Roberto Frota DecourtUNISINOS, Heitor AlmeidaUIUC, Philippe ProtinUGA INP IAE, Matheus R. C. GonzalezUNISINOS
The purpose of the research was to build an index of informational asymmetry with market and firm proxies that reflect the analysts' perception of the level of informational asymmetry of companies. The proposed method consists of the construction of an algorithm based on the Elo rating and captures the perception of the analyst that choose, between two firms, the one they consider to have better information. After we have the informational asymmetry index, we run a regression model with our rating as dependent variable and proxies used by the literature as the independent variable to have a model that can be used for other researches that need to measure the level of informational asymmetry of a company. Our model presented a good fit between our index and the proxies used to measure informational asymmetry and we find four significant variables: coverage, volatility, Tobin q, and size.
研究的目的是建立一个信息不对称指数，用市场和公司的代理变量来反映分析师对公司信息不对称程度的看法。所提出的方法包括构建一个基于 Elo 评级的算法，并捕捉分析师在两家公司之间选择他们认为信息更佳的公司的看法。在得出信息不对称指数后，我们以我们的评级为因变量，以文献中使用的代理变量为自变量，建立了一个回归模型，该模型可用于其他需要衡量公司信息不对称程度的研究。我们的模型很好地拟合了我们的指数和用来衡量信息不对称程度的代用指标，我们发现了四个重要变量：覆盖率、波动率、托宾 q 和规模。
{"title":"Information Asymmetry Index: The View of Market Analysts","authors":"Roberto Frota DecourtUNISINOS, Heitor AlmeidaUIUC, Philippe ProtinUGA INP IAE, Matheus R. C. GonzalezUNISINOS","doi":"arxiv-2409.06272","DOIUrl":"https://doi.org/arxiv-2409.06272","url":null,"abstract":"The purpose of the research was to build an index of informational asymmetry\u0000with market and firm proxies that reflect the analysts' perception of the level\u0000of informational asymmetry of companies. The proposed method consists of the\u0000construction of an algorithm based on the Elo rating and captures the\u0000perception of the analyst that choose, between two firms, the one they consider\u0000to have better information. After we have the informational asymmetry index, we\u0000run a regression model with our rating as dependent variable and proxies used\u0000by the literature as the independent variable to have a model that can be used\u0000for other researches that need to measure the level of informational asymmetry\u0000of a company. Our model presented a good fit between our index and the proxies\u0000used to measure informational asymmetry and we find four significant variables:\u0000coverage, volatility, Tobin q, and size.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142227657","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In economic theory, a cap-and-trade system is a market-based system mechanism that internalizes the environmental impact of economic activity and reduces pollution with minimal costs. Given that carbon trading is a financial market, we evaluate its efficiency using finance and asset-pricing tools. Our analysis of the universe of transactions in the European Union Emission Trading System in 2005-2020 demonstrates that this prominent cap-and-trade system for carbon emissions is dramatically inefficient because of a number of unintended consequences that significantly undermine its purposes. First, about 40% of firms never trade in a given year. Second, many firms only trade in the surrendering months, when compliance is immediate. We also show that these are the months where the price of emission allowances is predictably high. This surrendering trading pattern alone leads to a total estimated loss of about Euro 5 billion for the regulated firms, or about 2% of the traded volume of the regulated firms in the sample period. Third, a number of operators engage in speculative trading and profit by exploiting the market with private information. We estimate that these operators in total make about Euro 8 billion, or about 3.5% of the traded volume of the regulated firms in the sample period.
