This paper examines the extent to which individual investors provide liquidity to the stock market, and whether they are compensated for doing so. We show that the ability of aggregate retail order imbalances, contrarian in nature, to predict short-term future returns is signifi cantly enhanced...

Financial strength enhances firms' ability to extend trade credit, which confers a comparative advantage in the product market. To test this idea and its implications, I consider the effect of an exogenous restriction on the trade credit supplied by French trucking firms. In a...