Does tropical weather condition affect investor behaviour? Case of indonesian stock market

Rayenda Khresna Brahmana, Chee Wooi Hooy, Zamri Ahmad

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)


Several studies have been employed to discuss the link between weather and market returns. However, our research is different in three ways. We employed in tropical country, added extreme condition, and covering the entire Indonesia weather proportionally. This paper revisits the weather-induced moods effect on economic behaviour and found that weather condition, namely temperature level, and clouds cover has no influences on market returns and trading volume over period from 1999 to 2012. This research does not find any evidence of a link between temperature and market return because the tropical situation in Indonesia. However, cloud cover has an effect on the market; implying a role of affection bias in investor behaviour.

Original languageEnglish
Pages (from-to)188-202
Number of pages15
JournalGlobal Business and Economics Review
Issue number2
Publication statusPublished - 10 Apr 2015
Externally publishedYes

Bibliographical note

Publisher Copyright:
Copyright © 2015 Inderscience Enterprises Ltd.


  • tropical weather
  • Indonesia
  • stock markets
  • trading volume
  • market returns
  • investor behaviour
  • temperature level
  • cloud cover
  • affection bias

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics


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