Moritz Mosenhauer|Philip W. S. Newall|Lukasz Walasek
The stock market as a casino: Associations between stock market trading frequency and problem gambling
Management Center Innsbruck|Central Queensland University|University of Warwick
abstract background aims personal investors decrease stock market investment returns trading frequently behavioral finance literature primarily explained via investors overconfidence low levels financial literacy study investigates whether problem gambling help account frequent trading sample active gamblerinvestors suggestive frequent trading part driven behavioral addiction gamblinglike activities methods retrospective crosssectional study 795 usbased participants reported active gamblers holding stock market investments recollected stock trading activity typical portfolio size purchases sales stocks compared scores problem gambling severity index financial literacy scale measure overconfidence results selfreported relative stock portfolio turnover positively associated problem gambling scores association robust controls financial literacy overconfidence demographics occurred equally among investors selfreported portfolio sizes discussion conclusions study provides support hypothesis behavioral addiction gamblinglike activities associated frequent stock market trading new investment products increase ease trading may therefore detrimental investors