Some of my published and working papers can be
downloaded from:
Selected Publications
26. CEO Locality and Corporate
Social Responsibility
with Dianna Chang and Weichen
Yan, British
Journal of Management, Forthcoming, PDF
CEOs living near
their hometowns boost CSR because they are familiar with and have strong
connections to their local areas, aligning with CSR's focus on local
involvement.
25. Discontinuous
Distribution of Test Statistics Around Significance Thresholds in Empirical
Accounting Studies
with Huasheng Gao and Wei Li, Journal of Accounting
Research, Conditionally accepted, PDF
Our findings suggest healthy skepticism towards narrowly significant test statistics in
accounting research, due to potential undisclosed discretion in obtaining and
reporting results.
24. Institutional
Investor Horizons, Information Environment, and Firm Financing Decisions
with Yang Yang Chen, Kangkang Fu, and Endong Yang, Journal of Contemporary Accounting & Economics, 2024, Volume 20 (1), pp. 1-24, PDF
Institutional
investors’ horizons influence firms’ financing decisions by shaping their
information environment.
23. Demand Uncertainty, Inventory, and Cost Structure
with
Wing Chun Kwok and George Wong, Contemporary Accounting
Research, 2024, Volume 41, Issue 1, pp. 226-254, PDF
Rigid cost structures and high
inventory serve as substitutes in alleviating congestion concerns when firms
face uncertain demand.
22. Stock Price Crash Risk and Firms’ Operating Leverage
with Louis T.W. Cheng, Wing Chun Kwok, and
George Wong, Journal of Financial Stability, 2024, Volume 71,
pp. 1-17, PDF
Firms facing greater stock price crash
risk adopt a more flexible cost structure to delay stock price crashes and
mitigate adverse outcomes.
21.
Bank Lines
of Credit as a Source of Long-term Finance
with Yunling Chen and Ronald W Masulis, Journal of Financial and Quantitative
Analysis, 2023, Volume 58 , Issue 4 , pp. 1701 – 1733, PDF (the
accepted version with Internet Appendix); PDF (A
longer version in 2021)
Long-term credit-line drawdowns act as a
valuable bridge financing mechanism.
20. Sustainable Finance: ESG/CSR, Firm Value, and Investment
Returns
With Kangkang Fu,
Yaling Jin, and Pei Fun Liem, Asia-Pacific Journal of Financial Studies,
2022, Volume 51, Issue 3, pp. 325-371,PDF
For firms, there
are several specific channels through which ESG/CSR activities create value.
However, ESG investors should expect to Do Badly in the long run if they want
to Do Good.
19.
The
Determinants of COVID-19 Morbidity and Mortality across Countries
with Dianna Chang, Yu He, and Kelvin Tan, Scientific Reports (the
open-access journal of Nature), 2022, 12, 5888, PDF
We identify 21
predetermined country-level factors that explain marked variations in weekly
COVID-19 morbidity and mortality across 91 countries between January and the
end of 2020.
18. Credit Default Swaps and Corporate Innovation
with Yangyang Chen, Sarah Qian Wang, Kuo Zhang, and Wenrui
Zhang, Journal of Financial Economics, 2019, Vol 134, pp.474-500. PDF
CDS, a recent financial innovation, promotes corporate technological
innovation.
17. Macroeconomic Conditions,
Financial Constraints, and Firms’ Financing Decisions
with Yunling Chen
and Sudipto Dasgupta, Journal of Banking
and Finance, 2019, Vol 101 pp. 242-255. PDF
Time-varying macroeconomic conditions shape firms’ financing decisions.
16. Stock Liquidity and Stock Price Crash
Risk
with Yangyang Chen and Leon Zolotoy, Journal of Financial and Quantitative
Analysis, 2017, Vol.52, No. 4, 1605-1637. PDF
More liquid stocks are more likely to crash!
15.
