The religious months effect on the stock market return, volatility and volume in the stock exchange of Tehran

Document Type : Original Article

Authors
1 Associate Professor in Tehran University
2 Graduated student in Finance of Science & Research Branch, IAU
Abstract
This thesis investigate The religious months effect in Tehran stock exchange (TSE). The religious month effect is seasonality or calendar anomaly that has been studied and documented in finance  literature. This anormaly indicates the repetitive trends or patterns in the time series behavior of stock market.
In this study the total index of TSE for the period of 1420-1431 hijri (moon year) are examined to specify the probable  pattern in trading days of TSE in term of return, volatility and volume.
In this research regression analysis are used for monthly data of TSE. Both OLS methodology and new specification  of GARCH models are used to specify and separate the effect of various months on the dependent variables.
The results of testing of regression analysis support validity of Ramadan and Zi Hijjah effect on volatility  and Zi Hijjah effect on return.
Keywords