Reliable excess returns from active portfolio management derive from informed trading. We investigate the information content of informed trading in the equity market and the options market. We find that informed equity trading and options trading are positively correlated in the time-series,...

We investigate how information choices impact equity returns and risk. Building on an existing theoretical model of information and investment choice, we estimate a learning index that reflects the expected benefits of learning about an asset. High learning index stocks have lower future returns...

I examine how a change in competitive pressure within an industry affects the importance of corporate governance. Consistent with prior studies, I find that weak governance is associated with lower firm value and operating performance. Using large reductions in import tariffs as an exogenous...

One of the main explanations for the idiosyncratic volatility (IVOL) puzzle (i.e., the negative relation between lagged IVOL and returns) is a missing risk factor. We show analytically that if IVOL proxies for a missing risk factor, then the negative relation between IVOL and returns should...

We examine the introduction of fractional trading and its impact on retail security ownership. Fractional trading aims to increase investor access to securities with high prices. Over the initial months of Robinhood’s fractional trading program, the number of unique owners increases...

We evaluate the performance and determinants of IPOs allocated to retail investors through the Robinhood IPO Access program (“RIA IPOs”). The average total allocation is 3% of shares offered. Controlling for a set of well-studied IPO underpricing determinants, the average first-day return of...