ANALYSIS OF WEATHER ON STOCK RETURN

Abstract

This study resulted in the finding that the weather had a significant effect on stock returns. An investor
is influenced by his own mood in making a decision to invest, when the hot weather, an investor has a
positive mood and eager to make an investment. Positive mood is able to increase the desire of
investors to make investments that increase the demand for stocks and stock prices, then the stock
return also increased significantly. Conversely, when the rainy or cold weather, an investor has a more
negative mood and is not eager to make an investment that is even more likely to sell its shares, so the
stock price falls and then the stock return also decreases.