Closures, Mobility, Busy Parents, and Distracted Retail Investors

62 Pages Posted: 7 Feb 2024

See all articles by Lawrence Kryzanowski

Lawrence Kryzanowski

Concordia University, Quebec - John Molson School of Business

Ali Rouhghalandari

John Molson School of Business, Concordia University

Date Written: February 6, 2024

Abstract

Using mobility statistics and weekly closure data at the county level, we find a significant negative association between school/daycare closures (and mobility for workplaces and residential locations) and the trading activities of OTC-traded firms during the Covid-19 Pandemic. The associations for closures are more pronounced for simultaneous school/daycare closures, and for smaller firms, those with lower institutional ownership, less investor recognition, and limited geographic dispersion in business activities. The adverse effect of such closures on the trading activities of OTC stocks is consistent with pandemic-induced attention distraction and increased busyness of local (essentially retail) investors with children.

Keywords: OTC stocks, speculative microcaps, COVID-19 closures, geographic proximity, retail investor distraction/busyness/mobility

JEL Classification: G01, G12, G14, G18, G41, D01, J61

Suggested Citation

Kryzanowski, Lawrence and Rouhghalandari, Ali, Closures, Mobility, Busy Parents, and Distracted Retail Investors (February 6, 2024). Available at SSRN: https://ssrn.com/abstract=4718671 or http://dx.doi.org/10.2139/ssrn.4718671

Lawrence Kryzanowski (Contact Author)

Concordia University, Quebec - John Molson School of Business ( email )

1455 de Maisonneuve Blvd. W.
Montreal, Quebec H3G 1M8
Canada

Ali Rouhghalandari

John Molson School of Business, Concordia University ( email )

Montreal
Canada

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