Saudi Journal of Business and Management Studies (SJBMS)
Volume-2 | Issue-11 | 967-970
Review Article
Reviewing the Weekend Effect on Stock Market Returns: a Theoretical Perspective
Eyad Mohamed Malkawi, Mohamed Ibrahim Mugableh, Khalid Adnan Bataineh, Raed Walid Al-Smadi
Published : Nov. 30, 2017
Abstract
This paper reviews the weekend effect on stock market returns. The
weekend effect anomaly is contrary to the theory of market efficiency. This anomaly
is appealing to be examined because the presence of weekend effect can be useful as
a trading strategy that can gain profits for investors. Investors could buy stocks on
days with abnormally low returns and sell stocks on days with abnormally high
returns.