Cold time, cool time? Weather-induced moods and financial risk tolerance: Evidence from a real-world banking context

Marie-Hélène Broihanne, Hava Orkut and Francis Osei-Tutu

Finance Research Letters, 2023, vol. 55, issue PB

Abstract: Recent studies in household finance document that weather-induced moods influence financial behaviours. Using a large database from a real-world banking context, we examine the influence of weather-induced moods on the self-assessed financial risk tolerance of more than 60,000 retail clients based on a risk-profiling questionnaire during their visit at a bank. We find that risk tolerance is lower during periods of unpleasant weather. These findings are robust in retail clients who answered the questionnaire twice but under different weather conditions.

Keywords: Financial risk tolerance; Weather; Mood; MIFID questionnaires (search for similar items in EconPapers)
JEL-codes: G02 G40 G50 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003501

DOI: 10.1016/j.frl.2023.103978

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