Date of Award
Master of Science (MS)
Economics and Finance
Tyler Brough (Committee Chair)
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.
Jones, Cooper, "Retail Trading and Stock Volatility: The Case of Robinhood" (2021). All Graduate Plan B and other Reports. 1534.
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