Abstract

http://ssrn.com/abstract=1460522
 
 

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Superstition and Financial Decision Making


David A. Hirshleifer


University of California, Irvine - Paul Merage School of Business

Ming Jian


Nanyang Technological University (NTU)

Huai Zhang


Nanyang Technological University (NTU)

September 15, 2014


Abstract:     
In Chinese culture, certain digits are lucky and others unlucky. We test how such numerological superstition affects financial decision in the China 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 are initially traded at a premium after controlling for known determinants of valuation multiples, the lucky number premium dissipates within three years after IPO, and lucky number firms experience inferior post-IPO abnormal returns.

Number of Pages in PDF File: 49

Keywords: superstition, financial decision, IPO

JEL Classification: G12, G14, G15

working papers series





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Date posted: August 8, 2012 ; Last revised: September 16, 2014

Suggested Citation

Hirshleifer, David A. and Jian, Ming and Zhang, Huai, Superstition and Financial Decision Making (September 15, 2014). Available at SSRN: http://ssrn.com/abstract=1460522 or http://dx.doi.org/10.2139/ssrn.1460522

Contact Information

David A. Hirshleifer
University of California, Irvine - Paul Merage School of Business ( email )
Irvine, CA California 92697-3125
United States
Ming Jian
Nanyang Technological University (NTU) ( email )
Nanyang Business School
Singapore, 639798
Singapore
Huai Zhang (Contact Author)
Nanyang Technological University (NTU) ( email )
Nanyang Business School
50 Nanyang Ave.
Singapore, 639798
Singapore
+65-6790-4097 (Phone)
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