Sunday, August 24, 2025
Science
No Result
View All Result
  • Login
  • HOME
  • SCIENCE NEWS
  • CONTACT US
  • HOME
  • SCIENCE NEWS
  • CONTACT US
No Result
View All Result
Scienmag
No Result
View All Result
Home Science News Bussines

Sunshine spurs spending: Investors bet big on sunny days

June 4, 2024
in Bussines
Reading Time: 3 mins read
0
67
SHARES
606
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT
ADVERTISEMENT

It’s often said we can’t control the weather. But what if the weather controls how and when we invest our money? More specifically, what if the skies control how much we’re willing to gamble in the stock market?

It’s often said we can’t control the weather. But what if the weather controls how and when we invest our money? More specifically, what if the skies control how much we’re willing to gamble in the stock market?

New research by the University of South Australia has found a connection between pleasant weather conditions and higher investment in lottery-like stocks.

Lottery-like stocks are cheap compared to other stocks and, like lottery tickets, they can be seen as an opportunity to make a substantial gain. However, the chance of a higher return is minimal, and it’s therefore considered a high-risk investment. A study by UniSA finance researchers discovered that when the weather is sunny and skies are blue, investors are more likely to engage in these types of investments.

Dr Reza Bradrania, Senior Lecturer of Finance and member of UniSA’s Centre for Markets, Values and Inclusion, says studies in psychology have shown that weather has a significant effect on human moods and behaviour. It can explain about 40% of daily variation in moods and sunshine in particular can have a large impact on how we feel.

“Since being in a good mood spurs people to take more risks, we were curious to see if weather, as an important factor that impacts human moods, relates to demand for lottery-like stocks which are highly risky and have lottery features like casino or lotto products,” Dr Bradrania says.

“The idea is that investors who are in a good mood because of sunny weather tend to have more optimistic expectations or beliefs about the future payoff of lottery stocks. This investigation was important as it has implications on how weather can influence investors’ judgements and choices and in particular impact their financial decisions.”

“To our knowledge this is the first study of its kind to investigate how weather plays a role in our investment decisions and in particular the demand for and the performance of lottery-like stocks which have implications for financial markets.”

Dr Bradrania and PhD student Ya Gao gathered 36 years’ worth of weather data including hourly sky cloud cover, wind speed rate, rain depth and air temperature from major weather stations across US cities. Price data of common stocks from over this period (1983 to 2019) was also examined.

”We found that on days with pleasant weather conditions, investors were more likely to be risk-taking and optimistic and invest more in lottery-like stocks, which further results in high demand and higher price for these stocks. However, their price is adjusted later, which resulted in significant loss,” Dr Bradrania says.

“Overoptimism is associated with overconfidence in many cases and investors who are overconfident tend to trade lottery-like stocks more. The research suggests weather relates to gambling preference and influences our judgment and choices. It also provides some guidance on investment decisions depending on weather conditions.”

END.

…………………………………………………………………………

Media contact: Melissa Keogh, Communications Officer, UniSA
M: +61 403 659 154 E: Melissa.Keogh@unisa.edu.au

Researcher contact: Dr Reza Bradrania, Senior Lecturer of Finance, UniSA,
E: Reza.Bradrania@unisa.edu.a



Journal

Journal of Behavioral and Experimental Finance

DOI

10.1016/j.jbef.2024.100910

Subject of Research

People

Article Title

Lottery demand, weather and the cross-section of stock returns

Article Publication Date

7-Mar-2024

Share27Tweet17
Previous Post

Facial thermal imaging + AI accurately predict presence of coronary artery disease

Next Post

Increased risk of homelessness for youths growing up in foster homes

Related Posts

Bussines

Journal of Applied Sports Sciences Partners with ARPHA Platform to Advance Open Access Publishing in Sports Science

August 22, 2025
blank
Bussines

Building Resilience on Digital Highways: New Insights into Network Infrastructure Boosting Enterprise Performance

August 21, 2025
blank
Bussines

Regenerative Agriculture Emerges as a Breakthrough Method for Ecological Farming and Soil Restoration

August 21, 2025
blank
Bussines

Nostalgia Drives Value in Company Acquisitions, New Research Shows

August 20, 2025
blank
Bussines

New Study Presents Strategies for Sustaining Nonprofit Theaters

August 20, 2025
blank
Bussines

UVA Appoints Paul Cherukuri as Institution’s Inaugural Chief Innovation Officer

August 20, 2025
Next Post

Increased risk of homelessness for youths growing up in foster homes

  • Mothers who receive childcare support from maternal grandparents show more parental warmth, finds NTU Singapore study

    Mothers who receive childcare support from maternal grandparents show more parental warmth, finds NTU Singapore study

    27537 shares
    Share 11012 Tweet 6882
  • University of Seville Breaks 120-Year-Old Mystery, Revises a Key Einstein Concept

    952 shares
    Share 381 Tweet 238
  • Bee body mass, pathogens and local climate influence heat tolerance

    641 shares
    Share 256 Tweet 160
  • Researchers record first-ever images and data of a shark experiencing a boat strike

    508 shares
    Share 203 Tweet 127
  • Warm seawater speeding up melting of ‘Doomsday Glacier,’ scientists warn

    311 shares
    Share 124 Tweet 78
Science

Embark on a thrilling journey of discovery with Scienmag.com—your ultimate source for cutting-edge breakthroughs. Immerse yourself in a world where curiosity knows no limits and tomorrow’s possibilities become today’s reality!

RECENT NEWS

  • Exploring Om Chanting’s Healing Effects on Mental Health
  • Creating the Pediatric Weight Questionnaire for Youth Obesity
  • Exploring Tadpole Buccopharyngeal Morphology in Sphaenorhynchini
  • COVID-19’s Lasting Impact on Young Adults’ Mental Health

Categories

  • Agriculture
  • Anthropology
  • Archaeology
  • Athmospheric
  • Biology
  • Bussines
  • Cancer
  • Chemistry
  • Climate
  • Earth Science
  • Marine
  • Mathematics
  • Medicine
  • Pediatry
  • Policy
  • Psychology & Psychiatry
  • Science Education
  • Social Science
  • Space
  • Technology and Engineering

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 4,859 other subscribers

© 2025 Scienmag - Science Magazine

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • HOME
  • SCIENCE NEWS
  • CONTACT US

© 2025 Scienmag - Science Magazine

Discover more from Science

Subscribe now to keep reading and get access to the full archive.

Continue reading