Selected Working papers (* indicates presentation by coauthor)
SSRN page: http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=455621
Maturity Overhang: Evidence from M&A, joint with Dirk Hackbarth (Boston), Jarrad Harford (Washington) and Yuxin Luo (Boston)
-- Provide empirical evidence and theoretical support for the maturity overhang problem that is due to shorter debt maturities creating higher rollover risk.
-- Conferences: American Finance Association annual meetings*, Midwest Finance Association annual meetings, Financial Intermediation Research Society annual meetings, Asian FA, China International Conference in Finance, SFS Cavalcade AP, Spring Finance Workshop *, and Xiamen University (School of Economics).
Government Investment and Q: Theory and Evidence, joint with Ran Duchin (BC), Daniel Kim (Waterloo) and Erica Xuenan Li (CKGSB).
-- Conferences: Northern Finance Association annual meetings, PHBS-CUHKSZ Economics and Finance Workshop, SGF conference, Financial Management Annual meetings, Finance Down Under (scheduled) and SFS Cavalcade AP (scheduled).
The Blessing of Persistent Mispricing, joint with Wenyu Wang (Indiana).
-- More persistent overvaluation is associated with better post-merger operating performance and higher announcement returns, because it reduces bidders' urgency to exploit mispricing, shifting incentives away from rushed, opportunistic transactions and toward deals with stronger fundamental synergies.
Costly Escape: Regulatory Fragmentation and Cross-border Acquisitions, joint with Ming Gu (Xiamen), Hui Hu (Xiamen) and Dongxu Li (Xiamen).
-- The escape motive arises endogenously: domestic fragmentation weakens the acquirer's outside option, and the foreign target compresses the acquirer's payoff through the Nash bargaining channel, making cross-border escape value-destroying.
Bargaining Power, Business Cycle and Levered Equity Risk, joint with Ilya A. Strebulaev (Stanford).
-- Develop and test an agency-based contingent claims model that features debt renegotiation for cross-sectional stock returns. The model performs well for portfolios formed on financial leverage, book-to-market equity, and asset growth.
-- Conferences: American Finance Association Annual Meetings (Philadelphia), European Finance Association Annual Meetings (Cambridge, UK), Sonoran Winter Finance Conference (Arizona State University).