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Institutional ownership and return volatility in the casino industry
Author(s) -
Lin Yongjia,
Fu Xiaoqing,
Gu Xinhua,
Song Haiyan
Publication year - 2017
Publication title -
international journal of tourism research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.155
H-Index - 58
eISSN - 1522-1970
pISSN - 1099-2340
DOI - 10.1002/jtr.2173
Subject(s) - volatility (finance) , business , stock (firearms) , monetary economics , volatility swap , tourism , economics , financial economics , finance , implied volatility , mechanical engineering , political science , law , engineering
Using a sample that covers all casino companies in Macao from March 2010 to June 2015, this paper investigates the impact of institutional investment on stock return volatility in the casino industry. The results suggest that higher institutional ownership is conducive to lower return volatility on Macao casino stocks. Such volatility also hinges on policy shifts, such as China's anti‐corruption campaign, in tourist source communities. In addition, the estimation reveals that both smoking bans and business size significantly decrease return volatility, whereas cross‐listing increases return volatility significantly.