Séminaire FAIRR avec Maxime Bonelli, (London Business School)

Lieu : Campus Grand Paris 
Heure : 10h30-12h30
Intervenant : Maxime Bonelli (London Business School) 

Résumé : 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.