proves that the hedonic utility and prospect theory are applicable for the case of this study. Feelings of investors are involved in trading, and they react differently on Monday because of psychological biases. This implies that investors or fund managers can beat the market by following the cycle of calendar anomalies. Malaysian Economic Association 2015 E-Article PeerReviewed text en http://ir.unimas.my/id/eprint/12018/1/No%2019%20%28abstrak%29.pdf Brahmana, Rayenda and Chee-Wooi, Hooy and Zamri, Ahmad (2015) Monday irrationality of investors in bursa Malaysia: The role of psychological biases. Malaysian Journal of Economic Studies, 52 (2). pp. 227-243. ISSN 15114554 http://www.scopus.com/inward/record.url?eid=2-s2.0-84957933950&partnerID=40&md5=6b6ee5e2a5696b63a6b5349f41d8507d
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HB Economic Theory
HM Sociology
spellingShingle HB Economic Theory
HM Sociology
Brahmana, Rayenda
Chee-Wooi, Hooy
Zamri, Ahmad
Monday irrationality of investors in bursa Malaysia: The role of psychological biases
description This study aims to investigate the role of psychological biases in determining the day-of-the-week Monday irrationality in Bursa Malaysia using daily data from 1 January 1999 until 30 December 2011. First, our findings proved the existence of Monday irrationality in Bursa Malaysia. Second, our analysis found significant relationships between psychological biases and Monday irrationality. Evidence was documented through the interactive model and day-by-day model. This study enriches the behavioural finance literature by falsifying the traditional utility function model. It proves that the hedonic utility and prospect theory are applicable for the case of this study. Feelings of investors are involved in trading, and they react differently on Monday because of psychological biases. This implies that investors or fund managers can beat the market by following the cycle of calendar anomalies.
format E-Article
author Brahmana, Rayenda
Chee-Wooi, Hooy
Zamri, Ahmad
author_facet Brahmana, Rayenda
Chee-Wooi, Hooy
Zamri, Ahmad
author_sort Brahmana, Rayenda
title Monday irrationality of investors in bursa Malaysia: The role of psychological biases
title_short Monday irrationality of investors in bursa Malaysia: The role of psychological biases
title_full Monday irrationality of investors in bursa Malaysia: The role of psychological biases
title_fullStr Monday irrationality of investors in bursa Malaysia: The role of psychological biases
title_full_unstemmed Monday irrationality of investors in bursa Malaysia: The role of psychological biases
title_sort monday irrationality of investors in bursa malaysia: the role of psychological biases
publisher Malaysian Economic Association
publishDate 2015
url http://ir.unimas.my/id/eprint/12018/1/No%2019%20%28abstrak%29.pdf
http://ir.unimas.my/id/eprint/12018/
http://www.scopus.com/inward/record.url?eid=2-s2.0-84957933950&partnerID=40&md5=6b6ee5e2a5696b63a6b5349f41d8507d
_version_ 1644511322106232832
score 13.211869

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