Area: Finance
How an Excess of Stock Analyst Optimism Lands on Companies Least Deserving of It
Results of financially weak firms are difficult to forecast; in uncertainty, Wall Street’s views are overly generous
Chinese Investors Learn about Derivatives the Hard Way
An analysis of warrant trading reveals individuals’ poor grasp of complex securities
Lending to Startups: Not as Risky as You’d Think
Entrepreneurs borrow between equity funding rounds with a strong record of repaying debts
Calculating a Value for the Government Support Banks Enjoy
Researchers’ model could quantify the risks in the growing movement to ease up on Dodd-Frank regulations
Mortgage Prepayments: Factors beyond Interest Rate Movements
A model estimates the impact of economic variables on the pricing of prepayment risk
Single-Family Rentals: What Drives Investor Return?
A unique data set provides fresh insights for the growing institutional investor market
Sizing Up the Measurable Good of Affirmative Action
An economic model sets aside who loses and focuses on efficiency and overall growth
Financial Constraints on Intermediaries Cause Asset Mispricing
Real-world bond data reveals how the capital positions and liquidity of middlemen affect prices of securities they broker
How Tech’s Disruption Alters Investors’ Appetite for Risk
New technology’s upending of the old creates demand for alternative assets to offset risk
Are Interest Rates Really So Low?
Adjusting for inflation — and, crucially, for taxes — shows bond investors fare better than they might think
In China, Big Investors Have Brilliant Timing ― Or Do They Know Someone?
A scan of a million brokerage accounts finds the wealthy trade ahead of market-moving news
When Younger Investors Overreact to News, Others Feel It
Inexperienced investors, lacking historical context, impact markets
You Call That Fun? Why Individual Stock Investors Bother
Avanidhar Subrahmanyam studies how some investors’ gambling mentality affects share prices
The Housing Meltdown Would Have Been Far Worse Without California’s Anti-Foreclosure Laws
Restraining lenders saved hundreds of billions in home value
Bringing a Sharper Focus to the Study of the Decline of Investment Diversification
Research measures the impact of global economic factors on returns
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