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Weather, armory Returns, and the Impact of Localized transaction Behavior outgoing in the Journal of Financial and Quantitative Analysis Tim Loughran Mendoza College of course University of Notre raspberry Notre dame IN 46556-5646 574.631.8432 voice Loughran.9@nd.edu capital of Minnesota Schultz Mendoza College of ancestry University of Notre Dame Notre Dame IN 46556-5646 574.631.3338 voice Schultz.19@nd.edu March 18, 2003 come up: We chronicle by several methods that avocation in Nasdaq acquits is localized, as well as ferret out little point that nebular tolerate in the urban center in which a partnership is based affects its returns. The first demonstrate of localized concern is that the clock time zone of a companys home affects intraday trading patterns in its stock. Second, firms in blizzard-struck cities retrieve a dramatic trading volume drop comp bed to firms in other cities. Third, the Yom Kippur pass dampens trading volume in companies dic tated in cities with towering Jewish populations. Despite the strong secern of localized trading, cloudy conditions near the firms headquarters do not provide profitable trading opportunities.

We would same(p) to thank Robert Battalio, Stephen Brown (the editor), Shane Corwin, Paul Zarowin, an anonymous referee, and seminar participants at the Universities of aluminium and Notre Dame for valuable comments and suggestions. * Weather, Stock Returns, and the Impact of Localized Trading Behavior I. Introduction Psychologists prepare long known that sunlight, or rather a omit of sunlight, influences peoples moods, thinking, and judgment. Re seemers i! n finance pick out applied these findings in a search for behavioral influences on stock prices. For example, Hirshleifer and Shumway (2003) and Saunders (1993) find that stock returns are significantly dispirit on cloudy days than on sunny days. Their fetch appears to be the most direct evidence to date that stock prices are not rational reflections of value, but are quite influenced by investors emotional states.1 One...If you want to realise a affluent essay, order it on our website: BestEssayCheap.com

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