We investigate the role of retail traders in comovement in return and liquidity. We use the Robinhood data to compute a proxy of retail trading activity. Results show that retail trading activity is associated with a decrease in both comovements in return and liquidity. The effects on comovement...

We find that the acquisition of private information is associated with an improvement in market liquidity. An empirical analysis of search activity through EDGAR as a proxy for information acquisition provides evidence for a theoretical gap in market microstructure models. We also find EDGAR...

We investigate the role of retail traders in comovement in return and liquidity. We use the Robinhood data to compute a proxy of retail trading activity. Our results show that retail trading activity is associated with a decrease in both comovements in return and liquidity. The effects on...

We investigate the role of retail traders on market informational efficiency. The literature is inconclusive about characterizing retail trades in terms of these trades’ informativeness. Also, their well-documented role in liquidity can mediate the effects on efficiency. Major Australian TV...