Local gambling preferences and insider trading profits: Evidence from China

Jiarui Tong and Dixin Wu

Finance Research Letters, 2025, vol. 75, issue C

Abstract: Insider trading is common in China, raising concerns among investors and regulators. This study examines whether local gambling preferences are associated with insider trading profits. Results indicate that insiders at firms headquartered in gambling-prone regions earn higher trading profits. However, this effect diminishes in firms with more independent boards, a greater number of board committees, multiple block shareholders, and enhanced supervision from the China Securities Regulatory Commission. These findings underscore the need to consider social norms when designing policies to curb insider opportunism, especially in cultures where beliefs in luck and fate are prevalent.

Keywords: Gambling preferences; Insider trading; Corporate governance; Regulation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325001436
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001436

DOI: 10.1016/j.frl.2025.106878

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().