{"title":"Market Failures of Carbon Trading","authors":"Nicola Borri, Yukun Liu, Aleh Tsyvinski, Xi Wu","doi":"arxiv-2408.06497","DOIUrl":"https://doi.org/arxiv-2408.06497","url":null,"abstract":"In economic theory, a cap-and-trade system is a market-based system mechanism\u0000that internalizes the environmental impact of economic activity and reduces\u0000pollution with minimal costs. Given that carbon trading is a financial market,\u0000we evaluate its efficiency using finance and asset-pricing tools. Our analysis\u0000of the universe of transactions in the European Union Emission Trading System\u0000in 2005-2020 demonstrates that this prominent cap-and-trade system for carbon\u0000emissions is dramatically inefficient because of a number of unintended\u0000consequences that significantly undermine its purposes. First, about 40% of\u0000firms never trade in a given year. Second, many firms only trade in the\u0000surrendering months, when compliance is immediate. We also show that these are\u0000the months where the price of emission allowances is predictably high. This\u0000surrendering trading pattern alone leads to a total estimated loss of about\u0000Euro 5 billion for the regulated firms, or about 2% of the traded volume of the\u0000regulated firms in the sample period. Third, a number of operators engage in\u0000speculative trading and profit by exploiting the market with private\u0000information. We estimate that these operators in total make about Euro 8\u0000billion, or about 3.5% of the traded volume of the regulated firms in the\u0000sample period.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142187106","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The global momentum towards establishing sustainable energy systems has become increasingly prominent. Hydrogen, as a remarkable carbon-free and renewable energy carrier, has been endorsed by 39 countries at COP28 in the UAE, recognizing its essential role in global energy transition and industry decarbonization. Both the European Union (EU) and China are at the forefront of this shift, developing hydrogen strategies to enhance regional energy security and racing for carbon neutrality commitments by 2050 for the EU and 2060 for China. The wide applications of hydrogen across hard-to-abate sectors and the flexibility of decentralized production and storage offer customized solutions utilizing local resources in a self-paced manner. To unveil the trajectory of hydrogen development in China and the EU, this paper proposes a comparative analysis framework employing key factors to investigate hydrogen developments in both economic powerhouses. Beyond country-wise statistics, it dives into representative hydrogen economic areas in China (Inner Mongolia, Capital Economic Circle, Yangtze River Delta) and Europe (Delta Rhine Corridor) for understanding supply and demand, industrial synergy, and policy incentives for local hydrogen industries. The derived implications offer stakeholders an evolving hydrogen landscape across the Eurasian continent and insights for future policy developments facilitating the global green transition.
{"title":"Hydrogen Development in China and the EU: A Recommended Tian Ji's Horse Racing Strategy","authors":"Hong Xu","doi":"arxiv-2408.08874","DOIUrl":"https://doi.org/arxiv-2408.08874","url":null,"abstract":"The global momentum towards establishing sustainable energy systems has\u0000become increasingly prominent. Hydrogen, as a remarkable carbon-free and\u0000renewable energy carrier, has been endorsed by 39 countries at COP28 in the\u0000UAE, recognizing its essential role in global energy transition and industry\u0000decarbonization. Both the European Union (EU) and China are at the forefront of\u0000this shift, developing hydrogen strategies to enhance regional energy security\u0000and racing for carbon neutrality commitments by 2050 for the EU and 2060 for\u0000China. The wide applications of hydrogen across hard-to-abate sectors and the\u0000flexibility of decentralized production and storage offer customized solutions\u0000utilizing local resources in a self-paced manner. To unveil the trajectory of\u0000hydrogen development in China and the EU, this paper proposes a comparative\u0000analysis framework employing key factors to investigate hydrogen developments\u0000in both economic powerhouses. Beyond country-wise statistics, it dives into\u0000representative hydrogen economic areas in China (Inner Mongolia, Capital\u0000Economic Circle, Yangtze River Delta) and Europe (Delta Rhine Corridor) for\u0000understanding supply and demand, industrial synergy, and policy incentives for\u0000local hydrogen industries. The derived implications offer stakeholders an\u0000evolving hydrogen landscape across the Eurasian continent and insights for\u0000future policy developments facilitating the global green transition.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142187107","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper expands on the concepts presented in Applying the Nash Bargaining Solution for a Reasonable Royalty ( arXiv:2005.10158 ). The goal is to refine the process for determining a reasonable royalty using statistical methods in cases where there is risk and uncertainty regarding each party's disagreement payoffs (opportunity costs) in the Nash Bargaining Solution (NBS). This paper uses a Bayes Cost approach to analyze Case 1, Case 2, and the Original Nash model from the authors' previous work. By addressing risk and uncertainty in the NBS, the NBS emerges as a more reliable method for estimating a reasonable royalty, aligning with the criteria outlined in Georgia Pacific factor fifteen.
