Do hurricanes cause storm on the stock market? The case of US energy companies

Roman Horvath, Anna Kalistová, Štefan Lyócsa, Marta Miškufová and Michala Moravcová

International Review of Financial Analysis, 2025, vol. 97, issue C

Abstract: We examine the effect of hurricanes on the stock market, specifically on US energy companies. Unlike in the previous literature, we identify the timing and severity of hurricane events using the attention they receive online. Using our improved measure of hurricane events, we estimate dynamic common correlated effect panel models with daily and intraday stock returns over the last two decades and find that stock returns increase and stock volatility decreases following hurricanes. We argue that these results fit well with the energy supply and demand shock explanation and the limited attention hypothesis.

Keywords: Hurricanes; Stock market; Energy; Attention (search for similar items in EconPapers)
JEL-codes: Q41 Q54 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:97:y:2025:i:c:s1057521924007488

DOI: 10.1016/j.irfa.2024.103816

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