Internal Auditing & Risk Management

ISSN 2065-8168 (print) | ISSN 2068-2077 (online)

THE DAY-OF-THE-WEEK EFFECT ON BUCHAREST STOCK EXCHANGE

Published: 2013-01-01

Volume: No 29 - March 2013

Pages: 28|41

Authors

Abstract

This study investigates the presence on Bucharest Stock Exchange of one of the most documented seasonal anomalies of financial assets’ returns: the day-of-the-week effect. We use daily returns for five Romanian official exchange indices and for one MSCI Barra country index during May 2007- March 2013, thereby including both the 2007-2009 financial markets meltdown and the 2009-2012 recovery that followed it. We employed a GARCH-M model with dummy variables for both the mean and the variance equation, but the results obtained don’t offer clear enough and sufficient statistically significant arguments to confirm the presence of the above mentioned effects on all the six indices investigated.

Keywords: stock returns, volatility, seasonal anomalies, frontier markets, GARCH models

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Cite this article

APA: Carmen Marilena, Corina Maria (2013). THE DAY-OF-THE-WEEK EFFECT ON BUCHAREST STOCK EXCHANGE. Internal Auditing & Risk Management, Vol. 29, No. 29, pp. 28-41.

BibTeX:

@article{carmenmarilena2013434,
  title = {THE DAY-OF-THE-WEEK EFFECT ON BUCHAREST STOCK EXCHANGE},
  author = {Carmen Marilena and Corina Maria},
  journal = {Internal Auditing & Risk Management},
  year = {2013},
  volume = {29},
  pages = {28----41},
  doi = {}
}

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