Advisor’s Industry Expertise, Information Leakage to Industry Rivals, and the
Choice of M&A Advisor
with Chander
Shekhar, Lewis H.K. Tam, and Jiaquan Yao, 2016, Journal of Business
Finance and Accounting, Vol. 43, Issue 1&2, pp. 191-225, PDF
Advisors with greater industry expertise win
more deals, earn higher advisory fees, and increase the likelihood of deal
completion.
14. The Information
Role of Advisors in Mergers and Acquisitions: Evidence from Acquirers Hiring
Targets’ Ex-advisors
with Chander
Shekhar, Lewis H.K. Tam, and Jiaquan Yao, 2016, Journal of Banking
and Finance, Vol 70, pp. 247-264, PDF
Employing targets’ ex-advisors enables acquirers to pay lower takeover
premiums and secure a larger proportion of merger synergies.
13. Managerial Entrenchment and Firm Value: A Dynamic Perspective
with Hong Feng
Zhang, Journal of
Financial and Quantitative Analysis, 2015, Vol. 50, Issue 5,
1083-1103. PDF
Managerial entrenchment hurts firm value, and the effect is causal.
12.
Non-executive Employee Stock Options and Corporate Innovation
with Kangkang Fu, Angie Low, and Wenrui Zhang, Journal of Financial Economics,
2015, Vol. 115, Issue 1, 168-188. PDF
Innovation is about people.
11.Cash
Flow Sensitivities and the Allocation of Internal Cash Flow
with Sudipto
Dasgupta, George Wong, and Jiaquan Yao, Review of Financial Studies, 2014, Vol.27,
Issue 12, 3628-3657. PDF
Using an integrated regression framework, we depict a complete picture
as to how firms allocate their cash flow across various uses.
10. The Value of Monte Carlo Simulations for Capital Structure
Research
with Sudipto
Dasgupta, International
Review of Finance, 2011, Vol. 11 (Special Issue on Capital Structure I), Issue
1, pp. 19-55. PDF
We evaluate statistical inferences in empirical capital structure
research using Monte Carlo simulations.
9.
Conglomerate Structure and Capital Market Timing
with Gilles Hilary,
Carmen Shih, and Lewis Tam, Financial
Management, 2010, pp. 1307-1338 (Lead Article). PDF
Conglomerates time capital markets more than standalone firms.
8. The Cross-Sectional Determinants of Post-IPO Stock Performance:
Evidence from China
with Lewis Tam, Shi Hua Lin, and George Wong, Accounting and Finance, 2010, Vol. 50, Issue 3, pp.
581-603. PDF
We reveal the cross-sectional determinants of post-IPO
long-term stock returns in China.
7. Financial Constraints and Stock Returns - Evidence from
Australia
with Howard Chan,
Robert Faff, and George Wong, Pacific
Basin Finance Journal, 2010, Vol. 18, Issue 3, pp.
306-318. PDF
We construct an index that measures firms' external financial
constraints in an Australian setting.
6. The
Effect of Auditor Choice on Financing Decisions
with
Sudipto Dasgupta and Gilles Hilary, The
Accounting Review, 2009, Vol. 84, No. 4, 1085-1117, PDF
Auditor quality affects the financing decisions
of companies.
5.
Target Behavior and Financing: How Conclusive is the
Evidence?
with Sudipto Dasgupta, Journal
of Finance, 2009, Vol 64, No 4, 1767-1796.
· Version 1(April 2006): This version contains additional
simulation analysis of the impact of initial leverage on capital structure, the
persistence of the leverage ratio, and the importance of fixed effects, as
suggested by Lemmon, Roberts, and Zender (2007).
· Version 2 (January 2007): This version contains addition
simulation analysis demonstrating that (i)
market-timing behavior is consistent with some empirical
regularities in the data (ii) tests of market timing behavior
do have the power to distinguish between random financing and timing behavior (iii) Probit/Logit models of debt-equity
choice are highly sensitive to small quirks in the data and multinomial Logit
regressions that model issuance and repurchase decisions simultaneously need to
be interpreted with caution.
