findings suggest that machine learning methods provide more accurate models of stock returns based on risk factors than … standard regression-based methods of estimation. They also indicate that certain risk factors and combinations of risk factors …

aspiration level (median performance of peer banks) influence banks' aggregate risk levels. Our results are consistent with the … followed by increased aggregate risk, i.e., risk-taking behavior in the subsequent year. Although under-performing banks tend … to be risk-takers, large banks and banks with high aggregate risk levels tend to limit the increase in their aggregate …