Investor PSY-chology Surrounding 'Gangnam Style'

Y. Han (Andy) Kim

Nanyang Technological University (NTU)

Hosung Jung

Bank of Korea

April 14, 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 as the proxy for the enthusiasm of individual investors, we find non-resident (resident) foreign individual investors became net buyers (sellers) of DI Corp. when flash mobs were uploaded in their countries. We find consistent trading behavior of domestic individual investors, which drove the price up by 800% without information. Overall, the case shows that non-informative attention can sometimes drive the price away from fundamentals.

Number of Pages in PDF File: 65

Keywords: Gangnam Style, flash mob, bubble, individual investors, foreign investors, media, market efficiency

JEL Classification: G02, G14, G12, G18

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Date posted: July 12, 2013 ; Last revised: April 15, 2014

Suggested Citation

Kim, Y. Han (Andy) and Jung, Hosung, Investor PSY-chology Surrounding 'Gangnam Style' (April 14, 2014). Available at SSRN: http://ssrn.com/abstract=2292577 or http://dx.doi.org/10.2139/ssrn.2292577

Contact Information

Y. Han (Andy) Kim (Contact Author)
Nanyang Technological University (NTU) ( email )
S3 B2-A28 Nanyang Avenue
Singapore, 639798
65-6790-4639 (Phone)
Hosung Jung
Bank of Korea ( email )
110, 3-Ga, Namdaemunno, Jung-Gu
Seoul 100-794, 100-794
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