For decades, investor have relied on intuition, a limitedset of financial ratios, and traditional regression analyses to predict future earnings changes. Are detailed financial data even useful? We present empirical evidence that combining detailed financial data with machine learning models significantly enhances predictive accuracy. By using eXtensible ... Read More

When it comes to identifying winning investments, data-driven methods may outperform both economic models and professional analysts, according to HKUST’s Yang Ha (Tony) Cho and colleagues. They sought to “push the frontier of earnings prediction” by “applying machine learning methods to a large set of detailed financial data” for the first time. Earnings are ... Read More