Anniversary and Numerical Worship: Based on Research on Typical Traditional Industries in China

Abstract

This study demonstrates the impact of special anniversaries and numerical worship on the risk-taking behavior of listed companies in China's traditional industries. We focus on the widespread beliefs in multiples of 5 anniversaries (such as the 5th, 10th, and 20th anniversaries) and the numbers 6 and 8 in Chinese society. Analyzing data from real estate companies listed on the Shanghai Stock Exchange from 2007 to 2019, we find that stock price volatility slightly decreases during special anniversaries but not significantly, suggesting limited influence of superstitious beliefs on corporate decision-making. Further analysis shows that corporate risk-taking behavior does not significantly change during special anniversaries, highlighting the role of market discipline and quantitative analysis in curbing irrational behavior. While some studies suggest that numerical superstition may affect financial decisions of individuals and small businesses, our findings indicate that such influences are mitigated in large and complex organizations. This study provides insights for risk management of listed companies during special anniversaries and recommends that investors focus more on fundamental data and real-time information, avoiding superstition and irrational numerical worship.