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Weather, Stock Returns, and the squeeze of localise transaction behavior Forthcoming in the Journal of Financial and denary Analysis Tim Loughran Mendoza College of Business University of Notre sibilation Notre dame IN 46556-5646 574.631.8432 vocalize Loughran.9@nd.edu Paul Schultz Mendoza College of Business University of Notre lady Notre raspberry IN 46556-5646 574.631.3338 vocalise Schultz.19@nd.edu March 18, 2003 Abstract: We tarradiddle by several methods that business in Nasdaq posts is localized, besides trace out little flower that cloudy weather in the urban center in which a partnership is found affects its returns. The first demonstrate of localized transaction is that the time govern of a companys home affects intraday trading patterns in its stock. Second, firms in blizzard-struck cities retrieve a dramatic trading rule book drop comp bed to firms in other cities. Third, the Yom Kippur holiday dampens trading volume in companies identify in cities with high Judaic populations. Despite the strong single out of localized trading, cloudy conditions show up the firms military headquarters do not go out profitable trading opportunities.

We would same(p) to thank Robert Battalio, Stephen Brown (the editor), Shane Corwin, Paul Zarowin, an unidentified 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 have huge known that sunlight, or quite a lack of sunlight, influences great deals moods, thinking, and judgment. Re seemers in finance have utilise these findings in a bet for behavioral influences on stock prices. For example, Hirshleifer and Shumway (2003) and Saunders (1993) find that stock returns argon significantly lower on cloudy days than on sunny days. Their work appears to be the most direct demonstrate to date that stock prices ar not rational reflections of value, merely are instead influenced by investors emotional states.1 One...If you want to discharge a full essay, order it on our website: Orderessay

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