Local gambling preferences and corporate innovative success

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal

25 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)77-106
Journal / PublicationJournal of Financial and Quantitative Analysis
Volume49
Issue number1
Publication statusPublished - Feb 2014
Externally publishedYes

Abstract

This paper examines the role of local attitudes toward gambling on corporate innovative activity. Using a county’s Catholics-to-Protestants ratio as a proxy for local gambling preferences, we find that firms located in gambling-prone areas tend to undertake riskier projects, spend more on innovation, and experience greater innovative output. We contrast the local gambling effect with chief executive officer (CEO) overconfidence, another behavioral effect reported to influence innovation. We find that local gambling preferences are a stronger determinant of innovative activity, with CEO overconfidence being more relevant to innovation in areas where gambling attitudes are strong.

Citation Format(s)

Local gambling preferences and corporate innovative success. / Chen, Yangyang; Podolski, Edward J.; Rhee, Ghon; Veeraraghavan, Madhu.

In: Journal of Financial and Quantitative Analysis, Vol. 49, No. 1, 02.2014, p. 77-106.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal