Behind in time, behind in the game – time zone affects trading aggressiveness

Anil Gautam and Grace Lepone

International Review of Financial Analysis, 2025, vol. 97, issue C

Abstract: This study examines the aggressiveness of orders submitted by retail investors trading on the same exchange but from different time zones. Individuals located to the west of the exchange's time zone and, therefore, behind in time are less aggressive in their order submission than investors located in the exchange's time zone. We attribute this observation to the difference in time available for processing the information necessary for aggressive trading. The impact of the time zone difference is opposite to the impact of time lost due to the start of daylight saving time, when the disturbance of sleep leads to increased aggressiveness in trading. The findings are robust after controlling for the additional investor factor, as well as stock and market factors and when an alternative aggressiveness measure, sample period or sets of the sample are used.

Keywords: Retail investor; Trading aggressiveness; Time zone; Information; Sleep (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521924007440
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:97:y:2025:i:c:s1057521924007440

DOI: 10.1016/j.irfa.2024.103812

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().