Download now Free registration required
Psychological research documents that individuals are more likely to resort to superstitious practices when operating in environments dominated by uncertainty, high stakes, and perceived lack of control over the outcomes. Based on these findings, the author suggests that the stock market represents an ideal breeding ground for superstition and then test whether superstition-induced behavior affects investment decisions. The empirical analysis focuses on some beliefs associated with eclipses, phenomena that are typically interpreted as bad omens by the superstitious both in Asian and Western societies, and the author employ a dataset containing 362 such events over the period 1928-2008.
- Format: PDF
- Size: 327.5 KB