{"title":"Applying the Nash Bargaining Solution for a Reasonable Royalty II","authors":"David M. Kryskowski, David Kryskowski","doi":"arxiv-2407.14642","DOIUrl":"https://doi.org/arxiv-2407.14642","url":null,"abstract":"This paper expands on the concepts presented in Applying the Nash Bargaining\u0000Solution for a Reasonable Royalty ( arXiv:2005.10158 ). The goal is to refine\u0000the process for determining a reasonable royalty using statistical methods in\u0000cases where there is risk and uncertainty regarding each party's disagreement\u0000payoffs (opportunity costs) in the Nash Bargaining Solution (NBS). This paper\u0000uses a Bayes Cost approach to analyze Case 1, Case 2, and the Original Nash\u0000model from the authors' previous work. By addressing risk and uncertainty in\u0000the NBS, the NBS emerges as a more reliable method for estimating a reasonable\u0000royalty, aligning with the criteria outlined in Georgia Pacific factor fifteen.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141784245","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In economics, there are many ways to describe the interaction between a "seller" and a "buyer". The most common one, with which we interact almost every day, is selling for a fixed price. This option is perfect for selling a mass product, when we have a number of sellers and many buyers, and the price for the product varies depending on the conditions of the relationship between supply and demand. Another situation meets us already in markets, where a product can be either mass-produced or more unique, so this option is already closer to the object of our discussion.However, a one-on-one transaction is a much more unstable option, which is why it is also more difficult to model, since it is determined not so much by algorithms as by psychology and the difference in the bargaining ability of the two parties. An even closer example of an auction is price discrimination, when the price for the buyer is determined not only by supply and demand, but also by which group the buyer belongs to. But in this case, the product is not unique, and the final seller is the only one. Thus, we have identified the main auction criteria and their features of the "game".
{"title":"Auction theory and demography","authors":"O. A. Malafeyev, I. E. Khomenko","doi":"arxiv-2407.06248","DOIUrl":"https://doi.org/arxiv-2407.06248","url":null,"abstract":"In economics, there are many ways to describe the interaction between a\u0000\"seller\" and a \"buyer\". The most common one, with which we interact almost\u0000every day, is selling for a fixed price. This option is perfect for selling a\u0000mass product, when we have a number of sellers and many buyers, and the price\u0000for the product varies depending on the conditions of the relationship between\u0000supply and demand. Another situation meets us already in markets, where a\u0000product can be either mass-produced or more unique, so this option is already\u0000closer to the object of our discussion.However, a one-on-one transaction is a\u0000much more unstable option, which is why it is also more difficult to model,\u0000since it is determined not so much by algorithms as by psychology and the\u0000difference in the bargaining ability of the two parties. An even closer example\u0000of an auction is price discrimination, when the price for the buyer is\u0000determined not only by supply and demand, but also by which group the buyer\u0000belongs to. But in this case, the product is not unique, and the final seller\u0000is the only one. Thus, we have identified the main auction criteria and their\u0000features of the \"game\".","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141573209","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I examine whether the imposition of fiduciary duty on municipal advisors affects bond yields and advising fees. Using a difference-in-differences analysis, I show that bond yields reduce by $sim$9% after the imposition of the SEC Municipal Advisor Rule due to lower underwriting spreads. Larger municipalities are more likely to recruit advisors after the rule is effective and experience a greater reduction in yields. However, smaller issuers do not experience a reduction in offering yields after the SEC Rule. Instead, their borrowing cost increases if their primary advisor exits the market. Using novel hand-collected data, I find that the average advising fees paid by issuers does not increase after the regulation. Overall, my results suggest that while fiduciary duty may mitigate the principal-agent problem between some issuers and advisors, there is heterogeneity among issuers.
