News or noise: Mobile internet technology and stock market activity

Arbeitspapier

Mobile internet devices reduce trading frictions and information search costs for investors, but also introduce attention-competing activities,such as social networking. We use exogenous nationwide and city-level outages of the Blackberry Internet Service (BIS) to investigate the effect of mobile internet technology on investors'information-gathering vs. attention-diverting activities. We find that trading volume and trading frequency surge by about 5% on days when mobile internet systems go dark, consistent with a greater role for devices (when not dark) in diverting the limited attention of investors away from information-gathering and trading - even when they are used by presumably more sophisticated investors.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CFR Working Paper ; No. 21-10

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Asset Pricing; Trading Volume; Bond Interest Rates ; Information and Market Efficiency; Event Studies; Insider Trading ; Information and Internet Services; Computer Software
• Thema: mobile technology ; investor activity ; stock market liquidity ; limited attention ; distraction

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Brown, Nerissa C. ; Elliott, W. Brooke ; Wermers, Russ ; White, Roger M.
• Ereignis: Veröffentlichung
• (wer): University of Cologne, Centre for Financial Research (CFR)
• (wo): Cologne
• (wann): 2021

Weitere Informationen

• Handle: http://hdl.handle.net/10419/250746
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