Research

Research Interests
  • Corporate Finance
  • Investments
Working Papers

[11] Why do you choose mutual fund yield? A holistic view of bond fund performance, with Hao Jiang and Lu Zheng, 2020

Abstract: This paper studies the role of mutual fund yield in driving investor flows and performance for bond funds. Using two commonly used yield measures, the SEC yield and 12-month distribution yield, we find that bond funds with higher yields attract more investor flows, after controlling total fund returns. That is, mutual fund investors in effect react twice to the information in fund yield. Moving to performance, we find that bond funds with higher yields achieve higher average total returns, but the magnitude of the difference in total returns is less than one half of the difference in fund yields. The high-yielding funds are more risky, suffering sharper losses in crisis periods; meanwhile investors panicked, stampeding for the exit and missing the subsequent rebound.

[10] Political Ideology and Corporate Innovation: Evidence from the Expansion of a Local TV Network,with George Gu, Mahsa Kaviani, Hosein Malek and Connie Mao, 2020

Abstract: Employing staggered expansion of a conservative media conglomerate, Sinclair Broadcast Group, in local TV markets, we study the impact of conservative media on corporate innovation. In a difference-in-differences setting, we find a significant decline in innovation quantity (patent counts) and quality (citation counts per patent, originality, generality, the number of impactful patents, and the economic value of innovation). We find no significant change in innovation inputs such as R&D expenses, but we document interesting patterns in human capital turnover. Consistent with the inventor mobility channel, we observe that highly innovative inventors are more likely to leave upon Sinclair entry, and new hires to such firms are less innovative than the leavers. We also find that the inventors remained become less innovative post Sinclair, which is consistent with the influence channel. Along the lines of ideology differences, we find the impact on innovation is greater in red states than in blue states. We also document a significant tendency of innovators moving from red states to blue states post the Sinclair exposure. Our paper sheds light on the real effect of conservative media in the corporate setting.

[9] Conservative TV and corporate social responsiblity, with Mahsa Kaviani and Hosein Maleki, 2020

    • Presented at Political Economy of Finance 2020 Conference at Stigler Center, University of Chicago, Booth School of Business.
    • Accepted for presentation for MARC conference at Villanova University (Scheduled in March 2020, but cancelled due to COVID-19)

[8] Bigger pie, bigger slice: Liquidity value and IPO underpricing with Wei Gao and Hongda Zhong, 2020

    • Presented at seminars at Temple University, Drexel University, London School of Economics, the 2019 SFS Cavalcade Conference at Carnegie Mellon University, the 2019 FMA European Conference, the 2019 FMA in New Orleans, and the 2019 CFEA at New York University.
    • Rejected with an invitation to re-submit at Management Science
Publications

[7] Internal governance and corporate Fraud, with Jay Choi, Oded Shenkar, and Jian Zhang, 2020, Journal of Accounting, Auditing, and Finance, Forthcoming

[6]Symmetry in pay for luck, with Naveen Daniel and Lalitha Naveen, Review of Financial Studies, 2020, Vol 33, 3174-3204

[5] Dissecting bidder returns on payment methods, Journal of Banking and Finance, 2018, Vol 96, 207-219

[4] Does corporate governance matter more for high financial slack firms? with Kose John and Jiaren Pang, Management Science, 2017, Vol 63, 1872-1891

[3] Evasive shareholder meetingswith David Yermack, Journal of Corporate Finance, 2016, Vol 38, 318-334

    • Invited Submission to Journal of Corporate Finance  and Review of Finance.
    • Best Paper Award at the Corporate Governance Conference at Drexel University in 2014.

[2] A non-linear wealth transfer from shareholders to creditors around Chapter 11 filings, Journal of Financial Economics, 2013, Vol 107, 183-198

[1] Investing in Chapter 11 stocks: trading, liquidity, and performance, with Ken Zhong, Journal of Financial Markets, 2013, Vol 16, 33-60

Media Coverage
  • “Conservative TV and Corporate Social Responsibility”