Anshu Chen Abstract: Though corporate finance researchers have long considered firm diversification a topic of interest, the lack of reliable data about firms’ cross-industry activities has made the area difficult to study. Recent advances in text-based analysis has bolstered renewed efforts in this direction. Inspired by the work of Hoberg and Phillips (2024) in analyzing 10K filings, I have created a set of industry classification algorithms designed to measure the extent of firm diversification. I show that lifetime diversification trajectories vary significantly between firms in different industries, as well as along other firm characteristics of interest.
Ziqiao Zhang Abstract: Using data from Census and SCF data, I document that older households (aged 65+) now hold more housing assets and exhibit higher leverage compared to their counterparts in the 1980s. Analysis of HMDA data reveals that seniors are active in mortgage origination, often taking on long-term loans that exceed their expected lifespans. I hypothesize that the decline in interest rates since the 1980s has relaxed payment-to-income constraints for older borrowers, encouraging them to lever up rather than downsize. Utilizing a simple three-period life cycle model, I demonstrate that increased leveraging by the elderly has significant knock-on effects on the housing market, including higher prices and reduced housing availability for younger households.