IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v66y2024ics1544612324005920.html
   My bibliography  Save this article

Does regional gambling culture affect long-term corporate operational risk?–Empirical evidence from lottery sales

Author

Listed:
  • Kang, Dong
  • Wang, Jun

Abstract

The findings of this paper indicate that regional gambling culture can increase the long-term performance volatility of enterprises. The results of heterogeneity tests show that the impact of regional gambling culture on the long-term performance volatility of enterprises is more pronounced in companies with higher information asymmetry and those in regions with lower levels of marketization. This discovery of variability offers targeted suggestions for enterprises to formulate cultural industry development strategies under different economic backgrounds and industry characteristics, providing practical guidance for policymakers and corporate managers.

Suggested Citation

  • Kang, Dong & Wang, Jun, 2024. "Does regional gambling culture affect long-term corporate operational risk?–Empirical evidence from lottery sales," Finance Research Letters, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324005920
    DOI: 10.1016/j.frl.2024.105562
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324005920
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105562?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Clark, Gordon L. & Fiaschetti, Maurizio & Tufano, Peter & Viehs, Michael, 2018. "Playing with your future: Who gambles in defined-contribution pension plans?," International Review of Financial Analysis, Elsevier, vol. 60(C), pages 213-225.
    2. Yan Xie & Xin Wang & Kam C. Chan, 2023. "Does local gambling culture affect bond yield spread? Evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 30(8), pages 1101-1106, May.
    3. Lartey, Theophilus & James, Gregory A. & Danso, Albert & Boateng, Agyenim, 2022. "Bank business models, failure risk and earnings opacity: A short- versus long-term perspective," International Review of Financial Analysis, Elsevier, vol. 80(C).
    4. Dane M. Christensen & Keith L. Jones & David G. Kenchington, 2018. "Gambling Attitudes and Financial Misreporting," Contemporary Accounting Research, John Wiley & Sons, vol. 35(3), pages 1229-1261, September.
    5. Kong, Dongmin & Xiong, Mengxu & Qin, Ni, 2022. "Business Tax reform and CSR engagement: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 82(C).
    6. Tian, Guangning & Li, Bo & Cheng, Yue, 2022. "Does digital transformation matter for corporate risk-taking?," Finance Research Letters, Elsevier, vol. 49(C).
    7. Haoye Liang & Shibo Liu & Xinyu Zhan & Wanfang Xiong, 2024. "The Effect of Gambling Preference on Stock Volatility: From the Evidence of Looser Price Limits Regulation," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(10), pages 2174-2189, August.
    8. Chen, Yunyan & Wu, Shinong & Zhou, Yucheng & Huo, Di, 2023. "Gambling culture and corporate violations: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Jianye & Ke, Yubing & Sun, Lingxia & Liu, Huifen, 2024. "Speculative culture and corporate greenwashing: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    2. Bin Li & Honglei Li & Guangfan Sun & Jiayi Tao & Chongluan Lu & Changwei Guo, 2024. "Speculative culture and corporate high-quality development in China: mediating effect of corporate innovation," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    3. Hongying Yin & Xiaoyun Gong & Xiaofeng Quan & Annie Y. S. Li, 2024. "Local gambling preferences and corporate tax avoidance: Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3413-3443, July.
    4. Lina Mao & Chongluan Lu & Guangfan Sun & Chunyan Zhang & Changwei Guo, 2024. "Regional culture and corporate finance: a literature review," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    5. Tong, Jiarui & Wu, Dixin, 2025. "Local gambling preferences and insider trading profits: Evidence from China," Finance Research Letters, Elsevier, vol. 75(C).
    6. Xu, Siyun & Bai, Xiaodong & Chen, Xia, 2025. "Corporate environmental, social, and governance performance, investor attention, and corporate development capability—An empirical examination based on moderating and threshold effects," International Review of Financial Analysis, Elsevier, vol. 102(C).
    7. Xu, Zhiyi & Yang, Jindi, 2025. "Impact of digital finance on rural industry revitalization," International Review of Economics & Finance, Elsevier, vol. 97(C).
    8. Yi, Yunxin, 2023. "Does the liberalization of stock market optimize firm's debt? Evidence from a policy experiment in China," Finance Research Letters, Elsevier, vol. 58(PB).
    9. Wu, Shilei & Zhou, Fu-You & Si, Deng-Kui & Hao, Jiawei, 2025. "Does ESG rating policy reduce corporate risk-taking? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    10. Tang, Xinhui & Du, Shujun & Deng, Wenwen, 2025. "Business innovation in digital startups: A case study of an AI startup," International Review of Economics & Finance, Elsevier, vol. 98(C).
    11. Zhan, Zhihao & Zhang, Anqi & Zhang, Mingxin & Zhang, Mingxin, 2024. "Unveiling the adverse selection problem in China's digital lending market: Evidence from CHFS," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    12. Wang, Xiaofen & Yu, Jing & Di, Jing, 2025. "Effects of digital economic antitrust policy on enhancing corporate innovation performance," Finance Research Letters, Elsevier, vol. 71(C).
    13. Wang, Haijun & Ge, Chen & Du, Xiance & Feng, Yiqiang & Wang, Weicheng, 2024. "Does digital literacy reduce intergenerational income dependency?," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    14. Xiao, Zhongyi & Li, Yuanling & Xiang, Cheng, 2025. "Do suppliers value customer firms' digital transformation? Evidence from trade credit provision," International Review of Financial Analysis, Elsevier, vol. 99(C).
    15. Chen, Guang & Wang, Min, 2023. "Stock market liberalization and earnings management: Evidence from the China–Hong Kong Stock Connects," Finance Research Letters, Elsevier, vol. 58(PB).
    16. Ying Wu & Yuanyue Deng, 2024. "Does digital transformation crowd out the employment of lower skill labor?," Bulletin of Economic Research, Wiley Blackwell, vol. 76(3), pages 726-748, July.
    17. Dai, Wensheng, 2025. "Belt and Road Initiative: Driving innovation in tech enterprises through global value chains," Finance Research Letters, Elsevier, vol. 74(C).
    18. Zheng, Sufang & Huang, Siming & Deng, Xu, 2025. "Digital inclusive finance and local government debt: Examining the mechanism of impact on high-quality rural development from a macroeconomic perspective," International Review of Financial Analysis, Elsevier, vol. 102(C).
    19. Xiao, Yu & Wu, Junxian & Tu, Yongqian, 2025. "Intensity of environmental regulation, integration of digital and physical realms, and level of corporate green development," Finance Research Letters, Elsevier, vol. 78(C).
    20. Xing, Manjiang & Gong, Chi & Moon, Gyu-Hyen & Ge, Xiaohong, 2025. "Digital economy, dual innovation capability and enterprise labor productivity," International Review of Financial Analysis, Elsevier, vol. 101(C).

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:66:y:2024:i:c:s1544612324005920. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.