We apply the idea of Strych (2020) that short sellers of acquirers' stocks infer from their private observations of stock recalls that the deal will be more likely terminated. To profit from such informational advantage through short selling, Strych (2020) expects that acquirers' short sellers...

We aim to answer whether retail investors have a stabilizing effect on stock prices during times of financial markets turmoil. To achieve this, we examine the liquidity and crash risk of stocks that are likely held by Robinhood traders (i.e., our proxy for retail investors) using the COVID-19...