Study increasing profits in a flexible financial market model.
problem Characterize increasing profits in a 1D diffusion market with interest rates.
method Characterize increasing profits using an auxiliary deterministic signed measure and a canonical trading strategy.
result Existence and characterization of increasing profits in terms of ν and θ. This paper finds a new method for decomposing insurer profits and losses.
problem Nonlinear balance sheets make it hard to attribute changes to risk factors.
method An axiomatic approach leading to infinitesimal sequential updating (ISU) decompositions.
result ISU decompositions are more general and applicable beyond insurance.
Study shows no sure profits via flash strategies if asset prices don't have predictable jumps.
problem Existence of sure profits via flash strategies in financial markets.
method Introduced and studied the notion of sure profit via flash strategy, proving the existence of such profits under specific conditions.
result No sure profits via flash strategies if and only if asset prices do not exhibit predictable jumps.
A common assumption of political economy is that profit rates across firms or sectors tend to uniformity, and often models are formulated in which this tendency is assumed to have been realised. But in reality this tendency is never realised and the distribution of firm profits is not degenerate but skewed to the right…
Two-stage scoring approach for P2P lending improves loan profitability prediction.
problem Class imbalance and lack of profitability prediction in existing scoring methods.
method Integrates credit scoring and profit scoring using wide and deep learning.
result Two-stage scoring approach outperforms existing methods in loan profitability prediction.
A new framework integrates credit scoring into profit scoring for better P2P lending investments.
problem Maximizing profit while minimizing risk in P2P lending investments.
method Two-stage framework using Light Gradient Boosting Machine (lightGBM) to integrate credit scoring into profit scoring.
result The proposed framework identifies more profitable loans and provides better investment guidance.
The paper defines fair profit sharing ratios in Islamic PL contracts.
problem Determining fair profit sharing ratios in Islamic PL contracts.
method Introduces c-fair profit sharing ratios and uses econometrics models to compute or approximate them. result Elucidates the relation between profit sharing ratios and economic factors.
Current study aims to provide new empirical evidence on the impact of debt on corporate profitability. This impact can be explained by three essential theories: signaling theory, tax theory and the agency cost theory. Using panel data sample of 2240 French non listed companies of service sector during 1999-2006. By uti…
Modeling fees impacts on arbitrage profits and LP losses in AMMs.
problem Impact of trading fees on arbitrage profits and LP losses in AMMs.
method Extended model of AMMs with fees and Poisson block generation times, computed instantaneous rate of arbitrage profit.
result Fees scale down arbitrage profits, reducing LP losses with faster block rates and lower gas fees.
The study compares profitability of conventional and Islamic banks in Bangladesh.
problem Evaluating profitability of commercial banks in Bangladesh.
method Examined bank-specific, industry-specific, and banking system factors on profitability.
result Islamic banks consistently outperform conventional banks in profitability.
Study shows how financial report sentiment impacts bank profitability.
problem Understanding causal effects of financial report sentiment on bank profitability.
method Causal forest machine learning methodology, FinancialBERT sentiment scores, SHAP analysis, comprehensive dataset.
result Statistically significant causal associations between balance sheet and expense management variables and profitability.
The profitability of CPMMs is significantly impacted by mint and burn fees.
problem Understanding the profitability of decentralized exchanges.
method Formalized liquidity providers' profitability conditions, studied the effect of mint and burn fees, and compiled a large data set from Uniswap V2 transactions.
result The profitability of liquidity provision is severely affected by mint and burn costs.
Fossil power firms have recently profited more than renewables, but this may be a temporary phenomenon.
problem The profitability gap between renewable and fossil power firms in Europe.
method Machine-learning clustering and Bayesian model averaging.
result Renewable power firms are becoming more profitable, while fossil power firms are becoming less so.
Study improves trading decisions by predicting profit and loss outcomes.
problem Inconsistent profitability of machine learning forecasts in financial markets.
method Developed a novel algorithm for forecasting profit and loss outcomes, integrating with market trend predictions.
result Significantly improved performance of trading strategies, including traditional and algorithmic trading.
This paper introduces strategies to maximize arbitrage profits in decentralized exchanges.
problem Maximizing profits from arbitrage loops in decentralized exchanges.
method Three strategies: MaxPrice, MaxMax, and Convex Optimization.
result The Convex Optimization strategy yields the highest monetized arbitrage profit in theory and practice.
