Weather, Institutional Investors and Earnings News

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance

Topic: Weather, Institutional Investors and Earnings News

Speaker: Danling Jiang, Stony Brook University

Abstract: We examine how weather conditions near a firm’s major institutional investors affect stock market reactions to firms’ earnings announcements. We find that unpleasant weather experienced by institutional investors leads to higher earnings announcement premiums and more delayed market responses to earnings news. We interpret the evidence as weather- induced negative moods increasing required compensation for earnings uncertainty and reducing activity levels of institutional investors. The influence of institutional investors’ weather is stronger than that of New York City or firm headquarters weather. Additional cross-sectional evidence suggests that weather mainly influences the trading behavior of less sophisticated institutional investors.

Date: Wednesday, 14 August 2019
Time: 12.00 – 1.00 p.m.
Venue: University of Technology, Sydney
               Building 8, Room 08.002, Dr Chau Chak Wing Building
               Dr Chau Chak Wing Building
              14 - 28 Ultimo Road, Ultimo

Co-ordinator: Claire Liu  (Ph: +61 2 9514 7748)

Enquiries: Mala Kapahi (Ph: +61 2 9514 7777)

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UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.