Study finds spring clock change affects investor response to unexpected earnings due to sleep disruption.
A study by the University of Edinburgh's business school suggests the spring clock change significantly affects how investors respond to companies that reveal unexpected earnings levels. Sleep disruption from the one-hour change means financiers underreact when firms announce higher earnings than analysts predicted. This research is the first to gauge how Daylight Saving Time impacts the information-processing capabilities of investors, deepening understanding of the effects of sleep deprivation on financial markets.
March 31, 2024
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