Patriotic Name Bias and Stock Returns
University of Illinois at Urbana-Champaign
April 8, 2009
Stocks with "patriotic" names earn positive abnormal returns of about 6% per annum during the Second World War, the War in Korea and the War on Terror. These abnormal returns are not realized immediately upon the outbreak of each of the wars but are accumulated gradually during wartime. We hypothesize that victorious wars arouse investors' patriotic feelings and cause them to gradually and perhaps subconsciously gravitate toward stocks whose name has a patriotic flavor.
Number of Pages in PDF File: 35
Keywords: patriotism, stock returns
JEL Classification: G14working papers series
Date posted: February 6, 2008 ; Last revised: October 27, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo2 in 0.469 seconds