TY - JOUR
T1 - National pride, investor sentiment, and stock markets
AU - Meni Abudy, Menachem
AU - Mugerman, Yevgeny
AU - Shust, Efrat
N1 - Publisher Copyright:
© 2023 Elsevier B.V.
PY - 2023/12
Y1 - 2023/12
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85175553183&partnerID=8YFLogxK
U2 - 10.1016/j.intfin.2023.101879
DO - 10.1016/j.intfin.2023.101879
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AN - SCOPUS:85175553183
SN - 1042-4431
VL - 89
JO - Journal of International Financial Markets, Institutions and Money
JF - Journal of International Financial Markets, Institutions and Money
M1 - 101879
ER -