Religion, Gambling Attitudes and Corporate Innovation

Adhikari, Binay; Agrawal, Anup

doi:10.2139/ssrn.2316891

Religion, Gambling Attitudes and Corporate Innovation

Journal of Corporate Finance, Forthcoming

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

See all articles by Binay Adhikari

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: 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