Does tropical weather condition affect investor behaviour? Case of Indonesian stock market

Rayenda Brahmana, Chee-Wooi Hooy and Zamri Ahmad

Global Business and Economics Review, 2015, vol. 17, issue 2, 188-202

Abstract: Several studies have been employed to discuss the link between weather and market returns. However, our research is different in three ways. We employed in tropical country, added extreme condition, and covering the entire Indonesia weather proportionally. This paper revisits the weather-induced moods effect on economic behaviour and found that weather condition, namely temperature level, and clouds cover has no influences on market returns and trading volume over period from 1999 to 2012. This research does not find any evidence of a link between temperature and market return because the tropical situation in Indonesia. However, cloud cover has an effect on the market; implying a role of affection bias in investor behaviour.

Keywords: tropical weather; Indonesia; stock markets; trading volume; market returns; investor behaviour; temperature level; cloud cover; affection bias. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=68566 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:17:y:2015:i:2:p:188-202

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().