| As early as a hundred years ago,Nelson pointed out that securities brokers observed that psychological factors are very important for stock trading.Experiments by Johnson and Tversky[55]proved the hypothesis of emotional conduction.Traditional financial theory believes that the stock market is rational and reflects only the economic information related to asset pricing.Investors only need to pay attention to the results when making decisions,and assign various weights and costs to different weights and choose the optimal risk from them.-Revenue combination.This is also the basis of portfolio investment theory and capital asset pricing theory.However,Lucey and Dowling[35-37]believe that there is a gap between this result-oriented view and reality because it does not consider the psychological effects of investors such as emotions on the decision-making.In recent years,with the development of behavioral finance,scholars have found that psychological factors have a significant impact on people's trading decisions and trading behaviors in the financial markets.An important source of psychological factors affecting investors is the weather.Over the past decade,scholars have gradually established and improved“weather financial theory”by systematically studying the relationship between investor sentiment and weather.The scholars of various countries and regions conducted research on the weather effect of the stock market in their own country,and reached different conclusions.This paper uses multiple linear regression and trading strategy to study the influence of weather on intraday trading activities of order-driven stock market.The analysis shows that many weather indicators including cloud cover have little effect on pricing of stocks.On the other hand,the fact that weather have heavy influences on turnover and volatility supports the view that feelings influencing investor decision-making does not necessarily equate to feelings having an effect on setting equity prices. |
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