Superstition and financial decision making
In Chinese culture, certain digits are lucky and others unlucky. We test how such numerological superstition affects financial decision in the China initial public offering (IPO) market. We find that the frequency of lucky numerical stock listing codes exceeds what would be expected by chance. Also...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Journal Article |
| Language: | English |
| Published: |
2019
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| Online Access: | https://hdl.handle.net/10356/100614 http://hdl.handle.net/10220/48552 |
| _version_ | 1811697512233304064 |
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| author | Hirshleifer, David Jian, Ming Zhang, Huai |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Hirshleifer, David Jian, Ming Zhang, Huai |
| author_sort | Hirshleifer, David |
| collection | NTU |
| description | In Chinese culture, certain digits are lucky and others unlucky. We test how such numerological superstition affects financial decision in the China initial public offering (IPO) market. We find that the frequency of lucky numerical stock listing codes exceeds what would be expected by chance. Also consistent with superstition effects, newly listed firms with lucky listing codes experience inferior post-IPO abnormal returns. Further tests suggest that our conclusions are not driven by endogeneity. |
| first_indexed | 2024-10-01T07:56:26Z |
| format | Journal Article |
| id | ntu-10356/100614 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T07:56:26Z |
| publishDate | 2019 |
| record_format | dspace |
| spelling | ntu-10356/1006142023-05-19T06:44:41Z Superstition and financial decision making Hirshleifer, David Jian, Ming Zhang, Huai Nanyang Business School DRNTU::Business::General Asset Pricing Information And Market Efficiency In Chinese culture, certain digits are lucky and others unlucky. We test how such numerological superstition affects financial decision in the China initial public offering (IPO) market. We find that the frequency of lucky numerical stock listing codes exceeds what would be expected by chance. Also consistent with superstition effects, newly listed firms with lucky listing codes experience inferior post-IPO abnormal returns. Further tests suggest that our conclusions are not driven by endogeneity. MOE (Min. of Education, S’pore) Accepted version 2019-06-06T02:24:57Z 2019-12-06T20:25:24Z 2019-06-06T02:24:57Z 2019-12-06T20:25:24Z 2016 Journal Article Hirshleifer, D., Jian, M., & Zhang, H. (2018). Superstition and financial decision making. Management Science, 64(1), 235-252. doi:10.1287/mnsc.2016.2584 0025-1909 https://hdl.handle.net/10356/100614 http://hdl.handle.net/10220/48552 10.1287/mnsc.2016.2584 en Management Science © 2016 INFORMS. All rights reserved. This paper was published in Management Science and is made available with permission of INFORMS. 44 p. application/pdf |
| spellingShingle | DRNTU::Business::General Asset Pricing Information And Market Efficiency Hirshleifer, David Jian, Ming Zhang, Huai Superstition and financial decision making |
| title | Superstition and financial decision making |
| title_full | Superstition and financial decision making |
| title_fullStr | Superstition and financial decision making |
| title_full_unstemmed | Superstition and financial decision making |
| title_short | Superstition and financial decision making |
| title_sort | superstition and financial decision making |
| topic | DRNTU::Business::General Asset Pricing Information And Market Efficiency |
| url | https://hdl.handle.net/10356/100614 http://hdl.handle.net/10220/48552 |
| work_keys_str_mv | AT hirshleiferdavid superstitionandfinancialdecisionmaking AT jianming superstitionandfinancialdecisionmaking AT zhanghuai superstitionandfinancialdecisionmaking |