weekend effect

Weekend effect

The common recurrent low or negative average return from Friday to Monday in the stock market.

Monday Effect

The belief that securities market returns on Mondays are less than the other days of the week, and are often negative on average. This effect has been observed in both American and foreign exchanges. Studies have documented it since the 1920s, but no theory has adequately explained the reasons it exists. Studies have suggested the existence of a Monday effect for a diverse range of securities, from equities to debt to commodities. However, since the mid-1970s or mid-1980s (depending on the study and methodology), large firm securities seem to have exhibited what might be called a 'reverse Monday effect,' in which differences between Monday trading and the rest of the week are not statistically significant. Small firm securities have continued to exhibit the Monday effect. It is also known as the "weekend effect."

weekend effect

The tendency of securities to perform better on Fridays than on Mondays. Some technical analysts contend the weekend effect is primarily the result of the Monday auctions of U.S. Treasury securities.
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References in periodicals archive ?
The weekend effect on mortality is well documented in the literature, with several studies indicating adverse consequences of weekend hospitalisation, [4-11] while a few studies did not find such effects.
Dr Potluri, Clinical Lecturer at Aston University's Medical School, said: "This study shows that the weekend effect is very much a reality for those suffering two of the most prevalent heart conditions in the UK.
Investigators have uncovered a weekend effect contributing to the worsening availability of donor kidneys in the United States.
The lead author, Professor Peter Rothwell, said that if these differences were stripped out, the weekend effect disappeared completely.
Mr Hunt has told doctors he wants the new contract, which will increase basic salaries but will cut pay for working evenings and Saturdays, to help "eradicate" the weekend effect.
The weekend effect of sadness is similar for all American workers regardless of whether they work full time or part time.
DAVID Cameron praised the Mirror for reporting the findings of an Imperial College London study which claims 770 babies a year die due to the weekend effect.
Key words: Acute Ischemic Stroke Management, Door to Needle, Ischemic Brain Disease, Intravenous Thrombolytic Treatment, Weekend Effect
Stock returns and the weekend effect, Journal of Financial Economics 8(1): 55-69.
This effect has also been analyzed in security markets internationally by Jaffe and Westerfield (1985) who examined the daily stock market returns for four foreign countries and discovered weekend effect in each country.
We can obtain an estimate of the weekend effect that uses only data from the period of interest by exploiting the different number of weekend days that fall on a given month across years.
Jaffe and Westerfield [9] examine the presence of the weekend effect in Australia, Canada, Japan, and UK financial markets.