Title:
Fast-profits_-Investor-sentiment
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Description: Observed by more than 1.5 billion Muslims, Ramadan is one of the most celebrated religious traditions in
the world. We investigate stock returns during Ramadan for 14 predominantly Muslim countries over the
years 1989–2007. The results show that stock returns during Ramadan are significantly higher and less
volatile than during the rest of the year. No discernible declines in market liquidity are recorded. We find
these results consistent with a notion that Ramadan positively affects investor psychology, as it promotes
feelings of solidarity and social identity among Muslims world-wide, leading to optimistic beliefs that
extend to investment decisions.
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Fast profits_ Investor sentiment and stock returns during Ramadan.pdf
