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 100366 ratings and reviews.

Nicole
Getting registered was fast and easy!
Haven
Super quick and simple
Nelson
quick and EZ
Garrett
Very easy and affordable.
San TX, United States
Was real informative
John
It's easy and quick.
Christopher TX, United States
Great learning experience
Nikolaos TX, United States
Fast reliable easy and enjoyable
Phil United States
Easy to use. Very informative and well produced
Jordan
Easy and Quick
richard TX, United States
simple registration and setup!
Leroy TX, United States
Super quick and easy
Chris TX, United States
Great program! Have used it for years!
Christopher
Very easy to navigate
Roger
Best defensive driving course. You can do it whenever you have acces to the internet
TRAVIS
EASY PEEZY
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