I am a PhD candidate from the University of Colorado at Boulder and I will be available for interviews at the 2018 ASSA meetings in Philadelphia, PA, January 5-7. My research interests include:
  • Financial Information
  • Empirical Corporate Finance
  • Textual Analysis in Finance and Accounting

I have taught Introductory Finance, Corporate Finance, and Investments at the University of Colorado Boulder. 

I can be reached at gustaf.bellstam@colorado.edu.




Job Market Paper

Incentives, Information Production, and Bias: Evidence from Analyst Text


I study how analysts' performance depends on their incentives using a regulatory shock and the textual content of analyst reports. My results focus on two aspects of performance, information production and bias. After incentives are reduced, analysts produce less information that is also less biased. My identification of analyst incentives uses the Global Research Settlement as a shock that differentially affected analysts at investment banks in a difference-in-difference design. I find that analyst reports become more similar to one another after the shock, an indication of less information production. Additionally, I find that text exhibits lower overall sentiment, which is driven by an increase in negativity, and that reports contain fewer markers of bias (less weaseling). The results highlight a mechanism through which there is a trade-off between information production and bias.


SSRN




Working Paper

Innovation in Mature Firms: A Text-Based Analysis

We develop a new measure of innovation using a textual analysis of analyst reports. Our text-based measure gives a useful description of innovation by mature firms with and without patenting and R&D. For non-patenting firms, the measure identifies firms that adopt novel technologies and innovative business practices (e.g., Walmart’s cross-geography logistics). For patenting firms, the text-based measure strongly correlates with valuable patents, which likely capture true innovation. The text-based measure robustly forecasts greater firm performance and growth opportunities for up to four years, and these value implications hold just as strongly for non-patenting firms.


Previously titled "A Text-Based Analysis of Corporate Innovation."



Presentations

2017
  • I presented "Incentives, Information Production, and Bias: Evidence from Analyst Text" at the University of Colorado in a brown bag session.
  • I presented "Innovation in Mature Firms: A Text-Based Analysis" at the European Finance Association in Mannheim, Germany on August 26.
  • I presented "A Text-Based Analysis of Corporate Innovation" at the Western Finance Association in Whistler, BC, Canada on June 27.
  • A co-author presented "A Text-Based Analysis of Corporate Innovation" at the PNC University of Kentucky Finance Conference in Lexington, KY, on April 29.
  • A co-author presented "A Text-Based Analysis of Corporate Innovation" at the NBER Corporate Finance Workshop in Chicago, IL, on March 24.
  • I presented "A Text-Based Analysis of Corporate Innovation" at the Midwest Finance Association in Chicago, IL, on March 2.
2016
  • A co-author presented "A Text-Based Analysis of Corporate Innovation" at the University of Exeter on November 29.
  • A co-author presented "A Text-Based Analysis of Corporate Innovation" at Boston University and Babson College (Nov 10-11).
  • A co-author presented "A Text-Based Analysis of Corporate Innovation" at the University of New South Wales and the University of Sydney (Oct 27-28).
  • I presented "Innovation in Mature Firms: A Text-Based Analysis" at the Northern Finance Association in Mont Tremblant, QC, Canada on September 18.
  • A co-author presented "A Text-Based Analysis of Corporate Innovation" at the ITAM Finance Conference in Mexico City, June 3-4.
  • I presented "A Text-Based Analysis of Corporate Innovation" at the Front Range Finance Seminar in Denver, CO, on April 15.
  • I presented "A Text-Based Analysis of Corporate Innovation" at the University of Colorado as part of the Hart Fellowship in January.



Discussions

2017 FMA

News Media Coverage and Corporate Leverage Adjustments by Dang, Dang, Nguyen, and Zhang. Slides.

Are Some Things Best Kept Secret? The Effect of the Uniform Trade Secrets Act on Financial Leverage by Scott B. Guernsey. Slides.

2017 MFA

Setting the Stage ahead of the Earnings Spotlight by Naranjo and Shao. Slides.