Superstitions and Price Clustering in the Taiwan Stock Exchange
K. Raesita, P.A. Mahadwartha
Available Online 31 January 2020.
- https://doi.org/10.2991/aebmr.k.200127.097How to use a DOI?
- cultural price, Chinese lucky number, Chinese new year
- 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.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
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 - https://doi.org/10.2991/aebmr.k.200127.097 ID - Raesita2020 ER -