Research


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

  • "The Cost of Political Tension: An Anatomy" w/ Yinghua He (Toulouse School of Economics) and Yonglei Wang (Toulouse School of Economics).
    Political conflicts causing diplomatic tension and political unrest rarely escalate into direct violence or war. This paper identifies the financial 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)
    The paper analyses the relationship between issuers’ location and IPO underpricing in the U.S. in the period 1985-2011. Issuers headquartered in rural areas are associated with approximately seven percentage points lower underpricing compared to urban firms. This finding is consistent with recent literature indicating strong local bias in rural areas, accompanied by superior local information and monitoring intensity, which results in more accurate pricing and less ‘money left on the table’. The paper further finds that proximity to finance professionals and density of financial expertise affects IPO underpricing more than proximity to large cities.