Banking on sunshine: Examining the effects of weather on the Philippine Stock Exchange

Date of Publication

2016

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Patricia Benito

Defense Panel Member

Alddon Christner Ang

Dulani Jayasuriya

Abstract/Summary

This study aims to analyze the relationship of mood-inducing weather variables on investors' behavior, in relation to the Philippine Stock Exchange index level. Prior literature in the past two decades proclaims that the weather-effect exists across different equity markets across the world. This study utilizes daily weather data from the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) testing it against daily closing index level from the Philippines Stock Exchange during the years 2006 to 2015 by employing a time series regression analysis. Proponents find the presence of the weather effect in the local setting, particularly rainfall and humidity, at the same time considering the effects of certain calendar anomalies and market factors. Thus concluding that the weather effect exists in the country, and investors' decision-making processes are subconsciously affected by psychological biases and mood changes caused by the immediate environment. To be best of the proponent's knowledge this research is the first to examine the prevalence of the weather effect in the Philippine setting.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU19482

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

215, 4 leaves ; 28 cm. + 1 computer disc ; 4 3/4 in.

Keywords

Stock exchanges--Philippines; Weather--Economic aspects--Philippines

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