We analyze the effect of alternative data on the informativeness of financial forecasts. Our hypothesis is that the emergence of alternative data increases the net benefit of collecting short-term information about firms' cash flows more than the benefit of collecting long-term information. If...

This paper reviews research that uses big data and/or machine learning methods to provide insight relevant for equity valuation. Given the huge volume of research in this area, the review focuses on studies that either use or inform on accounting variables. The article concludes by providing...

Policymakers fear artificial intelligence (AI) will disrupt labor markets, especially for high-skilled workers. We investigate this concern using novel, task-specific data for security analysts. Exploiting variation in AI's power across stocks, we show analysts with portfolios that are more...