Yanru HAN

Academic Position

2023 - present                                  Assistant Professor of Finance, Stevens Institute of Technology

Education

2018 - 2023                                  PhD in Finance, The Chinese University of Hong Kong

2014 - 2018                                  B.S. in Economics and Finance, School of Economics and Management, Tsinghua University

Research

“Echoes from the Streets: The Rising Value of Workplace Equality in Investment Decisions?” 

Best Paper Award (PhD Symposium), 12th FMCG Conference, 2022

Abstract:

Using a unique workplace equality measure from online job postings data, I find that investors adjust their holdings towards firms with stronger commitments to workplace equality following the unexpected 2020 Black Lives Matter (BLM) movement.  I show that shifts in investor holdings are primarily driven by financial motives: high-equality firms experienced improved operating performance and faced lower employment discrimination litigation risks after the 2020 BLM movement. Further analysis suggests that, in response to evolving investor behavior, high-equality firms become more proactive in emphasizing their commitment to equality during their communications with investors. [SSRN Link]

“What Do Questions Reveal? Analyst Topic-Specific Skill and Forecast Accuracy” (with Ling Cen and Jarrad Harford)

Best Paper Award, AsianFA Annual Conference, 2022

Abstract:

Judging skills exclusively based on ex post outcomes leads to biased evaluation and talent misallocation. We construct an ex ante and generalizable topic-specific skill measure based on the frequency of topic-specific questions that analysts raised in past earnings conference calls. In a supply chain information setting, we show that analysts with supply-chain-specific skill experience a greater improvement in forecast accuracy relative to their peers when the firms experience firm-specific or market-wide supply-chain shocks. Analysts acquire skills through cross-brokerage learning and within-brokerage coaching. While brokerage firms do not assign tasks according to topic-specific skills, evidence based on the market reactions to recommendation updates and the information diffusion speed along the supply chain suggests that investors do recognize these skills. [SSRN link]

“Equal Employment Opportunity in Supply Chains” (with Ling Cen and Jing Wu) Accepted at Production and Operations Management 

Abstract:

The equal employment opportunity (EEO) policy is an essential component of workplace diversity, equity, and inclusion (DEI) practices. This paper examines whether principal customer firms infuse EEO policy in their dependent suppliers. Specifically, using a novel workplace EEO measure based on the textual analysis of online job postings, we demonstrate a lead-lag pattern of workplace EEO policies between customers and suppliers, suggesting that the suppliers adjust workplace EEO practices to cater to their principal customers. This effect is more pronounced when the principal customers enjoy a stronger bargaining power. To alleviate the endogeneity concerns, we use the adoption of the California Board Diversity Law in 2018 as the exogenous shock to support a causal interpretation of our findings. Furthermore, the supplier’s adverse workplace EEO incidents will increase the likelihood of supply chain relationship termination, especially when the customer’s workplace EEO level is high. At last, we find that higher customer workplace EEO levels boost suppliers’ innovation performance, measured by patent quantity and quality, suggesting economic benefits associated with the diffusion of workplace EEO practices along supply chains. [SSRN link]

“The Rise of Conscious Consumers: The Cash Flow Implications of Corporate Workplace Equality” (with Ling Cen, Chang Liu, and Jing Wu)

Abstract:

We construct a corporate workplace equality measure based on textual analysis of equal employment opportunity statements in online job postings of US public companies. We verify this measure by demonstrating its predictive power for future employment discrimination lawsuits and identifying the cost that deters low-equality firms from mimicking high-equality peers. Based on this measure, we show that US households spend more on products produced by firms with higher corporate workplace equality, and this pattern is stronger among consumers of racial or gender minorities. We establish the causality by taking advantage of quasi-exogenous social events, including the #MeToo movement in 2017, the passage of the California Gender Board Diversity Law in 2018, and the Black Lives Matter movement in 2020. Overall, our study provides direct cash flow implications of corporate workplace equality through purchase decisions of conscious consumers and establishes a clear economic channel by which ESG preference of consumers is transformed into corporate cash flow risk. [SSRN link]

Awards & Honors

Best Paper Award, AsianFA Annual Conference, 2022

Best Paper Award (PhD Symposium), 12th FMCG Conference, 2022

Competitive Graduate Student Research Grant, The Chinese University of Hong Kong, 2022

Postgraduate Studentship, The Chinese University of Hong Kong, 2018-present

Outstanding Freshman Scholarship, Tsinghua University, 2014

Teaching

Stevens Institute of Technology

BT321 Corporate Finance, 2023

The Chinese University of Hong Kong

Teaching Assistant

Behavioral Finance, 2018-2022

- Teaching Evaluation Score: 6/6 (2022)

Mergers & Acquisitions (MBA course), 2018-2021