Uncategorized Archives - Page 2 of 4

August 16, 2023

Do Repatriation Tax Holidays Promote Corporate Social Responsibility? Evidence from the American Jobs Creation Act

Abstract

In response to the temporary tax holiday introduced by the American Jobs Creation Act, U.S. multinational corporations repatriated approximately $300 billion from their foreign subsidiaries to the United States. We find that repatriating firms invest at least a portion of the repatriated funds in corporate social responsibility (CSR) initiatives, as evidenced by increasing CSR performance of the repatriating firms relative to non-repatriating firms during the years after the repatriation. The effect of repatriation on CSR performance is more pronounced for financially unconstrained firms, poorly governed firms, and firms located in states with stronger stakeholder preferences for CSR.

August 16, 2023

Styles of regulators: Evidence from the SEC’s comment letters

Abstract

Security regulations are enforced by SEC staff members. Conceptually, the regulations are to be uniformly enforced despite personal differences among SEC enforcers. We offer evidence to the contrary. Using the SEC’s comment letters as our setting, we find that SEC staff members exhibit unique personal “styles.” The effects of their personal styles on firms’ remediation costs, the contents of SEC comment letters, and the quality of firms’ financial reporting are surprisingly large. We manually collect information on SEC staff members. Our results demonstrate that female staff members are generally tougher reviewers and that CPA qualification matters. Overall, our study offers evidence that SEC staff members exhibit individual differences, and their styles shape firms’ financial reporting.

August 16, 2023

Out-of-equilibrium CEO Incentives, Dynamic Adjustment and Financial Misreporting

Robert Bushman, Zhonglan Dai and Weining Zhang

Abstract

The objective of this paper is to investigate (1) the role of adjustment costs in sustaining divergence between actual and optimal CEO equity incentives; (2) the nature of the dynamic process governing adjustment of non-optimal incentives back towards optimal; and (3) the extent to which deviations from optimal incentives exacerbate financial misreporting. Consistent with adjustment costs driving a wedge between realized and optimal incentives, we document that firm value decreases in deviations from optimal, and that firms only partially close the current gap between target and actual CEO incentives over the subsequent year. Further, speed of adjustment towards optimality varies with differences in monitoring intensity, product market competition and CEO tenure. Examining consequences of out-of-equilibrium incentives, we find that financial misreporting is increasing in the deviation from optimal, where the sensitivity of misreporting to deviation is stronger when CEO incentives are excessive relative to when they are below optimal levels. Finally, the sensitivity of misreporting to deviation is lower for firms with higher monitoring intensity, and magnified for firms with more intense product market competition and early term CEOs.

August 16, 2023

Controllability of Risk and the Design of Incentive-Compensation Contracts

Christopher S. Armstrong, Stephen Glaeser and Sterling Huang

Abstract

We examine how the ability to control firm exposure to risk affects the design of executive compensation contracts. To do so, we use the introduction of exchanged-traded weather derivatives, which significantly increased executives’ ability to control their firms’ exposure to weather risk, as a natural experiment. We find that executives for whom weather derivatives have the greatest impact on the ability to control firm exposure to weather risk experience relative declines in total compensation and equity incentives. The former finding is consistent with a reduction in the risk premium that executives receive for their firms’ exposure to weather risk. The latter finding suggests that risk and incentives are complements when executives can control their firms’ exposure to risk. Collectively, our results show that the executives’ ability to control their firms’ exposure to risk alters the nature of agency conflicts and influences the design of incentive-compensation contracts.

August 16, 2023August 16, 2023

Disruptive technologies

August 16, 2023

Hybrid E-commerce Platform: When an Online Retailer Offers Own Delivery Service

Yubo Chen

The imbalanced development of logistics and payment makes it difficult for an online retailer to reduce the uncertainty of online shopping in emerging markets. In response, some online retailers establish a hybrid e-commerce platform in the hope to reduce online shopping uncertainty, and thus to establish customers’ trust in the platform and increase their purchases. Based on two natural experiments arising from JD.com’s initiative of establishing its own delivery service, we examine how the setup of a hybrid e-commerce platform influenced customers’ shopping behaviors between 2009 and 2013. We find that the founding of a hybrid e-commerce platform led customers to increase purchases by 7 to 10 percent at city level. In addition, we find that the sales boosting effect is greater for (1) cities with less mature shipping service, (2) light-buyers, (3) categories with higher uncertainty, and (4) products with fewer discounts. The results are consistent with the interpretation that the establishment of a hybrid e-commerce platform improves shoppers’ trust in the online retailer. Thus, a hybrid platform does more than to speed up the delivery, but more importantly, it helps to build customer trust in the business.

