Analysis of the Impact of Weather on Trading in Equity Markets

Analýza vlivu počasí na obchodování na akciových trzích

David Havlíček

Český finanční a účetní časopis, 2010, vol. 2010, issue 3, 49-62

Abstract: This paper analyzes the impact of weather on the investment in the Czech and U.S. stock markets. It relies on the concept of behavioral finance, which analyzes the impact of psychology on investor decision-making. The influence of atmospheric phenomena is mainly studied as impact of occurrence of snow, rain or fog on the market returns. The research results show the impact of these phenomena only in a minority of cases. The research also analyzes the impact of the autumn season (SAD effect) on the psychology of investors and therefore market returns. This sequence wasn't rebutted only at the Czech stock market. The incidence of observed atmospheric effects also failed to explain the January and Monday effects.

Keywords: Behavioral finance; Weather; Monday effect; January effect; Behaviorální finance; Počasí; Pondělní efekt; Lednový efekt (search for similar items in EconPapers)
JEL-codes: G11 G14 (search for similar items in EconPapers)
Date: 2010
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DOI: 10.18267/j.cfuc.75

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