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AbstractThis study examines the presence of a day‐of‐the‐week effect over different presidential administrations. The results indicate that the day‐of‐the‐week effect prevails during the Democratic and Republican administrations. However, the pattern of the day‐of‐the‐week effect differs between the two presidential administrations. Specifically, the negative returns on Monday are more pronounced during the Republican than during the Democratic administrations. Therefore, explanations for the day‐of‐the‐week effect should take into account the changing pattern of the day‐of‐the‐week effect across presidential administrations.

Objective. In this research, the presidential election cycle hypothesis is evaluated within the context of the turn-of-the-month effect found in stock returns. Methods. Returns from the daily Standard & Poor's 500 (S&P 500) index, the Dow Jones Industrial Average (DJIA) index, and the NASDAQ Composite index are grouped into turn-of-the month returns and non-turn-of-the-month returns. Statistical comparisons are conducted to evaluate the returns based on administration subperiod, temporal subperiod, and party affiliation. Results. The results provide evidence of higher turn-of-the-month returns in the second half of presidential terms. The higher turn-of-the-month returns account for most of the additional returns found in the second half of presidential terms evidenced in prior research. Conclusions. The persistent higher investment returns for stocks found in the second half of presidential terms can be linked to fiscal and administrative policies that increase household liquidity prior to elections. Incumbents attempt to influence voter choice and energize core constituencies by increasing household liquidity prior to elections through fiscal and administrative policies. These actions create higher turn-of the-month returns in the second half of presidential terms, which generate additional overall investment returns for the period. (Original abstract)

Objective. In this research, the presidential election cycle hypothesis is evaluated within the context of the turn‐of‐the‐month effect found in stock returns.Methods. Returns from the daily Standard & Poor's 500 (S&P 500) index, the Dow Jones Industrial Average (DJIA) index, and the NASDAQ Composite index are grouped into turn‐of‐the month returns and non‐turn‐of‐the‐month returns. Statistical comparisons are conducted to evaluate the returns based on administration subperiod, temporal subperiod, and party affiliation.Results. The results provide evidence of higher turn‐of‐the‐month returns in the second half of presidential terms. The higher turn‐of‐the‐month returns account for most of the additional returns found in the second half of presidential terms evidenced in prior research.Conclusions. The persistent higher investment returns for stocks found in the second half of presidential terms can be linked to fiscal and administrative policies that increase household liquidity prior to elections. Incumbents attempt to influence voter choice and energize core constituencies by increasing household liquidity prior to elections through fiscal and administrative policies. These actions create higher turn‐of the‐month returns in the second half of presidential terms, which generate additional overall investment returns for the period.

In this research, the presidential election cycle hypothesis is evaluated within the context of the turn-of-the-month effect found in stock returns. Methods. Returns from the daily Standard & Poor's 500 (S&P 500) index, the Dow Jones Industrial Average (DJIA) index, & the NASDAQ Composite index are grouped into turn-of-the month returns & non-turn-of-the-month returns. Statistical comparisons are conducted to evaluate the returns based on administration subperiod, temporal subperiod, & party affiliation. Results. The results provide evidence of higher turn-of-the-month returns in the second half of presidential terms. The higher turn-of-the-month returns account for most of the additional returns found in the second half of presidential terms evidenced in prior research. Conclusions. The persistent higher investment returns for stocks found in the second half of presidential terms can be linked to fiscal & administrative policies that increase household liquidity prior to elections. Incumbents attempt to influence voter choice & energize core constituencies by increasing household liquidity prior to elections through fiscal & administrative policies. These actions create higher turn-of the-month returns in the second half of presidential terms, which generate additional overall investment returns for the period. 3 Tables, 23 References. Adapted from the source document.

The patterns of daily returns in over‐the‐counter (OTC) stocks are examined to determine if a holiday effect exists in the OTC market. For the sample period of 1973–1989, test results provide evidence of unusually high returns on pre‐holiday trading days and unusually low returns on post‐holiday trading days in the OTC market. Additional analyses indicate that other documented calendar anomalies do not cause the pre‐holiday effect, but the day‐of‐the‐week effect apparently drives the post‐holiday effect.