Topic: Risk Management
When Individuals Concentrate in a Stock, Earnings Surprises Play Out Differently
Price movements can be more extreme
Forecasting a Recession Using Easy-to-Grasp Images
A look at the shape of five variables through the last seven downturns vs. today’s numbers
Banks Transmit Financial Shocks, Including from Natural Disasters
How a localized flood may result in fewer loans to a far-off community
Sorting Out Conflicts of Interest in Commercial Loan Syndicates
Syndicate voting rules reflect varying levels of trust and familiarity
Banks, Freed to Operate Across State Lines, Helped Stabilize the Economy
Lenders financed expansion in some markets, offsetting problems in others
One Data Set That Warns Against Margin Trading
As a group, Chinese futures traders more likely to suffer margin call than to profit
Separating Auditing from Consulting: More Complex than it Seems
Market concentration, price and quality drive choice of firms
Market Bubbles Aren’t Entirely Irrational Exuberance
A model examines the relationships between innovation, speculation and market values
What Delivers a 20-to-1 ROI in the Energy Business?
Highly technical probabilistic risk assessments at nuclear plants improve safety and pay for themselves many times over
Rethinking Buy-and-Hold Investing
The case for using rising market volatility as a signal to pare back on stocks — does higher risk always mean higher return?
With Bonds, the Past Can Be Prologue
Patterns in corporate bond returns include abrupt short-term performance reversals and “momentum” waves that persist
Ignorance — About One’s Investments, Anyway — Isn’t Always Bliss
Valentin Haddad’s research looks at the phenomenon of “information aversion,” when individual investors stop tracking their portfolios for fear of bad news
How Life Insurers Insulate the Markets from Turmoil
Valentin Haddad’s research finds that insurers’ patient investing shields risky assets — and those who hold them — from steeper declines
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