Superstition on Zodiac and Firm Performance: Evidence From China
MetadataShow full metadata
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.