Weather Influence on Stock Market: Evidence from Romania

Ruxandra Trifan ()
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Ruxandra Trifan: The Bucharest University of Economic Studies

A chapter in Digitalization in Finance and Accounting, 2021, pp 83-94 from Springer

Abstract: Abstract This article examines the impact of weather conditions on the Romanian stock market from 2014 to 2018. We take into consideration temperature, humidity, air pressure, wind, rain and snow, and test their influence on local stock returns, trading volume, and market volatility. We find evidence to support that weather does play a role in investor decisions and ultimately on the stock market. Wind and precipitations in the form of rain and snow impact stock returns, as well as market trading volume and volatility. Temperature has no effect on stock returns, nor on market trading volume, but is positively related to market volatility. Humidity has a small but significant positive influence only on market trading volume, whereas air pressure impacts negatively only market volatility. Results are in line with previous research.

Keywords: Weather; Romanian stock market; Mood; Market efficiency (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-55277-0_8

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DOI: 10.1007/978-3-030-55277-0_8

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