Selected publications

  • "Subscribing to Transparency", w/ Yinghua He, Hong Guo and Jiong Yang, Journal of Banking and Finance, vol. 44, 2014.  
    The empirical relationship between trade transparency and liquidity is non-monotonic, explaining why transparency effects vary in existing empirical literature.

Working papers

  • "Hurting without Hitting: The Economic Cost of Political Tension" w/ Yinghua He (Toulouse School of Economics) and Yonglei Wang (Toulouse School of Economics). April 2015.
    Political tension causing diplomatic strains rarely escalates into direct violence or war. This paper identifies the economic effects of such non-violent political tension by examining Taiwan’s sovereignty debate. Non-violent events harming the relationship with mainland China lead to an average daily drop of 200 basis points in Taiwanese stock returns. The impact is more severe on firms openly supporting the Taiwanese pro-independence party. Through a series of tests we identify this economic penalty as initiated by mainland authorities, who specifically target political opponents that are economically exposed to mainland China via either investments or exports.

  • "Proximity and IPO Underpricing" w/ Dariusz Wójcik (University of Oxford). November 2015.
    The paper analyses the relationship between issuers’ location and IPO underpricing in the U.S. in the period 1986-2011. Issuers headquartered in rural areas are associated with nearly seven percentage points lower underpricing compared to urban firms. This finding is consistent with strong local bias in rural areas, accompanied by superior local information and monitoring intensity, which associates with more accurate pricing and less ‘money left on the table’. The paper further finds that refined measures of local bias, such as proximity to finance professionals and density of financial expertise, affects IPO underpricing more than proximity to large cities.

  • "The Signaling Value of Education across Genders" w/ Herdis Steingrimsdottir (Copenhagen Business School). June 2015.
    This study examines gender discrimination and the possibility that education is more important for signaling ability among women than men. As social networks tend to run along gender lines and managers in the labor market are predominantly male, it may be more difficult for women to signal their ability without college credentials. The Lang and Manove (2011) model of racial discrimination and educational sorting is applied to examine the gender gap in schooling attainment. The model is empirically estimated for whites, blacks and Hispanics separately, where the results among whites are consistent with education being more valuable to women due to signaling. For 90% of the whites in the sample women choose a higher level of education given their ability than men. Women on average obtain 0.5 - 0.7 extra years of schooling compared to men with the same ability score. However, the model does not fit the data for blacks and Hispanics, and as such is not sufficient to explain the observed gender differences across race and ethnicity.