Date of Award
8-2017
Degree Type
Creative Project
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
Tyler Brough
Committee
Tyler Brough
Committee
Benjamin Blau
Committee
Ryan Whitby
Abstract
Do people who gamble carry such preferences into their investments? This study looks at various factors which are used to identify countries with a significant gambling population, and seeks to find a relationship with those gambling tendencies and premiums associated with momentum. From historical market data from financial markets in 45 different countries I found stronger evidence of a momentum premium in those countries which have those identifying factors for gambling, than those that do not. Results of the regression analysis suggest weak evidence that it is possible that the momentum premium could be associated with gambling preferences and culture due to the hot hand fallacy. Meaning, when gamblers see a stock get hot they will double down, believing they exercise an illusion of control that the stock they invest in will continue to have positive returns.
Recommended Citation
Mosman, Daniel, "Gambling with Momentum: How Gambling Cultures Shape Financial Markets" (2017). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 1036.
https://digitalcommons.usu.edu/gradreports/1036
Copyright for this work is retained by the student. If you have any questions regarding the inclusion of this work in the Digital Commons, please email us at .