J.B. Heaton

One Hat Research LLC

Managing Member

1165 North Clark Street

7th Floor

Chicago, IL 60610

United States

http://www.onehatr.com/

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SCHOLARLY PAPERS

48

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89

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241

Scholarly Papers (48)

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1.

Deep Learning for Finance: Deep Portfolios

Applied Stochastic Models in Business and Industry 33 (1), 3-12.
Number of pages: 15 Posted: 14 Sep 2016 Last Revised: 29 Apr 2019
J.B. Heaton, Nick Polson and Jan Witte
One Hat Research LLC, University of Chicago - Booth School of Business and University College London - Department of Mathematics
Downloads 8,591 (695)
Citation 34

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Deep Learning, Machine Learning, Big Data, Artificial Intelligence, Finance, Asset Pricing, Volatility, Deep Frontier

2.

Why Indexing Works

Applied Stochastic Models in Business and Industry 33 (6), 690-693.
Number of pages: 7 Posted: 14 Oct 2015 Last Revised: 29 Apr 2019
J.B. Heaton, Nick Polson and Jan Witte
One Hat Research LLC, University of Chicago - Booth School of Business and University College London - Department of Mathematics
Downloads 6,398 (1,156)

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Indexing, Passive Management, Active Management

3.

Managerial Optimism and Corporate Finance

Financial Management, Summer 2002
Number of pages: 14 Posted: 25 Apr 2002 Last Revised: 18 Feb 2019
J.B. Heaton
One Hat Research LLC
Downloads 4,124 (2,505)
Citation 21

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Behavioral Finance, Corporate Finance, Agency Costs, Asymmetric Information, Underinvestment, Overinvestment, Free Cash Flow

4.

Competing Theories of Financial Anomalies

The Review of Financial Studies, v 15 n 2 2002
Number of pages: 32 Posted: 25 Jan 2000 Last Revised: 18 Feb 2019
Alon Brav and J.B. Heaton
Duke University - Fuqua School of Business and One Hat Research LLC
Downloads 2,986 (4,345)
Citation 26

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5.

The Rational-Behavioral Debate in Financial Economics

Journal of Economic Methodology, 11:4, 393–409 December 2004
Number of pages: 17 Posted: 14 Jul 2004 Last Revised: 18 Feb 2019
Alon Brav, J.B. Heaton and Alex Rosenberg
Duke University - Fuqua School of Business, One Hat Research LLC and Duke University
Downloads 1,431 (14,517)

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Raional Finance, Behavioral Finance, Economic Methodolology

6.

How Active Management Survives

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How Active Management Survives

Financial Planning Review, forthcoming 2019.
Number of pages: 23 Posted: 20 Jun 2018 Last Revised: 28 Mar 2019
J.B. Heaton and Ginger Pennington
One Hat Research LLC and Northwestern University, Department of Psychology
Downloads 1,027 (23,582)
Citation 1

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Investor Psychology, Behavioral Finance, Active Management, Passive Management, Irrational Investors, Asset Management

How Active Management Survives

Financial Planning Review, Vol. 2, Issue 1, March 2019
Posted: 12 Nov 2019
J.B. Heaton and Ginger L. Pennington
One Hat Research LLC and University of Chicago - Booth School of Business

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7.

Bias-Corrected Estimation of Price Impact in Securities Litigation

American Law and Economics Review, forthcoming 2019.
Number of pages: 25 Posted: 31 Jan 2019 Last Revised: 08 May 2019
Taylor Dove, Davidson Heath and J.B. Heaton
University of Utah - David Eccles School of Business, University of Utah - David Eccles School of Business and One Hat Research LLC
Downloads 88 (322,488)
Citation 1

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Event Studies, Securities Litigation, Bias Correction, Price Impact, Compensatory Damages, Punitive Damages

8.

Market Indeterminacy

Number of pages: 36 Posted: 06 Oct 2003
Alon Brav and J.B. Heaton
Duke University - Fuqua School of Business and One Hat Research LLC
Downloads 64 (386,221)

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9.

The Public Company Bankruptcy Decision

Posted: 09 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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bankruptcy decision, financial distress, bankruptcy prediction

10.

The Altman Z Score Does Not Predict Bankruptcy

AIRA Journal, 33(3), 2020.
Posted: 27 Apr 2020 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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Altman Z, bankruptcy prediction, market evidence

11.

Takeovers and the Dividend Discount Model

Posted: 27 Jan 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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dividend discount model, implied cost of capital, takeovers, cost of equity

12.

Short Selling and the Game-Ending Greater Fool

Posted: 27 Jan 2020 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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short interest, short sellers, limits of arbitrage, optimism

13.

Distance to Insolvency

AIRA Journal, Vol.32: No.4, 2020
Posted: 27 Nov 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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distance to default, insolvency, Black-Scholes, Merton

14.

Insolvency Detection Using Publicly-Traded Debt and Equity

AIRA Journal, 32(2), 11-15 (2019).
Posted: 23 Nov 2019
J.B. Heaton
One Hat Research LLC

Abstract:

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15.

