Publication
Lending Relationships and the Pricing of Syndicated Loans, with Donghang Zhang and Yijia Zhao, forthcoming, Management Science
Media coverage: Global Banking & Finance Review
Semi-finalist for the Best Financial Markets and Institutions Paper at the 2019 FMA Annual Conference
IBEFA-ASSA 2021, CFIC 2020 (Cancelled due to Covid), CICF 2019, FMA 2019
Working Papers
Underwriting and Primary Market Price Discovery of Syndicated Loans: Theory and Evidence, with Donghang Zhang and Yijia Zhao, revise and resubmit at Review of Corporate Finance Studies
Syndicated loan offerings exhibit U-shaped underpricing. Hot loan underpricing is to induce investors to reveal positive information. Cold loan underpricing is to compensate bank's retention cost.
Semi-finalist for the Best Corporate Finance Paper at the 2018 FMA Annual Conference
FIRS 2019, FMA 2018
Real Disinvestments and the Distress Anomaly: Evidence from Stocks, Bonds, and Loans, with Kevin Aretz and Shuwen Yang, revise and resubmit at Journal of Financial and Quantitative Analysis
Similar to the distress anomaly in stocks, there is a negative distress premium in bonds, loans, and firm assets.
Sun Yat-Sen University
New Zealand Finance Meeting 2021, EFA 2021, Paris December Finance Meeting 2019, Young Finance Scholars' Conference 2019, International Symposium in Finance 2019
The Volcker Rule and Bond Primary Market, with Eric Powers and Donghang Zhang, revise and resubmit at Review of Finance
Expected liquidity deterioration due to the Volcker rule increases the liquidity premium demanded by primary market investors.
FMA 2021
CLOs, Loan Spreads, and Corporate Investments, with Donghang Zhang
CLOs reduce market friction due to market segmentation and information asymmetry. CLO ownership in a loan captures these efficiency gains. A higher CLO ownership leads to a lower loan spread and more capital expenditures.
FMA 2020
Borrowing from A Competitor’s Bank, with Donghang Zhang
Fourty percent of firms share banks with their industry competitors. Borrowing from a competitor’s bank is an optimal financial arrangement that mitigates agency conflicts and deters product market predation.
SSRN's Top Ten download list in October 2022
Hong Kong Baptist University, Nankai University, Queen's University Belfast
AFBC 2023 (Sydney), FMA European Conference 2022, CICF 2022, MFA 2022
Dispersion across CLOs on Marking Corporate Loans
CLOs in a same loan disagree on the loan value. They trade small amounts with high frequencies, which leads to adverse selection concerns of dealers and reduces loan liquidity.
Central Univeristy of Finance and Economics, Monash Business School, Renmin University of China, University of Kansas, University of Manchester
AFBC 2023 (Sydney), SBFC 2023 (Sydney), 10th Annual Corporate Finance Conference Exeter 2023, EFMA 2022
Book Chapter
Syndicated Lending, with Donghang Zhang and Yijia Zhao. The Oxford Handbook of Banking 4th Edition (Editors: Allen N. Berger, Philip Molyneux, and John O.S. Wilson)
Work in Progress
Financing Innovation by Borrowing from A Competitor's Bank
Discussions
Overnight Returns: Investor Sentiment or Investor Attention? Ahmed Ameya Prapan and Evangelos Vagenas–Nanos, EFMA 2022
Hedge Funds and Financial Intermediaries, Magnus Dahlquist, Valeri Sokolovski, and Erik Sverdrup, MFA 2022
Passing the Parcel ? Relationship Banking at the Onset of Financial Distress, Federica Salvade, Nicolas Taillet, Micheal Troege, FMA Europe 2022