Ms. Atcha Kamolsareeratana, CMMU full academic scholarship PhD candidate presented her research paper at the 22nd New Zealand Finance Colloquium held in Palmerston North, New Zealand from 7-9 February 2018. The annual colloquium was an initiative introduced in 1996 to promote the discussion, dissemination and development of finance related research. The School of Economics and Finance, Massey Business School, Massey University hosted the event this year receiving successful number of research papers.



The presented paper titled, “Gambling in the stock market: The motivations behind excessive and speculative trading” authored by Assist. Prof. Dr. Ruben Cox, Atcha Kamolsareeratana, and Assoc. Prof. Dr. Roy Kouwenberg received research grants from the Network for Studies on Pensions, Aging and Retirement (Netspar) and Erasmus Research Institute of Management (ERIM). The research paper received useful feedback and a lot of interests from participants.







Abstract: Active stock trading by individual investors is hard to explain, as investors who trade more actively tend to perform worse. We investigate to what extent gambling motives can explain excessive and speculative trading. We use five different proxies for gambling motives, ranging from fairly innocent, such as aspiring a small chance to become rich, to quite severe, namely compulsive gambling. We find that especially compulsive gambling can explain frequent trading by individual investors well, in addition to indicators for recreational gambling (e.g., in casinos). Further, investors driven by gambling motives tend to be in a significantly worse financial situation.