On the (Significant) Possibility of Informationally-Efficient Markets

Posted: 23 Sep 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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optimism, overconfidence, market efficiency, limits to arbitrage, passive investing, active management

16.

Synthetic Financial Data: An Application to Regulatory Compliance for Broker-Dealers

Journal of Financial Transformation (Forthcoming)
Posted: 23 Sep 2019 Last Revised: 22 Nov 2020
J.B. Heaton and Jan Witte
One Hat Research LLC and University College London - Department of Mathematics

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Synthetic Data, Machine Learning, Best Interest, Compliance

17.

Is the Cost of Equity Greater than the Risk-Free Rate?

Posted: 23 Sep 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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discount rates, cost of capital, cost of equity, optimism

18.

Hedge Fund Activism and Financial Performance

Forthcoming in The Oxford Handbook of Hedge Funds (Douglas Cumming and Geoffrey Wood, eds.)
Posted: 23 Sep 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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shareholder activism, hedge fund activism, agency costs, corporate decline

19.

The Siren Song of Litigation Funding

Forthcoming, Michigan Business & Entrepreneurial Law Review
Posted: 21 Aug 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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20.

Kill Cammer: Securities Litigation Without Junk Science

11 Wm. & Mary Bus. L. Rev. 417 (2020).
Posted: 28 Jun 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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21.

The Unfulfilled Promise of Hedge Fund Activism

Forthcoming, Virginia Law & Business Review
Posted: 19 Apr 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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22.

Simultaneous Risk Aversion and Risk-Seeking Behavior in an Expected Utility Framework with Optimism

Posted: 19 Apr 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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optimism, prospect theory, Friedman-Savage utility, insurance, gambling, lotteries

23.

Managerial Optimism: New Observations on the Unifying Theory

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Managerial Optimism: New Observations on the Unifying Theory

European Financial Management, Vol. 25, Issue 5, pp. 1150-1167, 2019
Number of pages: 18 Posted: 19 May 2020
J.B. Heaton
One Hat Research LLC
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agency cost theory, asymmetric information theory, behavioral corporate finance, managerial optimism, pay for performance

Managerial Optimism: New Observations on the Unifying Theory

European Financial Management (2019)
Posted: 19 Apr 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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behavioral corporate finance, managerial optimism, agency cost theory, asymmetric information theory, pay for performance

24.

The Social Costs of Dividends and Share Repurchases

Journal of Business, Entrepreneurship & the Law (Forthcoming)
Posted: 20 Feb 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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25.

Three Reasons Active Equity Managers Underperform

Posted: 16 Feb 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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Passive Management, Active Management, Indexing, Investment Strategy

26.

Simple Insolvency Detection for Publicly-Traded Firms

Business Lawyer (Summer 2019)
Posted: 16 Feb 2019 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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27.

Worthless Companies

European Financial Management, Vol. 24, Issue 5, pp. 721-727, 2018
Number of pages: 7 Posted: 16 Nov 2018
J.B. Heaton
One Hat Research LLC
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mergers & acquisitions, bad bidders, bubble company, unicorns, short selling

28.

Who Fields the Best Team?: A (Better) Measure of the Top Ten U.S. Law Schools by Faculty Impact

Posted: 16 Nov 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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rankings, legal scholarship, top law schools

29.

Sex, Drugs, and Rock 'N' Roll: Some Observations of Life on a Trial Team

64 South Dakota Law Review (2019), 175-182 (Lead Article).
Posted: 22 Aug 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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trial practice, substance abuse, legal education

30.

All You Need is Passive A Response to Professors Fisch, Hamdani, and Davidoff Solomon

Posted: 10 Jul 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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Passive investing, corporate governance, securities law, mutual funds, ETFs, institutional investors, shareholder activism

31.

Corporate Governance and the Cult of Agency

Villanova Law Review, Forthcoming
Posted: 10 Jul 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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Agency Problems, Agency Costs, Corporate Governance, Behavioral Law and Economics, Behavioral Finance, Corporate Law

32.

Debt and Insolvency

38 Rev. Banking & Fin. L. 363 (2019).
Posted: 20 Jun 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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Law and Finance, Security Design, Debt Capacity, Debt Yields, Insolvency, Capital Structure

33.

Risk Aversion as Risk-Neutral Pessimism: A Simple Proof

International Review of Law and Economics, Forthcoming
Posted: 29 May 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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Economic Analysis of Litigation, Risk Aversion, Risk Neutral Probabilities, Pessimism, Criminal Law, Plea Bargains, Settlement

34.

Quantitative Investing and the Limits of (Deep) Learning from Financial Data

47 Journal of Financial Transformation, 117-122 (2018).
Posted: 08 Mar 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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quantitative investment management, hedge funds, deep learning, artificial intelligence, index funds

35.

