Corpus ID: 34090084

Superstition and Financial Decision Making Current draft : August 2012

  title={Superstition and Financial Decision Making Current draft : August 2012},
  author={David Hirshleifer and Ming Jian and Huai Zhang},
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… Expand

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