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Air Pollution, Mood and Stock Return in Romania

Author

Listed:
  • Aurora Murgea

    (West University of Timisoara, Faculty of Economics and Business Administration, Romania)

Abstract

Considered one of the major threats of our times for the human species, air pollution was proven to have multiple psychological, social and economic effects. In the last two decades, the relationship between air pollution and the stock market was analysed mainly for the Chinese stock market, with very few papers oriented towards other markets. The present paper tries to fulfil this gap by exploring this relationship for the Romanian stock market. The main results show that relative pollution values (mainly PM10) and pollution awareness impact stock returns in Bucharest Stock Market, in line with the assumption of the Mood Maintenance Hypothesis.

Suggested Citation

  • Aurora Murgea, 2022. "Air Pollution, Mood and Stock Return in Romania," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 943-952, Decembrie.
    • Handle: RePEc:ovi:oviste:v:xxii:y:2022:i:2:p:943-952
    as

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    File URL: https://stec.univ-ovidius.ro/html/anale/RO/2022-issue2/Section%205/18.pdf
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    References listed on IDEAS

    as
    1. Barberis, Nicholas & Thaler, Richard, 2003. "A survey of behavioral finance," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, edition 1, volume 1, chapter 18, pages 1053-1128, Elsevier.
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    More about this item

    Keywords

    pollution; mood misattribution; risk aversion; stock returns;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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