The Calendar Effect of Online Shopping Festivals on China’s Financial Market: Evidence from China’s Singles’ Day Shopping Festival

Online Shopping Festival is a promotional activity created by those e-commerce platforms to set up a blockbuster which helps increase the general market value. In financial market, Calendar effect is one of the most common effect of behavioral finance. In China, anomaly in November financial market is that the stock price will go up without a reason corresponding to the traditional Efficient Market Hypothesis. In this passage, Online Shopping Festival, particularly Single’s Day Shopping Festival, is treated as a traditional event of calendar effect. By using the Event Study Method framework and 83636 pieces of statistics from 489 companies, it is verified that Single’s Day Shopping Festival has a positive calendar effect on China’s financial market, causing abnormal returns during the period of festival. The psychological and behavioral cause of this anomaly is also discussed.