{"title":"Fiduciary Duty in the Municipal Bonds Market","authors":"Baridhi Malakar","doi":"arxiv-2406.15197","DOIUrl":"https://doi.org/arxiv-2406.15197","url":null,"abstract":"I examine whether the imposition of fiduciary duty on municipal advisors\u0000affects bond yields and advising fees. Using a difference-in-differences\u0000analysis, I show that bond yields reduce by $sim$9% after the imposition of\u0000the SEC Municipal Advisor Rule due to lower underwriting spreads. Larger\u0000municipalities are more likely to recruit advisors after the rule is effective\u0000and experience a greater reduction in yields. However, smaller issuers do not\u0000experience a reduction in offering yields after the SEC Rule. Instead, their\u0000borrowing cost increases if their primary advisor exits the market. Using novel\u0000hand-collected data, I find that the average advising fees paid by issuers does\u0000not increase after the regulation. Overall, my results suggest that while\u0000fiduciary duty may mitigate the principal-agent problem between some issuers\u0000and advisors, there is heterogeneity among issuers.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141530064","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The dissertation consists of three essays on responsible and sustainable finance. I show that local communities should be seen as stakeholders to decisions made by corporations. In the first essay, I examine whether the imposition of fiduciary duty on municipal advisors affects bond yields and advising fees. Using a difference-in-differences analysis, I show that bond yields reduce by 9% after the imposition of the SEC Municipal Advisor Rule. In the second essay, we analyze the impact of USD 40 billion of corporate subsidies given by U.S. local governments on their borrowing costs. We find that winning counties experience a 15 bps increase in bond yield spread as compared to the losing counties. In the third essay, we provide new evidence that the bankruptcy filing of a locally-headquartered and publicly-listed manufacturing firm imposes externalities on the local governments. Compared to matched counties with similar economic trends, municipal bond yields for affected counties increase by 10 bps within a year of the firm filing for bankruptcy. The final essay examines whether managers walk the talk on the environmental and social discussion. We train a deep-learning model on various corporate sustainability frameworks to construct a comprehensive Environmental and Social (E and S) dictionary. Using this dictionary, we find that the discussion of environmental topics in the earnings conference calls of U.S. public firms is associated with higher pollution abatement and more future green patents.
论文包括三篇关于负责任和可持续金融的论文。我表明，当地社区应被视为企业决策的利益相关者。在第一篇论文中，我研究了对市政顾问施加信托责任是否会影响债券收益率和顾问费。通过差异分析，我发现在美国证券交易委员会市政顾问规则实施后，债券收益率降低了 9%。在第二篇论文中，我们分析了美国地方政府提供的 400 亿美元企业补贴对其借贷成本的影响。我们发现，与失败县相比，获胜县的债券收益率利差增加了 15 个基点。在第三篇论文中，我们提供了新的证据，证明一家总部位于当地的上市制造企业的破产申请会给当地政府带来外部效应。与经济趋势相似的匹配县相比，受影响县的市政债券收益率在该公司申请破产一年内上升了 10 个基点。最后一篇文章探讨了管理者在环境和社会讨论中是否言行一致。我们在各种企业可持续发展框架上训练了一个深度学习模型，从而构建了一个全面的环境和社会（E and S）字典。利用该词典，我们发现在美国上市公司的收益电话会议中讨论环境话题与更高的污染减排和更多的未来绿色专利相关。
{"title":"Essays on Responsible and Sustainable Finance","authors":"Baridhi Malakar","doi":"arxiv-2406.12995","DOIUrl":"https://doi.org/arxiv-2406.12995","url":null,"abstract":"The dissertation consists of three essays on responsible and sustainable\u0000finance. I show that local communities should be seen as stakeholders to\u0000decisions made by corporations. In the first essay, I examine whether the\u0000imposition of fiduciary duty on municipal advisors affects bond yields and\u0000advising fees. Using a difference-in-differences analysis, I show that bond\u0000yields reduce by 9% after the imposition of the SEC Municipal Advisor Rule. In\u0000the second essay, we analyze the impact of USD 40 billion of corporate\u0000subsidies given by U.S. local governments on their borrowing costs. We find\u0000that winning counties experience a 15 bps increase in bond yield spread as\u0000compared to the losing counties. In the third essay, we provide new evidence\u0000that the bankruptcy filing of a locally-headquartered and publicly-listed\u0000manufacturing firm imposes externalities on the local governments. Compared to\u0000matched counties with similar economic trends, municipal bond yields for\u0000affected counties increase by 10 bps within a year of the firm filing for\u0000bankruptcy. The final essay examines whether managers walk the talk on the\u0000environmental and social discussion. We train a deep-learning model on various\u0000corporate sustainability frameworks to construct a comprehensive Environmental\u0000and Social (E and S) dictionary. Using this dictionary, we find that the\u0000discussion of environmental topics in the earnings conference calls of U.S.\u0000public firms is associated with higher pollution abatement and more future\u0000green patents.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-06-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141532426","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yuqi Nie, Yaxuan Kong, Xiaowen Dong, John M. Mulvey, H. Vincent Poor, Qingsong Wen, Stefan Zohren
