Does Time Zone Difference Affect Trading?

We investigate differences in aggressiveness of orders submitted by retail investors trading on the same exchange but from different time zones. Individuals from the time zone that is behind the exchange time who must get up extra early for trading are more likely to submit aggressive orders than investors from the same time zone as the exchange. The paper presents evidence that transition to daylight saving time (DST) reduces investors’ order aggressiveness. These findings are robust after additional investor, stock and market factors are controlled. Our analysis also reveals that non-information-driven order aggressiveness has an adverse impact on investment outcome