Annals of Operations Research https://doi.org/10.1007/s10479-019-03335-7 S.I. : RECENT DEVELOPMENTS IN FINANCIAL MODELING AND RISK MANAGEMENT Investor behavior and weather factors: evidences from Asian region Chinnadurai Kathiravan 1 · Murugesan Selvam 2 · Sankaran Venkateswar 3 · S. Balakrishnan 4 © Springer Science+Business Media, LLC, part of Springer Nature 2019 Abstract The behavioral finance studies generally analyse the relationship between investor moods, caused by weather factors and indices returns via investor moods. The present study exam- ines the relationship between three weather factors (temperature, humidity, and wind speed) in capital cities (namely Beijing for China, Tokyo for Japan, Victoria City for Hong Kong, New Delhi for India and Singapore for Singapore), and sample stock indices (Shanghai Stock Exchange from China, Nikkei 225 from Japan, Hang Seng Index from Hong Kong, BSE Sen- sex from India and Singapore Exchange Limited from Singapore) of selected Asian countries. This study applied statistical tools like Descriptive Statistics, ADF Test, VAR Module and adopted the Granger Causality Approach. The found that among the three weather variables, temperature recorded a statistically significant influence on the returns of Shanghai Stock Exchange (Unidirectional Linkage), HANG SENG Index (Unidirectional Linkage) and also BSE Sensex (Bi-Directional Linkage). Wind speed recorded Bi-Directional Linkages with HANG SENG Index. The findings of this study could help the investors in making better investment management decisions. It is found that there are valuable opportunities to inter- national investors for diversifying their stocks. The study does contribute to the behavioral finance literature. Keywords Risk · Mood · Behavioral finance · Granger causality JEL Classification G10 · G11 · G12 · G14 · G02 B Chinnadurai Kathiravan kathirnba@bdu.ac.in 1 Department of Commerce and Financial studies, Bharathidasan University, Tiruchirappalli, India 2 Faculty of Management, Department of Commerce and Financial studies, Bharathidasan University, Tiruchirappalli, India 3 School of Economics and Business Administration, Saint Mary’s College of California, Moraga, CA 94575, USA 4 Department of International Business Administration, College of Applied Sciences, Nizwa, Sultanate of Oman 123