J.B. Heaton

One Hat Research LLC

Managing Member

Chicago, IL

United States

http://www.onehatr.com/

SCHOLARLY PAPERS

40

DOWNLOADS
Rank 874

SSRN RANKINGS

Top 874

in Total Papers Downloads

33,874

SSRN CITATIONS
Rank 5,047

SSRN RANKINGS

Top 5,047

in Total Papers Citations

79

CROSSREF CITATIONS

182

Ideas:
“  " The struggle itself toward the heights is enough to fill a man's heart. One must imagine Sisyphus happy." - Albert Camus  ”

Scholarly Papers (40)

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 9,109 (677)
Citation 41

Abstract:

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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 6,591 (1,196)
Citation 3

Abstract:

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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 4,200 (2,609)
Citation 25

Abstract:

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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 2,997 (4,677)
Citation 25

Abstract:

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5.

Solvency Tests

Business Lawyer, Vol. 62, No. 3, 983-1006 (2007).
Number of pages: 24 Posted: 19 Sep 2006 Last Revised: 25 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 1,456 (15,117)
Citation 5

Abstract:

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Insolvency, Bankruptcy, Fiduciary Duties, Creditors, Valuation

6.

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 1,439 (15,390)
Citation 2

Abstract:

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Raional Finance, Behavioral Finance, Economic Methodolology

7.
Downloads 1,219 ( 19,797)

The Limits of the Limits of Arbitrage

Review of Finance, 14(1):157-187 (2010)
Number of pages: 31 Posted: 12 Jul 2006 Last Revised: 30 Mar 2021
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 1,219 (19,455)

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

8.
Downloads 1,052 ( 24,694)
Citation 2

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 1,052 (24,297)
Citation 2

Abstract:

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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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9.

Naked Shorting

Regulation, 2008
Number of pages: 6 Posted: 30 Apr 2007 Last Revised: 29 Mar 2021
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 902 (30,843)
Citation 4

Abstract:

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Naked Shorting, Short Selling, Manipulation

10.
Downloads 674 ( 45,866)

Deepening Insolvency

Number of pages: 30 Posted: 23 Nov 2004 Last Revised: 31 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 674 (45,257)
Citation 1

Abstract:

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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

11.

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: 25 Mar 2021
Alon Brav and J.B. Heaton
Duke University - Fuqua School of Business and One Hat Research LLC
Downloads 665 (46,730)
Citation 3

Abstract:

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event studies, securities litigation

12.

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

47 Journal of Financial Transformation, 117-122 (2018).
Number of pages: 6 Posted: 08 Mar 2018 Last Revised: 31 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 600 (53,394)
Citation 2

Abstract:

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

13.

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

Journal of Business, Entrepreneurship and the Law, Forthcoming
Number of pages: 25 Posted: 29 Oct 2016 Last Revised: 25 Mar 2021
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 555 (58,864)
Citation 3

Abstract:

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

14.

The Altman Z Score Does Not Predict Bankruptcy

AIRA Journal, 33(3), 2020.
Number of pages: 5 Posted: 27 Apr 2020 Last Revised: 27 Jan 2021
J.B. Heaton
One Hat Research LLC
Downloads 319 (113,275)
Citation 2

Abstract:

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Altman Z, bankruptcy prediction, market evidence

15.

Corporate Governance and the Cult of Agency

Villanova Law Review, Forthcoming
Number of pages: 23 Posted: 10 Jul 2018 Last Revised: 25 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 259 (141,024)
Citation 2

Abstract:

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

16.

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: 31 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 237 (153,809)

Abstract:

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trial practice, substance abuse, legal education

17.

The 'Long Term' in Corporate Law

The Business Lawyer; Vol. 72, Spring 2017
Number of pages: 14 Posted: 07 Nov 2016 Last Revised: 25 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 226 (161,054)
Citation 1

Abstract:

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Corporate Law, Corporate Governance, Shareholder Activism, Myopia

18.

Simple Insolvency Detection for Publicly-Traded Firms

Business Lawyer (Summer 2019)
Number of pages: 12 Posted: 16 Feb 2019 Last Revised: 30 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 209 (173,400)
Citation 1

Abstract:

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19.

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

Journal of Financial Transformation (Forthcoming)
Number of pages: 6 Posted: 23 Sep 2019 Last Revised: 31 Mar 2021
J.B. Heaton and Jan Witte
One Hat Research LLC and University College London - Department of Mathematics
Downloads 187 (191,972)

Abstract:

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Synthetic Data, Machine Learning, Best Interest, Compliance

20.

The Social Costs of Dividends and Share Repurchases

Journal of Business, Entrepreneurship & the Law (Forthcoming)
Number of pages: 23 Posted: 20 Feb 2019 Last Revised: 25 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 165 (213,791)

Abstract:

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21.

The Siren Song of Litigation Funding

Forthcoming, Michigan Business & Entrepreneurial Law Review
Number of pages: 19 Posted: 21 Aug 2019 Last Revised: 24 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 157 (223,118)

Abstract:

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22.

Kill Cammer: Securities Litigation Without Junk Science

11 Wm. & Mary Bus. L. Rev. 417 (2020).
Number of pages: 62 Posted: 28 Jun 2019 Last Revised: 24 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 124 (268,886)

Abstract:

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23.

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 95 (323,109)
Citation 1

Abstract:

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

24.

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: 25 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 92 (329,721)

Abstract:

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

25.

Distance to Insolvency

AIRA Journal, Vol.32: No.4, 2020
Number of pages: 4 Posted: 27 Nov 2019 Last Revised: 29 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 76 (369,720)

Abstract:

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distance to default, insolvency, Black-Scholes, Merton

26.

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 69 (390,081)

Abstract:

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27.

Debt and Insolvency

38 Rev. Banking & Fin. L. 363 (2019).
Number of pages: 26 Posted: 20 Jun 2018 Last Revised: 25 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 65 (402,571)

Abstract:

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

28.

Bankruptcy Prediction Using Only the Face Value of Debt and Stock Market Capitalization in a Single Ratio

Number of pages: 16 Posted: 17 Feb 2021
J.B. Heaton
One Hat Research LLC
Downloads 51 (451,437)

Abstract:

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bankruptcy decision, financial distress, bankruptcy prediction

29.

Santa Claus, UFOs, and Widespread Voter Fraud: Bayesian Gullibility and Disinformation from a High-Trust Source

Number of pages: 12 Posted: 15 Mar 2021 Last Revised: 18 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 34 (536,787)

Abstract:

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disinformation, gullibility, Bayesian analysis

30.

Insolvency Detection Using Publicly-Traded Debt and Equity

AIRA Journal, 32(2), 11-15 (2019).
Number of pages: 5 Posted: 23 Nov 2019 Last Revised: 31 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 32 (536,787)

Abstract:

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31.

Settlement Pressure

International Review of Law and Economics, Vol. 25, pp. 264-275 (2005)
Number of pages: 12 Posted: 18 Apr 2004 Last Revised: 31 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 18 (623,470)

Abstract:

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

32.

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

33.

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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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

Abstract:

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

35.

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 (774,922)
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mergers & acquisitions, bad bidders, bubble company, unicorns, short selling

36.

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

37.

Litigation Funding: An Economic Analysis

American Journl of Trial Advocacy.
Number of pages: 24 Posted: 30 Jan 2018 Last Revised: 30 Mar 2021
J.B. Heaton
One Hat Research LLC
Downloads 0 (774,922)
Citation 1

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

38.

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

Abstract:

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Insolvency, Solvency Tests, Bankruptcy Code

39.

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

Abstract:

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

40.

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