Yuanfang CHU

Research Interests:

Empirical Corporate Finance, Product market competition, Innovation, Strategic Disclosure

Education Background:

Chinese University of Hong Kong, CUHK Business School                                        2017 – 2023

Ph.D. in Finance  (Supervisor: Sudipto Dasgupta)                                               Hong Kong, China

Xiamen University, Wang Yanan Institute for Studies in Economics                     2014 – 2017

MSc. in Economics (Major: Quantitative Economics)                                          Xiamen, China

Huazhong University of Science and Technology, School of Economics               2010 – 2014

BSc. in Economics (Major: Statistics)                                                                        Wuhan, China

Working papers:

Imitation and Product Innovation: Evidence from the Pharmaceutical Industry

(Job Market Paper) with Sudipto Dasgupta and Fangyuan Ma

Abstract: Product innovation inevitably has a negative impact on current products, either through cannibalization or resource substitution. As a result, firms tend to postpone the commercialization of their technology innovations, treating the timing of new product launch as a real option. In this paper, we focus on the pharmaceutical industry to study how competition from imitators affects the product innovation strategies of incumbent firms. We find that entry threat from imitator leads to an accelerated launch of new products that are (nearly) technologically ready, potentially by diminishing the real option value. Our findings highlight the disparity between technological readiness and market introduction of products, as well as the crucial role played by competition in reducing the disparity and spurring product innovation. Presented at CUHK brown bag, Renmin Business School

Analysts’ Feedback, Ranking Pressure, and New Product Introductions, with Sudipto Dasgupta

Abstract: Firms that have not recently launched new products (inactive firms) are more likely to do so if industry rivals co-covered by their analysts receive more favorable recommendation revisions from these analysts after their product launches. However, there is no such effect on the inactive firms when they have no shared analyst coverage with rivals receiving favorable recommendation revisions. Our tests show that common economic shocks are unlikely to explain the association. Instead, they suggest two potential channels through which analysts influence new product introductions: a “feedback channel” that enables focal firms to learn about rival products, and a “ranking pressure channel” reflecting inactive firms’ concern of being downgraded in analysts’ influential within-industry rankings. Accepted by AsianFA (2024) [SSRN Link]

Working in progress:

Investor Sentiment and New Product Introductions, with Sudipto Dasgupta and Yuan Meng. We examine the impact of investor sentiment on firms’ competitive interactions in the product market. 

Teaching Experience:

Teaching Assistant at CUHK Business School, The Chinese University of Hong Kong

FINA6272 Empirical Methods in Corporate Finance (Ph.D. level) 2020 – 2022

FINA6242 Seminar in Corporate Finance Theory (Ph.D. level) 2019 – 2022

FINA5010 Financial Management (Master Level) 2018 – 2019

ACCT5180 Financial Management for Professional Accountants (Master Level) 2017 – 2018

Teaching Assistant at WISE, Xiamen University

Thesis Writing (Master Level)   2017

Corporate Finance (Undergraduate Level)   2016

Monetary Police (Master Level)   2016

Financial Economics (International Master)   2015