We document that Algorithmic Traders (ATs) reduce analysts' stock coverage and the number of analyst research reports. This evidence reflects that ATs pre-empt trades on new information, which reduces non-AT investment-driven demand for analyst research. Consistently, the effects we document...

Does the stock price efficiency, i.e. the speed and the extent with which prices reflect public information, affect corporate innovation? Using the intensity of algorithmic trading (AT) to capture price efficiency and the Tick Size Pilot experiment setting, we establish a causal positive...

Using the SEC's Tick Size Pilot experiment, we examine the causal relation between the intensity of trades by high frequency traders (HFTs) and analyst research production. We propose that HFTs pre-empt other investors' trades, which lowers non-HFTs' profitability of trades on analyst reports...