Xiang Zheng ♦ This study utilizes U.S. Patent Office data to explore potential improvements in the patent examination process through machine learning. It shows that integrating machine learning with human expertise can increase patent citations by up to 26%. Using…
Raymond Kan and Nathan Lassance ♦ Existing portfolio combination rules that optimize the out-of-sample performance under parameter uncertainty assume multivariate normally distributed returns. However, we show that this assumption is not innocuous because fat tails in returns lead to poorer…
Chukwuma Dim ♦ This paper documents that 56% of nonprofessional social media investment analysts (SMAs) are skilled and declare beliefs that generate positive abnormal returns, while 44% produce negative abnormal returns. Some 13% high-type SMAs produce a one-week three-factor alpha of 61…
Martin M. Andreasen ♦ This paper presents a New Keynesian model to capture the linkages between macro fundamentals and the nominal yield curve. The model explains bond yields with a low level of news in expected inflation and plausible term…
Sandy Klasa, Hernán Ortiz-Molina, and Matthew Serfling ♦ We examine whether location within a dense regional cluster of interconnected businesses affected firm performance during the Great Recession and the subsequent recovery. Firms in denser regional clusters experienced faster sales growth…
Mohammad (Vahid) Irani, Wenhao Yang, and Feng Zhang ♦ We find that common ownership among acquirers enhances rather than hinders competition in the firm sale process. One common owner raises the likelihood that target firms are sold through auction (versus…
