Family Companionship: How Does Superstition Improve Mental Health?

ABSTRACT A large amount of literature has proved that zodiac year superstition has a significant impact on business behaviors such as risk‐taking, investment return, and insurance purchase, but the literature on the relationship between zodiac year and psychological state is still limited. This paper draws on epidemiological strategies to construct its research strategy, using data from China to explore the relationship between zodiac years and individual psychological states. Our findings suggest that their mental state improves when a person's family members enter the zodiac. Our empirical regression reveals the mediating mechanism, with collectivism and family cohesion, which belong to the same traditional Chinese culture as the zodiac year, playing an important role. When family members enter the zodiac year, individuals in the zodiac year will reduce their risk preference due to the vigilance of “misfortune” caused by zodiac year superstition. Under the action of collectivism and family cohesion, risks will also be passed through the generations, resulting in the convergence of risk preferences within the family. On the other hand, due to the essential requirements of collectivism and family cohesion, individuals in the zodiac year will reduce their risk preference. Out of concern for the “unlucky” individuals in zodiacal years, other members will choose to go out less and spend more time together and in each other's company. Interactions between family members make them feel less alone, and their mental state improves. These results suggest that cultural beliefs influence individual mental health through collectivism and family cohesion.