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Gambling Attitudes and Earnout Contracting in M&A Transactions: Evidence From China

Xiaohong Ma et al.

Accounting and Finance2026https://doi.org/10.1111/acfi.70176article
AJG 2ABDC A
Weight
0.50

Abstract

This paper examines the causal link between local gambling attitudes and the use of earnouts in mergers and acquisitions. Using a large sample of Chinese M&As, we find that deals are more likely to include earnout provisions when targets are located in regions with stronger gambling preferences. The effect strengthens with information complexity but weakens under greater external monitoring. Moreover, targets in gambling‐prone regions obtain higher acquisition premiums when earnouts are used, while acquirers show no improvement in announcement returns. Overall, our findings highlight the behavioural dimension of financial contracting and the influence of cultural norms on corporate decisions.

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https://doi.org/https://doi.org/10.1111/acfi.70176

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@article{xiaohong2026,
  title        = {{Gambling Attitudes and Earnout Contracting in M&A Transactions: Evidence From China}},
  author       = {Xiaohong Ma et al.},
  journal      = {Accounting and Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/acfi.70176},
}

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Gambling Attitudes and Earnout Contracting in M&A Transactions: Evidence From China

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.