Version 1
: Received: 16 September 2020 / Approved: 17 September 2020 / Online: 17 September 2020 (08:24:46 CEST)
How to cite:
Atuahene, S.; Yusheng, K.; Bentum-Micah, G. Stock Returns and The Weather Effect: the Case of Ghana. Preprints2020, 2020090388. https://doi.org/10.20944/preprints202009.0388.v1
Atuahene, S.; Yusheng, K.; Bentum-Micah, G. Stock Returns and The Weather Effect: the Case of Ghana. Preprints 2020, 2020090388. https://doi.org/10.20944/preprints202009.0388.v1
Atuahene, S.; Yusheng, K.; Bentum-Micah, G. Stock Returns and The Weather Effect: the Case of Ghana. Preprints2020, 2020090388. https://doi.org/10.20944/preprints202009.0388.v1
APA Style
Atuahene, S., Yusheng, K., & Bentum-Micah, G. (2020). Stock Returns and The Weather Effect: the Case of Ghana. Preprints. https://doi.org/10.20944/preprints202009.0388.v1
Chicago/Turabian Style
Atuahene, S., Kong Yusheng and Geoffrey Bentum-Micah. 2020 "Stock Returns and The Weather Effect: the Case of Ghana" Preprints. https://doi.org/10.20944/preprints202009.0388.v1
Abstract
In every economy, Stock markets are part of the key elements the build it up. A few decades ago, there has been a significant change in Ghana stock market returns (GSE). Our study examines the statistical and economic significance of investor sentiment, based on weather conditions/changes, on stock market returns. OLS models, assisted by unit root tests were employed in analyzing the data obtained from the Ghana stock exchange platform from 2000 to 2017. From our literature review, we discovered that investors’ perceptions play a central role in finalizing the direction of stock market returns. Regarding our empirical results, we tested whether weather variations influence the investment decisions of investors; we discovered that temperature and cloud cover significantly influences stock market returns. This is because of mood changes is associated with weather conditions variations. However, sunshine per our regression coefficient shows a statistically insignificant impact on investors’ investment choices. Precipitation to a large extend influence stock market activities further affecting its results negatively as our regression results depicted. We concluded stock brokerage firms, companies, and investors (foreign/local) must incorporate weather changes/effects when strategizing about their investment outcomes.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
