Using Pivot Table to Test Market Anomaly
9 Pages Posted: 26 Jun 2017 Last revised: 25 Mar 2018
Date Written: March 1, 2018
Market anomaly is an important phenomenon in finance because it challenges an essential concept in modern finance, the Efficient Market Hypothesis. Traditionally, professors rarely demonstrate and statistically test market anomalies in undergraduate finance classes due to the lengthy data collection and analysis process, and required knowledge of programming languages such as SAS. Pivot table is a powerful tool used by many business academics and professionals, particularly in the marketing field. In this paper, we demonstrate how to use the pivot table tool in Microsoft Excel to quickly test the January Effect. We also demonstrate how to apply the tool to test other market anomalies. By using pivot table, we transform the learning of the market anomaly concept from discussion only to experiential.
Keywords: pivot table, market anomaly, January Effect, experiential learning
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