Abstract
Among determinants of wine spot prices, the weather is one of the most influential factors. Previous studies have confirmed the spot price of fine wine is correlated with some weather variables, such as the air temperature. Also, much research illustrates some weather conditions are related to the stock market. In this paper, we focus on the correlation between some weather variables as main determinants of wine prices and the stock returns of wine companies which are listed on NYSE. We have several conclusions: (1) return of equity of wine companies has a negative correlation with the level of precipitation; (2) results are more significant when controlling years; (3) the level of precipitation has greater negative impact on returns during planting season of grapes; (4) the odds of having positive returns in planting season is lower than non-planting season.
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