Car Crashes vs. Market Crashes: Is Safe Driving Affecting Stock Prices?

Posted on by Defensive Driving Team | in Driver Safety For You & Your Family, Driving Distractions

 
Sao_Paulo_Stock_Exchange
 
When it comes to using a smartphone while driving, most of the world is in general agreement on the subject: texting, browsing, or any sort of phone use while driving is generally a bad thing. However, a new study might just create a moral dilemma for some in the world of finance.

The study draws attention to a common trend in states where distracted driving laws have been implemented. In these states, immediately after the introduction of new, stricter distracted driving laws, there was a decline in stocks for publicly traded companies in the area.

According a report from researchers at Georgia State University and the University of Florida, there was a 22 percent median decline in Google searches for ticker symbols of companies in local states; one that occurred immediately after that state implemented the new distracted driving laws. They looked at a total of 30 states, and noticed the same trend in each one.

Speaking to The Wall Street Journal, Roger White, co-author of the study, said, “it’s not just a flash in the pan…people aren’t just trading [while on the road], they’re communicating value-relevant information.” He also noted that there was a difference in states where hands-free phone use is permitted, with a smaller decline occurring, and a bigger decline in states where there are more commuters per capita.

In total, the permanent reduction in the number of trades for states with distracted-driving laws is closer to about 3 percent, so perhaps traders are quick to adapt their schedules to better accommodate travel time.

After all, when all things are considered, this slight decline is a small price to pay when there are human lives at stake.
 

|

Customer Reviews

Defensivedriving.com has a ShopperApproved rating of 4.7 based on 98404 ratings and reviews.

Siebrigje TX, United States
The experience was great, easy, and very professional.
Coleman United States
Easy to navigate website
Stratton
quick and easy sign up!
Sarahi
Very fast
Nestor
Quick
ROBERT
Quick and Easy.
Ivan United States
Fast and easy.
Aaron TX, United States
It has been very easy.
mario TX, United States
Cheap, easy, and informative. Look no further.
James
Easy to register. Easy to follow.
Jennifer United States
Very easy and fast!
Abelardo TX, United States
Great, fast & reliable!
kaylin United States
It was great, fast, and easy.
Patricia
Easy to use and register!
Wendy TX, United States
The process was easy and efficient.
Courtney United States
Very easy lesson while in the comfort of my home.
Brittany United States
Overall great.
Stephen TX, United States
It was pretty easy, very user friendly, and an overall simple experience.
Willie TX, United States
Fast and easy
Michael
Nice and easy
Natali TX, United States
user friendly
C.T. TX, United States
Fast and easy to use. Good program.
Emma TX, United States
It was easy to understand and complete.
Chad
Smooth sailing introductory process. Love the website.
Hugo TX, United States
Easy to navigate.
Armando
Good website very easy to use
Broderick TX, United States
It was fast and easy
Randy United States
Great experience
Peter United States
Quick, easy, and painless
Victor
Excellent
Taylor
Easy!
Victoria
Awesome
Evelyn United States
Professionally done and very interesting to watch
Johnathan United States
Great experience
Allishis
It's easy to use
Senetra
It’s great simple and easy
Andres
Fast and Easy!
MARCUS
Great customer service satisfaction
See all reviews on shopperApproved.com
Why DefensiveDriving.com
  • 20 Years in Business
  • Over 2 Million Customers Served
  • Highest Possible Better Business Bureau Rating
  • Award Winning Course