In this paper, we test the predictive power of a nonparametric multivariate discriminant model to predict corporate bankruptcy. In contrast with the previous literature, we employ not only accounting ratios, but also market and microstructure variables. The most important finding are that market...

In this paper, we test the predictive power of neural networks to predict corporate bankruptcy. In contrast with the previous literature, we not only use nontraditional models and employ accounting ratios, but also market and microstructure variables. The most important findings are that market...

In this paper, we investigate the univariate behavior of variables prior to bankruptcy. In contrast with the previous literature, we study not only the behavior of accounting ratios, but also that of market and microstructure variables. The most important finding is that market and...

Using a novel dataset containing the forecasts of both buy-side and sell-side analysts, and individual investors, we find that crowdsourced earnings forecasts are more accurate than expert forecasts of sell-side analysts. Examining the economic mechanisms that generate superior crowd forecasts,...

We show that fund-specific return skewness is associated with managerial skill and future hedge fund performance. Specifically, skewness in fund returns reflects managerial skill in avoiding large drawdowns. Using a new measure of investment skill that accounts for this managerial ability, we...

The paper finds that firms' exposure to temperature changes predicts stock returns. We use the sensitivity of stock returns to abnormal temperature changes to measure firm-level climate sensitivity. Stocks with higher climate sensitivity forecast lower stock returns. A trading strategy that...

We study the forecasting behavior of minority sell-side equity analysts. Distinct from the impact of cultural and geographic diversity, we demonstrate that, although minority analyst forecasts have lower accuracy, consistency in their forecasts generates stronger correlation between the...

This study examines whether sell-side equity analysts help the market assimilate information contained in global climate change. Using a new measure of firm sensitivity to climate change, we show that analysts located in states where firms exhibit greater sensitivity to abnormal temperature...