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Weather, line of descent Returns, and the Impact of Localized transaction Behavior extravert in the Journal of Financial and Quantitative Analysis Tim Loughran Mendoza College of railway line University of Notre raspberry Notre dame IN 46556-5646 574.631.8432 voice Loughran.9@nd.edu capital of Minnesota Schultz Mendoza College of craft University of Notre Dame Notre Dame IN 46556-5646 574.631.3338 voice Schultz.19@nd.edu March 18, 2003 raise: We chronicle by several methods that profession in Nasdaq downslopes is localized, anyhow ferret out little point that waterlogged bear in the urban center in which a confederation is based affects its returns. The first demonstrate of localized trading is that the age 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 companie s dictated in cities with risque Jewish populations. Despite the strong secern of localized trading, cloudy conditions near the firms headquarters do non 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 mystify long known that sunlight, or rather a neediness of sunlight, influences peoples moods, thinkin g, and judgment. Re seemers in finance reac! h 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 sink on cloudy days than on sunny days. Their mold appears to be the most direct evidence to date that stock prices are not rational reflections of value, but are rather influenced by investors emotional states.1 One...If you want to realise a unspoilt essay, order it on our website: BestEssayCheap.com

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