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Management Science
Article
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SSRN Electronic Journal
Article . 2012 . Peer-reviewed
Data sources: Crossref
Management Science
Article . 2018 . Peer-reviewed
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DBLP
Article . 2020
Data sources: DBLP
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Superstition and Financial Decision Making

Authors: David Hirshleifer; Ming Jian; Huai Zhang;

Superstition and Financial Decision Making

Abstract

In Chinese culture, certain digits are lucky and others unlucky. We test how such numerological superstition affects financial decision in the China initial public offering (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. This paper was accepted by Lauren Cohen, finance.

Countries
United States, Singapore
Keywords

information and market efficiency, Insider Trading, Operations Research, Information And Market Efficiency, superstition, financial decision, Trading volume, Information and Computing Sciences, Finance; Asset pricing; Investment, G12 Asset Pricing, Tourism and Services, :Business::General [DRNTU], G15 International Financial Markets, Event Studies, Bond Interest Rates, international financial markets, Commerce, G14 Information and Market Efficiency, asset pricing, Management, Asset Pricing, IPO, jel: jel:G12, jel: jel:G14, jel: jel:G15

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    selected citations
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    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    122
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 1%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
122
Top 1%
Top 10%
Average
Green
bronze