Author ORCID Identifier:
Date of Graduation
8-2025
Document Type
Dissertation
Degree Name
Doctor of Philosophy in Business Administration (PhD)
Degree Level
Graduate
Department
Finance
Advisor/Mentor
Riley, Tim
Committee Member
Jandik, Tomas
Keywords
Gambling; Institutional Investors; Investments; News; News Cycle; Retail Investors
Abstract
In this dissertation, I explore the effects outside influences, such as media and gambling, can have on investor decisions, particularly those of retail traders. Chapter 1 explores how the reporting of news over time, the news cycle, affects intraday investor behavior. We measure news events as the time from the first major news agency report relevant to a stock during the trading day until when news about that firm reaches its highest level of coverage during the remainder of the trading day. We find that the impact of news is determined by its place within the news cycle. Trading volume is more responsive to news before a story reaches peak coverage. Overall, we conclude that the context in which news is reported relative to the news cycle is important in understanding its effects on markets. Chapter 2 explores how retail trading is affected by the recent surge in gambling awareness and accessibility due to legal changes in sports betting. We measure and compare the impact of skilled (sports betting) and non-skilled (lottery) gambling on retail traders’ preferences for stock characteristics. We use a staggered diff-in-diff approach to capture the impact of legalization. Stocks headquartered in states which legalize sports betting see an increase in retail trading volume in lottery-like stocks by ~12%. This effect is weaker in states with higher Catholic populations, possibly due to catholic acceptance of gambling. We see a decrease during the NFL season, possibly due to the popularity of the sport. Chapter 3 explores the effect of media attention on investor decision making. Using intraday trading and news data from January 2014 through December 2023, we examine the impact of news publications on the trading of retail and institutional investors. We find retail traders as quick as institutional investors to respond to both the existence of news and its level of coverage across multiple news outlets. Trading responds often during the 10-minute period the news is reported, followed by reduced volume over the following 20-30 minutes. Overall, we find retail traders as responsive as institutional traders to news and this activity may impact prices.
Citation
Wyld, S. D. (2025). Three Essays on Investment Choices and Outside Influences. Graduate Theses and Dissertations Retrieved from https://scholarworks.uark.edu/etd/5909