What Injures a Corporation? Toward Better Understanding Corporate Personality

Business Lawyer , Vol. 73, No. 4, 2018
Posted: 11 Feb 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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Injury, Standing, Corporate Law, Corporate Litigation, Citizens United, Hobby Lobby, Corporate Personality

36.

Litigation Funding: An Economic Analysis

American Journl of Trial Advocacy, Forthcoming
Posted: 30 Jan 2018 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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Litigation Funding, Economic Analysis of Litigation, Risk-Neutral Probabilities, Optimism, Pessimism

37.

Too Much Insolvency: 'Unmatured Interest' and 'Debt' Under the Code

American Bankruptcy Institute Law Review , Forthcoming
Posted: 14 Dec 2017 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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Insolvency, Solvency Tests, Bankruptcy Code

38.

Positive Equity Prices with Insolvency under Legal Solvency Tests

23 Journal of Forensic Economics, 63-70 (2018).
Posted: 22 Nov 2016 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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Solvency, Insolvency, Valuation, Option Value of Equity, Fraudulent Transfer, Preference, Shifting Fiduciary Duties

39.

The 'Long Term' in Corporate Law

The Business Lawyer; Vol. 72, Spring 2017
Posted: 07 Nov 2016 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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Corporate Law, Corporate Governance, Shareholder Activism, Myopia

40.

Failed Anti-Activist Legislation: The Curious Case of the Brokaw Act

Journal of Business, Entrepreneurship and the Law, Forthcoming
Posted: 29 Oct 2016 Last Revised: 22 Nov 2020
Alon Brav, J.B. Heaton and Jonathan Zandberg
Duke University - Fuqua School of Business, One Hat Research LLC and Boston College - Carroll School of Management

Abstract:

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hedge fund activism, corporate law, shareholder activism, shareholder activist, hedge fund activist

41.

Event Studies in Securities Litigation: Low Power, Confounding Effects, and Bias

Washington University Law Review, Vol. 93, No. 2, 2015
Posted: 21 Mar 2015 Last Revised: 22 Nov 2020
Alon Brav and J.B. Heaton
Duke University - Fuqua School of Business and One Hat Research LLC

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event studies, securities litigation

42.

Smart Money, Dumb Money, and Learning Type from Price

Posted: 09 Aug 2011 Last Revised: 22 Nov 2020
J.B. Heaton and Nick Polson
One Hat Research LLC and University of Chicago - Booth School of Business

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smart money, dumb money, noise traders, limits of arbitrage, learning, heterogeneous beliefs

43.

Overconfidence, Compensation Contracts, and Capital Budgeting

Journal of Finance, Vol. 66, No. 5, pp. 1725-77 (2011)
Posted: 07 Mar 2011 Last Revised: 22 Nov 2020
Simon Gervais, J.B. Heaton and Terrance Odean
Duke University - Fuqua School of Business, One Hat Research LLC and University of California, Berkeley - Haas School of Business

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overconfidence, capital budgeting, compensation, labor market

44.

Naked Shorting

Regulation, 2008
Posted: 30 Apr 2007 Last Revised: 22 Nov 2020
Christopher L. Culp and J.B. Heaton
Johns Hopkins University - Institute for Applied Economics, Global Health, and Study of Business Enterprise and One Hat Research LLC

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Naked Shorting, Short Selling, Manipulation

45.

Solvency Tests

Business Lawyer, Vol. 62, No. 3, 983-1006 (2007).
Posted: 19 Sep 2006 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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Insolvency, Bankruptcy, Fiduciary Duties, Creditors, Valuation

46.

The Limits of the Limits of Arbitrage

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The Limits of the Limits of Arbitrage

Review of Finance, 14(1):157-187 (2010)
Posted: 12 Jul 2006 Last Revised: 22 Nov 2020
Alon Brav, J.B. Heaton and Si Li
Duke University - Fuqua School of Business, One Hat Research LLC and Wilfrid Laurier University - School of Business & Economics

Abstract:

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Market Efficiency, Behavioral Finance, Limits on Arbitrage, Idiosyncratic Volatility

The Limits of the Limits of Arbitrage

Review of Finance, Vol. 14, Issue 1, pp. 157-187, 2010
Posted: 25 Jan 2010 Last Revised: 18 Feb 2019
Alon Brav, J.B. Heaton and Si Li
Duke University - Fuqua School of Business, One Hat Research LLC and Wilfrid Laurier University - School of Business & Economics

Abstract:

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G11, G12, G14

47.

Deepening Insolvency

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Deepening Insolvency

Posted: 23 Nov 2004 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

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Deepening insolvency, costs of financial distress

Deepening Insolvency

Posted: 27 Apr 2005
J.B. Heaton
One Hat Research LLC

Abstract:

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Deepening insolvency

48.

Settlement Pressure

International Review of Law and Economics, Vol. 25, pp. 264-275 (2005)
Posted: 18 Apr 2004 Last Revised: 22 Nov 2020
J.B. Heaton
One Hat Research LLC

Abstract:

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Class certification, settlement, civil procedure, economic analysis of litigation