The impact of weather-induced moods on M&A performance

Abongeh Tunyi*, Michael Machokoto

*Corresponding author for this work

Research output: Contribution to JournalArticlepeer-review


Unpleasant weather induces negative moods and, consequently, increases managerial risk aversion. We conjecture that this weather-induced risk aversion leads to better M&A performance by constraining managerial hubris, over-confidence and over-payment for targets. Using a large UK sample, we document robust and significant heterogeneity in M&A performance conditional on the weather. Specifically, UK acquirers earn significant positive CARs from deals announced in unpleasant weather but negative CARs otherwise.
Original languageEnglish
Article number110011
Number of pages19
JournalEconomics Letters
Early online date24 Jul 2021
Publication statusPublished - 1 Oct 2021


  • Economics and Econometrics
  • Finance


Dive into the research topics of 'The impact of weather-induced moods on M&A performance'. Together they form a unique fingerprint.

Cite this