Kairong Xiao

Curriculum Vitae

Assistant Professor of Finance

822 Uris Hall

New York, NY, 10027, U.S.

Email: kairong.xiao@gsb.columbia.edu

Upcoming conferences and seminars

University of Wisconsin–Madison, CKGSB, PBC Tsinghua, Macro Finance workshop, OFR/Cleveland Fed Financial Stability Conference, Boston College, Conference on Corporate Finance at WUSTL, FMA, AFA, NBER Financial Innovation and Regulation Conference

Publications

Winner of the SummerHaven Investment Management Prize for Best Paper at the Wharton--Rodney L. White Center 2019 conference

Featured in March 2019 NBER Digest, "Retail Investors Reach for Income when Interest Rates Fall".

Investors flow into income-generating assets such as high-dividend stocks and high-yield bonds when rates are low. This reaching for income behavior constitutes a transmission channel of monetary policy.

Online Appendix

Utah Winter Finance Conference presentation video

2. Monetary Transmission through Shadow Banks previously titled "Shadow Banks, Deposit Competition, and Monetary Policy"

Review of Financial Studies, 2020, Lead Article, Editor's Choice

Winner of the WFA Cubist Award for Outstanding Ph.D. Research

The conventional wisdom of monetary policy suggests that bank deposits shrink when monetary policy tightens. The opposite happens in the shadow banking sector.

Online Appendix

Utah Winter Finance Conference presentation video

Against the popular claim that post-crisis regulations hurt liquidity, no evidence of liquidity deterioration is found during periods of regulatory intervention.

Online Appendix


Working Papers

Journal of Finance, R&R

Winner of the XiYue Award for Best Paper at CICF 2019

How is monetary policy transmitted through the banking system? We quantify competing theories of monetary transmission by estimating a dynamic banking model.

Online Appendix

Utah Winter Finance Conference presentation video

Unintended Consequences of Post-crisis Liquidity Regulation, with Suresh Sundaresan

Semi-finalist of 2020 FMA Conference Best Paper Awards

Liquidity regulation has unintentionally shifted liquidity transformation from regulated intermediaries to unregulated ones.

Low Interest Rates, Deposit Market Power, and Bank Risk-taking, with Toni Whited, and Yufeng Wu

Carnegie-Rochester-NYU Conference on Public Policy, 2020

Ultra-low-interest rates compress banks' profits from the deposit market and lead banks to take more risk.

The conventional wisdom is that the only way that financial intermediaries can create liquidity is to issue claims with stable value. We show this is not true.

The increased reliance on mutual funds as financial intermediaries has turned the flight to liquidity by individual investors into an aggregate reverse flight to liquidity in financial markets in COVID-19 crisis.

The Value of Big Data in a Pandemic, previously titled "Saving Lives versus Saving Livelihoods: Can Big Data Technology Solve the Pandemic Dilemma?"

Exploiting the staggered adoption of a contact-tracing app in 322 Chinese cities, this paper finds that this big data technology created an economic value of 2% of GDP and saved 190,000 lives during the COVID-19 outbreak in China.

We propose a new fuzzy bunching estimator of regulatory costs exploiting bunching around regulatory threshold. It has better finite sample property compared with sharp bunching estimators.

Watch what they do, not what they say: Estimating regulatory costs from revealed preferences, With Adrien Alvero and Sakai Ando

Regulation costs inferred from banks' endogenous response to regulation are significantly lower than self-reported estimates in surveys on banks.

Under the surface of the Chinese Communist Party, there are rules that govern power sharing among rival factions and keep high-ranking individuals moving up the ladder.

Miscellaneous

1. Columbia New Empirical Finance Workshop

2. Rising Five Star Junior Conference at Columbia

3.Columbia Summer Research Internship