That's Interesting
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From Realized to Expected: The Passive Investing Impact
20th February, 2025Equity markets are now largely dominated by passive investments, this study introduces the Indexing Inclusion Ratio (IXI) as a measure of passive ownership to assess its increasing impact on U.S. equity markets. The findings reveal that high-indexed stocks highly outperform their low-indexed counterparts, primarily due to the influx of passive capital flows rather than fundamental value.
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Limited accountability and awareness of corporate emissions target outcomes
17th February, 2025Firms are increasingly announcing targets to reduce their carbon emissions, but it is unclear whether firms are held accountable for these targets. This article examines emissions targets that ended in 2020 to investigate the final target outcomes, the transparency of target outcomes and potential consequences for missed emissions targets.
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Comparing cooperative geometric puzzle solving in ants versus humans
30th January, 2025Collective cognition is often mentioned as one of the advantages of group living. But which factors actually facilitate group smarts? This paper compared how individuals and groups of either ants or people tackle an identical geometrical puzzle. It found that when ants work in groups, their performances rise significantly whereas groups of people do not show such improvement and, when their communication is restricted, even display deteriorated performances.
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People systematically overlook subtractive changes
05th January, 2025Improving objects, ideas or situations—whether a designer seeks to advance technology, a writer seeks to strengthen an argument or a manager seeks to encourage desired behaviour—requires a mental search for possible changes. This article investigates whether people are as likely to consider changes that subtract components from an object, idea or situation as they are to consider changes that add new components.
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When Subtraction Adds Value
05th January, 2025Imagining ways to introduce change is an essential skill no matter one’s occupation, role, or rank. Across a series of experiments, the authors found that people systematically overlook subtractive changes, instead following their instincts to add.
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The Rise of Alternatives
08th December, 2024Since the 2000s, U.S. public pensions have shifted their risky investments towards alternative assets like private equity and hedge funds, some more aggressively than others. This paper explores several explanations for these cross-sectional trends, focusing on those implied by the mean-variance models used by most pensions.
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12 Best Practices for Leveraging Generative AI in Experimental Research
04th December, 2024This paper provides twelve best practices and discusses how each practice can help researchers accurately, credibly, and ethically use Generative AI (GenAI) to enhance experimental research.
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In the CEO We Trust: Negative Effects of Trust Between the Board and the CEO
01st December, 2024This study investigates whether and how trust between board members and the CEO (board–CEO trust) affects the performance of mergers and acquisitions. Contrary to conventional wisdom, it is found that firms with higher levels of board–CEO trust exhibit poor M&A performance.
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Accessing Private Markets: What Does It Cost?
28th November, 2024This paper provides the first empirical analysis of the costs of financial intermediation across private markets and a framework to estimate ex-post costs using observed fund terms.
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When a Crystal Ball Isn’t Enough to Make You Rich
26th November, 2024The authors ran an in-person, proctored experiment inspired by a 2016 tweet from Nassim Nicholas Taleb– “If you give an investor the next day’s news 24 hours in advance he would go bust in less than a year.” The authors called the experiment “The Crystal Ball Challenge.”
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