VGRSI uses price visibility graphs to generate profitable trading signals.
problem Ineffective traditional technical analysis indicators in financial markets.
method Visibility Graphs Relative Strength Index (VGRSI) based on backward visibility relations in price data.
result VGRSI signals generated substantial profits across different asset classes.
Marxism's rate of profit thesis rejected as illogical.
problem Marxism's rate of profit thesis is challenged as illogical.
method Rejects Marx's thesis on the long-term tendency of the rate of profit to fall.
result Marxism's rate of profit thesis is rejected as illogical.
Optimizes Iron Condor portfolios for better risk and profit management.
problem Transient value process of Iron Condor portfolios not well studied.
method Formulated as a stochastic optimal control problem, using bounded martingale assumption.
result Optimal stopping time aligns with expiration for submartingale value process.
Equations track profits and losses in trading algorithms.
problem Evaluating the performance of trading algorithms.
method Formal equations incorporating spread.
result Evaluate trading model algorithms' performance.
We analyze annual revenues and earnings data for the 500 largest-revenue U.S. companies during the period 1954-2007. We find that mean year profits are proportional to mean year revenues, exception made for few anomalous years, from which we postulate a linear relation between company expected mean profit and revenue. …
Study analyzes factors affecting profits in crypto liquidity provision.
problem Liquidity providers lack guidance for developing profitable strategies.
method Developed a measurement model based on impermanent loss to analyze key parameters.
result Uncovered influences of key parameters on LPs' profits.
Study shows adding similar investors can either increase or decrease profits, depending on their strategy.
problem Investors argue conflictingly about the impact of adding similar investors on their profits.
method Built an agent-based financial market model with additional agents and investigated their earnings.
result Adding similar fundamental agents stabilizes market prices and decreases profits, while adding similar technical agents makes prices unstable and increases profits.
Study shows environmental spending positively impacts company profitability.
problem Impact of environmental spending on company profitability.
method Panel data regression analysis using E-Views.
result Environmental spending positively impacts profitability metrics.
Study examines downsizing impact on Indian construction firms' profitability.
problem Impact of downsizing layoffs on construction firms' profitability in India.
method Used Co-integration test, OLS, and VAR models on secondary data of 15 companies.
result Employee Expenses and Number of Employees have significant impact on profitability.
Expands robust profit opportunities to include distributional uncertainty.
problem Distributional uncertainty in financial markets.
method Formulates infinite dimensional primal problems, simplifies to finite dimensional dual problems using Wasserstein distance.
result Distributional uncertainty can enhance robustness of profit opportunities.
Investment strategies derived from commodity futures curves exploit dynamics in price movements.
problem Modeling and predicting the term structure of commodity futures prices.
method Employed the Nelson-Siegel framework to model term structure, and developed investment strategies based on changes in slope and curvature parameters.
result Significant profits generated from systematic strategies based on the change in slope, unrelated to risk factors and robust to transaction costs.
ProfitTree uses evolutionary algorithms to build churn prediction models that maximize profit.
problem Predicting customer churn with profit maximization in mind.
method Integrates EMPC metric into profit-driven decision trees using evolutionary algorithms.
result Significant profit improvements over classic accuracy-driven models.
We investigate the structure of the profit landscape obtained from the most basic, fluctuation based, trading strategy applied for the daily stock price data. The strategy is parameterized by only two variables, p and q. Stocks are sold and bought if the log return is bigger than p and less than -q, respectively. Repet…
Study shows OAT decomposition generates unexplained profit and loss, while SU decompositions depend on risk factor order.
problem Understanding profit and loss attribution in financial markets.
method Used financial market data from 2003 to 2022 to compare OAT, SU, and ASU decompositions.
result SU decompositions are sensitive to risk factor order and cannot identify all relevant risk factors.
Proposes a framework to reconcile policy learning and profit maximization in CATE estimation.
problem Aligning CATE estimation with profit maximization for optimal customer treatment decisions.
method Optimizes a novel objective function that concentrates learning capacity near the decision boundary, ensuring consistency with the original profit function.
result Consistent CATE estimates can be recovered from existing profit-maximization pipelines, allowing firms to navigate the trade-off between accuracy and profit.
Optimizes liquidity provision intervals for profitable AMM participation.
problem Financial losses from poor liquidity provision intervals and reallocation costs.
method Developed a tractable stochastic optimization problem.
result Computes optimal liquidity provision intervals for profitable liquidity concentration.
