Annual Conference

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Corporate Finance

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May 2015

Learning through a Smokescreen: Earnings Management and CEO Compensation over Tenure

Nandini GUPTA, Cristina CELLA, Andrew ELLUL
Career concerns may lead CEOs to distort reported performance (Fudenberg and Tirole (1995)), particularly in the early years of tenure when there is greater uncertainty about the CEO’s ability. We investigate whether the presence of reporting distortions affects CEOs’ compensation over their ten...
Keywords: executive compensation, Tenure, Earnings Management, Career Concerns
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Annual Conference

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Corporate Finance

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May 2023

Learning Production Process Heterogeneity Across Industries: Implications of Deep Learning for Corporate M&A Decisions

Jongsub LEE, Hayong YUN
Using deep learning techniques, we introduce a novel measure for production process heterogeneity across industries. For each pair of industries during 1990-2021, we estimate the functional distance between two industries’ production processes via deep neural network. Our estimates uncover the und...
Keywords: Deep learning, production process heterogeneity, M&A’s, integration synergy, the boundaries of the firm
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Annual Conference

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Investment Finance

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May 2015

Learning about the Neighborhood: The Role of Supply Elasticity for Housing Cycles

Gao ZHENYU, Michael SOCKIN, Wei XIONG
Motivated by an intriguing observation during the recent U.S. housing cycle that counties with housing supply elasticities in an intermediate range experienced the most dramatic price booms and busts, this paper develops a model to analyze information aggregation and learning in housing markets. In ...
Keywords: Elasticity, price boom, housing market;housing cycle
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2022

Leaning Against the Wind: An Empirical Cost-Benefit Analysis

Luis BRANDAO-MARQUES, Gaston GELOS, Machiko NARITA, Erlend NIER
This paper takes a new approach to assess the benefits of using different policy tools—macroprudential and monetary policies, foreign exchange interventions, and capital controls—in response to changes in financial conditions. Starting from quantile regressions, we evaluate policies across the f...
Keywords: monetary policy, macroprudential policy, FX intervention, capital controls, cost-benefit analysis
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Webinar Series

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Capital Market Development: China and Asia

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Nov 2024

Large Language Models and Return Prediction in China

Lin TAN, Huihang WU, Xiaoyan ZHANG
We examine whether large language models (LLMs) can extract contextualized representation of Chinese public news articles to predict stock returns. Based on representativeness and influences, we consider seven LLMs: BERT, RoBERTa, FinBERT, Baichuan, ChatGLM, InternLM, and their ensemble model. We sh...
Keywords: return prediction, news articles, large language models, information efficiency, Chinese stock market
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