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

Posted on by Defensive Driving | 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 112879 ratings and reviews.

Rosalinda Orta Tx, united states
quick and easy
Krystal Jackson united states
Quick registration and a plethora of information
Randy Page Jr united states
Good experience
Katy TX, United States
Its easy and informative!
Emir Nasufi None, united states
amazing
Warrick Walker-Williams None, united states
Super easy
Robert Harrell None, united states
Great
Tatum Tx, united states
Awesome
Laila Williams Texas , united states
It was good and easy
Dan TX, United States
Very engaging
Isaias Pesina united states
Helpful
Lauren Taylor Texas, united states
Good experience overall
John Bates TX, united states
Easy to follow instructions.
chloe stevens united states
It's been an easy and cheap experience!
Jose Rodriguez united states
It was quick, easy and very user friendly
Cole Yarbrough None, united states
So far it’s been a smooth process
Jonathan Ruvalcaba None, united states
Everything is easy
Melanie Kaiser None, united states
quick and easy
Sabrina Narvaez None, united states
Great
Kelli Ashton None, united states
it has been fast
John Heath None, united states
Straight Forward
Jennifer Medina None, united states
easy
Samuel Ibarra None, united states
Love it
ryan kempisty united states
easy
amanda lopez Texas, united states
Was very easy and entertaining gave me allot of knowledge.
Kristin Scribner TX, united states
Very happy!
Antrone Harris Texas, united states
Experience was very smooth and easy
Martha Kapparis Texas, united states
Great
Oscar De La Fe None, united states
Cool
Mikayla Davis None, united states
Great
Cassidy Mitchell Texas, united states
It's pretty simple
Cyrus Sarkary Texas, united states
Great
Nicholas Macias United States
It's simple and easy to use
Adrian Morales-murillo Texas , united states
Very easy and understandable . Very informative ...... I definitely recommend it.
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