Light a lamp and look at the stock market

Radeef Chundakkadan

Financial Innovation, 2021, vol. 7, issue 1, 1-21

Abstract: Abstract In this study, we investigate the impact of the light-a-lamp event that occurred in India during the COVID-19 lockdown. This event happened across the country, and millions of people participated in it. We link this event to the stock market through investor sentiment and misattribution bias. We find a 9% hike in the market return on the post-event day. The effect is heterogeneous in terms of beta, downside risk, volatility, and financial distress. We also find an increase (decrease) in long-term bond yields (price), which together suggests that market participants demanded risky assets in the post-event day.

Keywords: Event effect; Investor sentiment; Stock market; Behavioral finance; Lockdown; Covid-19 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:fininn:v:7:y:2021:i:1:d:10.1186_s40854-021-00232-6

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DOI: 10.1186/s40854-021-00232-6

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