Our study is part of a recent literature that investigates the asset pricing impact of behavioral biases documented in psychology research. This literature, which has expanded significantly over the last decade, is comprehensively reviewed by Hirshleifer (2001) and Shiller (2000). The strand of the literature closest to this paper investigates the effect of investor mood on asset prices. The two principal approaches in this work link returns either to a single event or to a continuous variable that impacts mood. .
