Kairong Xiao

Curriculum Vitae

Google Scholar Profile

Assistant Professor of Finance

822 Uris Hall

New York, NY, 10027, U.S.

Email: kairong.xiao@gsb.columbia.edu

Research

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.

Online Appendix

Journal of Finance, forthcoming

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


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

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

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

The RFS Rising Scholar Award

Runner up of the RFS Best Paper Award

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

The interaction between interest rates and banks’ market power affects their risk-taking by lowering bank value.

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

Online Appendix


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.

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

Review of Financial Studies, R&R

Regulation costs inferred from banks' actions are significantly lower than self-reported estimates in surveys on banks.

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.

Various disclosure and internal governance rules lead to a total compliance cost of 4.3% of the market capitalization for a median U.S. public firm. These costs significantly impact private firms' decisions to go public.


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.

Fuzzy Bunching, With Adrien Alvero

We introduce a new fuzzy bunching estimator that works in noisy data.


The Value of Big Data in a Pandemic

The Pioneer Award from the Peak Initiative of FinTech Research

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 0.5% of GDP and saved 200,000 lives during the COVID-19 outbreak in China.

Miscellaneous