We aim to advance our understanding of the adverse effects of extreme temperatures by examining the extent to which high temperatures affect stock market activity. We address this question by analyzing the trading volumes on the French stock market on days when the weather in Paris is excessively hot over the period 1995-2019. Our empirical analyses show that, on average, trading volumes fall significantly (between 4 percent and 10 percent) when maximum daily temperatures exceed 30°C (86°F). The observed negative association is remarkably robust to a battery of alternative analyses such as bin tests, event studies, and time-series regressions controlling for any seasonal effects and financial market conditions. From a theoretical perspective, this study contributes to the literature on behavioral finance by demonstrating the existence of a "hot weather" effect on financial markets. It also offers important managerial and public policy implications.

中文翻译：

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极端高温和股市活动

我们旨在通过检查高温对股市活动的影响程度来加深我们对极端温度不利影响的理解。我们通过分析 1995 年至 2019 年期间巴黎天气过热的日子里法国股票市场的交易量来解决这个问题。我们的实证分析表明，平均而言，当每日最高气温超过 30°C (86°F) 时，交易量会显着下降（在 4% 到 10% 之间）。观察到的负相关对于一系列替代分析（例如箱测试、事件研究和控制任何季节性影响和金融市场条件的时间序列回归）非常稳健。从理论的角度来看，本研究通过证明“行为金融学”的存在，为行为金融学的文献做出了贡献。