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The impact of portfolio aggregation on day-of-the-week effect: Evidence from Finland

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Author Info
Högholm, Kenneth
Knif, Johan
Abstract

This paper revisits the day-of-the-week anomaly discussion from a portfolio aggregation point of view. Using different levels of portfolio aggregation: market, industry and company levels, it is possible to partly trace the aggregation level of the effect of the factors driving the day-of-the-week anomaly. The effect of portfolio aggregation is measured using a conditional modeling approach. Overall, the results indicate more pronounced day-of-the-week structures in the conditional volatility than in the mean returns and considerably more day-of-the-week structures during the post-euro period. For this period the results indicate that the day-of-the-week effect in the mean is partly a common Finnish market characteristic whereas the day-of-the-week effect in the volatility is found on the industry level of portfolio aggregation.

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Publisher Info
Article provided by Elsevier in its journal Global Finance Journal.

Volume (Year): 20 (2009)
Issue (Month): 1 ()
Pages: 67-79
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Handle: RePEc:eee:glofin:v:20:y:2009:i:1:p:67-79

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Web page: http://www.elsevier.com/locate/inca/620162

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Related research
Keywords: Day-of the-week effect Anomaly Finnish stock market Introduction of the euro;

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This page was last updated on 2009-12-30.


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