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Psychological biases abilities on constructing weekend anomaly

Even though many researchers have proposed trading behavior as the explanation of the Monday Irrationality or Day-of-the Week anomaly, yet, it has still left without empirical evidence. This research aims to investigate empirically by gauging psychological approach whereas the affection bias (weathe...

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Main Authors: Brahmana, Rayenda, Hooy, Chee-Wooi, Zamri, Ahmad
Format: E-Article
Language:English
Published: Social Science Research Network 2011
Subjects:
HB Economic Theory
Online Access:http://ir.unimas.my/id/eprint/9676/1/Psychological%20Biases%20Abilities%20on%20Constructing%20Weekend%20Anomaly.pdf
http://ir.unimas.my/id/eprint/9676/
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1914124
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spelling my.unimas.ir.96762015-11-10T07:22:57Z http://ir.unimas.my/id/eprint/9676/ Psychological biases abilities on constructing weekend anomaly Brahmana, Rayenda Hooy, Chee-Wooi Zamri, Ahmad HB Economic Theory Even though many researchers have proposed trading behavior as the explanation of the Monday Irrationality or Day-of-the Week anomaly, yet, it has still left without empirical evidence. This research aims to investigate empirically by gauging psychological approach whereas the affection bias (weather-induced mood, and moon-induced mood), and cognition bias (attention bias, and cognitive dissonance) are the factors. Our results report that investor’s Monday irrationality is caused by those psychological biases. Employing one traditional dummy interaction model and an innovation model with market index returns and size-based portfolio returns as our constructs, we found the psychological biases are the explanations beyond the DOWA over the period of 1 January 1999 until 22 March 2010. This research found size does matter in this case as the intuitive judgment of investor plays role on investment decision. Our findings support the conclusion that psychology of investor does play important role on investment decision and resulting DOWA. Social Science Research Network 2011 E-Article NonPeerReviewed text en http://ir.unimas.my/id/eprint/9676/1/Psychological%20Biases%20Abilities%20on%20Constructing%20Weekend%20Anomaly.pdf Brahmana, Rayenda and Hooy, Chee-Wooi and Zamri, Ahmad (2011) Psychological biases abilities on constructing weekend anomaly. SSRN Electronic Journal. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1914124 DOI: 10.2139/ssrn.1914124
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
spellingShingle HB Economic Theory
Brahmana, Rayenda
Hooy, Chee-Wooi
Zamri, Ahmad
Psychological biases abilities on constructing weekend anomaly
description Even though many researchers have proposed trading behavior as the explanation of the Monday Irrationality or Day-of-the Week anomaly, yet, it has still left without empirical evidence. This research aims to investigate empirically by gauging psychological approach whereas the affection bias (weather-induced mood, and moon-induced mood), and cognition bias (attention bias, and cognitive dissonance) are the factors. Our results report that investor’s Monday irrationality is caused by those psychological biases. Employing one traditional dummy interaction model and an innovation model with market index returns and size-based portfolio returns as our constructs, we found the psychological biases are the explanations beyond the DOWA over the period of 1 January 1999 until 22 March 2010. This research found size does matter in this case as the intuitive judgment of investor plays role on investment decision. Our findings support the conclusion that psychology of investor does play important role on investment decision and resulting DOWA.
format E-Article
author Brahmana, Rayenda
Hooy, Chee-Wooi
Zamri, Ahmad
author_facet Brahmana, Rayenda
Hooy, Chee-Wooi
Zamri, Ahmad
author_sort Brahmana, Rayenda
title Psychological biases abilities on constructing weekend anomaly
title_short Psychological biases abilities on constructing weekend anomaly
title_full Psychological biases abilities on constructing weekend anomaly
title_fullStr Psychological biases abilities on constructing weekend anomaly
title_full_unstemmed Psychological biases abilities on constructing weekend anomaly
title_sort psychological biases abilities on constructing weekend anomaly
publisher Social Science Research Network
publishDate 2011
url http://ir.unimas.my/id/eprint/9676/1/Psychological%20Biases%20Abilities%20on%20Constructing%20Weekend%20Anomaly.pdf
http://ir.unimas.my/id/eprint/9676/
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1914124
_version_ 1644510791161872384
score 13.211869

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