Weather, Institutional Investors, and Earnings News

47 Pages Posted: 2 Apr 2021 Last revised: 14 Sep 2021

See all articles by Danling Jiang

Danling Jiang

College of Business, Stony Brook University

Dylan Norris

Troy University

Lin Sun

George Mason University

Date Written: June 17, 2021


We examine how pre-announcement weather conditions near a firm’s major institutional investors affect stock market reactions to firms’ earnings announcements. We find that unpleasant weather experienced by institutional investors leads to more delayed market responses to subsequent earnings news. Moreover, unpleasant weather of institutional investors is associated with higher earnings announcement premia. The influence of institutional investors’ weather is robust after controlling for New York City weather, extreme weather conditions, and firm local weather. Additional cross-sectional evidence suggests that the strength of this weather effect is related to institutional investors’ trading behavior.

Keywords: Weather Condition; Institutional Investor; Earnings Announcement; Post-earnings-announcement Drift

JEL Classification: G02, G14, G23, M41

Suggested Citation

Jiang, Danling and Norris, Dylan and Sun, Lin, Weather, Institutional Investors, and Earnings News (June 17, 2021). Journal of Corporate Finance, Volume 69, August 2021, 101990, Available at SSRN: or

Danling Jiang (Contact Author)

College of Business, Stony Brook University ( email )

306 Harriman Hall
Stony Brook, NY 11794
United States


Dylan Norris

Troy University ( email )

Troy, AL 36082
United States

Lin Sun

George Mason University ( email )

4400 University Dr
Fairfax, VA 22030
United States


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