That's Interesting
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The Real Magic of Rituals
08th December, 2022We might call them superstitions or spells, but they genuinely drum anxiety away.
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Learning by Consuming
08th December, 2022Mutual fund managers increase investment allocations to companies manufacturing automobiles they have purchased. This effect is stronger (weaker) when these customer-managers have positive (negative) consumption experiences, as measured by repeat purchases (positive), brand switches, and swift resale after purchase (negative).
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Sensation Seeking and Hedge Funds
08th December, 2022This article shows that, motivated by sensation seeking, hedge fund managers who own powerful sports cars take on more investment risk but do not deliver higher returns, resulting in lower Sharpe ratios, information ratios, and alphas. Moreover, sensation-seeking managers trade more frequently, actively, and unconventionally, and prefer lottery-like stocks.
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Fortunate Timing: Scheduled Insider Trades, Earnings News, and Spin
08th December, 2022In a sample of scheduled (10b5-1 transactions) routine sales by insiders that occur between 2015 and 2020, we find evidence of an increased incidence of favorable earnings-related news occurring in the weeks leading up to large sale transactions (greater than $1 million).
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Buy Now Pay (Pain?) Later
08th December, 2022“Buy Now Pay Later” (BNPL) is a largely unregulated FinTech innovation that provides consumers with easy access to credit for specific retail purchases. The BNPL market is projected to reach $1 trillion by 2025, but what effect does it have on consumers’ financial health.
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Skin in the Game: Operating Growth, Firm Performance, and Future Stock Returns
08th December, 2022Prior research documents that asset growth is negatively associated with future firm performance. In contrast, this article shows that growth financed by product market stakeholders (i.e., “operating growth”) is positively associated with future firm performance.
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Here are the winners of the 2022 Ig Nobel Prizes
17th October, 2022Would you give yourself an alcohol enema for science? Test the running speed of constipated scorpions in the lab? Build your very own moose crash test dummy? Or maybe you’d like to tackle the thorny question of why legal documents are so relentlessly incomprehensible. These and other unusual research endeavors were honored in the 2022 annual Ig Nobel Prizes.
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Why shaving dulls even the sharpest of razors
11th October, 2022Human hair is 50 times softer than steel, yet it can chip away a razor’s edge, a new study shows.
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Found: a controversial painting hidden inside a painting by Vermeer
11th October, 2022When restoring a painting by Vermeer, conservators discovered an image of Cupid covered up by an additional layer of paint. The paint was removed, revealing the painting as the Dutch master had originally intended it. While this discovery settles old debates about the work, it also raises some new questions — like: who covered it up?
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