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Will Stock Rise on Valentine’s Day?

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  • Chong, Terence Tai Leung
  • Hou, Siqi

Abstract

This study is a pioneer in academic literature to investigate the relationship between Valentine’s Day and stock market returns of major economies around the world. The findings indicate that stock returns are higher on the days when Valentine’s Day is approaching than on other days for most cases, showing “the Valentine Effect” in the stock market. Specific control variables for Valentine’s Day are also introduced to eliminate the potential influence of other effects. Unlike other holiday effects in previous literature, the Valentine’s Day Effect cannot be explained by many conventional theories, such as tax-loss selling and the inventory adjustment hypothesis.

Suggested Citation

  • Chong, Terence Tai Leung & Hou, Siqi, 2020. "Will Stock Rise on Valentine’s Day?," MPRA Paper 99058, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:99058
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    More about this item

    Keywords

    Valentine Effect; Tax-loss Selling Hypothesis; Inventory Adjustment Hypothesis.;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

    NEP fields

    This paper has been announced in the following NEP Reports:

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