J.B. Heaton

J.B. Heaton, P.C.

20 West Kinzie

17th Floor

Chicago, IL 60654

United States

http://jbheaton.com

One Hat Research LLC

20 West Kinzie

17th Floor

Chicago, IL 60654

United States

http://https://onehatr.com/

  • J.B. Heaton, P.C.

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    • Tel: (312) 487-2600

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SCHOLARLY PAPERS

52

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32,923

CITATIONS
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in Total Papers Citations

267

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“  'How far did you go in school?' 'I went all the way.' 'Your folks must be really proud, huh?' -Pretty Woman (1990)  ”

  • J.B. Heaton, P.C.

    • Email
    • Tel: (312) 487-2600

  • One Hat Research LLC

Scholarly Papers (52)

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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
J.B. Heaton, P.C., University of Chicago - Booth School of Business and University College London - Department of Mathematics
Downloads 7,012 (820)
Citation 15

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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
J.B. Heaton, P.C., University of Chicago - Booth School of Business and University College London - Department of Mathematics
Downloads 6,008 (1,081)

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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
J.B. Heaton, P.C.
Downloads 3,952 (2,246)
Citation 7

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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 J.B. Heaton, P.C.
Downloads 2,953 (3,693)
Citation 11

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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, J.B. Heaton, P.C. and Duke University
Downloads 1,411 (12,693)
Citation 1

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Raional Finance, Behavioral Finance, Economic Methodolology

6.

Solvency Tests

Business Lawyer, Vol. 62, No. 3, 983-1006 (2007).
Number of pages: 24 Posted: 19 Sep 2006 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 1,290 (14,604)
Citation 3

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Insolvency, Bankruptcy, Fiduciary Duties, Creditors, Valuation

7.

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

Number of pages: 11 Posted: 16 Nov 2018 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 1,270 (14,933)
Citation 1

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rankings, legal scholarship, top law schools

8.

The Limits of the Limits of Arbitrage

Downloads 1,214 ( 16,036)

The Limits of the Limits of Arbitrage

Review of Finance, 14(1):157-187 (2010)
Number of pages: 35 Posted: 12 Jul 2006 Last Revised: 18 Feb 2019
Alon Brav, J.B. Heaton and Si Li
Duke University - Fuqua School of Business, J.B. Heaton, P.C. and Wilfrid Laurier University - School of Business & Economics
Downloads 1,214 (15,721)
Citation 1

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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, J.B. Heaton, P.C. and Wilfrid Laurier University - School of Business & Economics

Abstract:

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G11, G12, G14

9.

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
J.B. Heaton, P.C. and Northwestern University, Department of Psychology
Downloads 968 (22,523)
Citation 1

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

10.

Naked Shorting

Regulation, 2008
Number of pages: 30 Posted: 30 Apr 2007 Last Revised: 18 Feb 2019
Christopher L. Culp and J.B. Heaton
Johns Hopkins University - Institute for Applied Economics, Global Health, and Study of Business Enterprise and J.B. Heaton, P.C.
Downloads 878 (25,944)
Citation 2

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Naked Shorting, Short Selling, Manipulation

11.

Deepening Insolvency

Downloads 661 ( 38,266)

Deepening Insolvency

Number of pages: 54 Posted: 23 Nov 2004 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 661 (37,690)

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Deepening insolvency, costs of financial distress

Deepening Insolvency

Journal of Corporation Law, Forthcoming
Posted: 27 Apr 2005
J.B. Heaton
J.B. Heaton, P.C.

Abstract:

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Deepening insolvency

12.

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

Washington University Law Review, Vol. 93, No. 2, 2015
Number of pages: 33 Posted: 21 Mar 2015 Last Revised: 18 Feb 2019
Alon Brav and J.B. Heaton
Duke University - Fuqua School of Business and J.B. Heaton, P.C.
Downloads 634 (40,493)
Citation 2

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event studies, securities litigation

13.

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

Journal of Business, Entrepreneurship and the Law, Forthcoming
Number of pages: 24 Posted: 29 Oct 2016 Last Revised: 18 Feb 2019
Alon Brav, J.B. Heaton and Jonathan Zandberg
Duke University - Fuqua School of Business, J.B. Heaton, P.C. and Boston College - Carroll School of Management
Downloads 518 (52,853)
Citation 2

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

14.

Overconfidence, Compensation Contracts, and Capital Budgeting

Journal of Finance, Vol. 66, No. 5, pp. 1725-77 (2011)
Number of pages: 53 Posted: 07 Mar 2011 Last Revised: 18 Feb 2019
Simon Gervais, J.B. Heaton and Terrance Odean
Duke University - Fuqua School of Business, J.B. Heaton, P.C. and University of California, Berkeley - Haas School of Business
Downloads 466 (60,093)
Citation 1

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overconfidence, capital budgeting, compensation, labor market

15.

