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Record W1545827626

The Diminishing Weekend Effect: Experience of Five G7 Countries

2003· article· en· W1545827626 on OpenAlexaboutno aff
Anthony Yanxiang Gu

Bibliographic record

VenueAcademy of Accounting and Financial Studies journal · 2003
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicFinancial Markets and Investment Strategies
Canadian institutionsnot available
Fundersnot available
KeywordsEquity (law)Weekend effectEconomicsStock (firearms)Anomaly (physics)Financial economicsGeographyPolitical science
DOInot available

Abstract

fetched live from OpenAlex

ABSTRACT The well-known is diminishing in recent years as Monday returns exhibit an upward trend and turned positive while Friday returns became insignificant in major equity indices of Canada, France, Germany, Japan and United Kingdom. A power ratio method is developed to consistently measure the relative contribution of Friday and Monday returns to the return of the week in each individual year. The revealed dynamics of the anomaly explain why previous studies report different or conflicting results. There are evidences that challenge the existing literature on the size related to the anomaly. (ProQuest: ... denotes formulae omitted.) INTRODUCTION Numerous researchers have performed tests for the existence of seasonal anomalies or calendar effects in equity returns at the daily, weekly and monthly levels. Many of them have reported abnormally positive average Friday returns and significantly negative average Monday returns in the U. S. and international equity markets. Pioneer research on the so called weekend effect can be found in Cross (1973), French (1980), Gibbons and Hess (1981), Hindmarch (1984), Keim and Stambaugh (1984), and Jaffe and Westerfield (1985). Major studies for the anomaly in international equity markets include articles by Gultekin and Gultekin (1983), Theobald and Price (1984), Jaffe and Westerfield (1985), Jaffe, Westerfield and Ma (1989) and Dubois and Louvet (1996), and Tong (2000). The authors report negative average Monday returns in the international equity markets. Several researchers explore possible factors that contribute to the anomaly. Hindmarch (1984) suggests that institutional trades can partially explain the effect, and Sias and Starks (1995) believe that institutional traders are the primary drivers of the effect. Lakonishok and Maberly (1990) and Abraham and Ikenberry (1994) report that share price does worse on Mondays than on other days of the week in the US, because individual investors typically sell stocks on Monday. Branch (1974, 2001) suggested that the Monday may be related to weekly cycle in news releases and to weekly pattern in interest rate changes; and that both Mondays and merger announcements have a significant impact on stock market volatility. Branch and Echevarria (1991) indicate that the occurs mainly in stocks that do not go ex-dividend on Monday. Schatzberg and Datta (1 992) assert that some factor unrelated to information arrivals causes the effect, but Steeley (2001) suggests that a systematic pattern of market- wide news arrivals drives the anomaly in the UK stock market. Coutts and Hayes (1999) indicate that the is in part a stock exchange account settlement in major UK indices. Cross (1973) finds positive correlation between Monday and Friday returns. Abraham and Ikenbeny (1994) see the positive correlation between Monday and Friday returns as most acute in small-and medium-sized companies. Keim and Stambaugh (1984) report a strong relation between Friday returns and firm size. Other researchers report different findings. Cornell (1985) and Najand and Yung (1994) see no in the S&P 500 index futures: the seems to exist, they argue, because the returns are affected by conditional heteroskedasticity. Connolly (1989) points out that the disappears for some years and then reappears for others. Wang, Li, and Erickson (1997) find that the Monday occurs primarily in the last two weeks (the fourth and fifth weeks) of the month. For the UK stock market, Board and Sutcliffe (1988) see the significance of the anomaly decreasing over time, and Steeley (2001) notes that the disappeared in the 1990s. Sullivan, Timmermann and White (2001) assert that calendar effects, including day of the week effect, no longer remain significant in the context of 100 years of data as the full universe. Brusa, Liu, and Schulman (2000) find reverse in recent data for maj or stock indices: Monday returns are positive and significantly greater than the preceding Friday's. …

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How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.002
metaresearch head score (Gemma)0.002
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.600
Threshold uncertainty score0.706

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0020.002
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0010.000
Bibliometrics0.0000.000
Science and technology studies0.0010.001
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.029
GPT teacher head0.263
Teacher spread0.234 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2003
Admission routes1
Has abstractyes

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