We demonstrate that a firm's ability to innovate is predictable, persistent, and relatively simple to compute, and yet the stock market ignores the implications of past successes when valuing future innovation. We show that two firms that invest the exact same in research and development (R&D)...

The article presents a study on the association between shorting activity and future stock returns in the equities market, with the use of proprietary stock loan fees and quantities dataset. Results showed that the separation of supply and demand shifts offer a better view of the information...