Religion, Gambling Attitudes and Corporate Innovation

72 Pages Posted: 28 Aug 2013 Last revised: 16 Mar 2016

See all articles by Binay Adhikari

Binay Adhikari

University of Texas at San Antonio

Anup Agrawal

University of Alabama - Culverhouse College of Commerce & Business Administration

Date Written: March 15, 2016

Abstract

We find that firms headquartered in areas with a taste for gambling tend to be more innovative, i.e. they spend more on R&D, and obtain more and better quality patents. These results are supported by several robustness checks, tests to mitigate identification concerns, and analyses of several secondary implications. Investment in innovation makes a stock more lottery-like, a feature desired by individuals with a taste for gambling. Gambling preferences of both local investors and managers appear to influence firms’ innovative endeavors and facilitate transforming their industry growth opportunities into firm value.

Keywords: Religion, Local gambling attitudes, Corporate innovation, R&D, Patents

JEL Classification: G30, L26

Suggested Citation

Adhikari, Binay Kumar and Agrawal, Anup, Religion, Gambling Attitudes and Corporate Innovation (March 15, 2016). Journal of Corporate Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2316891 or http://dx.doi.org/10.2139/ssrn.2316891

Binay Kumar Adhikari

University of Texas at San Antonio ( email )

1 UTSA Circle
San Antonio, TX 78249
United States
2104585349 (Phone)

Anup Agrawal (Contact Author)

University of Alabama - Culverhouse College of Commerce & Business Administration ( email )

Culverhouse College of Business
EFLS, Box 870224
Tuscaloosa, AL 35487-0224
United States
205-348-8970 (Phone)
205-348-0590 (Fax)

HOME PAGE: http://aagrawal.people.ua.edu/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
244
Abstract Views
2,533
rank
160,207
PlumX Metrics