
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.
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
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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