Superstition and the Stock Market: Evidence from Japanese Stock Returns

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Superstition plays a role in many human activities. Might it not play a role in financial decision making? Behavioral finance has provided varied evidence that economic agents do not act always as rational wealth maximizers. This paper adds to this evidence by looking at whether superstition might not also play a role in stock market trading. It is argued that, since superstitions are culturally idiosyncratic, the impact on stock returns by different superstitious beliefs should differ across stock markets in different cultures. We present evidence on the effect of two superstitions, one foreign and another indigenous, on Japanese stock returns.
Original languageEnglish
Title of host publication International Conference on Knowledge-Based Economy and Global Management Proceedings
EditorsTee Kuang Chou
Place of PublicationTainan
PublisherSouthern Taiwan University of Science and Technology
Pages129-134
Volume11
ISBN (Print)9789865627119
Publication statusPublished - Nov 2015

Keywords

  • Behavioral Finance
  • Rationality
  • Superstition
  • Butsumetsu
  • Friday the 13th
  • Stock Returns
  • Anomalies
  • Japanese Stock Market

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