- Published
- 2022-09-30
- Venue
- The Journal of Finance, vol. 77, no. 6, pp. 3141-3190
- Cited by
- 576
- Open access
- Yes, green
- DOI
- 10.1111/jofi.13183
Abstract
We study the influence of financial innovation by fintech brokerages on individual investors’ trading and stock prices. Using data from Robinhood, we find that Robinhood investors engage in more attention‐induced trading than other retail investors. For example, Robinhood outages disproportionately reduce trading in high‐attention stocks. While this evidence is consistent with Robinhood attracting relatively inexperienced investors, we show that it is also driven in part by the app's unique features. Consistent with models of attention‐induced trading, intense buying by Robinhood users forecasts negative returns. Average 20‐day abnormal returns are −4.7% for the top stocks purchased each day.
Cite this paper
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- APA 7
Barber, B. M., Huang, X., B, T. O., & SCHWARZ, C. (2022). Attention‐Induced Trading and Returns: Evidence from Robinhood Users. The Journal of Finance, 77(6), 3141–3190. https://doi.org/10.1111/jofi.13183
- MLA 9
Barber, Brad M., et al. "Attention‐Induced Trading and Returns: Evidence from Robinhood Users." The Journal of Finance, vol. 77, no. 6, 2022, pp. 3141–3190, https://doi.org/10.1111/jofi.13183.
- Chicago
Barber, Brad M., Xing Huang, Terrance Odean B, and CHRISTOPHER SCHWARZ. "Attention‐Induced Trading and Returns: Evidence from Robinhood Users." The Journal of Finance 77, no. 6 (2022): 3141–3190. https://doi.org/10.1111/jofi.13183.
- GOST
Barber B. M., Huang X., B T. O. [и др.] Attention‐Induced Trading and Returns: Evidence from Robinhood Users // The Journal of Finance. — 2022. — Vol. 77, № 6. — P. 3141–3190. — URL: https://doi.org/10.1111/jofi.13183
- BibTeX
@article{barber2022attentioninduced, title = {{Attention‐Induced Trading and Returns: Evidence from Robinhood Users}}, author = {Brad M. Barber and Xing Huang and Terrance Odean B and CHRISTOPHER SCHWARZ}, journal = {The Journal of Finance}, year = {2022}, volume = {77}, number = {6}, pages = {3141--3190}, doi = {10.1111/jofi.13183}, url = {https://doi.org/10.1111/jofi.13183} }- RIS
TY - JOUR AU - Barber, Brad M. AU - Huang, Xing AU - B, Terrance Odean AU - SCHWARZ, CHRISTOPHER TI - Attention‐Induced Trading and Returns: Evidence from Robinhood Users JO - The Journal of Finance VL - 77 IS - 6 SP - 3141 EP - 3190 PY - 2022 DA - 2022/09/30 DO - 10.1111/jofi.13183 UR - https://doi.org/10.1111/jofi.13183 ER -