Investor PSY-chology Surrounding 'Gangnam Style'
Y. Han (Andy) Kim
SungKyunKwan University (SKKU)
Bank of Korea; Bank of Korea - Economic Research Institute
March 13, 2015
The global success of “Gangnam Style,” by the Korean rapper PSY in 2012, was an exogenous shock to investor enthusiasm about PSY’s father’s semiconductor company, DI Corp., because the family relation was publicized in various countries in the early stage. Using the count of flash mob videos on YouTube from each country and domestic region as the proxy for the enthusiasm of individual investors, we find individual investors became net buyers of the stock when the attention level increased in their neighborhood (countries). Accordingly, the attention drove the stock price up by 800% without information.
Number of Pages in PDF File: 61
Keywords: Gangnam Style, flash mob, Youtube, parody, bubble, investor awareness, individual investors, institutional investors, foreign investors, short sale, home bias, media, market efficiency
JEL Classification: G02, G14, G12, G18
Date posted: July 12, 2013 ; Last revised: March 14, 2015
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