Skewness Preferences and Gambling Cultures

29 Pages Posted: 31 Jan 2016 Last revised: 23 Mar 2016

See all articles by Benjamin M. Blau

Benjamin M. Blau

Utah State University - Huntsman School of Business

Jason C. Hsu

Rayliant Global Advisors; Research Affiliates, LLC; University of California, Los Angeles - Anderson School of Business

Ryan J. Whitby

Utah State University - Huntsman School of Business

Date Written: 2016

Abstract

This paper examines the relationship between cultural attitudes towards gambling and investor preferences for skewness across 45 countries. Our results show that countries with higher gambling losses per adult, countries with legalized online gambling, and countries with the most Catholics relative to Protestants tend to display the most significant (negative) skewness premiums. In a number of other tests, we do not find that other macroeconomic characteristics, such as economic development, GDP per capita, or per capita consumption explain the presence of skewness premiums.

Keywords: Lotteries, Gambling, Skewness, Stock Returns

Suggested Citation

Blau, Benjamin M. and Hsu, Jason C. and Whitby, Ryan J., Skewness Preferences and Gambling Cultures (2016). Available at SSRN: https://ssrn.com/abstract=2724896 or http://dx.doi.org/10.2139/ssrn.2724896

Benjamin M. Blau

Utah State University - Huntsman School of Business ( email )

3500 Old Main Hill
Logan, UT 84322
United States

Jason C. Hsu

Rayliant Global Advisors ( email )

Hong Kong

Research Affiliates, LLC ( email )

620 Newport Center Dr
Suite 900
Newport Beach, CA 92660
United States

HOME PAGE: http://www.jasonhsu.org

University of California, Los Angeles - Anderson School of Business

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

Ryan J. Whitby (Contact Author)

Utah State University - Huntsman School of Business ( email )

3500 Old Main Hill
Logan, UT 84322-3500
United States
435.797.9495 (Phone)

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