AI Reads between the Lines to Discover Corporate Risk
It’s even effective in identifying risks related to AI itself.
AI Reads between the Lines to Discover Corporate RiskIf 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.
It’s even effective in identifying risks related to AI itself.
AI Reads between the Lines to Discover Corporate RiskA Nobel winner explains his groundbreaking research.
Two Contracts That Are Central to the Financial SystemEven without a mandated set of reporting standards, there is a degree of consistency around CSR metrics.
How Do Companies Measure Their CSR Impact?Your Privacy
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