“Effects of the 2021 Expanded Child Tax Credit” , joint with Ben Lourie, Devin Shanthikumar, and Terry Shevlin
Accepted by Management Science
Presented at UCI , 2022 EIASM, and 2023 ATA Conference*
We find CTC recipients significantly increase their consumption following the payment and lower-income recipients experience a significant reduction in liquidity constraints
We observe a greater alleviation of liquidity constraints from monthly CTC payments compared to annual tax refunds, informing considerations for payment frequency
We provide insights into the income thresholds for the policy's phase-in and phase-out by demonstrating the most pronounced consumption effects among the lowest-income recipients and noting an absence of significant consumption changes among higher-income recipients
“Consensus Credit Ratings: A View from Banks” , joint with Ben Lourie, Alexander Nekrasov, and N. Bugra Ozel, Review of Accounting Studies, 2024, 29(3):2391-43
Presented at UCI and 2023 RAST Conference*
We provide the first comprehensive examination of the properties and informativeness of bank ratings, relative to CRA ratings.
Banks often rate firms not covered by CRAs
Bank ratings deviate from CRA ratings for about 60% of the cases
Bank ratings contain incremental information to predict CRA rating revisions and future defaults, and explain the cross-section of credit spreads
Bank ratings do not improve out-of-sample prediction of credit excess returns, indicating that current prices incorporate bank rating information
“Buy Now Pay (Pain?) Later” , joint withEd deHaan, Jung-Bae Kim, and Ben Lourie
Accepted at Management Science
Using banking data for 10.6 million U.S. consumers, we find that BNPL users experience a rapid deterioration in financial health (e.g., increases in overdraft charges). An instrumental variable exploiting consumers’ pre-BNPL shopping habits increases the credibility of BNPL having a causal negative effect.
“Tech-Enabled Financial Data Access, Retail Investors, and Gambling-like Behavior in the Stock Market” , joint with Taha Havakhor, Mohammad Rahman, and Tianjian Zhang
Accepted at Management Science
Exploiting the sudden shutdown of Yahoo! Finance API, we examine how access to tech-enabled raw financial data affects retail investment. We find that retail trading in stocks favored by active retail investors falls and the quality of the remaining trades improves.
“All Losses Are Not Alike: Real versus Accounting-Driven Reported Losses” , joint with Feng Gu and Baruch Lev, Review of Accounting Studies, 28(3), 1141-1189.
Covered by Financial Times
Earnings of firms reporting intangibles-driven losses are as informative as earnings of profitable firms after adjusting for the accounting bias of intangibles-expensing. These firms subsequently outperform other loss firms and even profitable firms in value creation from investments in technological innovation and human capital.
“Patent Publication and Innovation”, joint with Deepak Hegde and Kyle Herkenhoff, 2023, Journal of Political Economy 131(7), 1845-1903
Covered by Patent & IP Blog and Vox
Exploiting the pre-grant patent disclosure provision of American Inventor’s Protection Act (AIPA), we compare U.S. patents to a counterfactual sample of European equivalent patents (of U.S. patents) which were not affected by AIPA and find early patent disclosure promotes knowledge diffusion and clearer property rights while reducing R&D duplication.
“The disciplinary effect of social media: Evidence from workplace practices in response to Glassdoor reviews”, 2021, Journal of Accounting Research 59(5), 1783-1825, joint with Svenja Dube
Leveraging the staggered timing of first-time reviews on Glassdoor, we find that firms improve their workplace practices after being reviewed on Glassdoor. Consistent with firms improving their workplace practices to remain competitive on the labor market, such improvement concentrates in firms with negative initial reviews and with high labor intensity.
“Do Social Connections Mitigate Hold-up and Facilitate Cooperation? Evidence from Supply Chain Relationships” , 2021, Journal of Financial and Quantitative Analysis, 56(5), 1679-1712., joint with Sudipto Dasgupta and Kuo Zhang
“Financial Development and the Pattern of Industrial Specialization: Evidence from China” , 2017, Review of Finance 21(4): 1593-1638, joint with Qing He and Chang Xue.
“Do Earnings Announcements Affect Employee Spending? Evidence from Transaction Data” , joint with Ben Lourie, Alexander Nekrasov, and Phong Truong
Presented at PSU* and Tel Aviv*
Leveraging micro-level data on individual employees’ bank and credit card transactions, we examine the impact of earnings announcement (EA) news on employee spending.
We find that EA news elicits significant reactions in employee spending, highlighting the role of financial reporting in employees’ spending decisions.
I use the web traffic to public companies' Wikipedia pages to capture investors' acquisition of contextual information.
I find that contextual information acquisition peaks at informational events such as earnings announcements and enables investors to better interpret the new events as reflected by higher ERC and faster price discovery.
“Patent Disclosure and Price Discovery” , joint with Deepak Hegde and Baruch Lev
Best paper award (finance/accounting track) at Wharton Innovation Doctoral Symposium (WINDS) 2017
Presented at NYU brownbag seminar, CUNY Baruch, WINDS 2017, AAA 2018
Exploiting the staggered timing of de facto phase-in of pre-grant patent disclosures of AIPA, we find early patent disclosures enhance price discovery of patenting firms.
Presented at NYU brownbag seminar, Trans-Atlantic Doctoral Conference, and Cambridge Center for Alternative Finance Annual Conference