Good Day Sunshine: Stock Returns and the Weather

By David A. Hirshleifer, Tyler Shumway. 2003

1,738 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/b50d9c2346febfa2143ba95be4b76c83124fb92a

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Citations in the corpus

Temperature shocks and the cost of equity capital: Implications for climate change perceptions (2017, background): “For instance, Roll (1984) and Fleming et al. (2006) study how weather-related information affects, respectively, mean returns and return variances in particular weather-sensitive markets, and Hirshleifer and Shumway (2003) consider how weather impinges on returns by affecting trader attitudes.”
Air pollution, behavioral bias, and the disposition effect in China (2019, background): “In Model (3), we further control for one important weather condition—sunshine—that could potentially affect the market (e.g., Saunders, 1993; Hirshleifer and Shumway, 2003; Goetzmann and Zhu, 2005).”
A Tough Act to Follow: Contrast Effects in Financial Markets (2018, neutral): “If high surpriset 1 indicates that market conditions are generally good, then any level of earnings released by the next 10Other research has shown how price responses depend on mood, sentiment, or weather (e.g., Mian and Sankaraguruswamy, 2012; Gulen and Hwang, 2012; Hirshleifer and Shumway, 2003).”
Norms, moods, and free lunch: Longitudinal evidence on payments from a Pay-What-You-Want restaurant (2012, methodology): “Making use of the micro data, we nd that the decline occurred basically in all deciles of the payment distribution, but the decline was substantially stronger at the top quartile of the payment distribution as compared (1)See the literature discussed below, in particular, Kim et al. (2009). Stephen ”
Does the Weather Affect Stock Market Volatility (2010, methodology): “The main empirical finding in this literature is the so-called ‘sunshine effect’ according to which cloudiness, as measured by cloud cover, has a significant negative correlation with daily equity index returns (see Saunders, 1993; Hirshleifer and Shumway, 2003; Chang et al., 2008 among others).”
Robust global mood influences in equity pricing (2008, background): “Deseasonalised wind, temperature, precipitation: We follow Hirshleifer and Shumway (2003) in constructing deseasonalised measures of each of the three weather variables.”
Do Happy People Make Optimistic Investors (2015, background): “…++∑+∑+=+ ,,0,1 )( , 2)][exp()( ii zVar γε = , where E(Rt+1,i) is the individual’s subjective return expectation n the next period; SENTj,i is one of the sentiment-creating variables, as defined in the previous section; CONTROLSk,i are the control variables; and zi is the ith individual variable.”
Value Is in the Eye of the Owner (2012, methodology): “…(especially given the context of socioemotional wealth), current SEW literature risks overlooking a rich stream of psychology research that holds promise for the further advancement of a SEW theory (Forgas & Bower, 1987; Forgas & Ciarrochi, 2001; Forgas & George, 2001; Hirshleifer & Shumway, 2003).”
Every Cloud Has a Silver Lining: Fast Trading, Microwave Connectivity, and Trading Costs (2020, background): “Robustness A rich iterature examines the effects of weather on the behavior of market participants and finds that poor weather is associated with investor pessimism, which reflects in stock returns (Hirshleifer and Shumway, 2003).”
O Sole Mio An Experimental Analysis of Weather and Risk Attitudes (2013, methodology): “The impact of sunlight and, more generally, weather conditions on economic activity and the stock market has been documented by several studies (see, for example, Saunders, 1993, Hirshleifer and Shumway, 2003, Kamstra, Kramer, and Levi, 2003, and Lo and Wu, 2010).”
Warmth and conformity: The effects of ambient temperature on product preferences and financial decisions☆ (2014, background): “Attitudes toward risk are commonly examined as a factor in financial decisions (Hirshleifer & Shumway, 2003).”