Lili Dai
Academic Experience
Associate Professor, UNSW Business School, University of New South Wales, 2021 - Present.
Senior Lecturer, UNSW Business School, University of New South Wales, 2017 - 2020.
Senior Lecturer, College of Business and Economics, Australian National University, 2014 - 2016.
Assistant Professor, Erasmus School of Economics, Erasmus University Rotterdam, 2011 - 2013.
Working Paper
"Spillover Effects of Environmental Enforcement Actions through Private Lending," with Wayne R. Landsman, and Zihang Peng (SSRN).
Abstract: This study examines how exposures to Environmental Protection Agency (EPA) enforcement actions against a borrower increase lenders’ incentives to monitor other borrowers’ polluting activities, resulting in pollution reduction by their other borrowers. Findings reveal that, following the enforcement actions, firms borrowing from exposed lenders significantly reduce their toxic releases relative to firms borrowing from unaffected lenders. Additional findings reveal that the spillover effects are more pronounced when lenders’ environmental monitoring incentives are greater and when they exert greater influence over borrowers. We also find that lenders are more likely to terminate lending relationships with borrowers that do not sufficiently reduce polluting activities, which suggests that termination is a credible threat to nonresponsive borrowers. Taken together, our study’s findings suggest that the EPA can achieve its environmental goals–reaching a broader set of firms while limiting the scope of environmental enforcement actions–by leveraging the private lending markets.
Presented at the Australian National University, Deakin University, Monash University, Shanghai Jiao Tong University, Southwestern University of Finance and Economics, University of Calgary, University of Mississippi, University of North Carolina at Chapel Hill, University of New South Wales, University of Texas at Dallas, and the 2024 ASU Cactus Conference.
"Controlling the Narrative: Managers’ Topic-Shifting Behavior in Conference Calls," with Ping Gong, Andrew B. Jackson, and Zihang Peng (SSRN).
Abstract: This study implements topical analyses to identify the extent to which managers shift their responses from analysts’ questions in earnings conference calls and refers to this phenomenon as managerial topic-shifting behavior, a new information content construct arising from analyst-manager interactions. Using a sample of conference calls from 2002 to 2017, we find that managers in firms with better performance, more powerful CEOs, and fewer quality analysts tend to shift more from the topics of analysts’ inquiries. We further find that a greater extent of shifting relates to larger earnings response coefficients, suggesting that shifting topics provide relevant information to investors and facilitate the incorporation of earnings news into stock prices. Cross-sectional analyses indicate that this positive information effect is concentrated in firms with more credible and capable managers and with weaker information environments. Our study provides novel evidence of a proactive disclosure strategy leveraging managerial topic-shifting behavior.
Presented at the Griffith University, University of Melbourne, University of Technology Sydney, University of Western Australia, UNSW Sydney, and the 2021 Accounting and Finance Association of Australia and New Zealand (AFAANZ) Annual Conference.
"Digital Footprints as Collateral for Debt Collection," with Jianlei Han, Jing Shi, and Bohui Zhang (SSRN).
Abstract: We examine the role of borrowers’ digital footprints in debt collection. Using a sample of personal loans from a Chinese fintech lender, we find that information acquired by the lender through borrowers’ digital footprints increases the repayment likelihood on delinquent loans. The effect can be explained by two channels: bonding borrowers’ obligations with their social networks and locating borrowers’ physical locations. Moreover, the lender tends to approve loan applications from borrowers with digital footprints, even though these borrowers occasionally have a higher likelihood of delinquency. These findings suggest that digital footprints, as a new type of enforcement mechanism, can enhance financial inclusion.
Presented at Fudan University, Guangdong University of Finance and Economics, Huazhong Normal University, Jiangxi University of Finance and Economics, La Trobe University, Lanzhou University, Macquarie University, Nanjing Agriculture University, Renmin University of China, Shandong University of Finance and Economics, Shanghai Jiao Tong University, Sichuan University, Soochow University, Tianjin University, Wuhan University, Xi’an Jiao Tong University, Zhejiang University, Zhongnan University of Economics and Law, the 2020 Summer Research Workshop of China Journal of Accounting Research, and the 2020 Academic Forum of Young and Middle-aged Committee of Guangdong Economic Society, the 2020 NBER Chinese Economy Working Group Meeting, the 2021 Accounting and Finance Association of Australia and New Zealand Conference, the 2021 11th Financial Markets and Corporate Governance Conference, the 2021 4th Annual Short-Term Funding Markets Conference, the 2021 3rd Future of Financial Information Conference, the 2021 Conference on Financial Innovation, the 2021 China International Conference in Finance (CICF), and the 2021 China Financial Research Conference.
