Superstition on Zodiac and Firm Performance: Evidence From China

Date
2020
Authors
Rong, Qianfeng
Supervisor
Nguyen, Nhut (Nick) Hoang
Item type
Dissertation
Degree name
Master of Business
Journal Title
Journal ISSN
Volume Title
Publisher
Auckland University of Technology
Abstract

Among the widespread superstitions in China, the “zodiac year” of birth, which occurs once every 12 years, is believed to bring bad luck to one’s career, health, or family. In this study I investigate if the zodiac year of a firm’s top executives would bring negative impact on the firm’s financial performance compared to normal years. I find that ROA, ROE, and Tobin’s Q are significantly lower in the zodiac year than those in normal years. However, the firm’s stock returns do not seem to reflect the zodiac year’s negative impact.

Description
Keywords
Superstition , Zodiac year of birth , Chinese chairman , Firm performance
Source
DOI
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