WRDS Best Paper Awarded for Research on Financial Model Disagreement and Impact on Markets

Philadelphia, PA — Wharton Research Data Services (WRDS), the leading data research platform and business intelligence tool for corporate, academic and government institutions worldwide, is proud to announce the winners of the Wharton-WRDS Best Paper Award in Empirical Research.

The 2014 Best Paper Award winners, Daniel Andrei (Assistant Professor of Finance, UCLA Anderson School of Management), Bruce Carlin (Associate Professor of Finance, UCLA Anderson School of Management), and Michael Hasler (Assistant Professor of Finance, Rotman School of Management and Department of Management UTSc, University of Toronto), examined economic model disagreement and its impact on prices, volatility, and business cycles. This Best Paper Award for their paper Model Disagreement and Economic Outlook was presented at the Northern Finance Association conference.

“WRDS has always been committed to advancing financial research and we are very pleased to sponsor this Best Paper Award,” said Robert Zarazowski, Managing Director of WRDS. “Bringing new approaches and tools to learning and research are core components of our work. We are honored to congratulate this year’s winners for expanding our understanding of model disagreement impacts and outcomes.”

Andrei, Carlin and Hasler expanded on earlier studies showing that disagreement drives volatility, and set out to explain the relationship between the two. To understand why model disagreement impacts volatility and business cycles the researchers related analyst forecast dispersion data to stock volatility, using S&P 500 datasets, and translated investor disagreement into a model to test. Andrei, Carlin and Hasler used WRDS to access the data and analyze their findings.

With so much uncertainty over financial models, the researchers made the case for greater information and transparency to reduce disagreement and, in turn, volatility. According to Andrei, Carlin and Hasler, more precise earnings forecasts and greater numbers of indicators sharing monthly, rather than quarterly, could reduce volatility.

“This WRDS Best Paper Award is a wonderful honor for me, Daniel and Bruce,” said Michael Hasler. “Having our work acknowledged in this way is terrific, and we hope that our work positively impacts the field. We also appreciate WRDS for presenting the Best Paper Award and offering an opportunity for us to further discuss our work with other scholars.

About WRDS
Wharton Research Data Services (WRDS) is the leading data research platform and business intelligence tool for over 30,000 corporate, academic, government and nonprofit clients at over 375 institutions in 33 countries. WRDS provides the user with one location to access over 200 terabytes of data across multiple disciplines including Accounting, Banking, Economics, Finance, Insurance, Marketing, and Statistics.

Flexible data delivery options include a powerful web query method that reduces research time, the WRDS Cloud for executing research and strategy development, and the WRDS client server using PCSAS, Matlab, Python and R. Our Analytics team, doctoral-level support and rigorous data review and validation give clients the confidence to tailor research within complex databases and create a wide range of reliable data models.

From partnerships with data vendors, to our own tools including the WRDS SEC Analytics Suite, the WRDS Quant Alpha Platform, and the Wharton School’s OTIS — WRDS is the global gold standard in data management and research, all backed by the credibility and leadership of the Wharton School. www.whartonwrds.com

About the Wharton School
Founded in 1881 as the first collegiate business school, the Wharton School of the University of Pennsylvania is recognized globally for intellectual leadership and ongoing innovation across every major discipline of business education. With a broad global community and one of the most published business school faculties, Wharton creates economic and social value around the world. The School has 5,000 undergraduate, MBA, executive MBA, and doctoral students; more than 9,000 participants in executive education programs annually and a powerful alumni network of 93,000 graduates.