Journal of Corporate Finance Vol. 37 2016
Religion, gambling attitudes and corporate innovation
Abstract
We find that firms headquartered in areas with a taste for gambling tend to be more innovative, i.e. they spend more on R&D, and obtain more and better quality patents. These results are supported by several robustness checks, tests to mitigate identification concerns, and analyses of several secondary implications. Investment in innovation makes a stock more lottery-like, a feature desired by individuals with a taste for gambling. Gambling preferences of both local investors and managers appear to influence firms' innovative endeavors and facilitate transforming their industry growth opportunities into firm value.
- DOI
- 10.1016/j.jcorpfin.2015.12.017
- Volume
- 37
- Pages
- 229-248
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref