Turning the heat on financial decisions: Examining the role temperature plays in the incidence of bias in a time-limited financial market

High‐Temperature Exposure and Land Transactions in China

“…Guo et al, 2017), reduce labor productivity (Bendak et al, 2022;X. Chen & Yang, 2019;Kalkuhl & Wenz, 2020;Yi & Chan, 2017), affect people's behavioral choices (Liao & Junco, 2022;Melnikov et al, 2022), influence income and social welfare (Deryugina & Hsiang, 2014;Hu & Li, 2019), and reduce the quality of decision making (Costa Sperb et al, 2022). Scholars have paid less attention to the investment losses of investors in the asset market.…”

“…Sinha and Bagchi (2019) found that ambient temperature affects consumers' willingness to pay in different types of purchasing environment, and a significantly positive correlation exists between temperature and aggressiveness in the purchase process. Additionally, people have also focused on the influence of high temperature on financial market decisions (Costa Sperb et al, 2022). Kathiravan et al (2021) found that temperature has a significant effect on the returns of the Shanghai Stock Exchange, Hang Seng Index, and BSE SENSEX.…”

“…Different populations tolerate heat differently, leading to confounding factors in study results (Moore et al., 2019; Parks et al., 2020). Third, most studies have found that heat waves can increase mortality (G. B. Anderson & Bell, 2011; Bouchama, 2004; Y. Guo et al., 2017), reduce labor productivity (Bendak et al., 2022; X. Chen & Yang, 2019; Kalkuhl & Wenz, 2020; Yi & Chan, 2017), affect people's behavioral choices (Liao & Junco, 2022; Melnikov et al., 2022), influence income and social welfare (Deryugina & Hsiang, 2014; Hu & Li, 2019), and reduce the quality of decision making (Costa Sperb et al., 2022). Scholars have paid less attention to the investment losses of investors in the asset market.…”