Religion, gambling attitudes and corporate innovation

Binay Kumar Adhikari and Anup Agrawal

Journal of Corporate Finance, 2016, vol. 37, issue C, 229-248

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.

Keywords: Local gambling attitudes; Corporate innovation; R&D; Patents (search for similar items in EconPapers)
JEL-codes: G30 L26 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (86)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:37:y:2016:i:c:p:229-248

DOI: 10.1016/j.jcorpfin.2015.12.017

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