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Daily Archives: September 17, 2014

Patent Citations and Stock Performance: Constructing a Dynamic Industry Classification

Gay, Sebastien and Karger, Ezra, Patent Citations and Stock Performance: Constructing a Dynamic Industry Classification (September 15, 2014). Available for download at SSRN: http://ssrn.com/abstract=2496414

Researchers in academia and the private sector use industry classifications to compare growth across and between industries, to construct industry indices, and to control for industry-level correlations of stocks over time. But commonly used industry classifications do not reliably predict stock co-movement because companies change their core structure quickly relative to the slow and haphazard updating of the widely-used subjective industry classifications. We propose an objective industry classification that clusters companies based on a network of patent citations to better measure changes in the relationships between companies over time. Our cluster-based industry classification predicts daily stock co-movement between 5% and 25% better than the standard SIC and NAICS classifications. Our classification is also a statistically significant addition to a standard 3-factor Fama-French model and outperforms SIC and NAICS classifications in its ability to explain variance in daily and monthly stock returns. While the ability of Standard Industry Classification (SIC) codes and the North American Industry Classification System (NAICS) to group together companies with similar daily stock returns has deteriorated over time, our clustering framework consistently groups together companies with similar daily stock returns in each year between 1947 and 2010.”

EIA – Saudi Arabia Country Analysis Brief

“Saudi Arabia has 16% of the world’s proved oil reserves, is the largest exporter of total petroleum liquids in the world, and maintains the world’s largest crude oil production capacity. Saudi Arabia is the world’s largest holder of crude oil proved reserves and was the largest exporter of total petroleum liquids in 2013. In 2013, Saudi… Continue Reading

H.R. 4387, FSOC Transparency and Accountability Act

CBO – As ordered reported by the House Committee on Financial Services on June 20, 2014 “H.R. 4387 would allow all members of the governing bodies of certain agencies that are represented on the Financial Stability Oversight Council (FSOC)—the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Board of Governors of… Continue Reading

Federal Reserve issues FOMC statement

“Information received since the Federal Open Market Committee met in July suggests that economic activity is expanding at a moderate pace. On balance, labor market conditions improved somewhat further; however, the unemployment rate is little changed and a range of labor market indicators suggests that there remains significant underutilization of labor resources. Household spending appears… Continue Reading

10 big questions the Pew Research Center has tackled in the past decade

Andrea Caumont: “Ten years ago, the Pew Research Center was established by The Pew Charitable Trusts to bring together several of Pew’s information initiatives. The new organization had a unique mission to offer nonpartisan, non-advocacy information to decision-makers and the public. The Center has amassed a large body of work over the past decade. For our tenth anniversary, here’s… Continue Reading

Testimony of Nuala O’Connor on Open Internet Rules

“CDT President & CEO testifies before the Senate Judiciary Committee on September 17, 2014. The hearing, entitled “Why Net Neutrality Matters: Protecting Consumers and Competition Through Meaningful Open internet Rules,” comes as the Federal Communications Commission (FCC) works to restore open Internet protections and has sought public comments on the best path forward.” “We believe that… Continue Reading

Is a Green Paradox Spectre Haunting International Climate Change Laws and Conventions?

Partain, Roy Andrew, Is a Green Paradox Spectre Haunting International Climate Change Laws and Conventions? (September 14, 2014). UCLA Journal of Environmental Law & Policy, Vol. 33, No. 1, 2014. Available for download at SSRN: http://ssrn.com/abstract=2496155 “Could the UNFCCC, and green laws in general, increase greenhouse gas emissions and thus worsen the threats and risks of… Continue Reading

Retirement Plan Landscape Stabilizing as Fewer Fortune 500 Companies Shifting Defined Benefit Plans to 401(k)s

News release: “The retirement plan landscape is stabilizing as fewer U.S. companies last year moved from defined benefit (DB) plans to offering only a defined contribution (DC) plan to new salaried employees than in any other year over the past decade, according to a new analysis by global professional services company Towers Watson (NYSE, NASDAQ:… Continue Reading

New GAO Reports – Broadcast TV and Radio, FSOC, Land Use Agreements

BROADCAST TELEVISION AND RADIO: Disclosure Requirements for Broadcasted Content, GAO-14-738: Published: Sep 17, 2014. Publicly Released: Sep 17, 2014. FINANCIAL STABILITY OVERSIGHT COUNCIL: Status of Efforts to Improve Transparency, Accountability, and Collaboration, GAO-14-873T: Published: Sep 17, 2014. Publicly Released: Sep 17, 2014. LAND-USE AGREEMENTS: Department of Veterans Affairs Needs to Improve Data Reliability and Monitoring, GAO-14-501: Published: Aug 18, 2014. Publicly Released: Sep 17,… Continue Reading