Do gamblers invest in lottery stocks?

Arbeitspapier

Previous studies document a relationship between gambling at the aggregate level and investments in securities with lottery-like features. We combine data on individual gambling consumption with portfolio holdings and trading records to examine whether gambling and trading act as substitutes or complements. We find that gamblers are more likely than average to hold lottery stocks, but less likely than active traders. Our results suggest that gambling behavior across domains is less relevant than other characteristics that predict investing in high-risk and high-skew securities, and gambling on and off the stock market act as substitutes to satisfy the same need, e.g., sensation seeking.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: SAFE Working Paper ; No. 373

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Behavioral Finance: General‡ ; Household Saving; Personal Finance ; Portfolio Choice; Investment Decisions ; International Financial Markets
• Thema: Gambling ; Retail investors ; Lottery stocks

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kormanyos, Emily ; Hanspal, Tobin ; Hackethal, Andreas
• Ereignis: Veröffentlichung
• (wer): Leibniz Institute for Financial Research SAFE
• (wo): Frankfurt a. M.
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/268752
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