THE WEEKEND EFFECT ON THE INDEX RETURNS OF 15 STOCK EXCHANGES AROUND THE WORLD

Authors

  • Cristiane Benetti ICN Artem Business School, NANCY, Centre Européen de Recherche en Economie Financière et Gestion- Le Laboratoire de recherche en gestion et économie (CEREFIGE), France
  • Renato Guimaraes ICN Artem Business School, NANCY, Centre Européen de Recherche en Economie Financière et Gestion- Le Laboratoire de recherche en gestion et économie (CEREFIGE), France
  • Joshua Onome Imoniana Accounting Department, School of Economics, Management & Accounting, University of Sao Paulo, Sao Paulo, Brazil

Keywords:

weekend effect, stock market, EU, US, Latin America

Abstract

This study examines the weekend effect on the returns of 15 stock exchange
indexes around the world. Empirical tests were performed on the daily returns of stock
market indexes from the sample countries over the period from January 2010 to May
2015. The results conclude that the weekend effect no longer exists in the USA. In
addition, the weekend effect has disappeared in European Union member countries
(France, and Germany) and the UK. The effect has also disappeared in almost every
country studied in Latin America except Venezuela and Chile, where it persists. This
study contributes to elucidating the effect of weekends and time differences when
negotiating on stock markets. The results help comprehend the potential relationship
between stock exchange index returns around the world and the location of the market.
This work provides useful insights for investors making decisions, scholars, and policy
makers.

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Published

2024-12-02

Issue

Vol. 108 No. 2 (2024): Eunomia - Sustainable Development

Section

Artykuły

License

Copyright (c) 2024 University of Applied Sciences in Raciborz

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.