Patriotic Name Bias and Stock Returns

35 Pages Posted: 6 Feb 2008 Last revised: 27 Oct 2011

See all articles by Evangelos Benos

Evangelos Benos

University of Illinois at Urbana-Champaign

Marek Jochec

Graduate School of Business, Nazarbayev University

Date Written: April 8, 2009

Abstract

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.

Keywords: patriotism, stock returns

JEL Classification: G14

Suggested Citation

Benos, Evangelos and Jochec, Marek, Patriotic Name Bias and Stock Returns (April 8, 2009). Available at SSRN: https://ssrn.com/abstract=993289 or http://dx.doi.org/10.2139/ssrn.993289

Evangelos Benos

University of Illinois at Urbana-Champaign ( email )

601 E John St
Champaign, IL 61820
United States

Marek Jochec (Contact Author)

Graduate School of Business, Nazarbayev University ( email )

53 Kabanbay Batyra Avenue
Astana, 010000
Kazakhstan

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