Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88738
Authors: 
Kaustia, Markku
Rantapuska, Elias
Year of Publication: 
2013
Series/Report no.: 
SAFE Working Paper Series 4
Abstract: 
We test whether investor mood affects trading with data on all stock market transactions in Finland, utilizing variation in daylight and local weather. We find some evidence that environmental mood variables (local weather, length of day, daylight saving and lunar phase) affect investors' direction of trade and volume. The effect magnitudes are roughly comparable to those of classical seasonals, such as the Monday effect. The statistical significance of the mood variables is weak in many cases, however. Only very little of the day-to-day variation in trading is collectively explained by all mood variables and calendar effects, but lower frequency variation seems connected to holiday seasons.
Subjects: 
mood
seasonal affective disorder (SAD)
weather
trading behavior
stock market
JEL: 
D03
G11
G12
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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