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dc.contributor.advisorRaatikainen, Juhani
dc.contributor.authorMarbehant, Arnaud
dc.date.accessioned2020-12-04T06:53:52Z
dc.date.available2020-12-04T06:53:52Z
dc.date.issued2020
dc.identifier.urihttps://jyx.jyu.fi/handle/123456789/72979
dc.description.abstractA connection between weather conditions and the mood of individuals has been established by numerous psychological studies. Moreover, mood seems to play a role in people’s decision-making processes and thus weather conditions may have an indirect influence on stock market returns. In our study based on regression analysis, we investigate the relationship between eight weather variables (precipitation, snow depth, average temperature, maximum temperature, minimum temperature, solar radiation, cloud cover and day length) and the returns of the OMX Helsinki Price Index from January 2000 to December 2019. In addition, we test whether the economic environment plays a role in the influence of weather on stock returns as investors might adapt their behavior depending on the prevailing economic conditions. Therefore, we break the 20-year period into four shorter time periods coinciding with the time before the subprime crisis, during the subprime crisis, after the subprime crisis and during the negative interest rate period. Furthermore, in addition to analyzing the absolute daily values of the weather variables, we also compare the daily values with an average of the preceding week based on the idea that for instance a sunny day is most likely to lift people’s mood after a week of bad weather. We find no conclusive answer as to whether the returns of the OMX Helsinki Price Index are influenced by changes in daily weather in Helsinki. Although our results show negative correlation between solar radiation and stock returns, we conclude that the reason for this is that stocks tend to go down in summer and thus there is no causal relation between high levels of sunshine and decreased returns. Our most promising findings are the negative correlation of precipitation and cloudiness and the positive correlation of snow depth. Even though we find some statistically significant correlation, the coefficients are extremely small, indicating that the possible economic impact of these weather variables on the OMX Helsinki index is very mild at best. In conclusion, our results do not confirm any significant impact of local weather on the Helsinki Stock Exchange, but they do not provide conclusive evidence in favor of the null hypothesis either. It is possible that improved methodology or different weather data would yield more conclusive results.en
dc.format.extent72
dc.format.mimetypeapplication/pdf
dc.language.isoen
dc.subject.otherbehavioral finance
dc.subject.otherstock market
dc.subject.otherstock returns
dc.titleThe influence of weather conditions on the Helsinki stock exchange
dc.identifier.urnURN:NBN:fi:jyu-202012046929
dc.type.ontasotPro gradu -tutkielmafi
dc.type.ontasotMaster’s thesisen
dc.contributor.tiedekuntaKauppakorkeakoulufi
dc.contributor.tiedekuntaSchool of Business and Economicsen
dc.contributor.laitosTaloustieteetfi
dc.contributor.laitosBusiness and Economicsen
dc.contributor.yliopistoJyväskylän yliopistofi
dc.contributor.yliopistoUniversity of Jyväskyläen
dc.contributor.oppiaineTaloustiedefi
dc.contributor.oppiaineEconomicsen
dc.rights.copyrightJulkaisu on tekijänoikeussäännösten alainen. Teosta voi lukea ja tulostaa henkilökohtaista käyttöä varten. Käyttö kaupallisiin tarkoituksiin on kielletty.fi
dc.rights.copyrightThis publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.en
dc.type.publicationmasterThesis
dc.contributor.oppiainekoodi2041
dc.subject.ysosää
dc.subject.ysomieliala
dc.subject.ysoarvopaperimarkkinat
dc.subject.ysopäivänpituus
dc.subject.ysopörssit
dc.subject.ysolämpötila
dc.subject.ysoweather
dc.subject.ysomood
dc.subject.ysosecurity market
dc.subject.ysoday length
dc.subject.ysostock exchanges
dc.subject.ysotemperature
dc.format.contentfulltext
dc.type.okmG2


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