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Article: Lottery Jackpot Winnings and Retail Trading in the Neighborhood
| Title | Lottery Jackpot Winnings and Retail Trading in the Neighborhood |
|---|---|
| Authors | |
| Issue Date | 17-Jul-2024 |
| Publisher | Elsevier |
| Citation | Journal of Banking and Finance, 2024 How to Cite? |
| Abstract | We use lottery jackpot winnings in a neighborhood as an exogenous shock to investing in stocks. We find that retail investors whose brokerages are near the stores that sell winning tickets buy more stocks than their counterparts after the shock. These purchases lead to lower returns. We use a survey to identify the behavioral factors like regretfulness and probability weighting that are the main drivers of our findings. Moreover, these investors tend to buy more lottery-like stocks, but the shock does not affect their selling decisions. Finally, we perform several falsification tests and robustness checks and find consistent results. |
| Persistent Identifier | http://hdl.handle.net/10722/344329 |
| ISSN | 2023 Impact Factor: 3.6 2023 SCImago Journal Rankings: 1.663 |
| DC Field | Value | Language |
|---|---|---|
| dc.contributor.author | Bui, Dien Giau | - |
| dc.contributor.author | Chan, Yu-Ju | - |
| dc.contributor.author | Lin, Chih-Yung | - |
| dc.contributor.author | Lin, Tse-Chun | - |
| dc.date.accessioned | 2024-07-24T13:50:47Z | - |
| dc.date.available | 2024-07-24T13:50:47Z | - |
| dc.date.issued | 2024-07-17 | - |
| dc.identifier.citation | Journal of Banking and Finance, 2024 | - |
| dc.identifier.issn | 0378-4266 | - |
| dc.identifier.uri | http://hdl.handle.net/10722/344329 | - |
| dc.description.abstract | <p>We use lottery jackpot winnings in a neighborhood as an exogenous shock to investing in stocks. We find that retail investors whose brokerages are near the stores that sell winning tickets buy more stocks than their counterparts after the shock. These purchases lead to lower returns. We use a survey to identify the behavioral factors like regretfulness and probability weighting that are the main drivers of our findings. Moreover, these investors tend to buy more lottery-like stocks, but the shock does not affect their selling decisions. Finally, we perform several falsification tests and robustness checks and find consistent results.</p> | - |
| dc.language | eng | - |
| dc.publisher | Elsevier | - |
| dc.relation.ispartof | Journal of Banking and Finance | - |
| dc.rights | This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. | - |
| dc.title | Lottery Jackpot Winnings and Retail Trading in the Neighborhood | - |
| dc.type | Article | - |
| dc.identifier.doi | 10.1016/j.jbankfin.2024.107269 | - |
| dc.identifier.issnl | 0378-4266 | - |