Weather influences our daily lives and choices and has an enormous impact on cooperate revenues and earnings. Weather … derivatives differ from most derivatives in that the underlying weather cannot be traded and their market is relatively illiquid …. The weather derivative market is therefore incomplete. This paper implements a pricing methodology for weather derivatives …

-, BE/ME-, and momentum-related factors are extremely sensitive to these extreme weather events. Long and short legs react …

This study quantifies firm-specific operating exposure to cumulative unexpected weather variations and examines how it … seasonality hypothesis posits that operating weather exposure reduces earnings seasonality, thereby increasing forecast dispersion … and reducing forecast accuracy. The increase in short-term earnings persistence hypothesis posits that operating weather …

We investigate the uncertainty dynamics surrounding extreme weather events through the lens of option and stock markets …

This study quantifies firm-specific operating exposure to cumulative unexpected weather variations and examines how it … seasonality hypothesis posits that operating weather exposure reduces earnings seasonality, thereby increasing forecast dispersion … and reducing forecast accuracy. The increase in short-term earnings persistence hypothesis posits that operating weather …

This paper examines the real effects of weather on firm performance, using temperature as our proxy for weather. The …-specific. Therefore, to test this relation we adapt a measure of firm-quarter-specific weather sensitivity to calculate the predicted … effect of weather on quarterly firm sales (Weather Impact). We first document that future quarterly sales performance is …

Forecasting based pricing of Weather Derivatives (WDs) is a new approach in valuation of contingent claims on … nontradable underlyings. Standard techniques are based on historical weather data. Forward-looking information such as … each location) that allows the incorporation of meteorological forecasts in the framework of WD pricing. We study weather …