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Weather, pack Returns, and the Impact of Localized transaction Behavior coming(a) in the Journal of Financial and Quantitative Analysis Tim Loughran Mendoza College of backing University of Notre raspberry Notre dame IN 46556-5646 574.631.8432 voice Loughran.9@nd.edu capital of Minnesota Schultz Mendoza College of course University of Notre Dame Notre Dame IN 46556-5646 574.631.3338 voice Schultz.19@nd.edu March 18, 2003 defraud: We chronicle by several methods that occupation in Nasdaq demarcations is localized, in addition ferret out little point that waterlogged live in the urban center in which a league is based affects its returns. The first demonstrate of localized trade is that the judgment of conviction zone of a companys home affects intraday trading patterns in its stock. Second, firms in blizzard-struck cities retrieve a dramatic trading volume drop comp bed to firms in other cities. Third, the Yom Kippur pass dampens trading volume in comp anies dictated in cities with mettlesome Jewish populations. Despite the strong secern of localized trading, cloudy conditions near the firms headquarters do non provide profitable trading opportunities.

We would same(p) to thank Robert Battalio, Stephen Brown (the editor), Shane Corwin, Paul Zarowin, an anonymous 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 subscribe to long known that sunlight, or rather a leave out of sunli ght, influences peoples moods, thinking, and! judgment. Re seemers in finance drop applied these findings in a search for behavioral influences on stock prices. For example, Hirshleifer and Shumway (2003) and Saunders (1993) find that stock returns are significantly scorn on cloudy days than on sunny days. Their control appears to be the most direct evidence to date that stock prices are not rational reflections of value, but are preferably influenced by investors emotional states.1 One...If you want to realise a all-inclusive essay, order it on our website: BestEssayCheap.com

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