Do weather patterns effect investment decisions in the stock market? A South Asian perspective

Emon Kalyan Chowdhury ()
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Emon Kalyan Chowdhury: Chittagong Independent University

Journal of Asset Management, 2024, vol. 25, issue 2, No 4, 162-171

Abstract: Abstract Do weather patterns in South Asia have an impact on investment decisions? This question is particularly relevant given the region’s vulnerability to natural disasters such as floods, cyclones, and droughts. To explore this issue, we apply regression and generalized method of moments using yearly data of weather, stock indices, borrowing opportunity, economic growth, interest, and inflation rates from 1995 to 2021. Based on data availability, this study has taken Bangladesh, India, Pakistan, and Sri Lanka as sample countries. The research results indicate that weather significantly influences investment decisions and that consideration of weather factors can mitigate risk and enhance investment return.

Keywords: Stock markets; Investor behavior; Weather; Investment decision; GMM (search for similar items in EconPapers)
JEL-codes: D25 E22 F21 G11 O16 R53 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (5)

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DOI: 10.1057/s41260-023-00334-z

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