Date of Award
5-2021
Degree Type
Creative Project
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
Tyler Brough (Committee Chair)
Committee
Tyler Brough
Committee
Todd Griffith
Committee
Benjamin Blau
Abstract
We examine the relation between Robinhood usership and stock market volatility. We show that daily fluctuations in Robinhood usership, which is used to proxy retail trading, significantly influence various measures of volatility. These results might suggest that Robinhood users contribute to noise trading as they are generally individuals trading on name recognition, media coverage, popularity, and familiarity of products, rather than on fundamental values. In our empirical approach, we find that the percentage increase in Robinhood usership Granger causes increases in daily stock volatility.
Recommended Citation
Jones, Cooper, "Retail Trading and Stock Volatility: The Case of Robinhood" (2021). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 1534.
https://digitalcommons.usu.edu/gradreports/1534
Included in
Finance and Financial Management Commons, Other Business Commons, Statistical Models Commons
Copyright for this work is retained by the student. If you have any questions regarding the inclusion of this work in the Digital Commons, please email us at .