New trading strategies yield gains on average in various market scenarios.
problem Developing trading strategies that consistently yield positive gains in different market conditions.
method Introducing generalized statistical arbitrage concepts and profitable strategies based on information systems.
result Constructed profitable generalized strategies with good performance on simulated and real market data.
Study examines the impact of employment benefit costs on firm profitability.
problem Impact of employment benefit costs on firm profitability.
method Panel data regression analysis using E-Views.
result There is a significant positive relationship between employment benefit costs and firm profitability.
It has been assumed that arbitrage profits are not possible in efficient markets, because future prices are not predictable. Here we show that predictability alone is not a sufficient measure of market efficiency. We instead propose to measure inefficiencies of markets in terms of the maximal profit an ideal trader can…
Study how learning impacts decision-making in project expansion.
problem Optimal timing of expansion decisions based on uncertain project profitability.
method Bayesian updating model with two irreversible alternatives (exit or expansion).
result Time-to-decision is not monotonic with information arrival rate.
The paper limits the profitability of technical trading rules and finds they are not better than random trading.
problem The profitability of technical trading rules in stock markets is controversial.
method Proves the upper bound of cumulative return and investigates the profitability of technical trading rules using bootstrap methodology.
result Technical trading rules are not better than random trading and less profitable than the market.
Optimizes RTB campaigns by selecting user profiles and website configurations.
problem Maximizing impressions and profitability in RTB campaigns.
method Optimizes user profiles and website configurations, combines with other strategies.
result As the required number of visits increases, average profitability decreases.
Study optimal portfolio selection using average and current profitability of risky assets.
problem Continuous-time mean-variance portfolio selection in time-varying financial markets.
method Introduced AP and CP indexes; estimated AP and CP using second-order variation of an auxiliary wealth process.
result Estimations of AP and CP are more accurate than traditional MLE.
Study confirms mispricing in sportsbooks but finds data issues affect results.
problem Mispricing and inefficiency in online sportsbooks.
method Replication using Wikipedia buzz factor metric and backtesting.
result Data quality issues affect betting results; only one strategy remains profitable.
Study upper hedging prices for contingent claims in models with various types of arbitrage.
problem Valuation of contingent claims in market models with different types of arbitrage.
method Analysis of market models with increasing profit, strong arbitrage, and arbitrage of the first kind.
result Option prices are reduced when increasing profit is present, and corporate stock price processes can be derived from issuance and repurchase plans.
Study examines impact of capital structure on Indian auto companies' profitability.
problem Understanding the impact of capital structure on profitability of Indian auto companies.
method Used fixed and random effect models with 10 years of data from 17 companies.
result Optimal capital structure improves company performance and maintains capital adequacy.
Optimizes insurance profits under regulatory constraints.
problem Maximizing profits while adhering to regulatory and risk policies.
method Developed a formalism for in-force business profit optimisation.
result Identified optimal asset allocation and annual opportunity cost.
Study finds WACC negatively impacts firm profitability in Bangladesh's food industry.
problem Determining the impact of Weighted Average Cost of Capital (WACC) on firm profitability.
method Fixed Effects Panel Regression Model using 12 food and allied industry companies from 2005-2019.
result WACC negatively correlates with firm profitability (ROA), significant relationship.
Investing in declining tech boosts profits, study finds.
problem Optimal decision-making in declining profit streams.
method Modeling profit stream as Brownian motion with negative drift, analyzing thresholds for investment and exit.
result Investment threshold decreases in volatility when profit boost is large.
This paper monetizes customer load data to boost energy retailer profits.
problem Improving load forecasts to reduce energy imbalance costs.
method Cooperative game theory approach to quantify and distribute profits.
result Retailer gains significant profit from customer load data.
We consider the problem of optimal investment with intermediate consumption in a general semimartingale model of an incomplete market, with preferences being represented by a utility stochastic field. We show that the key conclusions of the utility maximization theory hold under the assumptions of no unbounded profit w…
Deep LSTM model predicts stock price movements for profitable trading.
problem Developing effective stock prediction models and trading strategies.
method Deep long short-term memory (LSTM) neural network for price predictions, optimized for profitability.
result 340% cumulative returns on S&P 500 over 2010-2018, outperforming benchmarks.
Corporate transparency reduces investors' disposition effect by increasing confidence in holding profitable and losing stocks.
problem Irrational disposition effect in investors selling profitable assets too soon and holding onto losing assets for too long.
method Examined the impact of corporate transparency on individual investors' disposition effect.
result Increased corporate transparency significantly reduces the disposition effect.