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.
- casino industry
- institutional ownership
- stock return volatility
ASJC Scopus subject areas
- Geography, Planning and Development
- Tourism, Leisure and Hospitality Management
- Nature and Landscape Conservation