1987; Ariel 1987; Tong 1992; Pandey 2002), the January effect
happens due to several reasons indentified like, it occurs due to taxmotivated transaction, market participants intends to reduce their tax expenses by closing their bad positions, returns realized on small and large firms.
Dyl and Maberly (1992) suggest that the January effect
is influenced by the trading of individual investors.
Of particular interest is the persistence of the January Effect
, even though it has been well known for about 30 years.
The day-of-the week effect, first documented by Osborne (1962); the weekend effect (significantly lower returns over the period between Friday's close and Monday's close), first documented by French (1980); the January effect
(relatively higher returns in January), first reported by Wachtel (1942); the trading month effect studied by Ariel (1987); and the holiday effect documented by Lakonishok and Smidt (1988), are among the most important calendar effects.
We also show that the January effect
in the post-Act period is stronger than in the pre-Act period.
com/), an online investment newsletter focused on long-term growth and income-generating stocks, has provided subscribers with investment coverage on several stocks that could rebound as a result of the January Effect
, including Baidu.
The January effect
exhibits a pronounced declining trend for both large and small firm stock indices for the last few decades and the effect is disappearing in major equity indices of Canada, France, Germany, Japan and United Kingdom.
Various seasonal anomalies in stock returns have been researched since Rozeff and Kinney (1976) originally presented the January effect
A January effect
has also been ascertained in corporate bond returns and yields (see Chang and Pinegar, 1986; Chang and Huang, 1990; Fama and French, 1993; and Barnhill, Joutz, and Maxwell, 1997) and municipal bond returns (see Kihn, 1996).
The nonexistence of January effect
in the markets may support the tax-loss selling hypothesis for the U.
Section IV examines how the January effect
and the Tax Reform Act of 1986 may have affected low-grade municipal bond fund financial performance.
5 /PRNewswire/ -- If you're banking on the January Effect
to make money in stocks this month - or this year - you may want to reconsider .