Influence of weather on New Zealand financial securities
Authors: Keef, Stephen P.; Roush, Melvin L.
Source: Accounting and Finance, Volume 45, Number 3, November 2005 , pp. 415-437(23)
The present study examines the influence of four independent facets of the local weather in the two major cities of New Zealand on the interest rates of bank bills and government bonds and the returns of stock indices. Factor analysis of the local weather variables generates four independent facets measuring temperature, sunshine, wind in Auckland and wind in Wellington. The analysis is based on a repeated measures design. Two results, which are consistent within a given financial security, are observed. The prices of bank bills are positively influenced by the level of the sunshine factor. The prices of stock indices are negatively influenced by the level of the Wellington wind factor. The influence of the level of sunshine on the returns of stock indices is susceptible to two interpretations.
Document Type: Research Article
Affiliations: Faculty of Commerce and Administration, Victoria University of Wellington, Wellington, New Zealand
Publication date: November 1, 2005