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Publication Detailed Description
Journal Title
Journal of Financial Markets
Year (definitive publication)
2013
Language
English
Country
Netherlands
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Abstract
Companies whose names contain the words "America(n)" or "USA" earn positive abnormal returns of about 6% per annum during World War II, the Korean War, and the War on Terrorism. These abnormal returns are not realized immediately upon the outbreak of each of the wars but are accumulated gradually during wartime. Given that no such effect is observed for the Vietnam War, we hypothesize that major, victorious wars arouse investors' patriotic feelings and cause them to gradually and perhaps subconsciously gravitate toward stocks whose name has a patriotic flavor.
Acknowledgements
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Keywords
Patriotism; Name bias; Stock returns
Fields of Science and Technology Classification
- Economics and Business - Social Sciences
