The effect of Chinese lunar calendar on individual investors' trading

Yin-Siang Huang, Junmao Chiu, Chih-Yung Lin and Robin,

Pacific-Basin Finance Journal, 2022, vol. 71, issue C

Abstract: We examine whether individual investors pay more attention to the stock market on auspicious days. We define an auspicious day as being on the Chinese lunar calendar, which is the common social norm in Chinese society. This norm is reflected in (i) more extensive and (ii) less profitable trading. Furthermore, this effect is heightened in cities with more elderly, more temples of the Wealth God, and more gambling sentiment. Individual investors' preferences for lottery-like and preferred stocks are essential mechanisms to explain our findings. We provide a first understanding of the effect of a social norm on individual investors' trading behavior.

Keywords: Lunar calendar; Trading activity; Trading profit; Social norm; Chinese culture (search for similar items in EconPapers)
JEL-codes: G02 G11 G14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:71:y:2022:i:c:s0927538x21002018

DOI: 10.1016/j.pacfin.2021.101694

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