Academic Finance Research and Insights

Financial Literacy and Financial Resilience: Evidence from Italy

By |February 26th, 2024|Financial Planning, Research Insights, Basilico and Johnsen, Academic Research Insight, Behavioral Finance, Corporate Governance|

The paper aims to contribute to the literature by providing insights into the current state of financial literacy in Italy, its implications for financial well-being and resilience, and the demographic disparities therein.

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Self-Declared Benchmarks and Fund Manager Intent: “Cheating” or Competing?

By |February 20th, 2024|Research Insights, Basilico and Johnsen, Academic Research Insight, Behavioral Finance, Corporate Governance|

The paper aims to provide insights into the dynamics of benchmark selection, the effectiveness of Relative Performance Evaluation ( RPE ) incentivization, and the broader implications for fund performance and market competition.

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On the Persistence of Growth and Value Stocks

By |February 16th, 2024|Asset Growth, Research Insights, Larry Swedroe, Value Investing Research|

While analysts underwrite high growth for companies that have grown quickly and slow growth for companies that have grown slowly in the past, a large body of evidence demonstrates that reversion to the mean of both positive and negative abnormal earnings growth is the norm.

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Can ChatGPT Improve Your Stock Picks?

By |February 12th, 2024|Research Insights, Basilico and Johnsen, Academic Research Insight, AI and Machine Learning|

One use of the NLP (natural language processing) features of ChatGPT is to search out patterns in the immense amounts of news, data and other sources of information about specific stocks, and then efficiently convert them into summaries valuable for all types of investors.  Can this be accomplished with useful results? The authors use the Q2_2023 period to test performance around earnings announcements. Earnings announcements and earnings surprises are informationally rich as well as challenging events for investors to analyze.

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Band of Brothers Attacking Short Sellers: Game Stop for Hedge Funds

By |February 9th, 2024|Liquidity Factor, Price Pressure Factor, Larry Swedroe, Research Insights, Other Insights, Behavioral Finance|

Advisors and investors should be aware that fund families that invest systematically have found ways to incorporate the research findings on the limits to arbitrage and the evolving changes we have discussed to improve returns over those of a pure index replication strategy. It seems likely this will become increasingly important, as the markets have become less liquid, increasing the limits to arbitrage and allowing for more overpricing.

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