Investors need not lose sleep over daylight saving

September 24, 2009

( -- The changeover to and from daylight saving does not have a detrimental effect on financial markets, according to new research.

While previous studies suggested stock markets weakened on the Monday after daylight saving began or finished, possibly due to the effect on investors' sleep patterns, Massey finance specialists and a Dutch research colleague have produced a paper showing there is no discernable impact.

Associate Professor Russell Gregory-Allen, Professor Ben Jacobsen and Wessel Marquering of Erasmus University in the Netherlands found that sharemarket returns in 22 countries were no different from any other day.

“The results reject earlier conclusions that a change in the mood of investors as a result of changes in sleep patterns significantly affects stock returns," Dr Gregory-Allen says.

They researched more than five times the number of countries included in any previous studies on the subject, he says. “The only way to really know is to look at a large number of countries whose daylight saving changeover day is different, so we have looked at countries from New Zealand and Denmark to Spain and the United States.”

Their report has been accepted for publication in the international Journal of Financial Research.

More information: Download the full paper here (PDF)

Provided by Massey University (news : web)

Explore further: Does the weather affect the stock market?

Related Stories

Men more optimistic than women on economy

December 11, 2007

Men are more optimistic than women about the economic outlook, Massey finance researchers say. Using consumer confidence data from 18 countries, they have identified a difference in outlook between sexes.

Does a bad January mean a bad year for share markets?

January 30, 2008

The Americans call it the January Barometer – the stock market performance for the first month, sets the pattern for the rest of the year. But Massey University finance researchers say while this may hold true for the United ...

New research helps predict stock market

February 20, 2009

( -- Researchers from Massey University have developed a new way to predict stock markets that has been recognised with an award from New Zealand finance specialists.

Recommended for you

1 comment

Adjust slider to filter visible comments by rank

Display comments: newest first

not rated yet Sep 25, 2009
I was wondering when that is....AGAIN! I think changing time is ignorant, selfish, and stupid and only for the crooks who like to go golfing. Wonder why people get so sick and personality twisted? Look at the time they play with...

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.