Deakin University
Browse

File(s) under permanent embargo

Searching for Gambles: Gambling Sentiment and Stock Market Outcomes

journal contribution
posted on 2021-09-01, 00:00 authored by Y Chen, A Kumar, C Zhang
AbstractUsing Internet search volume for lottery to capture gambling sentiment shifts, we show that when the overall gambling sentiment is strong, investor demand for lottery stocks increases, these stocks earn positive short-run abnormal returns, managers are more likely to split stocks to cater to the increased demand for low-priced lottery stocks, and initial public offerings (IPOs) earn higher first day returns. Further, the sentiment-return relation is stronger among low institutional ownership firms, headquartered in regions where gambling is more acceptable and local bias is stronger. These results suggest that gambling sentiment has a spillover effect on the stock market.

History

Journal

Journal of Financial and Quantitative Analysis

Volume

56

Issue

6

Pagination

2010 - 2038

Publisher

Cambridge University Press

Location

Cambridge, Eng.

ISSN

0022-1090

eISSN

1756-6916

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal

Usage metrics

    Research Publications

    Categories

    No categories selected

    Keywords

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC