Articles tagged with Finance
Researchers at the University of Innsbruck have proposed a method to solve optimization problems using neutral atoms and four-qubit operations. The algorithm can be realized on existing quantum hardware by optimizing laser pulse durations in a feedback loop.
Researchers found traders prefer larger companies with strong analyst coverage and a greater ability to convert their shares into cash. They actively traded on firms where both hard and soft information gave similar signals about the future.
A recent study from the University of Toronto's Rotman School of Management found that slow stock analysts outperform their faster counterparts. Portfolios that follow their advice have been shown to perform five to 10 percent better, thanks to their ability to assess a company's value and update forecasts more frequently.
A new BU study found that individuals with physical, social, and financial assets, particularly higher incomes and fewer savings, were less likely to experience sustained depression during the first year of the pandemic. Persistent depression was highest among people in low-income households and those with fewer savings.
A new study found that a higher minimum wage was associated with fewer people defaulting on their rent payments, particularly among those at the lower end of the housing expense market. However, landlords responded by increasing rent payments, offsetting some but not all of the increased income.
A new study finds that top 10 banks have limited commitments to reduce financing of fossil fuels, despite increasing focus on climate change. Experts recommend policy changes to address the banking industry's responsibility in financing climate change.
A recent study by Bayes Business School suggests that accounting firms are better equipped to deliver fair target valuations on mergers and acquisitions compared to investment banks. The research highlights the importance of auditing expertise in determining a company's true value.
A study of 2,800 adults aged 75+ found that severe financial strain increased the risk of death in the six months following a heart attack. The research highlights the importance of addressing financial stress for older adults with cardiovascular disease.
A study published in Applied Economics analyzed the relationship between precious metal commodities and equity markets, revealing that gold and aluminum are the most desirable metals for investment. The research also found that copper and zinc have the largest spillovers on global equity indices.
Researchers have developed a new text-based analytics model that analyzes firms' tailoring of investments to their portfolio of products, using the four-stage product cycle. This framework provides insights into how firms exploit investment opportunities, including disclosure patterns and strategic alliances.
Alternative data can improve market performance by encouraging firms to bring in more skilled people to extract unique insights. As funds acquire these skills, they can process more alternative data at a lower cost, leading to stronger performance for both the fund and the market.
Between 2015 and 2019, Medicare spending on drugs with an accelerated approval indication more than doubled, reaching $9.1 billion in 2019, primarily driven by Part B drugs. The study's findings highlight the growing concern of rapidly increasing costs associated with these medications.
Researchers found that minimum payment requirements cause consumers to spread repayments evenly, leading to less paid to higher-interest debts. By displaying interest rates clearly, companies can help consumers make better repayment choices. Fintech products and policy changes can also aid in reducing interest payments.
Researchers found that tweets with negative valence and consumer orientation generate permanent price impacts, while those with positive valence and competitor orientation increase temporary price impacts. Firms can design social media content to improve firm value by incorporating attributes such as valence and subject matter.
A new study aggregates evidence from experiments on performance incentives globally, finding that men and women respond similarly to rewards for achieving performance objectives. The study suggests that performance pay boosts productivity for both genders across various contexts and program designs.
Researchers found that creative activities, like designing t-shirts or decorating cookies, increase charitable giving. Donors who participate in these activities feel a sense of freedom and autonomy, leading to higher donation behavior.
Researchers found that a low opening offer can be effective if it's within a 'fair game' window, avoiding negative emotions, but not so low that it backfires. A balance must be struck to achieve a better outcome in negotiations.
A recent study found that rewarding costly skepticism in auditors may not be effective and can even lead to a decrease in red flag investigation. Instead, supporting skepticism from supervisors and promoting a culture of investigative mindset can encourage auditors to identify and pursue potential problems.
A new study by Cornell University reveals that TV ads significantly influence retail investors' decisions, leading to increased online searches and stock trading volumes. The study found that certain types of ads, such as those airing during prime-time hours or for financial sector products, generated the strongest investor response.
Countries lagging behind in renewable energy adoption risk lower industrial competitiveness and economic instability. Uneven transition patterns can exacerbate existing international tensions, making it difficult for late decarbonizers to catch up with early movers.
A study by UCL researchers suggests that levelling up access to finance for poorer countries can accelerate the transition to renewable energy, allowing Africa to reach net-zero emissions approximately 10 years earlier than current projections. This would require policy interventions to lower the weighted average cost of capital (WACC)...
The Monetary Authority of Singapore launches a $2 billion green investments program to promote environmentally sustainable projects. The Singapore Green Finance Centre, launched by SMU Lee Kong Chian School of Business and Imperial College Business School, aims to build a new ecosystem for sustainable investing in Asia. Researchers wil...
Researchers found that firms with stronger positions in supply chains provide more trade credit to customers, while those with weaker positions receive less. This contradicts the financing advantage theory and supports the recursive moral hazard theory of trade credit.
A recent study by Lero researchers found that COVID-19 growth largely explained changes in stock prices globally, but had little impact on China or the MSCI World index. The study suggests that investor sentiment and economic factors such as crude oil and bond yields played a greater role in shaping market prices.
A research project led by Albert Banal-Estanol and Massimo Motta aims to analyze the factors that determine a company's market power and their impact on consumers. The study also explores regulatory interventions in areas of consumer protection, product safety, and digital markets.
A recent Finnish study found that Bitcoin volatility does not respond immediately to cyberattacks, but rather increases substantially on the fifth day after an incident occurred. This delayed response suggests inefficiency in the market's ability to price shocks, with significant economic implications.
Researchers found that cloudy weather leads to lower investments in risky equity crowdfunding campaigns, with novice investors reacting more strongly. To mitigate this effect, entrepreneurs can target experienced investors or increase marketing efforts on cloudy days.
Specialized ETFs focus on popular industries like cannabis and cybersecurity, but tend to lose value quickly. Investors who buy into these funds are often less sophisticated, leading to significant losses over time.
Former UNFCCC leaders call for effective implementation, ambitious targets, and concrete strategies to avoid dangerous climate change and meet the 1.5°C temperature increase threshold
A study by WVU finance professor Alexander Kurov and his co-author Chen Gu found that firm-level Twitter content can predict next-day stock returns and contains information about upcoming analyst recommendation changes, quarterly earnings surprises, and opening prices of initial public offerings. This research has important implication...
The CGIAR Latin America centers are driving innovations to reduce poverty and improve food security in the region. Innovations like the Andean Initiative use technology and partnerships to generate site-specific adaptation measures for farmers.
A new study by the University of Delaware found that diverse directors are less likely to serve in board leadership roles, despite being highly qualified. This inequity persists even when controlling for specialized skills and experience. The research suggests biases may be a contributing factor.
The Roy Rosenzweig Center for History and New Media at George Mason University is receiving a $20,000 grant to build financial resilience in the digital humanities. The project will connect five digital humanities organizations through a yearlong planning exercise focused on sustainable business models.
A national study found that housing finance agencies' supportive services and loan structure significantly reduced mortgage defaults and foreclosures among low- and moderate-income households. The results suggest government programs can help low-income households afford and keep their homes, with potential impacts on local economies.
A recent study from Ohio State University found that households immediately increase their spending after receiving tax refunds. In contrast, when households owe taxes, they do not reduce their spending, instead using other sources of funds to pay the bill. This challenges traditional economic theories about how people spend their money.
A new study found that equity analysts place greater emphasis on early impressions and experience a strong first impression bias that influences their forecasts for up to six years. Negative first impressions had roughly double the economic effect on forecasts compared to positive ones, leading to more pessimistic forecasts.
A new study found that gradualism, increasing project stakes step-by-step, significantly improves group coordination. The research showed that teams with gradually increasing stakes outperformed those with consistently high or low stakes.
A new salary structure proposes locking in salary gains as athletes advance toward graduation, offering drafted freshmen 60% of the current NBA rookie salary base. This system aims to entice most other college players to graduate before entering the NBA, improving player preparedness and the overall labor market.
A new paper by J. Ryan Lamare found that hiring a lawyer in arbitration doesn't guarantee better outcomes for employees, as employers can also hire lawyers to counteract positive effects
A team of computer scientists created a prototype kit called BlocKit to help people understand how blockchain works and can be used. The kit, made from everyday objects, represents 11 key aspects of blockchain infrastructure and was evaluated in a study involving experienced Bitcoin users.
