J.B. Heaton

One Hat Research LLC

20 West Kinzie

17th Floor

Chicago, IL 60654

United States

J.B. Heaton, P.C.

Chicago, IL

United States

http://jbheaton.com

  • One Hat Research LLC

  • J.B. Heaton, P.C.

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    • Tel: (312) 487-2600
SCHOLARLY PAPERS

46

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34,198

SSRN CITATIONS
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Top 3,848

in Total Papers Citations

52

CROSSREF CITATIONS

239

Ideas:
“  “Speak what you think today in hard words and tomorrow speak what tomorrow thinks in hard words again, though it contradict every thing you said today.” ― Ralph Waldo Emerson, Self-Reliance  ”

  • One Hat Research LLC

  • J.B. Heaton, P.C.

    • Email
    • Tel: (312) 487-2600

Scholarly Papers (46)

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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 7,795 (744)
Citation 25

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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 6,195 (1,098)
Citation 1

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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 4,040 (2,377)
Citation 15

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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 2,968 (3,991)
Citation 18

Abstract:

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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 1,419 (13,511)

Abstract:

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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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 1,395 (13,878)
Citation 4

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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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 1,310 (15,308)

Abstract:

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rankings, legal scholarship, top law schools

8.

The Limits of the Limits of Arbitrage

Downloads 1,217 ( 17,087)

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, One Hat Research LLC and Wilfrid Laurier University - School of Business & Economics
Downloads 1,217 (16,765)
Citation 6

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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

9.

How Active Management Survives

Downloads 1,000 ( 22,941)
Citation 1

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 1,000 (22,551)
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

Abstract:

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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 One Hat Research LLC
Downloads 888 (27,216)
Citation 4

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Naked Shorting, Short Selling, Manipulation

11.

Deepening Insolvency

Downloads 664 ( 40,681)

Deepening Insolvency

Number of pages: 54 Posted: 23 Nov 2004 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 664 (40,085)

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Deepening insolvency, costs of financial distress

Deepening Insolvency

Journal of Corporation Law, Forthcoming
Posted: 27 Apr 2005
J.B. Heaton
One Hat Research LLC

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: 23 Sep 2019
Alon Brav and J.B. Heaton
Duke University - Fuqua School of Business and One Hat Research LLC
Downloads 648 (41,980)
Citation 3

Abstract:

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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: 23 Sep 2019
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
Downloads 539 (53,270)
Citation 2

Abstract:

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

14.

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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 531 (54,347)
Citation 1

Abstract:

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

15.

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, One Hat Research LLC and University of California, Berkeley - Haas School of Business
Downloads 475 (62,581)
Citation 3

Abstract:

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overconfidence, capital budgeting, compensation, labor market

16.

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

Number of pages: 22 Posted: 23 Sep 2019 Last Revised: 14 Oct 2019
J.B. Heaton
One Hat Research LLC
Downloads 336 (93,796)

Abstract:

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

17.

Smart Money, Dumb Money, and Learning Type from Price

Number of pages: 23 Posted: 09 Aug 2011 Last Revised: 27 Sep 2019
J.B. Heaton and Nick Polson
One Hat Research LLC and University of Chicago - Booth School of Business
Downloads 303 (105,114)

Abstract:

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

18.

Corporate Governance and the Cult of Agency

Villanova Law Review, Forthcoming
Number of pages: 65 Posted: 10 Jul 2018 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 247 (130,358)
Citation 2

Abstract:

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

19.

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: 27 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 225 (142,821)

Abstract:

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trial practice, substance abuse, legal education

20.

The 'Long Term' in Corporate Law

The Business Lawyer; Vol. 72, Spring 2017
Number of pages: 14 Posted: 07 Nov 2016 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 205 (155,987)
Citation 1

Abstract:

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Corporate Law, Corporate Governance, Shareholder Activism, Myopia

21.

Simple Insolvency Detection for Publicly-Traded Firms

Business Lawyer (Summer 2019)
Number of pages: 12 Posted: 16 Feb 2019 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 153 (203,171)

Abstract:

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22.

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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 152 (204,279)

Abstract:

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23.

The Siren Song of Litigation Funding

Forthcoming, Michigan Business & Entrepreneurial Law Review
Number of pages: 26 Posted: 21 Aug 2019 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 136 (222,372)

Abstract:

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24.