· Version 3 (October 2007): This version suggests some
simulation-based tests that can distinguish between the various channels
through which firm-specific variables affect debt ratios.
· Version 4 (April
2008): This version appears at Journal of Finance.
A number of existing tests of target behavior have no
power to reject alternatives.
4. Audit Quality, Auditor Compensation and
IPO Underpricing
with André Gygax, Elaine Oon,
and Hongfeng Zhang, Accounting and Finance, 2008, Vol.48,
391-416. PDF
Quality auditors serve as a signalling device that enhances post-issue
market value of equity.
3. The Effects of Financial Constrains on Corporate Policies in
Australia
with Tek Jun Tan, George
Wong, and Hongfeng Zhang, Accounting and Finance,
2007, Vol.47, 85-108. PDF
Peter Brownell Award for
best publication in Accounting
and Finance 2007
We are among the first to jointly study the impact of financial
constraints on companies’ investment decisions and demand for liquidity.
2. The Real Impact of Stock Market Mispricing - Evidence from
Australia
with Lewis Tam, Tek
Jun Tan, and George Wong, Pacific Basin Finance Journal, 2007, Vol.15, 388-408. PDF
Mispricing in Australian capital markets has a significant influence on
the real economy, and the influence works though an equity-financing channel.
1. Analysts Coverage and Financing Decisions
with Sudipto Dasgupta and Gilles Hilary, Journal of Finance, 2006, Vol. 61, Issue 6, 3009-3048. PDF
How many analysts covering a company shapes its financing decisions!
Selected
Working Papers
1. Local Political Corruption and Financial Reporting Conservatism
with Shanmin
Li, Chun Liu, Liang Sun, and Wenrui Zhang, PDF
2. Internal Control Weaknesses and Corporate Environmental
Performance: Evidence from Toxic Chemical Pollutants
with Kangkang
Fu, Yiwei Li, and Xiu-Ye Zhang, PDF
3. How Do Misvalued Firms Deploy Internal Cash Flow?
with Wing Chun Kwok, George Wong, and Jiaquan Yao, PDF
4. Corporate Taxes and Corporate Social Responsibility
with Yaling Jin, Endong
Yang, and Wenrui Zhang, PDF, The
FinReg Blog at Duke Law
5. Stock Liquidity and Corporate Social
Responsibility
with Weiqiang Tan, Endong Yang, and Wenrui Zhang, PDF
6. Corporate Environmental Risk and the
Customer-Supplier Relationship
with Shantanu Banerjee, Kangkang Fu,
Tao Li, and George Wong, PDF
7. Corporate Environmental Liabilities
and Capital Structure
with Kangkang Fu, Tao Li, Lewis Tam,
and George Wong, PDF
8. Employee Inside Debt and Acquirer
Returns
with Jun-koo Kang, Le Zhang, and Wenrui Zhang. PDF
9. Does Corporate Social Responsibility
Facilitate Public Debt Financing?
with Bin Xu and Yung Chiang Yang. PDF
10. Equity Financing, Equity Lending, and
Price Pressure: The Case of DRIP Arbitrage
with Tze Chuan 'Chewie' Ang, Xiaoxiong Hu, and Patrick
Verwijmeren. PDF
11. Do Patents Portend Productivity
Growth? Global Evidence from Private and Public Firms
with David R. McLean, Bohui Zhang, and Wenrui Zhang. PDF
12. Innovation, Managerial Myopia, and
Financial Reporting
with
Gilles Hilary, Jun-koo Kang, and Wenrui Zhang. PDF
Older title: Does Conditional Accounting Conservatism
Impede Corporate Innovation?
13. Arbitrage
Opportunities from MSCI Index Reconstitutions in Asian Stock Markets
with Jiang Luo, Jiaxin Peng, Shuoge Qian, Choon Wee Tan. PDF