Do early birds behave differently from night owls in the stock market?

Grace Lepone*, Zhini Yang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This study is the first to apply human beings’ preferred diurnal rhythm, that is, morningness or eveningness, to the field of behavioural finance. Employing proprietary stock trading data from a leading retail brokerage house in Australia, we classify retail investors into M-types (‘early birds’) and E-types (‘night owls’) based on the time of their order submission. Demographic differences between the two groups (M-types or E-types) are found to be weak. We provide robust evidence that M-type investors are distinctively different from E-type investors in their proneness to stock market behavioural biases. We find that M-type investors trade more frequently and have a stronger preference for stock market speculation.
Original languageEnglish
Article number101333
Number of pages11
JournalPacific-Basin Finance Journal
Early online date21 Apr 2020
Publication statusPublished - 1 Jun 2020


  • Frequent trading
  • Investor bias
  • Investor characteristics
  • Lottery stocks
  • Morningness-eveningness
  • Speculation


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