Compulsive gambling in the financial markets: Evidence from two investor surveys

Ruben Cox, Atcha Kamolsareeratana and Roy Kouwenberg

Journal of Banking & Finance, 2020, vol. 111, issue C

Abstract: This study shows that a group of individual investors in the financial markets displays symptoms of compulsive gambling, or an addiction to trading, based on a standard diagnostic checklist from the American Psychiatric Association. In a representative sample of Dutch retail investors, we find that 4.4% of the investors meet the criteria for compulsive gambling in the financial markets. Another 3.6% meet the criteria for problem gambling, which is a less severe form of gambling disorder. Investors with symptoms of compulsive gambling problems tend to follow a more active and speculative trading style, indicated by a higher frequency of stock trading, day-trading and investing in derivatives and leveraged products.

Keywords: Individual investors; Trading behavior; Gambling (search for similar items in EconPapers)
JEL-codes: G02 G11 L83 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:111:y:2020:i:c:s0378426619302808

DOI: 10.1016/j.jbankfin.2019.105709

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