The relation between moon phases, market returns and trading volume - The case in Ho Chi Minh stock exchange

Abstract

Moon phases are believed in having effects to human mood and behaviors. Biological and psychological researches are examined the relation of moon effects and human mood and behaviors. They found the significant results in their studies that moon have influences on human mood and behaviors. Then the mood and behaviors can affect human thinking and decision making. Many scholars of finance use the relation of moon and human mood to find out the moon effects on stock markets because if moon can affect human mood and behaviors, it also affects human decision making in stock trading. There are many findings about moon effects on stock markets in many countries, especially in the US and Europe countries. This paper also tests the relation of moon phases’ effects on Ho Chi Minh stock exchange with rate of returns and trading volume. By using multiple regression, t-test, test of equality and data (stock price and trading volume) from Ho Chi Minh stock exchange, the study finds out that the return of Hose has the relation with moon phases’ effects while trading volume does not have. It also points out that third quarter has the highest return in four tested moon phases when new moon has the lowest return.