Management Science, Forthcoming
44 Pages Posted: 8 Aug 2012 Last revised: 25 Feb 2017
Date Written: April 12, 2016
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 experience inferior post-IPO abnormal returns. Further tests suggest that our conclusions are not driven by endogeneity.
Keywords: superstition, financial decision, IPO
JEL Classification: G12, G14, G15
Suggested Citation: Suggested Citation
Hirshleifer, David A. and Jian, Ming and Zhang, Huai, Superstition and Financial Decision Making (April 12, 2016). Management Science, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1460522 or http://dx.doi.org/10.2139/ssrn.1460522