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

47 Journal of Financial Transformation, 117-122 (2018).
Number of pages: 22 Posted: 08 Mar 2018 Last Revised: 29 Apr 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 463 (60,597)
Citation 1

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

16.

Debt Capacity and Fraudulent Conveyance Law

Journal of Financial Intermediation, Vol. 9, pp. 169-183 (2000).
Number of pages: 30 Posted: 09 May 1998 Last Revised: 17 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 378 (77,136)

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17.

Smart Money, Dumb Money, and Learning Type from Price

Number of pages: 23 Posted: 09 Aug 2011 Last Revised: 18 Feb 2019
J.B. Heaton and Nick Polson
J.B. Heaton, P.C. and University of Chicago - Booth School of Business
Downloads 287 (105,093)

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

18.

The Unfulfilled Promise of Hedge Fund Activism

Forthcoming, Virginia Law & Business Review
Number of pages: 23 Posted: 19 Apr 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 257 (118,503)

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19.

Litigation Funding: An Economic Analysis

Number of pages: 22 Posted: 30 Jan 2018 Last Revised: 04 Apr 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 253 (120,013)
Citation 1

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

20.

Corporate Governance and the Cult of Agency

Villanova Law Review, Forthcoming
Number of pages: 65 Posted: 10 Jul 2018 Last Revised: 10 Mar 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 212 (142,817)
Citation 2

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

21.

The 'Long Term' in Corporate Law

The Business Lawyer; Vol. 72, Spring 2017
Number of pages: 14 Posted: 07 Nov 2016 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 200 (150,806)
Citation 1

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Corporate Law, Corporate Governance, Shareholder Activism, Myopia

22.

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

64 South Dakota Law Review (2019), 175-182 (Lead Article).
Number of pages: 9 Posted: 22 Aug 2018 Last Revised: 09 Jun 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 198 (152,260)

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trial practice, substance abuse, legal education

23.

Hedge Fund Activists: Pessimists in a World of Managerial Optimism

Number of pages: 11 Posted: 08 Mar 2018 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 180 (166,956)

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hedge fund activism, behavioral finance, optimism, pessimism, wolf packs

24.

The Social Costs of Dividends and Share Repurchases

Journal of Business, Entrepreneurship & the Law (Forthcoming)
Number of pages: 17 Posted: 20 Feb 2019 Last Revised: 29 Apr 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 131 (216,813)

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25.

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

Number of pages: 9 Posted: 10 Jul 2018 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 127 (221,946)
Citation 1

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

26.

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

Number of pages: 22 Posted: 02 Aug 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 96 (270,603)

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

27.

Three Reasons Active Equity Managers Underperform

Number of pages: 13 Posted: 16 Feb 2019 Last Revised: 23 Mar 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 83 (296,680)

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Passive Management, Active Management, Indexing, Investment Strategy

28.

What Injures a Corporation? Toward Better Understanding Corporate Personality

Business Lawyer , Vol. 73, No. 4, 2018
Number of pages: 20 Posted: 11 Feb 2018 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 76 (312,600)

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

29.

Positive Equity Prices with Insolvency under Legal Solvency Tests

23 Journal of Forensic Economics, 63-70 (2018).
Number of pages: 15 Posted: 22 Nov 2016 Last Revised: 29 Apr 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 73 (319,874)

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

30.

Simple Insolvency Detection for Publicly-Traded Firms

Business Lawyer (Summer 2019)
Number of pages: 12 Posted: 16 Feb 2019 Last Revised: 14 Aug 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 66 (340,566)

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31.

Kill Cammer: Securities Litigation Without Junk Science

William & Mary Business Law Review, Forthcoming
Number of pages: 50 Posted: 28 Jun 2019 Last Revised: 08 Aug 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 65 (343,318)

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32.

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 J.B. Heaton, P.C.
Downloads 58 (360,516)

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

33.

Market Indeterminacy

Journal of Corporation Law, Vol. 28, 2003
Number of pages: 36 Posted: 06 Oct 2003
Alon Brav and J.B. Heaton
Duke University - Fuqua School of Business and J.B. Heaton, P.C.
Downloads 55 (369,887)

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34.

Misleading Omissions: A Bayesian Framework

Number of pages: 16 Posted: 12 Dec 2017 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 50 (386,051)

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Bayesian Analysis, Omissions, Omnicare, Opioid Litigation, Product Liability

35.

