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Mood Swings And The Firm Size Premium

Author

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  • Iyad SNUNU

    (Department of Health Services Management, Peres Academic Center, Rehovot, Israel)

Abstract

Evidence accumulated in the literature indicates that the size effect is related to corporate and macroeconomic variables and is paid to compensate for bearing risk. We show that the size premium is also driven by daily variations in investors’ moods. We focus on two conditions often cited as possible mechanisms that drive variations in mood: Monday and seasonal affective disorder. The findings are consistent with the evidence that mood deteriorates on Mondays and in the fall and are consistent with the claim that the size effect manifests during economic expansion but weakens in the contraction phase of the economic cycle.

Suggested Citation

  • Iyad SNUNU, 2024. "Mood Swings And The Firm Size Premium," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 9(1), pages 165-176, March.
    • Handle: RePEc:ora:jrojbe:v:9:y:2024:i:1:p:165-176
    DOI: http://doi.org/10.47535/1991ojbe191
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    References listed on IDEAS

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    More about this item

    Keywords

    Mood; Size effect; Size premium.;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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