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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Author(s)
Fanghong Jiao
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DOI:10.17265/2328-2169/2017.04.005
Affiliation(s)
Bradley University, Peoria, USA
ABSTRACT
On June 30, 2007, Nevada casinos switched to Bank Secrecy Act (BSA) provisions of Title 31 after the state completely repealed the Nevada Gaming Commission (NGC) Regulation 6A dealing with currency and foreign transactions. This study aims to examine the economic effect of Nevada Casinos’ compliance with the BSA provisions of Title 31 on casinos’ financial performance. In order to achieve the most contrasting results, the author matches publicly-traded casinos in Nevada and those in the other states. Parametric t-test and non-parametric Wilcoxon rank sum test are used in the descriptive section. Regression analyses on matched sample are used for the main test. The results show that, in general, Nevada casinos’ revenues are much lower than those of the casinos in other states, and BSA has a significant positive net effect on the Nevada casinos’ financial performance. The results suggest that BSA provisions of Title 31 are beneficial to Nevada casinos possibly due to reputation recovery.
KEYWORDS
Bank Secrecy Act (BSA), Nevada Gaming Commission (NGC) Regulation 6A, gambling industry
Cite this paper
Journal of Tourism and Hospitality Management, Mar.-Apr. 2017, Vol. 5, No. 2, 86-94 doi: 10.17265/2328-2169/2017.04.005
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Accounting Review, 78(1), 1-37.
Hong, H., & Kacperczyk, M. (2009). The price of sin: The effects of social norms on markets. Journal of Financial Economics,
93(1), 15-36.
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91-124.
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Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization
Studies, 24(3), 403-441.
Petersen, M. A. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. Review of Financial Studies,
22(1), 435-480.
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