Johan Hombert

TL;DR: In this article, the authors compare the optimal trading strategy of an informed speculator when he can trade ahead of incoming news (is "fast" versus when he cannot) and find that speed matters: the fast speculator's trades account for a larger fraction of trading volume, and are more correlated with short run price changes.

TL;DR: In this article, the authors study whether R&D-intensive firms are more resilient to trade shocks and provide evidence that this effect is explained by the large stock-of-R&D allowing firms to increase product differentiation.

Abstract: We study how relationship lending determines the financing of innovation. Exploiting a negative shock to relationships, we show that it reduces the number of innovative firms, especially those that depend more on relationship lending such as small, opaque firms. This credit supply shock leads to reallocation of inventors whereby young and productive inventors leave small firms and move out of geographical areas where lending relationships are hurt. Overall, our results show that credit markets affect both the level of innovation activity and the distribution of innovative human capital across the economy.Received April 11, 2013; editorial decision May 25, 2016 by Editor Andrew Karolyi.

TL;DR: In this article, the authors compare the optimal trading strategy of an informed speculator when he can trade ahead of incoming news (is "fast"), versus when he cannot (slow), and find that speed matters: the fast speculator's trades account for a larger fraction of trading volume, and are more correlated with short-run price changes.

TL;DR: The authors study whether relationship lending is conducive to the financing of innovation and show that it reduces the number of innovative firms, especially those that depend more on relationship lending such as small, young, and opaque firms.