EconPapers    
Economics at your fingertips  
 

Does local culture trigger speculative investment behavior?

Suin Lee, Christos Pantzalis and Jung Chul Park

Journal of Business Research, 2019, vol. 103, issue C, 71-88

Abstract: The average investor who lives in a state with relatively higher alcohol consumption is more likely to buy and sell lottery-type stocks and to trade more often. Both of these activities entail sensation seeking; correspondingly, we find that speculative investment behavior is correlated with alcohol consumption only in states with lotteries and where a local tendency for sensation seeking behavior has not been diluted by an influx of migrants from other states where alcohol consumption is low. Most importantly, our results suggest that alcohol consumption does not per se drive a preference for investment gambles, but rather portrays the type of local culture in which the speculative investing occurs.

Keywords: Local culture; Alcohol consumption; Gambling; Lottery-type stocks; Turnover (search for similar items in EconPapers)
JEL-codes: G02 G11 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296319303716
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:jbrese:v:103:y:2019:i:c:p:71-88

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-12-10
Handle: RePEc:eee:jbrese:v:103:y:2019:i:c:p:71-88