FAIRR SEMINAR with Maxime Bonelli, (London Business School)

Place: Grand Paris Campus 
Time : 10:30AM-12:30PM
Speaker : Maxime Bonelli (London Business School) 

Abstract : We study whether religious beliefs foster financial investments using a unique trading session
on Diwali in India—a festival associated with wealth and prosperity. Leveraging brokerage data
and differences in religion, we show that treated individuals change their behavior on the day,
participating more and buying substantially larger amounts, which increases aggregate retail buy
order imbalance. Consistent with beliefs associated with Diwali, they buy new stocks rather than
increasing existing holdings, with a reduced likelihood of selling these stocks. These patterns are
absent around events lacking associated beliefs about prosperity. Our findings highlight a novel
mechanism of religious messaging facilitating investments.