Article
Details
Citation
Cui Y, Gavriilidis K, Gabka B & Kallinterakis V (2024) Numerological Superstitions and Market-Wide Herding: Evidence from China. International Review of Financial Analysis, 93. https://doi.org/10.1016/j.irfa.2024.103199
Abstract
We empirically investigate the effect of traditional Chinese numerological superstitions over market-wide herding in the Shanghai and Shenzhen stock exchanges for the 2000–2020 period, based on a classification of stocks as lucky/unlucky contingent on the presence of digits deemed numerologically lucky/unlucky in their tickers. We find no compelling evidence that herding is more pronounced in those superstitious stocks, as compared to the rest of the stock market. Both superstitious stock-types herd exclusively on high-volatility days and exhibit some pronounced patterns in up vs down markets; these effects are not significantly different from the behaviour of non-superstitious stocks, however. Similarly, herding in both superstitious stock-types is largely noise-driven, but the same effect is observed for non-superstitious stocks. The similarities in herding between superstitious and non-superstitious stocks suggest that numerological superstitions do not motivate significantly stronger herding in Chinese markets.
Keywords
Superstition; Herding; Noise; Retail investors; China
Journal
International Review of Financial Analysis: Volume 93
Status | Published |
---|---|
Publication date | 31/05/2024 |
Publication date online | 18/03/2024 |
Date accepted by journal | 07/03/2024 |
URL | http://hdl.handle.net/1893/35915 |
ISSN | 1057-5219 |
eISSN | 1873-8079 |
People (1)
Senior Lecturer, Accounting & Finance