Man versus Machine: A Comparison of Robo-Analyst and Traditional Research Analyst Investment Recommendations

Advancements in financial technology (FinTech) are revolutionizing product offerings across the financial services industry. As of 2018, more than $50 billion had been invested in 2,500 companies that are redefining the way in which individuals participate in financial markets (Accenture, 2018). Innovations in FinTech also appear to benefit end users, with recent evidence indicating that FinTech is enhancing lending and brokerage activities (D’Acunto et al., 2019; Fuster et al., 2019; Tang, 2019; Vallee and Zeng, 2019). Despite its growing importance and relevance, our understanding of how FinTech affects the production of investment information and the role of sell-side research analysts … Read more

On the Role of Companies’ External Securities Law Advisors – Facilitators or Gatekeepers?

In order to retain their access to large scale capital at low cost, there is no question that companies need to actively manage their compliance with the ever-increasing regulatory requirements in the United States pertaining to corporate disclosure. Managing this obligation isn’t easy and, inter alia, necessitates securities law expertise. In a recent paper, we explore one avenue that companies use to navigate the complexity of disclosure regulation – seeking advice from external securities law experts.

Pursuant to Section 408 of Sarbanes Oxley Act of 2002, the Security and Exchange Commission’s (SEC) Division of Corporation Finance (DCF) enforces … Read more