References (39)


Citations (1)



Gambling and Comovement

Alok Kumar

University of Miami - School of Business Administration

Jeremy K. Page

Brigham Young University

Oliver G. Spalt

Tilburg University - Department of Finance

October 18, 2013

This study shows that correlated trading by gambling-motivated investors generates excess return comovement among stocks with lottery features. Lottery-like stocks comove strongly with one another and this return comovement is strongest among lottery stocks located in regions where investors have a greater propensity to gamble. The relation between local gambling preferences and lottery stock comovement is amplified when local lottery ticket sales are high, and when local investors experience positive income shocks. Looking directly at investor trades, we find that investors with a greater propensity to gamble trade lottery-like stocks more actively and that those trades are more strongly correlated.

Number of Pages in PDF File: 49

Open PDF in Browser Download This Paper

Date posted: December 18, 2010 ; Last revised: October 19, 2013

Suggested Citation

Kumar, Alok and Page, Jeremy K. and Spalt, Oliver G., Gambling and Comovement (October 18, 2013). Available at SSRN: http://ssrn.com/abstract=1727012 or http://dx.doi.org/10.2139/ssrn.1727012

Contact Information

Alok Kumar (Contact Author)
University of Miami - School of Business Administration ( email )
514 Jenkins Building
Department of Finance
Coral Gables, FL 33124-6552
United States
305-284-1882 (Phone)
HOME PAGE: http://moya.bus.miami.edu/~akumar
Jeremy K. Page
Brigham Young University ( email )
Marriott School of Management
685 TNRB
Provo, UT 84602
United States
801-422-7173 (Phone)
HOME PAGE: http://marriottschool.byu.edu/directory/details?id=19364
Oliver G. Spalt
Tilburg University - Department of Finance ( email )
Department of Finance
Tilburg University
Tilburg, 5000 LE
+31 13 466 3545 (Phone)
HOME PAGE: http://www.oliverspalt.com
Feedback to SSRN

Paper statistics
Abstract Views: 2,603
Downloads: 458
Download Rank: 40,523
References:  39
Citations:  1

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.453 seconds