Showing 1 - 10 of 84
This paper studies the impact of productivity on the flow of financial resources to and from firms. To do this we use machine learning methods (Lasso, XGBoost) to derive a new measure of firm productivity using standard corporate accounts. Output is sales revenue and we find that the key inputs...
Persistent link: https://www.econbiz.de/10012897087
There is considerable evidence that machine learning algorithms have better predictive abilities than humans in various financial settings. But, the literature has not tested whether these algorithmic predictions are more rational than human predictions. We study the predictions of corporate...
Persistent link: https://www.econbiz.de/10014351274
This paper studies the role of trust in incumbent lenders (banks) as an entry barrier to emerging FinTech lenders in the credit markets. The empirical setting exploits the outburst of the Wells Fargo scandal as a negative shock to the trust in banks. Using a difference-in-differences framework,...
Persistent link: https://www.econbiz.de/10013242104
In recent years, there have been quite a few attempts to apply intelligent techniques to financial trading, i.e., constructing automatic and intelligent trading framework based on historical stock price. Due to the unpredictable, uncertainty and volatile nature of financial market, researchers...
Persistent link: https://www.econbiz.de/10014362474
This paper examines the effect of legal bankruptcy protection on small businesses. Using granular agricultural microdata, we use a regression discontinuity design to exploit farm eligibility for a unique bankruptcy code for farms known as Chapter 12. We find that farmers that qualify for this...
Persistent link: https://www.econbiz.de/10014236737
Using a nationwide restaurant sample, we document that minority-owned businesses are more likely to apply to the Paycheck Protection Program through fintech than traditional lenders. We motivate our analysis by a two-sided matching model where this phenomenon can be generated through "technology...
Persistent link: https://www.econbiz.de/10013322836
Persistent link: https://www.econbiz.de/10001057499
This paper examines the relative importance of many factors in the capital structure decisions of publicly traded American firms from 1950 to 2003. The most reliable factors for explaining market leverage are: median industry leverage (+ effect on leverage), market-to-book assets ratio (−),...
Persistent link: https://www.econbiz.de/10015221470
A finite horizon model of bankruptcy is developed. The role of a perfect capital market is discussed. Both additive and multiplicative Knightian uncertainty are analyzed. Low revenue increases the probability of bankruptcy because it reduces the expectation of future revenues if not bankrupt....
Persistent link: https://www.econbiz.de/10005490196
Persistent link: https://www.econbiz.de/10005376666