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Insights / Research BriefAug 10, 2023

ChatGPT and Corporate Policies

Manish Jha, Jialin Qian, Michael Weber, Baozhong Yang
Investment scores generated by ChatGPT using conference call transcripts are strongly predictive of companies’ future capital expenditures for up to nine quarters, controlling for other predictors. The scores also predict intangible investment, R&D, and total investment, and are negatively correlated with future stock returns.
Topics:  Technology & Innovation
Insights / Research BriefJun 08, 2023

Micro- and Macroeconomic Impacts of a Place-Based Industrial Policy

Enghin Atalay, Ali Hortaçsu, Chad Syverson, Mehmet Fatih Ulu
Turkey’s Law 2012/3305 boosted economic activity among businesses in eligible industries/provinces and led to positive spillovers to the suppliers and customers of subsidized firms. In the long run, the policy reduced income inequality between regions only moderately, due to migration and spillovers.
Topics:  Industrial Organization
Insights / Research BriefMay 10, 2023

Managers and Productivity in Retail

Robert D. Metcalfe, Alexandre B. Sollaci, Chad Syverson
Individual managers impact retail business productivity substantially; replacing a manager at the bottom of the quality distribution by one at the top could increase a store’s productivity by between 50% and 100%.
Topics:  Industrial Organization
Insights / Research BriefMay 04, 2023

Bloated Disclosures: Can ChatGPT Help Investors Process Information?

Alex G. Kim, Maximilian Muhn, Valeri Nikolaev
Using GPT to summarize corporate disclosures results in summaries that are shorter and more informative than the originals. “Bloated” disclosures – or, those with more uninformative content – are associated with adverse capital market outcomes.
Topics:  Technology & Innovation
Insights / Research BriefMay 04, 2023

How Important Is Corporate Governance? Evidence from Machine Learning

Ian D. Gow, David F. Larcker, Anastasia A. Zakolyukina
Little support exists for a strong causal relation between corporate governance and firm outcomes, which are rather driven by such characteristics as profitability, liquidity, and growth, among others.
Topics:  Technology & Innovation
Insights / Research BriefMay 03, 2023

Local And National Concentration Trends in Jobs and Sales: The Role of Structural Transformation

David Autor, Christina Patterson, John Van Reenen
Driven by the sizable shift in sales and employment from the relatively concentrated manufacturing sector to the relatively unconcentrated service sector, local concentration in sales has increased in parallel to national sales concentration, while local concentration in employment has declined, despite rising at the national level.
Topics:  Employment & Wages, Industrial Organization
Insights / Research BriefApr 05, 2023

100 Years of Rising Corporate Concentration

Spencer Y. Kwon, Yueran Ma, Kaspar Zimmermann
US corporate concentration has increased persistently over the past century, with the manufacturing and mining sectors consolidating at a faster pace prior to the 1970s, and with the services, retail, and wholesale sectors taking the lead since. These long-run trends appear in line with stronger economies of scale.
Topics:  Industrial Organization
Insights / Podcast episodeMar 21, 2023

Social Media Algorithms: How You’re Curating a Biased News Feed

Tess Vigeland, Sendhil Mullainathan
Social media behaviors, moving at an ever faster pace, may not reflect what users really...
Topics:  Technology & Innovation