Travis Dyer

This presentation explores how using the same financial data providers influences the opinions of market analysts. It presents that when analysts rely on similar data sources, their predictions become more alike in terms of value, timing, and boldness. The presentation also shows that changes in access to these data providers—whether due to job changes or shifts in brokerage subscriptions—lead to similar effects. The impact is more pronounced when the data is more exclusive and less significant for top-tier analysts who often have access to additional, non-quantitative information. Overall, the study suggests that common data sources can reduce the diversity of opinions in the market.

This presentation shows that investors gather more public information about firms they are socially closer to. A higher social connection between an investor's area and a firm's headquarters leads to significantly more financial document downloads. This social proximity effect is distinct from geographic proximity. The pattern holds even when firms relocate or when analyzing European regions, where physical distance is less relevant. Social proximity is especially important during high market uncertainty and for firms with less accessible information. The information gathered by socially connected investors predicts short-term earnings and stock returns, but also increases volatility. Overall, social networks help reduce information gaps and foster information gathering in financial markets.

This presentation explores the demand for public information by local versus nonlocal investors. Using unique data on institutional investors’ requests for financial information from the SEC, it finds that local investors seek about 20% more information for their nearby investments, even after accounting for their existing portfolio holdings. This tendency is stronger for stocks prone to behavioral biases and among investors with strong company ties. The presentation also shows that local investors benefit more from acquiring public information, demonstrating quicker access and better portfolio trading decisions, leading to a 0.5% improvement per quarter. Overall, local investors demand and benefit more from public information on their investments.

This presentation examines how the quality of patent disclosures impacts follow-on innovation. The patent system grants inventors temporary monopoly rights in exchange for detailed public disclosures of their innovations, intended to enable others to build on them. The presentation leverages the assignment of patent applications to examiners with varying strictness in enforcing disclosure requirements. It finds that more lenient examiners approve patents with lower-quality disclosures, which in turn generate less follow-on innovation. Overall, the evidence suggests that high-quality patent disclosures are crucial for creating knowledge spillovers that drive further innovation.