Area: Finance
You Call That Fun? Why Individual Stock Investors Bother
Avanidhar Subrahmanyam studies how some investors’ gambling mentality affects share prices
With Bonds, the Past Can Be Prologue
Patterns in corporate bond returns include abrupt short-term performance reversals and “momentum” waves that persist
Why Risk and Reward Don’t Always Move in Concert
Investors initially underreact to volatility, then overreact
Why Do Banks With Little Skin in the Game Still Monitor Borrowers?
Tax policy change triggers an incentive for lenders to be more aggressive
Why Big Banks Can Pay Less on Deposits
Their level of technology and services makes up for it; it’s vice versa with little banks
Who Does — and Doesn’t — Suffer From Lack of Competition for Workers
Nurses, cosmetologists and other professionals find wages suppressed more than many lower-skilled workers
When Younger Investors Overreact to News, Others Feel It
Inexperienced investors, lacking historical context, impact markets
When the Fed Taps the Brakes, Not All Banks Slow Down
Some lenders’ balance sheets are less affected by a rising federal funds rate
When Homeowners Confide in Google, Forecasters See Clues to Mortgage Defaults
Researchers developed an index that warns earlier than others about approaching home loan problems
When Financial Intermediaries Sneeze, These Assets Catch a Cold
Some investment vehicles are more reliant than others on the health of trading firms
What Makes a True Financial Crisis?
Data back to 1870 show similarities in the worst banking system shocks — focusing on loose lending before a meltdown
What Drives LBO Fever? More Than Just Cheap Loans
Private equity investors weigh the total cost of capital — not just debt, but equity as well — when pursuing buyouts
Unwelcome Gift Message: ‘I Know You Need Money’
The same gift, with a message on saving the recipient time, is more welcome
Underappreciated Investment Edge: Company Trademark Filings
Not part of financial reporting, trademark activity predicts stock returns
Treasury Securities Are Actually Cheap Sometimes
They don’t trade at an absolute equal to intrinsic value, despite their image as the world’s investment bedrock
To Wall Street, There’s No Crisis Like a Banking Crisis
Tyler Muir finds that neither war nor deep recession darkens investor sentiment like sudden turmoil in the financial system