| Summary: | 碩士 === 國立東華大學 === 財務金融學系 === 105 === In Taiwan, many traditional folk customs are related to cultural superstitions. Habits and decisions of Taiwanese are frequently and profoundly affected by cultural superstition. One of the examples is that Taiwanese often makes decisions by referring the information or suggestions on traditional Taiwanese farmer calendar booklet (Nong Min Li). This study specifies whether the public-listed companies in Taiwan would implicitly choose “dates proper to trade” suggested by the Nong Min Li as their IPO/SEO dates, and further define whether the manager of a company is superstitious or not by the frequency that IPO/SEO dates happen to be the dates proper to trade. By doing so, we examine whether the superstition of managers has an impact on the financial performance of a company. Our empirical findings show that superstition is negatively related to corporate financial performance, suggesting that if a company is superstitious in management, its long-term operation tends to be worse than that of the non-superstitious firm. The association between manager's superstition and corporate financial performance is not only a concurrent but also intertemporal relationship. Further tests also show that poor corporate financial performance does not lead the firm managers to become superstitious in making decisions, which confirming that the manager's irrational preference on Nong Min Li mainly drives the deteriorated corporate financial performance.
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