People and Research Research Insights

Finance

Taming the Factor Zoo
Dr. Guanhao Feng
Taming the Factor Zoo

The Journal of Finance, January 2020. 

This article introduces a statistical test framework for the enlarging factor zoo discovered in the asset pricing and investment world.  

Trust and Local Bias
Dr. Lei Zhang
Trust and Local Bias

Journal of Financial and Quantitative Analysis, November 2020

The benefits of portfolio diversification are well-known, so why do some institutional investors still exhibit strong preferences for local stocks?

Does Corporate Investment Respond to the Time-Varying Cost of Capital?
Dr. Yongjin Kim
Does Corporate Investment Respond to the Time-Varying Cost of Capital?

Journal of Financial and Quantitative Analysis, August 2020

Conventional approaches to estimating the discount rate do not successfully detect fluctuations. A new approach uses option prices and recover return-relevant information from the prices in a snapshot of time. 

IPO Pricing Affected by High Media Coverage
Prof. Yangyang Chen
IPO Pricing Affected by High Media Coverage

Journal of Financial and Quantitative Analysis, August 2020

High media coverage impacts IPO pricing, but the effect is weaker in countries with better financial reporting quality

The Spillover Effects of Hurricane Katrina on Corporate Bonds
Dr. Lei Zhang
The Spillover Effects of Hurricane Katrina on Corporate Bonds

Journal of Financial and Quantitative Analysis, June 2020

Back in 2005, Hurricane Katrina generated the largest insured losses in US history. What was the impact on corporate financial policy?

Intensive Media Coverage Will Cut the Cost of Your Firm’s Debt
Prof. Junbo Wang
Intensive Media Coverage Will Cut the Cost of Your Firm’s Debt

Journal of Financial and Quantitative Analysis, March 2020

Firms heavily covered by media save massively on borrowing costs, especially smaller firms with lower institutional ownership