- "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.
- "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). April 2015.
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 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 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.