Religion, Gambling Attitudes and Corporate Innovation
72 Pages Posted: 28 Aug 2013 Last revised: 16 Mar 2016
Date Written: March 15, 2016
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: Suggested Citation