Attention-Induced Trading and Returns: Evidence from Robinhood Users

• 成果类型: Article
• 署名作者: Barber, Brad M.; Huang, Xing; Odean, Terrance; Schwarz, Christopher
• 署名单位: University of California System; University of California Davis; Washington University (WUSTL); University of California System; University of California Berkeley; University of California System; University of California Irvine
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13183
• 发表日期: 2022
• 页码: 3141-3190
• 关键词: stock; investors; news; INFORMATION; BEHAVIOR; IMPACT

摘要

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.