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The solar and lunar divide and the impact on Taiwan’s stock returns

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  • Der-Yuan Yang
  • Chen-Hsun Lee

Abstract

Under the influence of the western world, the solar New Year celebration seems to have fascinated everyone in Taiwan with the lunar New Year festivity showing much less vigor. This paper examines the impact of the solar and lunar New Years on the stock market of Taiwan, showing that the lunar effect outshines the solar one, but the magnitude is decreasing for both as the years go by. In addition, this effect is more significant in the year of horse.

Suggested Citation

  • Der-Yuan Yang & Chen-Hsun Lee, 2016. "The solar and lunar divide and the impact on Taiwan’s stock returns," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1177153-117, December.
    • Handle: RePEc:taf:oaefxx:v:4:y:2016:i:1:p:1177153
    DOI: 10.1080/23322039.2016.1177153
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    1. Rua, António & Nunes, Luís C., 2009. "International comovement of stock market returns: A wavelet analysis," Journal of Empirical Finance, Elsevier, vol. 16(4), pages 632-639, September.
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    5. Josef Lakonishok, Seymour Smidt, 1988. "Are Seasonal Anomalies Real? A Ninety-Year Perspective," The Review of Financial Studies, Society for Financial Studies, vol. 1(4), pages 403-425.
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    Cited by:

    1. Loc Dong Truong & H. Swint Friday, 2021. "The January Effect and Lunar New Year Influences in Frontier Markets: Evidence from the Vietnam Stock Market," International Journal of Economics and Financial Issues, Econjournals, vol. 11(2), pages 28-34.

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