Risk Aversion as Risk-Neutral Pessimism: A Simple Proof

International Review of Law and Economics, Forthcoming
Number of pages: 8 Posted: 29 May 2018 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 46 (399,858)

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

36.

Debt and Insolvency

38 Rev. Banking & Fin. L. 363 (2019).
Number of pages: 27 Posted: 20 Jun 2018 Last Revised: 09 Jun 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 42 (414,346)

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

37.

On the (Significant) Possibility of Informationally-Efficient Markets

Number of pages: 8 Posted: 01 Jul 2019 Last Revised: 02 Jul 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 35 (442,336)

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

38.

One Pill Makes You Larger: Flaws in Sisk’s Westlaw Methodology Illustrated With Leiter’s Citations

2018 Wisconsin Law Review Forward, 27-33 (2018).
Number of pages: 9 Posted: 28 Aug 2018 Last Revised: 29 Apr 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 35 (442,336)
Citation 1

Abstract:

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Citation Studies, Faculty Rankings

39.

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

American Bankruptcy Institute Law Review , Forthcoming
Number of pages: 5 Posted: 14 Dec 2017 Last Revised: 07 Mar 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 35 (442,336)

Abstract:

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Insolvency, Solvency Tests, Bankruptcy Code

40.

Managerial Optimism: New Observations on the Unifying Theory

European Financial Management (2019)
Number of pages: 18 Posted: 19 Apr 2019 Last Revised: 13 Jun 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 33 (450,807)

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

41.

Just This Once: A More Plausible Model of Addiction and Its Policy Implications

87 UMKC Law Review (2019), 817-826.
Number of pages: 10 Posted: 24 Aug 2018 Last Revised: 09 Jun 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 31 (459,948)

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Rational Addiction, Irrational Addiction, Behavioral Economics, Bayesian Analysis, Health Economics

42.

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

Number of pages: 10 Posted: 19 Apr 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 29 (474,486)

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

43.

Hedge Fund Activism and Financial Performance

Forthcoming in The Oxford Handbook of Hedge Funds (Douglas Cumming and Geoffrey Wood, eds.)
Number of pages: 24 Posted: 07 Aug 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 28 (474,486)

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

44.

A Bird in the Hand: An Existence Argument for Short-Term Gains that Harm Long-Term Value and Its Implications for Corporate Law

Number of pages: 11 Posted: 20 Feb 2019 Last Revised: 05 Apr 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 24 (495,962)

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45.

The Siren Song of Litigation Funding

Number of pages: 26
J.B. Heaton
J.B. Heaton, P.C.
Downloads 19

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46.

Machine-Learning-Generated Synthetic Data for Regulation Best Interest Compliance

Number of pages: 12 Posted: 11 Jul 2019
J.B. Heaton and Jan Witte
J.B. Heaton, P.C. and University College London - Department of Mathematics
Downloads 17 (536,368)

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Synthetic Data, Machine Learning, Best Interest, Compliance

47.

Settlement Pressure

International Review of Law and Economics, Vol. 25, pp. 264-275 (2005)
Number of pages: 12 Posted: 18 Apr 2004 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.
Downloads 6 (604,310)

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

48.

Worthless Companies

European Financial Management, Vol. 24, Issue 5, pp. 721-727, 2018
Number of pages: 7 Posted: 16 Nov 2018
J.B. Heaton
J.B. Heaton, P.C.
Downloads 0 (666,172)
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mergers & acquisitions, bad bidders, bubble company, unicorns, short selling

49.

Returns, Risk, and Financial Due Diligence

FINANCE ETHICS, J. R. Boatright, ed., New York: Wiley, 2010
Posted: 04 Aug 2009 Last Revised: 18 Feb 2019
Christopher L. Culp and J.B. Heaton
Johns Hopkins University - Institute for Applied Economics, Global Health, and Study of Business Enterprise and J.B. Heaton, P.C.

Abstract:

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50.

Patent Law and Financial Engineering

Derivatives Quarterly, Winter 2000
Posted: 27 Mar 2001 Last Revised: 18 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.

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51.

Did Erisa's Prudent Man Rule Change the Pricing of Dividend Omitting Firms?

Posted: 14 Jun 1998 Last Revised: 17 Feb 2019
Alon Brav and J.B. Heaton
Duke University - Fuqua School of Business and J.B. Heaton, P.C.

Abstract:

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52.

An Economic Analysis of Fraudulent Conveyance Law

Journal of Financial Intermediation, Vol. 9, pp. 169-183 (2000).
Posted: 15 May 1997 Last Revised: 17 Feb 2019
J.B. Heaton
J.B. Heaton, P.C.

Abstract:

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