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Mobile communication and local trading activity

https://accounting.wharton.upenn.edu/acct/assets/File/BSW%20Distracted%20Driving%2003-12-2014.pdf

We examine the influence of mobile communication on stock market activity using the enforcement of distracted driving restrictions, which are exogenous events that constrain the use of mobile communication devices (MCDs) while driving. We focus our analyses on changes in the trading volume and prices of local stocks headquartered in states implementing distracted driving restrictions. By restricting mobile communication across a potentially sizable set of local market participants, we conjecture that distracted driving restrictions could have negative effects on localized information efficiency—the speed and cost at which information flows to local market participants—and, in turn, the trading volume and stock prices of local stocks.
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