| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES | VOL. 9 | NO. 2 | PAPER 8 |
|---|---|---|---|
| LUNAR EFFECT AND STOCK MARKET | |||
| Kasilingam. Lingaraja | |||
| Ph.D Research Scholar, Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli, Tamil Nadu, India | |||
| This study discusses the relation between lunar phases and stock market returns. The lunar effects have been validated in the physical and biological sciences. However, until recently such effects have not been largely researched, though not completely ignored in the academic literature of financial economics. This study proposes to examine whether there is a lunar influence on stock prices. Moreover, the lunar effect is independent of other calendar related anomalies such as the January effect, the day-of-week effect, the calendar month effect and the holiday effect. Investors mainly adopt fundamental analysis and/or technical analysis as the approach to security analysis in managing their investment in stock market. However, both the approaches fail to help the investors to determine proper timing of entry and exit from trade. But lunar effect deals with prediction of prices of stocks/index based on planetary positions | |||
| KEYWORDS: Lunar Effect, Academic Literature, Financial Economics, Calendar-Related Anomalies, Fundamental Analysis, Technical Analysis | JEL CLASSIFICATIONS: D53, E44, G14 | FULL TEXT |