Effect of Ap-Index of Geomagnetic Activity on S&P 500 Stock Market Return
Geomagnetic activity with global influence is an essential object of space weather research and is a significant link in the section of the solar wind-magnetospheric coupling process. Research so far provides strong evidence that geomagnetic activity affects stock investment decisions by influencing...
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| Format: | Article |
| Language: | English |
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Wiley
2019-01-01
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| Series: | Advances in Astronomy |
| Online Access: | http://dx.doi.org/10.1155/2019/2748062 |
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| _version_ | 1832552080779247616 |
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| author | Lifang Peng Ning Li Jingwen Pan |
| author_facet | Lifang Peng Ning Li Jingwen Pan |
| author_sort | Lifang Peng |
| collection | DOAJ |
| description | Geomagnetic activity with global influence is an essential object of space weather research and is a significant link in the section of the solar wind-magnetospheric coupling process. Research so far provides strong evidence that geomagnetic activity affects stock investment decisions by influencing human health, mood, and human behaviours. Therefore, this research investigates the empirical association between geomagnetic activity and stock market return. Overall, we find that geomagnetic activity exerts a negative influence on the return of the US stock market. Further, market liquidity effectively magnifies the effect of geomagnetic activity. Inconsistent with previous literature, this effect is not mainly caused by the semiannual variation of geomagnetic activity. Our research contributes to the introduction of geomagnetic indices to financial economics studies on the impact of geomagnetic activity influence on stock market return. |
| format | Article |
| id | doaj-art-596a6fbfac11455282f4330ad5859134 |
| institution | Kabale University |
| issn | 1687-7969 1687-7977 |
| language | English |
| publishDate | 2019-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Advances in Astronomy |
| spelling | doaj-art-596a6fbfac11455282f4330ad58591342025-02-03T05:59:37ZengWileyAdvances in Astronomy1687-79691687-79772019-01-01201910.1155/2019/27480622748062Effect of Ap-Index of Geomagnetic Activity on S&P 500 Stock Market ReturnLifang Peng0Ning Li1Jingwen Pan2School of Management, Xiamen University, Xiamen, ChinaSchool of Management, Xiamen University, Xiamen, ChinaSchool of Management, Xiamen University, Xiamen, ChinaGeomagnetic activity with global influence is an essential object of space weather research and is a significant link in the section of the solar wind-magnetospheric coupling process. Research so far provides strong evidence that geomagnetic activity affects stock investment decisions by influencing human health, mood, and human behaviours. Therefore, this research investigates the empirical association between geomagnetic activity and stock market return. Overall, we find that geomagnetic activity exerts a negative influence on the return of the US stock market. Further, market liquidity effectively magnifies the effect of geomagnetic activity. Inconsistent with previous literature, this effect is not mainly caused by the semiannual variation of geomagnetic activity. Our research contributes to the introduction of geomagnetic indices to financial economics studies on the impact of geomagnetic activity influence on stock market return.http://dx.doi.org/10.1155/2019/2748062 |
| spellingShingle | Lifang Peng Ning Li Jingwen Pan Effect of Ap-Index of Geomagnetic Activity on S&P 500 Stock Market Return Advances in Astronomy |
| title | Effect of Ap-Index of Geomagnetic Activity on S&P 500 Stock Market Return |
| title_full | Effect of Ap-Index of Geomagnetic Activity on S&P 500 Stock Market Return |
| title_fullStr | Effect of Ap-Index of Geomagnetic Activity on S&P 500 Stock Market Return |
| title_full_unstemmed | Effect of Ap-Index of Geomagnetic Activity on S&P 500 Stock Market Return |
| title_short | Effect of Ap-Index of Geomagnetic Activity on S&P 500 Stock Market Return |
| title_sort | effect of ap index of geomagnetic activity on s p 500 stock market return |
| url | http://dx.doi.org/10.1155/2019/2748062 |
| work_keys_str_mv | AT lifangpeng effectofapindexofgeomagneticactivityonsp500stockmarketreturn AT ningli effectofapindexofgeomagneticactivityonsp500stockmarketreturn AT jingwenpan effectofapindexofgeomagneticactivityonsp500stockmarketreturn |