e-ISSN 2356-3818       print ISSN 1979-8997

Moon Effect on Paciic Basin Stock Markets

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Moon Effect on Paciic Basin Stock Markets

Rayenda Khresna Brahman, Chee Wooi Hooy, Zamri Ahmad


This is an empirical study on the inluences of moon on seven stock markets, which are Indonesia, Malaysia, United Kingdom, United States, Philippines, Japan, and Thailand. The period is from January 1999 until December 2009 in daily basis. This study investigates the relationship  between  moon  phase  and  market  returns.  We  divided  moon  phases  into  new moon  and  full  moon.  While  literature  mention  the  relationship  between  moon  phase  and market returns, our research reject the null hypothesis in regression analysis. However, the descriptive  catches  the  indication  and  conirmed  previous  research.  It  also  proposes  that the market is still rational and not moon-mood inluenced. This result is not contending the EMH theorem. Further research is needed in term of investigating the relationship between psychology  factors  (heuristic  bias,  information  ignorance,  and  other  factors)  and  investor behavior. The effect of moon on certain anomalies has to examine speciically.
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