Investors' Trading, Market Timing, and Implementation Shortfall: Evidence from the US Financial Market

  • Rafiqul Bhuyan Alabama A&M University, USA
  • Mohammad Sogir Hossain Khandoker Jagannath University, Bangladesh
  • Lamia Akter Jagannath University, Bangladesh
  • Mohammad G. Robbani Alabama A&M University, USA
Keywords: Stock Market, Transaction Cost, Implementation Shortfall, Calendar Anomalies.


In this research, we evaluate the US investors' trading pattern and choice of market timing in the presence of implementation shortfall. Results show that when investors decide to trade, implementation shortfall is being ignored. It is observed that stock performance on Wednesday is positive in the presence of positive and significant implementation shortfall i.e., traders do not seem to manage implementation shortfall during trading on Wednesday. It is also observed that investors seem to ignore the implementation shortfall in April. This behavior seems to persist in other types of market times such as turn-of-the-month, week-of-the-month, and quarter-of-the-year effects on implementation shortfall. We conclude that investors behave aggressively to buy stocks during certain days and times of the year ignoring implementation shortfall.

Author Biographies

Rafiqul Bhuyan, Alabama A&M University, USA

Department of Accounting & Finance

College of Business and Public Affairs

Alabama A&M University, USA

E-mail: [email protected]

Mohammad Sogir Hossain Khandoker, Jagannath University, Bangladesh


Department of Finance

Jagannath University, Dhaka, Bangladesh

E-mail: [email protected]

Lamia Akter, Jagannath University, Bangladesh

Post Graduate Student

Department of Finance

Jagannath University, Dhaka, Bangladesh

E-mail: [email protected]

Mohammad G. Robbani, Alabama A&M University, USA

Chair & Professor of Finance

Department of Accounting & Finance

College of Business & Public Affairs

Alabama A&M University, USA

E-mail: [email protected]


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How to Cite
Bhuyan, R., Khandoker, M. S. H., Akter, L., & Robbani, M. G. (2020). Investors’ Trading, Market Timing, and Implementation Shortfall: Evidence from the US Financial Market. International Journal of Accounting & Finance Review, 5(2), 64-71.
Regular Research Article/ Short Communication Article