Extreme Temperatures and Firm-Level Stock Returns.
Int J Environ Res Public Health
; 18(4)2021 02 19.
Article
em En
| MEDLINE
| ID: mdl-33669558
ABSTRACT
By linking stock returns with weather conditions from 2007 to 2019 in China, we study how firm-level stock returns react to extreme temperatures. Based on a multivariate ordinary least squares regression model with fixed effects, empirical results show that firm-level stock returns decrease with exposure to extreme temperatures. We further explore the heterogeneity in the temperature-return relation to enrich our understanding of the economic mechanism behind it. The impact of extreme temperatures on abnormal stock returns is more pronounced in smaller, younger, more volatile, less profitable firms and firms with more intangible assets. The results indicate that the investor mood likely plays a role in the extreme temperature effect. The impact of extreme temperatures holds after addressing a series of concerns. Overall, our paper provides additional firm-level evidence on the environment-induced mood effect in the stock market.
Palavras-chave
Texto completo:
1
Coleções:
01-internacional
Base de dados:
MEDLINE
Assunto principal:
Temperatura Alta
/
Investimentos em Saúde
País/Região como assunto:
Asia
Idioma:
En
Revista:
Int J Environ Res Public Health
Ano de publicação:
2021
Tipo de documento:
Article
País de afiliação:
China