Superstition and financial decision making

David Hirshleifer, Ming Jian and Huai Zhang

MPRA Paper from University Library of Munich, Germany

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 are initially traded at a premium after controlling for known determinants of valuation multiples, the lucky number premium dissipates within three years of the IPO, and lucky number firms experience inferior post-IPO abnormal returns.

Keywords: Finance; Asset pricing; Investment (search for similar items in EconPapers)
JEL-codes: G12 G14 G15 (search for similar items in EconPapers)
Date: 2014-09-15
New Economics Papers: this item is included in nep-cbe, nep-cna and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Superstition and Financial Decision Making (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:58620

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