From the Stars to the Stock Market: Calendar Superstition and IPO Returns
Prof. Jing ZHAO, Assistant Professor, The Hong Kong Polytechnic University
Date: 12 May 2023 (Friday)
Time: 10:30 am – 12:00 pm
Venue: E22-G015
Host: Prof. Wenjin KANG, Professor in Finance
Online registration: https://umac.au1.qualtrics.com/jfe/form/SV_eA5OW5cmvuAyM5w
Abstract
The ancient Chinese Almanac lists days that are (in)auspicious for certain actions or events. We find that the initial returns for Initial Public Offerings (IPO), an essential corporate event, are significantly lower on days listed by the Almanac as unlucky. The effect of calendar superstition is robust after controlling for a preference for lucky numbers (such as lucky listing codes and prices) and is more pronounced among firms with high investment risks and firms located in places where superstition culture is more prominent. Our results suggest that investor risk perception, but not manager superstition, plays a vital role in determining the calendar superstition effect.
Speaker
Prof. Jing Zhao is an Assistant Professor of Finance at Hong Kong Polytechnic University. She joined the School of Accounting and Finance in 2015 upon the completion of her PhD at University of Hong Kong. Her research focuses on how investors behave in the financial market, and how such behaviors are associated with investment performance. Another line of her research examines the behaviors of corporate managers and financial analysts. Her research has been published in top journals like the Review of Financial Studies, Management Science, and Journal of Corporate Finance.
All are welcome!