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

Journal of Financial Transformation (Forthcoming)
Number of pages: 13 Posted: 23 Sep 2019 Last Revised: 29 Sep 2019
J.B. Heaton and Jan Witte
One Hat Research LLC and University College London - Department of Mathematics
Downloads 133 (226,288)

Abstract:

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Synthetic Data, Machine Learning, Best Interest, Compliance

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: 02 Feb 2020
J.B. Heaton
One Hat Research LLC
Downloads 130 (230,345)
Citation 1

Abstract:

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

26.

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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 109 (262,047)

Abstract:

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

27.

Three Reasons Active Equity Managers Underperform

Number of pages: 13 Posted: 16 Feb 2019 Last Revised: 10 Feb 2020
J.B. Heaton
One Hat Research LLC
Downloads 106 (267,292)

Abstract:

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Passive Management, Active Management, Indexing, Investment Strategy

28.

Kill Cammer: Securities Litigation Without Junk Science

William & Mary Business Law Review, Forthcoming
Number of pages: 50 Posted: 28 Jun 2019 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 105 (270,841)

Abstract:

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29.

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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 83 (313,153)

Abstract:

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

30.

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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 82 (315,430)

Abstract:

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

31.

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 78 (324,781)

Abstract:

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

32.

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

Number of pages: 10 Posted: 19 Apr 2019 Last Revised: 14 Oct 2019
J.B. Heaton
One Hat Research LLC
Downloads 74 (334,817)

Abstract:

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

33.

Distance to Insolvency

AIRA Journal, Vol.32: No.4, 2020
Number of pages: 5 Posted: 27 Nov 2019 Last Revised: 18 Feb 2020
J.B. Heaton
One Hat Research LLC
Downloads 60 (374,124)

Abstract:

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distance to default, insolvency, Black-Scholes, Merton

34.

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 One Hat Research LLC
Downloads 60 (374,124)

Abstract:

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35.

Debt and Insolvency

38 Rev. Banking & Fin. L. 363 (2019).
Number of pages: 27 Posted: 20 Jun 2018 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 52 (400,073)

Abstract:

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

36.

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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 51 (403,559)
Citation 3

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

37.

Managerial Optimism: New Observations on the Unifying Theory

European Financial Management (2019)
Number of pages: 18 Posted: 19 Apr 2019 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 47 (417,683)

Abstract:

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

38.

On the (Significant) Possibility of Informationally-Efficient Markets

Number of pages: 8 Posted: 23 Sep 2019 Last Revised: 04 Nov 2019
J.B. Heaton
One Hat Research LLC
Downloads 43 (432,946)

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

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: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 40 (445,006)

Abstract:

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Insolvency, Solvency Tests, Bankruptcy Code

40.

Short Selling and the Game-Ending Greater Fool

Number of pages: 9 Posted: 27 Jan 2020 Last Revised: 28 Jan 2020
J.B. Heaton
One Hat Research LLC
Downloads 35 (466,289)

Abstract:

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short interest, short sellers, limits of arbitrage, optimism

41.

Takeovers and the Dividend Discount Model

Number of pages: 10 Posted: 27 Jan 2020
J.B. Heaton
One Hat Research LLC
Downloads 33 (475,411)

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

42.

Insolvency Detection Using Publicly-Traded Debt and Equity

AIRA Journal, 32(2), 11-15 (2019).
Number of pages: 6 Posted: 23 Nov 2019
J.B. Heaton
One Hat Research LLC
Downloads 24 (522,902)

Abstract:

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43.

Settlement Pressure

International Review of Law and Economics, Vol. 25, pp. 264-275 (2005)
Number of pages: 12 Posted: 18 Apr 2004 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 12 (597,992)

Abstract:

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

44.

The Unfulfilled Promise of Hedge Fund Activism

Forthcoming, Virginia Law & Business Review
Posted: 19 Apr 2019 Last Revised: 23 Sep 2019
J.B. Heaton
One Hat Research LLC
Downloads 0 (699,367)

Abstract:

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45.

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
Downloads 0 (699,367)
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mergers & acquisitions, bad bidders, bubble company, unicorns, short selling

46.

Litigation Funding: An Economic Analysis

American Journl of Trial Advocacy, Forthcoming
Posted: 30 Jan 2018 Last Revised: 05 Jan 2020
J.B. Heaton
One Hat Research LLC
Downloads 0 (699,367)
Citation 1

Abstract:

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