IDEAS home Printed from https://ideas.repec.org/a/ren/journl/v7y2015i2p173-183.html
   My bibliography  Save this article

Sunny Upside? The Relationship Between Sunshine and Stock Market Returns

Author

Listed:
  • Gary Smith

    (Pomona College)

  • Michael Zurhellen

    (Pomona College)

Abstract

"Weather can have profound effects on economic activity, most obviously agriculture, construction, and transportation. It has also been reported that the daily weather in New York City affects U. S. stock returns, a clear challenge to the efficient market presumption that rational investors will not let their assessment of a stock’s value be swayed by whether the sun happens to be shining. Studies claiming to have found a sunshine effect are clouded by differing methodologies which may have been chosen to buttress the results. We examine a fresh set of data and confirm the existence of a New York City sunshine effect which may have weakened over time as trading has become more geographically dispersed."

Suggested Citation

  • Gary Smith & Michael Zurhellen, 2015. "Sunny Upside? The Relationship Between Sunshine and Stock Market Returns," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 7(2), pages 173-183, December.
    • Handle: RePEc:ren:journl:v:7:y:2015:i:2:p:173-183
    as

    Download full text from publisher

    File URL: http://www.rofea.org/index.php?journal=journal&page=article&op=view&path%5B%5D=204&path%5B%5D=144
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    weather and stock market; market efficiency;

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ren:journl:v:7:y:2015:i:2:p:173-183. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Jerzy (Jurek) Konieczny (email available below). General contact details of provider: http://www.rcfea.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.