Senior Fellows/Fellows

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Senior Fellows/Fellows

Macro Shocks and Firm-Level Response Heterogeneity

Steven J. DAVIS, Stephen HANSEN, Cristhian SEMINARIO-AMEZ
Macro shocks produce high dispersion in firm-level equity returns, sales growth, and other outcomes. We show that this dispersion reflects observable differences in business characteristics. To do so, we combine firm-level returns on stock market “jump” days with text about business risks in pri...
Keywords: Firm Heterogeneity, Text-as-Data, Machine Learning, Shock Identification
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Annual Conference

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Tech, Digital Markets and AI

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May 2025

The Private Value of Open-Source Innovation

Logan P. EMERY, Chan LIM, Shiwei YE
We investigate open-source innovation by public firms and the private value it generates for these firms. Unlike patents, which grant inventors exclusive rights to their inventions, open-source innovations can be used by anyone. Nevertheless, using an extensive dataset of public-firm activity on Git...
Keywords: Open Source, Innovation, Firm growth, Valuation, GitHub
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Annual Conference

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Tech, Digital Markets and AI

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May 2025

The Value of AI Innovations in Non-IT Firms

Wilbur Xinyuan CHEN, Terrence Tianshuo SHI, Suraj SRINIVASAN, Saleh ZAKERINIA
As the latest general-purpose-technology (GPT), AI technologies have recently started to diffuse from the general sector (IT industry) to the application sectors of AI (non-IT industries) at scale. To understand the benefits of AI innovations in application sectors, we study the value of AI innovati...
Keywords: Artificial Intelligence, Innovation, Valuation
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Annual Conference

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Tech, Digital Markets and AI

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May 2025

Venture Capital Response to Government-Funded Basic Science

Roham REZAEI, Yufeng YAO
Science-based R&D can deter venture capitalists due to high technical uncertainty. We study whether mission-oriented public funding—supplying basic science as a public good—fosters VC investment. Our quasi-natural experiment is the BRAIN Initiative (BI), a large-scale government program aime...
Keywords: Venture Capital, innovation, academic entrepreneurship, government policy, machine learning
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Annual Conference

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Tech, Digital Markets and AI

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May 2025

Generative AI and Asset Management

Jinfei SHENG, Zheng SUN, Baozhong YANG, Alan ZHANG
This paper proposes a novel measure of investment companies’ reliance on generative AI, focusing on its implications for hedge funds. We document a sharp increase in generative AI usage by hedge funds after ChatGPT’s 2022 launch. A difference-in-differences test shows that hedge funds adopting g...
Keywords: Generative AI (GenAI), ChatGPT, Hedge Funds, GenAI Reliance, Portfolio Return, Alpha, Survey, AI Disparity
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