Investor PSY-chology Surrounding 'Gangnam Style'

Pacific-Basin Finance Journal (2016), Volume 37, 23–34.

42 Pages Posted: 12 Jul 2013 Last revised: 1 Dec 2017

See all articles by Y. Han (Andy) Kim

Y. Han (Andy) Kim

Sungkyunkwan University

Hosung Jung

The Bank of Korea; Bank of Korea - Economic Research Institute

Date Written: February 20, 2016


The global success of the song, “Gangnam Style”, by the Korean rapper PSY in 2012, was an exogenous shock to investor enthusiasm for DI Corp., a Korean semiconductor manufacturer. Although DI Corp.’s business is not related to the entertainment industry, its co-CEO is the father of PSY. Using the count of flash mob and parody videos of “Gangnam Style” on YouTube from different countries and domestic regions as a proxy for the enthusiasm of individual investors, we find that individual investors became net buyers of DI Corp. stock when the attention level increased in their neighborhood (countries). Accordingly, the attention drove up the stock price by 800% without information on the stock’s fundamentals.

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, G18

Suggested Citation

Kim, Y. Han (Andy) and Jung, Hosung, Investor PSY-chology Surrounding 'Gangnam Style' (February 20, 2016). Pacific-Basin Finance Journal (2016), Volume 37, 23–34., Available at SSRN: or

Y. Han (Andy) Kim (Contact Author)

Sungkyunkwan University ( email )

422 School of Business
25-2 SungKyunKwan-Ro, Jongno-ju
Seoul, 110-745
Korea, Republic of (South Korea)
+82-2-760-0622 (Phone)
+82-2-760-0622 (Fax)

HOME PAGE: http://

Hosung Jung

The Bank of Korea ( email )

39, Namdaemun-ro, Jung-gu
Seoul, 04531
Korea, Republic of (South Korea)

Bank of Korea - Economic Research Institute ( email )

110, 3-Ga, Namdaemunno, Jung-Gu
Seoul 100-794
Korea, Republic of (South Korea)

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