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- Title
Gambling Preference and the New Year Effect of Assets with Lottery Features*.
- Authors
Doran, James S.; Jiang, Danling; Peterson, David R.
- Abstract
This paper shows that a New Year's gambling preference of individual investors impacts prices and returns of assets with lottery features. January call options, especially the out-of-the-money calls, have higher retail demand and are the most expensive and actively traded. Lottery-type stocks outperform their counterparts in January but tend to underperform in other months. Retail sentiment is more bullish in lottery-type stocks in January than in other months. Furthermore, lottery-type Chinese stocks outperform in the Chinese New Year's Month but not in January. This New Year effect provides new insights into the broad phenomena related to the January effect.
- Subjects
OPTIONS (Finance); INVESTORS; STOCK prices; RATE of return; NEW Year
- Publication
Review of Finance, 2012, Vol 16, Issue 3, p685
- ISSN
1572-3097
- Publication type
Article
- DOI
10.1093/rof/rfr006