Nordic stock markets and the weekend effect

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School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.

Date

2023

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Mcode

Degree programme

Rahoitus

Language

en

Pages

25

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Abstract

Previous literature shows that on some markets average daily stock returns on Mondays have been lower than on other days. This thesis investigates the distribution of Nordic stock returns by the day of the week from 2004 to 2022. Objective of this study is to answer the question, is there a weekend effect, so are returns on Mondays lower than return on other days of the week. In addition, I examine possible effects on other days of the week. I use T-tests and regression analysis as methodology for testing the hypothesis that expected return is the same on each day of the week. Analysing daily return data of four stock indices from different Nordic countries, I find no evidence of neither the weekend effect nor other day of the week effects existing in the Nordic stock markets.

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Thesis advisor

Vihriälä, Erkki

Keywords

stock market, anomaly, weekday effect, market efficiency

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