podolski-localgamblingpreferences-2014.pdf (182.8 kB)
Local gambling preferences and corporate innovative success
journal contribution
posted on 2014-02-01, 00:00 authored by Y Chen, Edward Podolski, S G Rhee, M VeeraraghavanThis paper examines the role of local attitudes toward gambling on corporate innovative activity. Using a county's Catholics-to-Protestants ratio as a proxy for local gambling preferences, we find that firms located in gambling-prone areas tend to undertake riskier projects, spend more on innovation, and experience greater innovative output. We contrast the local gambling effect with chief executive officer (CEO) overconfidence, another behavioral effect reported to influence innovation. We find that local gambling preferences are a stronger determinant of innovative activity, with CEO overconfidence being more relevant to innovation in areas where gambling attitudes are strong.
History
Journal
Journal of financial and quantitative analysisVolume
49Issue
1Pagination
77 - 106Publisher
Cambridge University PressLocation
Cambridge, Eng.Publisher DOI
ISSN
0022-1090eISSN
1756-6916Language
engPublication classification
C1.1 Refereed article in a scholarly journal; C Journal articleCopyright notice
2014, Michael G. Foster School of Business, University of WashingtonUsage metrics
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