That's Interesting
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From Transcripts to Insights: Uncovering Corporate Risks Using Generative AI
19th November, 2023This article explores the value of generative AI tools, such as ChatGPT, in helping investors uncover dimensions of corporate risk by developing and validating firm-level measures of risk exposure to political, climate, and AI-related risks. Using the GPT 3.5 model to generate risk summaries and assessments from the context provided by earnings call transcripts, it shows that GPT-based measures possess significant information content and outperform the existing risk measures in predicting (abnormal) firm-level volatility and firms’ choices such as investment and innovation.
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Mental Models of the Stock Market
15th November, 2023Investors’ return expectations are pivotal in stock markets, but the reasoning behind these expectations remains a black box for economists. This paper sheds light on economic agents’ mental models – their subjective understanding – of the stock market, drawing on surveys with the US general population, US retail investors, US financial professionals, and academic experts.
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Greenwashing: Do Investors, Markets and Boards Really Care?
12th November, 2023What are the financial repercussions of corporate greenwashing? To answer this question, this article focuses on the impact of such ethically flawed practices on corporate stock market performance.
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A Review of Electric Vehicle Consumer Subsidies in Canada
06th November, 2023A look at EV purchase subsidies in Canada, which have been introduced to accelerate market uptake of these vehicles as part of governments’ efforts to reduce greenhouse gas (GHG) emissions that contribute to climate change. Transportation accounts for almost one-quarter of Canada’s total GHG emissions, so it is not surprising that Canadian policymakers are focusing on emissions from this sector.
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The Economic Dynamics of City Structure: Evidence from Hiroshima’s Recovery
03rd November, 2023The article provides a new theory and evidence on the resilience of internal city structure after a large shock, by analyzing the atomic bombing of Hiroshima, which destroyed the city center but not
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Longitudinal evidence that infants develop their imitation abilities by being imitated
30th October, 2023Theoretical advances in social sciences over the last century purport imitation as a central mechanism for the emergence of humans’ unique social-cognitive abilities. Uncovering the ontogeny of imitation is therefore paramount for understanding human cultural evolution.
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5 things serious coffee fans should know
22nd October, 2023A look at the science behind the beverage that 63% of Americans drink daily (more than tap water), according to the National Coffee Association.
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An update on eukaryotic viruses revived from ancient permafrost
16th October, 2023One quarter of the Northern hemisphere is underlain by permanently frozen ground, referred to as permafrost. Due to climate warming, irreversibly thawing permafrost is releasing organic matter frozen for up to a million years, most of which decomposes into carbon dioxide and methane, further enhancing the greenhouse effect. Part of this organic matter also consists of revived cellular microbes (prokaryotes, unicellular eukaryotes) as well as viruses that remained dormant since prehistorical times.
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Pointless: the climate impact of frequent flyer status
09th October, 2023Frequent flyer programs (FFPs) are a key part of the business model of ‘full-service’ airlines, driving not just ticket sales, but increased flight provision. FFPs increase air travel emissions by incentivising the most carbon-intensive seating options and encouraging additional flights. This article assesses the emissions associated with gaining different levels of membership in the frequent flyer programmes offered by British Airways and Virgin Atlantic.
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