Small Business January Effect An Anomaly Essay
The January effect shows a pronounced downward trend for both large and small stock indices, while the effect is disappearing for the Russell indices. The downward trend is also clearly visible in the, while the trend for the post-war period to s is upward for the and the S-amp, due to the. Small companies earn higher returns than expected returns. Keim (1983) examined whether small firms' excess returns were temporally concentrated. He found that half of January's returns came from the first five trading days. Over the years, researchers have found answers to why this January effect occurs. It was a real January effect. The January effect is usually led by small-cap stocks. According to The Stock Traders Almanac, they have become small-cap stocks over the years. 7 average. Income Taxes and the January Effect: Small Stock Returns Before the War Revenue Act: 2023, which showed the effect of recessions on the January anomaly. Their results are of particular interest in measuring the small business effect. That is, while a large small-firm effect dominates at monthly returns, a significant portion of this effect is a financial mirage and disappears at annual returns. The authors' findings have important implications for both managers and investors in small businesses. Management, Singa, Tel: 65 Email: king.lee schroders.com. Abstract. In this study we investigated the presence of the Halloween effect in the long term. term reversal.