Investor PSY-chology Surrounding 'Gangnam Style'
Pacific-Basin Finance Journal (2016), Volume 37, 23–34.
61 Pages Posted: 12 Jul 2013 Last revised: 2 Jun 2022
Date Written: May 06, 2015
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 the early stage. Using the count of flash mob videos on YouTube from each country and domestic region as the proxy for the enthusiasm of individual investors, we find individual investors became net buyers of the stock when the attention level increased in their neighborhood (countries). Accordingly, the attention drove the stock price up by 800% without information.
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: Suggested Citation