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Oslo Stock Exchange and the Weather

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  • Odegaard, Bernt Arne

    (UiS)

Abstract

We investigate empirical links between the Oslo Stock Exchange (OSE) and the weather, asking whether daily returns on the market, or market trading activity, seems to be related to the weather. We find a positive correlation between the OSE and two measures of ``bad weather'': clouds and windchill. High windchill is also associated with low market liquidity.

Suggested Citation

  • Odegaard, Bernt Arne, 2016. "Oslo Stock Exchange and the Weather," UiS Working Papers in Economics and Finance 2016/12, University of Stavanger.
    • Handle: RePEc:hhs:stavef:2016_012
    as

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    References listed on IDEAS

    as
    1. William N. Goetzmann & Ning Zhu, 2005. "Rain or Shine: Where is the Weather Effect?," European Financial Management, European Financial Management Association, vol. 11(5), pages 559-578, November.
    2. David Hirshleifer & Tyler Shumway, 2003. "Good Day Sunshine: Stock Returns and the Weather," Journal of Finance, American Finance Association, vol. 58(3), pages 1009-1032, June.
    3. Saunders, Edward M, Jr, 1993. "Stock Prices and Wall Street Weather," American Economic Review, American Economic Association, vol. 83(5), pages 1337-1345, December.
    4. Lu, Jing & Chou, Robin K., 2012. "Does the weather have impacts on returns and trading activities in order-driven stock markets? Evidence from China," Journal of Empirical Finance, Elsevier, vol. 19(1), pages 79-93.
    5. Hong, Harrison & Yu, Jialin, 2009. "Gone fishin': Seasonality in trading activity and asset prices," Journal of Financial Markets, Elsevier, vol. 12(4), pages 672-702, November.
    6. Novy-Marx, Robert, 2014. "Predicting anomaly performance with politics, the weather, global warming, sunspots, and the stars," Journal of Financial Economics, Elsevier, vol. 112(2), pages 137-146.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Weather; Stock Returns; Oslo Stock Exchange; Behavioral Finance;
    All these keywords.

    JEL classification:

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

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