Research Interests
My research focuses on the role of accounting information in the capital market and in the banking system.
Research topics: accounting standards, information disclosures and their impact, banking
Working Papers
1. "Managers’ Understanding of Macroeconomic News, Competitor Influence, and Firm Performance: Evidence from Consumer Sentiment News," with Mei Feng and Lian Fen Lee
When does managerial inability to incorporate macroeconomic news affect firm performance? We find a negative association between such managerial inability and firm performance only when the firm underproduces, and the results are consistent with predictions from a simple model in which the competitor's reactions to the firm's lack of information result in different consequences to the firm, depending on the firm's production tendency.
Presented at University of Pittsburgh, and University of Iowa (by coauthors)
2. "Does Timely Reporting of Insider Trading Erode Insiders' Trading Profits?" with Xu Jiang and Xiumin Martin
Does timely reporting of insider trading have any unintended consequences? We show analytically that timely reporting of insider trading can increase trading profits through insiders' coordinated trading on private information. We find consistent evidence around the accelerated reporting rule under SOX.
Presented at the inaugural Accounting and Economics Society Annual Conference at New York University
Covered by Duke Fuqua Insights: The Unintended Consequences of Forcing Insider Trading Transparency
3. "Earnings Information Spillover and Depositor Contagion," with Qi Chen, Itay Goldstein, and Rahul Vashishtha
How does depositor contagion transmit? We show that peer banks' earnings information can affect focal banks' uninsured deposit flows, and such spillovers reflect asset commonalities and the spread of a form of panic, consistent with theories of bank contagion.
Presented at Massachusetts Institute of Technology, University of Missouri, New York University, University of Pennsylvania, Baruch College, and Shanghai Advanced Institute of Finance (SAIF) (by coauthors)
Publication
4. "The Benefits of Trade Secret Legal Protection: Evidence from Firms’ Cost Structure Decisions," with Feng Gao and Xue Wang, Journal of Law, Economics, and Organization, 39(3), 847-875, November 2023.