Has Capitalism Moved On from ‘American Psycho’?
Chicago Booth’s John Paul Rollert reflects on the continuing relevance of Bret Easton Ellis’s 1991 novel.
Has Capitalism Moved On from ‘American Psycho’?If stock prices deviate from their fair values, investors generally rush in to remedy the mispricing, according to traditional finance models. But Chicago Booth's Ralph S. J. Koijen, NYU's Robert J. Richmond, and Princeton's Motohiro Yogo find that some investors drive valuations more than others do. In a study of stocks at the close of the third quarter in 2020, the researchers calculated how much a company's market capitalization would have changed in a scenario in which an investor reacted to losing 10 percent of its assets. They ranked the results to identify those with the most individual power to alter a company's value, whether positive or negative.
Explore their findings below in a searchable database of more than 2,300 stocks, and read “Who Is Driving Stock Prices?” to learn more about this research.
Chicago Booth’s John Paul Rollert reflects on the continuing relevance of Bret Easton Ellis’s 1991 novel.
Has Capitalism Moved On from ‘American Psycho’?Removing key information from customers’ credit records can make a great deal of difference to individuals’ credit scores and their cost of borrowing.
Financial Data Privacy Could Help Fight PovertyBig funds lead to big asset managers—and big has performance issues.
In Active Mutual Funds, Bigger Still Isn’t BetterYour Privacy
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