Tiago Loncan and Philip Valta ♦ We examine how domestic product market competition shapes firms’ foreign market expansion. Using a panel of U.S. public firms from 1997–2017 and text-based measures of output offshoring, we show that stronger domestic competition increases…
Jens Heckmann, Heiko Jacobs, and Patrick Schwarz ♦ We propose a novel approach to synthesize presumably information-driven insider trading signals for the cross-section of stocks. We find that the resulting straightforward composite strategy can often forecast returns in a global…
Kosha Modi, Nicola Pierri, Yannick Timmer, and Maria Soledad Martinez Peria ♦ Using a newly compiled measure, this paper studies the determinants and implications of US banks’ information technology (IT) investments. Exposure to fintech competition and novel economies of scale…
Qi Xu, Roman Kozhan, and Mark P. Taylor ♦ We empirically investigate the role of prospect theory in the foreign exchange market. A currency-level measure of prospect-theory value, constructed from the historical distribution of exchange rate returns, negatively forecasts future…
Richard B. Evans, Miguel Ferreira, and Michael Young ♦ We examine global variation in the disclosure of mutual fund manager identities using a comprehensive sample. 11% of mutual funds do not disclose their management teams. Anonymously managed funds underperform those…
Fotis Grigoris ♦ This study shows that municipal bond yields are informative about the risk exposures and expected returns of local firms. An investment strategy that buys (sells) firms located in states where the municipal-Treasury spread is high (low) earns…
