New Constructs Announces New Study From Harvard Business School & MIT Sloan that Reveals Problems with Fundamental Data & Research

New Constructs (NC), the leading provider of reliable fundamental research on private and public businesses, announced revelations from a new paper forthcoming in The Journal of Financial Economics, a top peer-reviewed journal.

The paper, "Core Earnings: New Data & Evidence" reveals:

  1. Fundamental data suffers from material inaccuracies, omissions and biases.
  2. Discovery of a "novel database" that enables investors to overcome those flaws.
  3. New, proprietary measures of Core Earnings and Earnings Distortion materially improve stock picking and forecasting of profits.

"Most investors had no way of knowing about the problems with their fundamental data before this paper was published," said David Trainer, CEO of New Constructs. "Now, they can see the magnitude of the problem and the importance of fixing it, especially fiduciaries."

The authors, professors from Harvard Business School (Charles Wang & Ethan Rouen) and MIT Sloan (Eric So), invested years of research into the paper. After it was rigorously reviewed by experts, The Journal of Financial Economics, a top-three peer-reviewed journal in the world, selected it for publication.

"We were thrilled to take a first step in better understanding the nuances of earnings-related disclosures embedded in financial statements using New Constructs' novel granular data," said Charles Wang.

The paper also highlights the difficulty in collecting critical data from the footnotes and the MD&A. It underscores the unrivaled efficacy of New Constructs' Robo-Analyst technology for intelligently analyzing complex financial statements and disclosures at unprecedented scale.

"The implications of these findings are potentially far-reaching for investors and researchers." - page 35 in the paper.

Now, all investors, not just Wall Street insiders, can access research that properly assesses corporate profits after excluding the unusual gains and losses that companies bury in footnotes.

Harvard Business School and MIT Sloan are not the only institutions to write papers on the superiority of New Constructs' data and research. Find more papers here.

About New Constructs

New Constructs provides insights into the fundamentals and valuation of private and public businesses. Combining human expertise with natural language processing (NLP), machine learning (ML) and artificial intelligence (AI) technologies, the firms shines a light in the dark corners (e.g. footnotes) of hundreds of thousands of corporate financial filings to reveal critical details that drive uniquely comprehensive and independent debt and equity investment ratings, valuation models and research tools.

New Constructs has been featured in national business news publications including CNBC, Wall Street Journal, Barron's, Forbes, Seeking Alpha, Benzinga and more. Other strategic partnerships with IEX Cloud, Apex Clearing, TD Ameritrade, Wisdom Tree, Refinitiv/Thomson Reuters, Interactive Brokers and EY enable New Constructs to deliver data, models, ratings and research on over 10,000 stocks, bonds, ETFs and mutual funds to millions of investors, financial advisors and corporate executives.

Media Contact:
Scott Gamm
Strategy Voice Associates, LLC
scott@strategyvoiceassociates.com
https://strategyvoiceassociates.com/

Source: New Constructs, LLC

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Categories: Financial News

Tags: Core Earnings, Earnings Distortion, Fundamental data, Fundamental research, Harvard Business School, Machine Learning, MIT Sloan, New Constructs, Robo-Analyst, The Journal of Financial Economics


About New Constructs, LLC

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New Constructs' cutting-edge technology leverages deep forensic accounting expertise to provide independent research. We shine a light in the dark corners of SEC filings so our clients can make safer, more informed decisions.

New Constructs, LLC
5110 Maryland Way (350)
Brentwood, TN 37027
United States