Light a lamp and look at the stock market

Light a lamp and look at the stock market

Radeef Chundakkadan

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.

2021

covid-19, lockdown, Stock Market, Investor sentiment, Behavioral Finance, Event effect

10.1186/s40854-021-00232-6

Epidemiology and Health

Korean Society of Epidemiology

Finance, Public finance