The Race That Stops the Equity Market

Docherty, P., & Melia, A. (2015). The race that stops the equity market. Applied Economics Letters, 22(14), 1179-1183.

9 Pages Posted: 1 Aug 2019

See all articles by Adrian Melia

Adrian Melia

University of Newcastle (Australia)

Paul Docherty

The Brattle Group

Date Written: December 1, 2014

Abstract

The Melbourne Cup is a major horse racing event that is colloquially known as the “race that stops the nation” in Australia. We use constituent stock intraday volume data on the Australian Securities Exchange S&P/ASX200 equity index from 2003 to 2013 within a regression framework to examine whether this major horse race reduces investor attention. Results show that trading volume on the Australian equity market is significantly reduced during and immediately surrounding the running of the Melbourne Cup, supporting the claim that this is the “race that stops the equity market”.

Suggested Citation

Melia, Adrian and Docherty, Paul, The Race That Stops the Equity Market (December 1, 2014). Docherty, P., & Melia, A. (2015). The race that stops the equity market. Applied Economics Letters, 22(14), 1179-1183., Available at SSRN: https://ssrn.com/abstract=3428145

Adrian Melia (Contact Author)

University of Newcastle (Australia) ( email )

University Drive
Callaghan, NSW 2308
Australia

Paul Docherty

The Brattle Group ( email )

44 Brattle Street
3rd Floor
Cambridge, MA 02138-3736
United States

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