December effect

December Effect

The tendency of stocks to perform better in December than in any other month of the year. This may be because of increased sales and earnings due to the Christmas season, or because of expectations for new products at the start of the next year. In any case, December has usually, historically, been the best month for stock performance. It is also noteworthy that, in general, fewer bankruptcies are filed in December. See also: Monday effect.
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December effect

The tendency of stock prices to move upward during the last month of the year. Historical statistics indicate December is the strongest month of the year for stock prices.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
On the other end of the continuum, for moderately risky firms, there is strong evidence of the presence of the December effect. One of possible explanations of the January effect is the yearend bonus received in the month of January.
Keywords: Behavioural Finance, Stochastic Dominance Approach, Monthly Anomaly, January Effect, December Effect, TOY Anomaly, Abnormal Returns, KS Type Test, PSX
Further, some other studies documented evidence of the presence of December effect in stock markets of Thailand and GCC countries [Ariss, Rezvanian, and Mehdian (2011); Tangjitprom (2011)].
On the other end of the spectrum, for moderately risky firms, there is strong evidence of the presence of the December effect. The possible explanation of the January effect is the year-end bonuses received in the month of January.
The mean values of beta-based portfolio returns provide a clue for the presence of the January and December effect in PSX: a theme, which we explored in this study.
Exploring the December Effect in Medium-Beta Portfolio
Testing the Monthly Calendar Anomaly of Stock Returns in Pakistan: A Stochastic Dominance Approach
They conclude that "most of the Asian stock markets exhibit positive December effect, except Hong Kong, Japan, Korea, and China.
TRENDS AND CALENDAR EFFECTS IN MALAYSIA'S STOCK MARKET
There a positive and significant end of December effect observed in KSE-100 index that shows the evidence of the turn of the year or the end of the year effect.
The December effect or The Turn of the year effect is positively Half month effect: OLS regression calculates the mean daily returns for the first half and second half of each month and tests whether each significant at 1% level.
Price to earnings ratio anomaly: the positive December effect and prior researches do not support this observation.
CONVENTIONAL AND ISLAMIC ANOMALIES IN KARACHI STOCK EXCHANGE
In additions, there are some strong evidences on month-of-the-year effect like March, May and December effects.
Table 5 shows the results on month-of-the-year anomalies, the evidences show significant March, May, June and December effects. The column (1) reports the AR-DOLS results in which only December months appears with negative significant slope.
The behavior of option's implied volatility index: a case of India VIX
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