Superstitions and Price Clustering in the Taiwan Stock Exchange

DOI

10.2991/aebmr.k.200127.097How to use a DOI?

Keywords

cultural price, Chinese lucky number, Chinese new year

Abstract

This paper aims to describe cultural price clustering in the Taiwan Stock Exchange. The Taiwan Stock Exchange is an excellent example of the Chinese culture-exposed market, where one of the basic superstitions is the aversion of unlucky numbers and the preference of lucky numbers. Using bulk historical closing price data in the five years, the authors documented the prevalence of price to cluster in the lucky 8 rather than the unlucky 4. The authors also documented the prevalence of price to cluster at the Chinese lucky number group (3, 6, 8, and 9) rather than the unlucky number group (4 and 7). Finally, the authors conducted a test of proportion difference among two populations to attest to the difference between cultural price clustering at the Chinese New Year event period and the non-Chinese New Year event period. The authors found significance frequencies difference of price ending in 8 during the Chinese New Year event period and the non-Chinese New Year event period.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - K. Raesita
AU  - P.A. Mahadwartha
PY  - 2020
DA  - 2020/01/31
TI  - Superstitions and Price Clustering in the Taiwan Stock Exchange
BT  - Proceedings of the 17 th International Symposium on Management (INSYMA 2020)
PB  - Atlantis Press
SP  - 483
EP  - 488
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200127.097
DO  - 10.2991/aebmr.k.200127.097
ID  - Raesita2020
ER  -