The Effects of Sunshine-Induced Mood on Bank lending Decisions and Default Risk: An Option-Pricing Model

機構典藏 > College of Business and Management > Graduate Institute & Department of International Business > Journal Article > Item 987654321/50696

Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/50696

Title:	The Effects of Sunshine-Induced Mood on Bank lending Decisions and Default Risk: An Option-Pricing Model
Authors:	林志娟;Lin, Jyh-Jiuan;林志鴻;Lin, Jyh-horng;周繼儒;Jou, Rosemary
Contributors:	淡江大學統計學系;淡江大學國際貿易學系;淡江大學管理科學學系
Keywords:	default risk;fat tails;sunny weather;upbeat mood
Date:	2009-06
Issue Date:	2010-08-10 15:14:27 (UTC+8)
Publisher:	Athens: World Scientific and Engineering Academy and Society (WSEAS)
Abstract:	Even though psychological evidence and casual intuition predict that weather may lead to changes in equity returns, little attention has been paid to these changes through asset pricing mechanisms. This paper fills this gap by examining the effects of sunny weather enhanced upbeat mood on bank spread management and default risk. An option-based model of bank spread behavior is developed to study these closely related phenomena. The model is designed to indicate the fat tails of loan repayments caused by mood effects induced by good weather. With the good mood influences on bank lending, this paper shows that sunshine is negatively correlated with the default risk in equity returns.
Relation:	WSEAS Transactions on Information Science and Applications 6(6), pp.946-955
Appears in Collections:	[Graduate Institute & Department of International Business] Journal Article

Files in This Item:

File	Description	Size	Format
1790-0832_6(6)p946-955.pdf		417Kb	Adobe PDF	34	View/Open
index.html		0Kb	HTML	177	View/Open