Recent theories argue for governance through trading, which I call "grading", as an alternative governance mechanism to direct intervention (voice). Grading is the mechanism in which higher trading impounds new information into the price, pushing it toward its fundamental value, thus inducing...

Extending recent findings from Barber et al. (2022) and Welch (2022), we document that retail investors from the discount broker Robinhood swarm into stocks with pending earnings announcements and stay away from them immediately after the announcements. We study four competing explanations for...