Some of my published and working papers can be
downloaded from:
Selected Publications
27. Local Political Corruption
and Financial Reporting Conservatism
with Shanmin
Li, Chun Liu, Liang Sun, and Wenrui Zhang, The Accounting Review,
Forthcoming, PDF
Firms in corrupt areas choose more
conservative accounting to safeguard their resources from corrupt officials'
expropriation.
26. CEO Locality and Corporate Social Responsibility
with Dianna Chang and Weichen
Yan, British
Journal of Management, 2024, Vol. X, pp. 1-26, PDF
CEOs working 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, forthcoming, PDF
Healthy skepticism
is warranted 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. Internal Control Weaknesses and Corporate Environmental
Performance: Evidence from Toxic Chemical Pollutants
with Kangkang
Fu, Yiwei Li, and Xiu-Ye Zhang, PDF
2. How Do Misvalued Firms Deploy Internal Cash Flow?
with Wing Chun Kwok, George Wong, and Jiaquan Yao, PDF
3. Corporate Taxes and Corporate Social Responsibility
with Yaling Jin, Endong
Yang, and Wenrui Zhang, PDF, The
FinReg Blog at Duke Law
4. Stock Liquidity and Corporate Social
Responsibility
with Weiqiang Tan, Endong Yang, and Wenrui Zhang, PDF
5. Corporate Environmental Risk and the
Customer-Supplier Relationship
with Shantanu Banerjee, Kangkang Fu,
Tao Li, and George Wong, PDF
6. Corporate Environmental Liabilities
and Capital Structure
with Kangkang Fu, Tao Li, Lewis Tam,
and George Wong, PDF
7. Employee Inside Debt and Acquirer
Returns
with Jun-koo Kang, Le Zhang, and Wenrui Zhang. PDF
8. Does Corporate Social Responsibility
Facilitate Public Debt Financing?
with Bin Xu and Yung Chiang Yang. PDF
9. Equity Financing, Equity Lending, and
Price Pressure: The Case of DRIP Arbitrage
with Tze Chuan 'Chewie' Ang, Xiaoxiong Hu, and Patrick
Verwijmeren. PDF
10. Do Patents Portend Productivity
Growth? Global Evidence from Private and Public Firms
with David R. McLean, Bohui Zhang, and Wenrui Zhang. PDF
11. 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?
12. Arbitrage
Opportunities from MSCI Index Reconstitutions in Asian Stock Markets
with Jiang Luo, Jiaxin Peng, Shuoge Qian, Choon Wee Tan. PDF