National pride, investor sentiment, and stock markets

Menachem Meni Abudy, Yevgeny Mugerman, Efrat Shust

Research output: Contribution to journalArticlepeer-review


This paper investigates the stock market reaction to an uplift in investor mood anticipating a country's independence day celebration. A cross-country analysis reveals a positive abnormal return on the trading day immediately prior to the country's independence day. This finding is robust to various event-study methods and to various benchmarks. This positive return is subsequently reversed. Further, we find a relation between the abnormal return of a country on its independence day and measures of national pride and social culture. Focusing on the United States, we find a decrease in economic uncertainty measures on its independence day. Overall, our evidence suggests that national pride leads to investor sentiment in capital markets.

Original languageEnglish
Article number101879
JournalJournal of International Financial Markets, Institutions and Money
StatePublished - Dec 2023

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© 2023 Elsevier B.V.


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