Light a Lamp and Look at the Stock Market

27 Pages Posted: 17 Jul 2020

See all articles by Radeef Chundakkadan

Radeef Chundakkadan

Indian Institute of Technology Bhilai

Date Written: July 6, 2020

Abstract

This paper investigates the impact of the light a lamp event that happened in India during the Great Lockdown due to COVID-19. The event happened across the country and millions of people participated in it. We link the event with the stock market via investor sentiment and misattribution bias. We find a 9% hike in the market return in the post-event day. The effect is heterogeneous in terms of beta, downside risk, volatility, financial distress. We also find an increase (decrease) in long-term bond yields (price), together suggest that market participants demand risky assets in the post-event day.

Keywords: Event effect; Investor sentiment; Stock market; Behavioral finance; Lockdown; COVID-19

JEL Classification: G02; G12

Suggested Citation

Chundakkadan, Radeef, Light a Lamp and Look at the Stock Market (July 6, 2020). Available at SSRN: https://ssrn.com/abstract=3645914 or http://dx.doi.org/10.2139/ssrn.3645914

Radeef Chundakkadan (Contact Author)

Indian Institute of Technology Bhilai ( email )

DEPARTMENT OF LIBERAL ARTS
IIT BHILAI
RAIPUR, CA Chhattisgarh 492015
India
402015 (Fax)

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