Recent advances in large language models (LLMs) have unlocked novel opportunities for machine learning applications in the financial domain. These models have demonstrated remarkable capabilities in understanding context, processing vast amounts of data, and generating human-preferred contents. In this survey, we explore the application of LLMs on various financial tasks, focusing on their potential to transform traditional practices and drive innovation. We provide a discussion of the progress and advantages of LLMs in financial contexts, analyzing their advanced technologies as well as prospective capabilities in contextual understanding, transfer learning flexibility, complex emotion detection, etc. We then highlight this survey for categorizing the existing literature into key application areas, including linguistic tasks, sentiment analysis, financial time series, financial reasoning, agent-based modeling, and other applications. For each application area, we delve into specific methodologies, such as textual analysis, knowledge-based analysis, forecasting, data augmentation, planning, decision support, and simulations. Furthermore, a comprehensive collection of datasets, model assets, and useful codes associated with mainstream applications are presented as resources for the researchers and practitioners. Finally, we outline the challenges and opportunities for future research, particularly emphasizing a number of distinctive aspects in this field. We hope our work can help facilitate the adoption and further development of LLMs in the financial sector.
{"title":"A Survey of Large Language Models for Financial Applications: Progress, Prospects and Challenges","authors":"Yuqi Nie, Yaxuan Kong, Xiaowen Dong, John M. Mulvey, H. Vincent Poor, Qingsong Wen, Stefan Zohren","doi":"arxiv-2406.11903","DOIUrl":"https://doi.org/arxiv-2406.11903","url":null,"abstract":"Recent advances in large language models (LLMs) have unlocked novel\u0000opportunities for machine learning applications in the financial domain. These\u0000models have demonstrated remarkable capabilities in understanding context,\u0000processing vast amounts of data, and generating human-preferred contents. In\u0000this survey, we explore the application of LLMs on various financial tasks,\u0000focusing on their potential to transform traditional practices and drive\u0000innovation. We provide a discussion of the progress and advantages of LLMs in\u0000financial contexts, analyzing their advanced technologies as well as\u0000prospective capabilities in contextual understanding, transfer learning\u0000flexibility, complex emotion detection, etc. We then highlight this survey for\u0000categorizing the existing literature into key application areas, including\u0000linguistic tasks, sentiment analysis, financial time series, financial\u0000reasoning, agent-based modeling, and other applications. For each application\u0000area, we delve into specific methodologies, such as textual analysis,\u0000knowledge-based analysis, forecasting, data augmentation, planning, decision\u0000support, and simulations. Furthermore, a comprehensive collection of datasets,\u0000model assets, and useful codes associated with mainstream applications are\u0000presented as resources for the researchers and practitioners. Finally, we\u0000outline the challenges and opportunities for future research, particularly\u0000emphasizing a number of distinctive aspects in this field. We hope our work can\u0000help facilitate the adoption and further development of LLMs in the financial\u0000sector.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141509586","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This project is a collaboration between industry and academia to delve into Finance Social Networks, specifically the Board of Directors of public companies. Knowing the connections between Directors and Executives in different companies can generate powerful stories and meaningful insights on investments. A proof of concept in the form of a Data Visualization tool reveals its strength in investigating corporate governance and sustainability, as well as in the partnership between industry and academic institutions.
