We demonstrate the value of machine learning in accounting through a detailed examination of litigation risk, an … prediction of litigation risk, with hourglass-shaped and convolutional neural networks the most effective. The improvements are … literature. We also produce firm-year litigation risk estimates for use in future research from a convolutional neural network …

Risk parity methods focused on volatility have gained traction in the last decade. A few extensions have been proposed …, including tail risk parity. The authors show that, at its limits, tail risk parity converges towards the risk parity portfolio … or the tangency portfolio. The authors also introduce a new risk parity measure called ‘outcome risk parity’ which allows …