We are indebted to the National Institute of Water and Atmospheric Research Ltd. for the provision of the weather data and to the New Zealand Exchange for the provision of the stock index data. The present paper has benefited from the comments of two anonymous reviewers of the Journal. The authors alone are responsible for any errors in the present paper.
Influence of weather on New Zealand financial securities
Article first published online: 24 JUN 2005
Accounting & Finance
Volume 45, Issue 3, pages 415–437, November 2005
How to Cite
Keef, S. P. and Roush, M. L. (2005), Influence of weather on New Zealand financial securities. Accounting & Finance, 45: 415–437. doi: 10.1111/j.1467-629x.2004.00135.x
- Issue published online: 24 JUN 2005
- Article first published online: 24 JUN 2005
- Received 6 August 2003; accepted 11 June 2004 by Robert Faff (Editor).
- Bank bills;
- Government bonds;
- Stock indices;
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.