Investor PSY-chology Surrounding 'Gangnam Style'
Y. Han (Andy) Kim
Nanyang Technological University (NTU)
Ho Sung Jung
Bank of Korea
October 12, 2013
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. 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, “resale option” theory of bubble seems to best explain our results.
Number of Pages in PDF File: 78
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: October 18, 2013
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