Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly

Many Day-of-the week anomaly papers have suggested investor behaviour as the explanation of highly differentiated returns on Mondays; yet, rarely found a paper has empirically investigated it. Therefore, this paper proposes Moon-Induced mood as the determinant of that irrational behaviour. This prop...

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Main Authors: Brahmana, Rayenda Khresna, Chee, Wooi Hooy, Zamri, Ahmad
Format: Article
Language:English
Published: University of Bucharest 2014
Subjects:
Online Access:http://ir.unimas.my/id/eprint/18132/
http://ir.unimas.my/id/eprint/18132/7/MOON%20PHASE%20AS%20THE%20CAUSE%20OF%20MONDAY%20%28abstract%29.pdf
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author Brahmana, Rayenda Khresna
Chee, Wooi Hooy
Zamri, Ahmad
author_facet Brahmana, Rayenda Khresna
Chee, Wooi Hooy
Zamri, Ahmad
author_sort Brahmana, Rayenda Khresna
building UNIMAS Institutional Repository
collection Online Access
description Many Day-of-the week anomaly papers have suggested investor behaviour as the explanation of highly differentiated returns on Mondays; yet, rarely found a paper has empirically investigated it. Therefore, this paper proposes Moon-Induced mood as the determinant of that irrational behaviour. This proposition is based on our preliminary findings that the full moon phase occurred more often on Mondays compared to other days; an indication of a causal relationship. By taking Indonesia, Malaysia, Thailand, and the Philippines as samples during the period of 1999-2010, this paper found: (1) There is evidence of a Monday effect across all the ASEAN stock markets, (2) The moon phase and its interaction with Mondays has significantly influenced the Monday effect, and (3) A full moon on Monday has significant negative influenced on Monday returns. In conclusion, the stimulation by moon phase forms affection bias, and the resulting outcome is the irrational stock market behavior.
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spelling unimas-181322017-10-17T01:19:28Z http://ir.unimas.my/id/eprint/18132/ Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly Brahmana, Rayenda Khresna Chee, Wooi Hooy Zamri, Ahmad H Social Sciences (General) HG Finance Many Day-of-the week anomaly papers have suggested investor behaviour as the explanation of highly differentiated returns on Mondays; yet, rarely found a paper has empirically investigated it. Therefore, this paper proposes Moon-Induced mood as the determinant of that irrational behaviour. This proposition is based on our preliminary findings that the full moon phase occurred more often on Mondays compared to other days; an indication of a causal relationship. By taking Indonesia, Malaysia, Thailand, and the Philippines as samples during the period of 1999-2010, this paper found: (1) There is evidence of a Monday effect across all the ASEAN stock markets, (2) The moon phase and its interaction with Mondays has significantly influenced the Monday effect, and (3) A full moon on Monday has significant negative influenced on Monday returns. In conclusion, the stimulation by moon phase forms affection bias, and the resulting outcome is the irrational stock market behavior. University of Bucharest 2014 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18132/7/MOON%20PHASE%20AS%20THE%20CAUSE%20OF%20MONDAY%20%28abstract%29.pdf Brahmana, Rayenda Khresna and Chee, Wooi Hooy and Zamri, Ahmad (2014) Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly. International Journal of Economic Behavior, 4 (1). pp. 51-65. ISSN 2069-5756 http://ijeb.faa.ro/gallery.html
spellingShingle H Social Sciences (General)
HG Finance
Brahmana, Rayenda Khresna
Chee, Wooi Hooy
Zamri, Ahmad
Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly
title Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly
title_full Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly
title_fullStr Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly
title_full_unstemmed Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly
title_short Moon Phase as the Cause of Monday Irrationality: Case of Asean Day of the Week Anomaly
title_sort moon phase as the cause of monday irrationality: case of asean day of the week anomaly
topic H Social Sciences (General)
HG Finance
url http://ir.unimas.my/id/eprint/18132/
http://ir.unimas.my/id/eprint/18132/
http://ir.unimas.my/id/eprint/18132/7/MOON%20PHASE%20AS%20THE%20CAUSE%20OF%20MONDAY%20%28abstract%29.pdf