A financial model developed by Stevens Institute of Technology assistant professor Hamed Ghoddusi explores the effects of the Tax Cuts and Jobs Act on homebuying. The SALT deduction cap has a predictable impact on property tax collections, particularly in high-income states.
A recent study found that nearly a quarter of small and medium-sized enterprises (SMEs) in the UK view Brexit as a major obstacle to their success, with investment and exporting being significantly affected. SMEs are disproportionately impacted by uncertainty and have lower resilience to unexpected shocks.
A new study published in The Journal of Politics found that enacting campaign finance reform to reduce polarization would likely degrade representation quality. Citizens tend to prefer representatives with matching issue views, regardless of ideology.
New research from Michigan State University challenges the traditional 'invisible hand' theory of market control. A third party's intervention disrupts trading relationships, establishing trust and loyalty among parties involved. This leads to favorable prices, but also creates a risk of runaway train-like effects unless regulated.
A study by University of East Anglia and Nottingham Trent University found that Olympic success leads to decreased trading volumes in major economies. However, stock market returns remain largely unaffected. The researchers suggest that investors' distraction is the primary reason for this decrease.
RecensMedical Inc., a UNIST startup, has received 1 billion KRW investment and 2 billion KRW financial guarantees from KIBO to develop rapid cooling anesthesia for various medical applications. The funding supports the company's growth as the first venture startup in Ulsan.
The Conservation Finance Alliance has received a major funding award of €701,114 (US$822,315) to support its work in promoting sustainable financing solutions for biodiversity conservation. The funding will be used to hire a full-time Executive Director and build the network's capacity for administration and fundraising.
The art market price index, compiled by Prof. Roman Kräussl, shows a significant decline in post-war and contemporary art prices, with a 21% drop in 2016. This confirms a burst of the market bubble, which had been growing since 2009.
A large mineral sector can lead to a 'resource curse,' where the finance sector prioritizes established firms over smaller companies, hindering national economic growth. This phenomenon, studied in 70 countries, suggests that the finance sector's focus on larger companies can exacerbate the resource curse.
New research from Washington University in St. Louis shows that the Fed's actions were effective in encouraging banks to lend, benefiting the economy. The study found that a total of 62% of bigger US banks used the Discount Window or Term Auction Facility during the crisis, leading to increased lending of almost all types.
A new study suggests that carbon finance is not a one-size-fits-all solution to climate change, as its effectiveness varies widely depending on the region. Peat forests in Indonesia are found to be crucial for reducing carbon emissions, with potential rewards of $3.5 billion over 30 years.
A study found an average gap of 3-9% in compensation for minorities and females serving on corporate boards. Despite being paid more overall, they often hold fewer leadership positions due to a lack of representation on key committees.
A new research paper from the University of Luxembourg outlines a method to identify patterns in options traders' behavior influenced by short-term market perceptions. Sophisticated investors use these patterns for profit, but the approach can exacerbate expected price plunges.
Two Rotman professors, Dan Trefler and Liyan Yang, have been awarded the Bank of Canada's Fellowship and Governor's Awards respectively. The awards recognize their exceptional research contributions to macroeconomics, monetary economics, and international finance.
A new study from the University of Missouri-Columbia analyzed data from 2,143 firms to find that accumulated job experience improves performance, counteracting age-related declines. The research highlights the need for a balanced approach in corporate governance, taking into account both age and experience.
Researchers at University of Luxembourg apply new bubble detection method to analyze millions of auction records, identifying explosive movements in fine art market segments. The study warns of an overheating art market with potential for severe correction.
The UN Climate Summit should prioritize guidelines and incentives for developing nations to cooperate on low-carbon energy projects. Chinese firms' significant involvement in coal power plants globally threatens the summit's goal, highlighting the need for expanded cooperation.
Reducing trade barriers between countries leads to a decrease in defence spending, as shown by researchers Roman Zakharenko and his colleagues. The study found that increased trade volumes can reduce defence spending globally, with significant reductions observed in countries participating in trade relations.
A study by Florida Atlantic University finds that black borrowers, especially low-income black women, pay significantly higher interest rates on home mortgages compared to their white counterparts. The rate difference can be substantial, resulting in additional monthly mortgage payments and lost wealth over time.
NHS trusts under severe financial pressure are least likely to terminate expensive PFI contracts, warns expert. Alternative solutions, such as adjusting commissioner payments to compensate for capital costs, are considered more effective.