Yuling Qian
ABSTRACT
Gambling culture has an impact on people's risk appetite, and gambling consumption in China has increased by 10.4% in the past five years. So this paper chooses gambling consumption to characterize the local cultural environment, which enriches the influence factor of investment decisions from the perspective of gambling culture. This paper uses the panel data of A-share listed companies from 2014 to 2018 as an empirical sample, and uses total welfare lottery and sports lottery sales as a percentage of regional GDP to measure gambling culture. Results show that gambling culture has a significant negative impact on both the cash holding ratio and the R&D investment ratio. After selecting the ratio of sports lottery to GDP to re-measure gambling culture, these conclusions are still robust. After selecting the sum of the number of Taoist temples, Buddhist temples, mosques, Catholic churches, and Christian churches where companies are located as instrument variable, the empirical results are still robust. Then this paper puts forward some targeted suggestions including adopting a more cautious attitude when making investment deployments, curbing speculative tendencies for future development and integrating local gambling culture with corporate culture in order to make optimal investment decisions.
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