Stock market reaction to trade restrictions: evidence from robinhood

Detalhes bibliográficos
Autor(a) principal: Torres, José Luís Barateiro Marques Da Mata
Data de Publicação: 2021
Tipo de documento: Dissertação
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/142190
Resumo: Arguably the biggest discount broker in the world, Robinhood implemented in January 2021 trade restrictions on a selection of popular stocks in social media communities, meme stocks. These weretargeted by retail investors in a coordinated fashion to increase their prices above fair value. We examine the impact of restrictions in restricted and non-restricted stocks, focusing on return and abnormal volume. Our model shows that meme stocks underperform when compared to the market and volatility increases around the event. Additionally, the results point towards the presence of herd behavior among retail investors, whose actions promote mis pricing and market inefficiencies.
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spelling Stock market reaction to trade restrictions: evidence from robinhoodEfficient market hypothesisStock returnsTrade restrictionsMeme stocksEvent studiesAbnormal trade volumeMispricingHerd behaviorDomínio/Área Científica::Ciências Sociais::Economia e GestãoArguably the biggest discount broker in the world, Robinhood implemented in January 2021 trade restrictions on a selection of popular stocks in social media communities, meme stocks. These weretargeted by retail investors in a coordinated fashion to increase their prices above fair value. We examine the impact of restrictions in restricted and non-restricted stocks, focusing on return and abnormal volume. Our model shows that meme stocks underperform when compared to the market and volatility increases around the event. Additionally, the results point towards the presence of herd behavior among retail investors, whose actions promote mis pricing and market inefficiencies.Rizzo, A. EmanueleRUNTorres, José Luís Barateiro Marques Da Mata2022-07-20T15:24:12Z2022-01-102021-12-162022-01-10T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10362/142190TID:203020898enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T05:19:41Zoai:run.unl.pt:10362/142190Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:50:11.763405Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Stock market reaction to trade restrictions: evidence from robinhood
title Stock market reaction to trade restrictions: evidence from robinhood
spellingShingle Stock market reaction to trade restrictions: evidence from robinhood
Torres, José Luís Barateiro Marques Da Mata
Efficient market hypothesis
Stock returns
Trade restrictions
Meme stocks
Event studies
Abnormal trade volume
Mispricing
Herd behavior
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
title_short Stock market reaction to trade restrictions: evidence from robinhood
title_full Stock market reaction to trade restrictions: evidence from robinhood
title_fullStr Stock market reaction to trade restrictions: evidence from robinhood
title_full_unstemmed Stock market reaction to trade restrictions: evidence from robinhood
title_sort Stock market reaction to trade restrictions: evidence from robinhood
author Torres, José Luís Barateiro Marques Da Mata
author_facet Torres, José Luís Barateiro Marques Da Mata
author_role author
dc.contributor.none.fl_str_mv Rizzo, A. Emanuele
RUN
dc.contributor.author.fl_str_mv Torres, José Luís Barateiro Marques Da Mata
dc.subject.por.fl_str_mv Efficient market hypothesis
Stock returns
Trade restrictions
Meme stocks
Event studies
Abnormal trade volume
Mispricing
Herd behavior
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
topic Efficient market hypothesis
Stock returns
Trade restrictions
Meme stocks
Event studies
Abnormal trade volume
Mispricing
Herd behavior
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
description Arguably the biggest discount broker in the world, Robinhood implemented in January 2021 trade restrictions on a selection of popular stocks in social media communities, meme stocks. These weretargeted by retail investors in a coordinated fashion to increase their prices above fair value. We examine the impact of restrictions in restricted and non-restricted stocks, focusing on return and abnormal volume. Our model shows that meme stocks underperform when compared to the market and volatility increases around the event. Additionally, the results point towards the presence of herd behavior among retail investors, whose actions promote mis pricing and market inefficiencies.
publishDate 2021
dc.date.none.fl_str_mv 2021-12-16
2022-07-20T15:24:12Z
2022-01-10
2022-01-10T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/142190
TID:203020898
url http://hdl.handle.net/10362/142190
identifier_str_mv TID:203020898
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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