Using a series of advanced tests from White's (2000) “Reality Check” to correct for data-snooping bias, we assess the out-of-sample performance of various portfolio strategies relative to the naive 1/N rule. When we analyze 16 basic portfolio strategies, 126 learning strategies, and nearly...

In an economy with time-varying investment opportunities, the changes in technology prospects affect aggregate consumption and individual firms' future dividends, and may lead to systematic risk. We construct a technology factor to track the changes in technology prospects measured by U.S....

Given the profound effects of financial fraud on corporate managers, inventors, and cultures, this paper investigates how financial fraud influences technological innovation at both firm and inventor levels. We find that the occurrence of financial fraud is negatively related to firms’ and...

We examine how industry-university collaboration (IUC) enhances the commercialization of corporate innovation using a comprehensive dataset of 93,303 industrial firms and 153 notable research universities in China. Measuring IUC with the occurrence and frequency of patents co-assigned to both...

Security regulators charge firms with providing material information about intangible investments to outside investors. Among the many firms that do not report their advertising, 25% are in the top decile of observed advertising. We find that relying on managerial judgment for disclosure...

We introduce a novel multiple hypothesis testing framework for selecting outperforming mutual funds with control of luck, the functional False Discovery Rate “plus”. We show that our method, which incorporates informative covariates to estimate the false discovery rate, gains considerable...

By combining various databases of academic publications and patents of China’s publicly listed firms, we explore the effects of academic publications on firm valuation. We find that Chinese firms’ academic publications are positively associated with their market valuation. More importantly,...