ISSN: 2222-6990
Open access
Rational investors will make a decision based on making choices that result in the optimal level of benefits or utility for an individual. The assumption of rational investor may be deemed rational as long as it can be logically explained. When the climate change are too extreme, it can affect the investor behaviour in decision making. The objective of this study is to examine the relationship between climate change variables and stock market returns in selected ASEAN countries spanning from 2004 to 2016 using Ordinary Least Square (OLS). The major weather factors studied include temperature and rainfall. Our empirical evidence suggested that temperature and rainfall are found to have no effect on stock returns in selected ASEAN countries. For further research, more weather variables can be added into the equation such as humidity and cloud cover. With these additional indicators, we can conclude both humidity and cloud cover can affect investors’ behavior hence impact stock returns in selected ASEAN countries. The findings are helpful to financial managers, investors and traders dealing with the ASEAN stock market.
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In-Text Citation: (Hosin & Isamail, 2022)
To Cite this Article: Hosin, H., & Isamail, M. Z. (2022). Climate Change and Stock Market Returns in Selected Asean Countries. International Journal of Academic Research in Business and Social Sciences, 12(1), 421–436.
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