Publication
Private Loan Issuance and Risk Factor Disclosure, The Accounting Review, Forthcoming, with Wayne R. Landsman, and Zihang Peng (Link).
Global Outsourcing and Voluntary Disclosure, Journal of Business Finance and Accounting, Forthcoming, with Rui Dai, Lilian Ng, and Zihang Peng (Link).
Family Control, Institutional Investors, and Financial Distress: Evidence from China, Accounting and Finance, Forthcoming, with Hongxiao Li, Yunfan Gao, and Yanjian Zhu (Link).
Labor Protection and Stock Price Crash Risk: Evidence from International Equity Markets, British Accounting Review, Forthcoming, with Wei Chen, Xiaohua Fang, and Wenjun Zhang (Link).
When Does Analyst Reputation Matter? Evidence from Analysts’ Reliance on Management Guidance, Journal of Business Finance and Accounting, 2023, with Wei Chen, and Hun-Tong Tan (Link).
The More We Know, the Less We Agree: A Test of the Trading Horizon Heterogeneity Theory. The Financial Review, 2022, with Jerry Parwada, Donald Winchester, and Bohui Zhang (Link).
Does the Media Spotlight Burn or Spur Innovation?, Review of Accounting Studies, 2021, with Rui Shen, and Bohui Zhang (Link).
Political Uncertainty and Accounting Conservatism, European Accounting Review, 2021, with Phong Ngo (Link).
Coping with COVID: Pivoting Perspectives from Teaching a Third-year Undergraduate Financial Accounting Course. Accounting Research Journal, 2021, with Richard Morris, Sander De Groote , Emma Holmes , Leonard Lau , Chao Kevin Li , and Phuc Nguyen (Link).
Global Political Uncertainty and Asset Prices, Review of Financial Studies, 2020, with Jonathan Brogaard, Phong Ngo, and Bohui Zhang (Link).
Governance, Board Inattention, and the Appointment of Overconfident CEOs, Journal of Banking and Finance, 2020, with Suman Banerjee, Mark Humphery-Jenner, and Vikram Nanda (Link).
Political Uncertainty and Finance: A Survey, Asia-Pacific Journal of Financial Studies, 2019, with Bohui Zhang (Link).
The Governance Transfer of Blockholders: Evidence from Block Acquisitions and Earnings Management around the World, Journal of Corporate Finance, 2017, with Ravi Dharwadkar, Linna Shi, and Bohui Zhang (Link).
Corporate Governance and the Profitability of Insider Trading, Journal of Corporate Finance, 2016, with Renhui Fu, Jun-Koo Kang, and Inmoo Lee (Link).
The Governance Effect of the Media’s News Dissemination Role: Evidence from Insider Trading, Journal of Accounting Research, 2015, with Jerry Parwada, and Bohui Zhang (Link).
Cross Country IPOs: What Explains Differences in Underpricing?, Journal of Corporate Finance, 2011, with Suman Banerjee, and Keshab Shrestha (Link).
Professional Service
Editor, Corporate Governance: An International Review, 2022-Present.
Deputy Editor, Accounting and Finance, 2020-Present.
Ad Hoc Associate Editor, British Accounting Review, 2024-Present.
Editorial Board Member, British Accounting Review, 2024-Present.
Editorial Board Member, Accounting and Finance, 2018-Present.
Education
Ph.D., Nanyang Business School, Nanyang Technological University, 2011.
M.A., School of Business and Economics, Humboldt-Universität zu Berlin, 2006.
B.Sc., Department of Computer Science and Engineering, Shanghai Jiao Tong University, 2001.
Contact
Email: lili.dai@unsw.edu.au.
Official Website: UNSW Homepage.