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Lookup NU author(s): Professor Bartosz GebkaORCiD
This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).
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.
Author(s): Cui Y, Gavriilidis K, Gebka B, Kallinterakis V
Publication type: Article
Publication status: Published
Journal: International Review of Financial Analysis
Year: 2024
Volume: 93
Print publication date: 01/05/2024
Online publication date: 12/03/2024
Acceptance date: 07/03/2024
Date deposited: 22/03/2024
ISSN (print): 1057-5219
ISSN (electronic): 1873-8079
Publisher: Elsevier BV
URL: https://doi.org/10.1016/j.irfa.2024.103199
DOI: 10.1016/j.irfa.2024.103199
Data Access Statement: No
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