Market Behavior in "Lucky" Days

Loading...
Thumbnail Image
Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Scienpress
Abstract
The purpose of this paper is to examine whether or not the markets behave differently in different days of a month merely due to the meaning(s) associated with the digit a particular day end with. We used multiple univariate tests to test the quality of means for lunar days ending 5, 8 and 9(lucky days) against other days. OLS regression was also utilized to test statistical significance for the target dates in both Lunisolar and Gregorian calendar for Heng Seng and S&P 500 daily returns. The study finds that Hang Seng’s returns are higher for the lunar days associated with good luck in the Chinese culture (days end with 8 and 9) and lower for the lunar days ending with 5(5 is associated with unlucky meaning). However, it fails to show similar pattern and results for the S&P 500 daily returns. The research finding provides further evidence that cultural beliefs and superstitions can affect stock market returns. The paper also raises a new perspective and potential reason to explain stock returns movements in different stock markets. It further proves the notion that a significant portion of market movements are caused by participants’ irrational behavior such as cultural beliefs and superstition. Keywords: Behavioral Finance, Abnormal Returns, Superstition, Lunisolar Calendar, Chinese Culture, Language
Description
Keywords
Citation
Zhang, Jian, et al. “Market Behavior in ‘Lucky’ Days.” Journal of Applied Finance & Banking, vol. 5, no. 2, 2015, pp. 1–2.
DOI
Link(s) to data and video for this item
Relation
Rights
Type
Article