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.
|Title of host publication||International Conference on Knowledge-Based Economy and Global Management Proceedings|
|Editors||Tee Kuang Chou|
|Place of Publication||Tainan|
|Publisher||Southern Taiwan University of Science and Technology|
|Publication status||Published - Nov 2015|
- Behavioral Finance
- Friday the 13th
- Stock Returns
- Japanese Stock Market
Pinto dos Santos, J. M. (2015). Superstition and the Stock Market: Evidence from Japanese Stock Returns. In T. K. Chou (Ed.), International Conference on Knowledge-Based Economy and Global Management Proceedings (Vol. 11, pp. 129-134). Tainan: Southern Taiwan University of Science and Technology.