The Relationship between Special Weather Events and Stock Market in Taiwan

• Main Authors: Chung-hsuan Sun, 孫崇軒
• Other Authors: Li-ju Chen
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/43969351129601628339

碩士 === 逢甲大學 === 經濟學系 === 102 === The weather plays a lot of roles in people’s life. In recent decades, extreme climate has happened more often than before, which impacts the economy fundamentally. In addition to the literature about discussing the effect of policy decisions on the economy, another line of literature attempts to find the factors influencing people’s economic behavior. This paper investigates the effect of typhoon on the stock market with the inclusion of financial factors and month dummies. The results show that typhoon yields a negative effect on the stock market, which may suggest the investment opportunity during the period when there comes a typhoon. The analysis taking typhoon path into account shows that typhoon path yields impact on Taiwan stock market. The greater loss, the worse the performance of Taiwan stock market. However, typhoon holidays will benefit the service industry and positively impact the stock market.