The Stock Market Tips

41 Pages Posted: 25 Feb 2020 Last revised: 12 Mar 2020

See all articles by Cihan Uzmanoglu

Cihan Uzmanoglu

Binghamton University, The State University of New York

Date Written: February 13, 2020


We provide evidence that public firms can affect their local economies through the discretionary spending of their employees on local goods and services. Using New York City taxi records, we find that tips paid for taxis taken near firms’ headquarters are higher on the days their stock returns—as well as the market’s returns—are higher. This finding is stronger for firms offering greater stock-based compensation, and tipping also increases following the initial public offerings of firms. The number of taxis taken near firms’ headquarters, too, increases with their stock returns. Placebo tests suggest that these findings are not spurious.

Keywords: Firm Location; Local Economic Activity; Discretionary Spending; Stock Market Wealth Effects

JEL Classification: G30, G19, G51, G40, D10, D31, M52

Suggested Citation

Uzmanoglu, Cihan, The Stock Market Tips (February 13, 2020). Available at SSRN: or

Cihan Uzmanoglu (Contact Author)

Binghamton University, The State University of New York ( email )

Binghamton, NY 13902-6001
United States
607 777 66 38 (Phone)

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