Abstract

https://ssrn.com/abstract=1460522
 
 

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Superstition and Financial Decision Making


David A. Hirshleifer


University of California, Irvine - Paul Merage School of Business

Ming Jian


Nanyang Technological University (NTU)

Huai Zhang


Nanyang Technological University (NTU)

April 12, 2016


Abstract:     
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.

Number of Pages in PDF File: 44

Keywords: superstition, financial decision, IPO

JEL Classification: G12, G14, G15


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Date posted: August 8, 2012 ; Last revised: August 7, 2016

Suggested Citation

Hirshleifer, David A. and Jian, Ming and Zhang, Huai, Superstition and Financial Decision Making (April 12, 2016). Available at SSRN: https://ssrn.com/abstract=1460522 or http://dx.doi.org/10.2139/ssrn.1460522

Contact Information

David A. Hirshleifer
University of California, Irvine - Paul Merage School of Business ( email )
Irvine, CA California 92697-3125
United States
Ming Jian
Nanyang Technological University (NTU) ( email )
Nanyang Business School
Singapore, 639798
Singapore
Huai Zhang (Contact Author)
Nanyang Technological University (NTU) ( email )
Nanyang Business School
50 Nanyang Ave.
Singapore, 639798
Singapore
+65-6790-4097 (Phone)
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