{"title":"Visualization of Board of Director Connections for Analysis in Socially Responsible Investing","authors":"Alice Da Fonseca, Peter Lake, Ariana Barrenechea","doi":"arxiv-2405.20522","DOIUrl":"https://doi.org/arxiv-2405.20522","url":null,"abstract":"This project is a collaboration between industry and academia to delve into\u0000Finance Social Networks, specifically the Board of Directors of public\u0000companies. Knowing the connections between Directors and Executives in\u0000different companies can generate powerful stories and meaningful insights on\u0000investments. A proof of concept in the form of a Data Visualization tool\u0000reveals its strength in investigating corporate governance and sustainability,\u0000as well as in the partnership between industry and academic institutions.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141255861","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper presents a theoretical extension of the DeTEcT framework proposed by Sadykhov et al., DeTEcT, where a formal analysis framework was introduced for modelling wealth distribution in token economies. DeTEcT is a framework for analysing economic activity, simulating macroeconomic scenarios, and algorithmically setting policies in token economies. This paper proposes four ways of parametrizing the framework, where dynamic vs static parametrization is considered along with the probabilistic vs non-probabilistic. Using these parametrization techniques, we demonstrate that by adding restrictions to the framework it is possible to derive the existing wealth distribution models from DeTEcT. In addition to exploring parametrization techniques, this paper studies how money supply in DeTEcT framework can be transformed to become dynamic, and how this change will affect the dynamics of wealth distribution. The motivation for studying dynamic money supply is that it enables DeTEcT to be applied to modelling token economies without maximum supply (i.e., Ethereum), and it adds constraints to the framework in the form of symmetries.
{"title":"DeTEcT: Dynamic and Probabilistic Parameters Extension","authors":"Rem Sadykhov, Geoffrey Goodell, Philip Treleaven","doi":"arxiv-2405.16688","DOIUrl":"https://doi.org/arxiv-2405.16688","url":null,"abstract":"This paper presents a theoretical extension of the DeTEcT framework proposed\u0000by Sadykhov et al., DeTEcT, where a formal analysis framework was introduced\u0000for modelling wealth distribution in token economies. DeTEcT is a framework for\u0000analysing economic activity, simulating macroeconomic scenarios, and\u0000algorithmically setting policies in token economies. This paper proposes four\u0000ways of parametrizing the framework, where dynamic vs static parametrization is\u0000considered along with the probabilistic vs non-probabilistic. Using these\u0000parametrization techniques, we demonstrate that by adding restrictions to the\u0000framework it is possible to derive the existing wealth distribution models from\u0000DeTEcT. In addition to exploring parametrization techniques, this paper studies\u0000how money supply in DeTEcT framework can be transformed to become dynamic, and\u0000how this change will affect the dynamics of wealth distribution. The motivation\u0000for studying dynamic money supply is that it enables DeTEcT to be applied to\u0000modelling token economies without maximum supply (i.e., Ethereum), and it adds\u0000constraints to the framework in the form of symmetries.","PeriodicalId":501372,"journal":{"name":"arXiv - QuantFin - General Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2024-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141167496","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：