Investor PSY-chology Surrounding 'Gangnam Style'
Y. Han (Andy) Kim
Nanyang Technological University (NTU)
Bank of Korea
June 12, 2014
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 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 become net buyers of DI Corp. when flash mobs were uploaded from their neighborhood (countries). Accordingly, the non-informative attention drove the stock price up by 800% without information.
Number of Pages in PDF File: 66
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, G18working papers series
Date posted: July 12, 2013 ; Last revised: November 24, 2014
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