Do Weather Variables Affect Stock Companies in the Same Way as Fundamental Variables? GARCH-Based Modeling and a Sustainable Finance Perspective on the Case of Banks Listed on the Warsaw Stock Exchange
• Researchers analyzed how weather variables and physical climate risks affected the stock returns and trading volumes of 13 major banks on the Warsaw Stock Exchange from 2020 to 2025. • The study used GARCH-based modeling to determine if weather provides explanatory information beyond standard firm-specific and market-wide financial variables. • The findings help investors and regulators understand how climate-related anomalies influence market sentiment and decision-making within the Central and Eastern European banking industry.
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