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Dr. Marek Jochec

Assistant Professor,  ISCTE Business School, Lisbon

Authors: Marek Jochec and Evangelos Benos

Abstract: Stocks with "patriotic" names earn positive abnormal returns of about 6% per annum during the Second World War, the War in Korea and the War on Terror. These abnormal returns are not realized immediately upon the outbreak of each of the wars but are accumulated gradually during wartime. We hypothesize that victorious wars arouse investors' patriotic feelings and cause them to gradually and perhaps subconsciously gravitate toward stocks whose name has a patriotic flavor.

Full Text: “Patriotic Name Bias and Stock Returns”