Lucky Number Premium: Numerological Superstition and Investment Preferences on the Taiwan Stock Market
碩士 === 國立東華大學 === 財務金融學系 === 104 === This study shows that the firms with lucky listing codes on the Taiwan Stock market are traded at a premium compared to the firms with unlucky listing codes. The lucky number premium exists without interruption until the 44th month after IPO, and can still be fou...
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| Format: | Others |
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2016
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| Online Access: | http://ndltd.ncl.edu.tw/handle/3rqhez |
| Summary: | 碩士 === 國立東華大學 === 財務金融學系 === 104 === This study shows that the firms with lucky listing codes on the Taiwan Stock market are traded at a premium compared to the firms with unlucky listing codes. The lucky number premium exists without interruption until the 44th month after IPO, and can still be found in the long run—at least nine years after IPO. We believe that this long-lasting premium for firms with lucky listing codes just represents investors’ significant preference for lucky numbers. This phenomenon can be viewed as evidence that cultural numerological superstition induces irrational investment preferences. Further examination shows that the digits. 8 and 9 are particularly favored by investors. The lucky number premium is robust in different sub-periods from the 1990s to 2008, but has vanished in recent years. Interestingly, the lucky number premium only appears for firms with a low institutional holding, implying that individual investors are more likely to be affected by numerological superstition.
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