The Impact of Weather on Investors’ Trading Behavior: Evidence from the Taiwan Futures Exchange

• Main Authors: Yi-Wei Chuang, 莊逸偉
• Other Authors: Pei-Shih Weng
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/fx45yt

博士 === 國立中山大學 === 財務管理學系研究所 === 106 === In this study, we investigate the relationship between weather-induced moods and index futures trading behaviors. We find that weather variables exclusively influence the order aggressiveness of domestic investors, particularly for individual traders. Furthermore, we show that weather-induced moods influence trading behaviors, which in turn affect subsequent trading performance. We also find that a significant relationship between individual investor purchases relative to sales and weather variables. These results are consistent with the concept, suggested in psychology scholarship, that pleasant weather conditions produce positive human sentiments.