August 16, 2023

Financial Research

Headed by Professor Henry Cao, the CKGSB Center for Financial Research is committed to forward-looking and innovative research in the areas of capital markets, corporate finance, and international finance. Through professional journals and academic discussion, the center seeks to provide analysis, suggestions, and solutions to government organizations, companies, financial practitioners, and ordinary investors. The center also aims to offer ideas and methods to help advance the level of financial services in China and promote the adoption of international standards.

Recent Center for Financial Research seminars:

Seminar Schedule » Brown Bag

Date	Speaker Name	Speaker Affiliation	Field	Topic
2019/5/28	Fenghua Song	Pennsylvania State University	Finance	TBC
2019/5/14	Michael Schwert	The Wharton School, University of Pennsylvania	Finance	The Effects of Transparency on Trading Profits and Price Informativeness: Evidence from Corporate Bonds
2019/5/7	Ye Li	The Ohio State University Fisher College of Business	Finance	Tokenomics: Dynamic Adoption and Valuation
2019/4/23	Xiaomeng Lu	SAIF	Finance	Bubble-Creating Stock Market Attacks: Evidence from China
2019/4/23	Xiaomeng Lu	SAIF	Finance	Bubble-Creating Stock Market Attacks: Evidence from China
2019/4/16	Martin Oehmke	London School of Economics	Finance	The Tragedy of Complexity
2019/4/9	Ryan Israelsen	Broad College of Business, Michigan State University	Finance	Information Consumption and Asset Pricing
2019/3/26	Allaudeen Hameed	NUS	Finance	Option Volume and Anomalies
2019/3/19	Boris Nikolov	University of Lausanne	Finance	The Sources of Financing Constraints
2019/3/5	Grace Hu	University of Hong Kong	Finance	Premium for Heightened Uncertainty: Solving the FOMC Puzzle
2019/2/26	Shaojun Zhang	The Ohio State University	Finance	Limited Risk Sharing and International Equity Returns
2019/1/14	Su Wang	London School of Economics and Political Science	Finance	Young Firm Manager Turnover and Performance
2019/1/11	Siyu Lu	Carnegie Mellon University	Finance	The Efficiency Effects of Information Quality in Failed-Bank Auctions
2019/1/11	Yingguang Zhang	University of Southern California	Finance	Delayed Alpha: The Term Structure of Earnings Expectations and the Cross Section of Stock Returns
2019/1/10	Linghang Zeng	Georgia Institute of Technology	Finance	Impact of Venture Capital Flows on Incumbent Firms: Evidence from 70 Million Workers
2018/12/18	Alexander Michaelides	Imperial College Business School	Finance	Tactical Target Date Funds
2018/12/11	Yuehua Tang	Warrington College of Business University of Florida	Finance	Prime (Information) Brokerage
2018/12/04	Baolian Wang	Warrington College of Business, University of Florida	Finance	Cryptocurrency Pump-and-Dump Schemes
2018/11/27	Neal Stoughton	WU Vienna University of Economics and Business	Finance	Discretionary NAVs
2018/11/20	Wenhao Yang	University of South Carolina, Darla Moore School of Business	Finance	Costly Information Acquisition in Decentralized Markets: Experimental Evidence
2018/11/13	Hongjun Yan	DePaul University	Finance	Global Perspective or Local Knowledge: The Macro-information in the Sovereign CDS Market
2018/11/06	Robert M. Anderson	University of California, Berkeley	Finance	Predicting Portfolio Return Volatility at Medium Horizons
2018/10/23	Bohui Zhang	The Chinese University of Hong Kong	Finance	Temperature and Productivity: Evidence from Plant-level Data
2018/10/16	Tse-Chun Lin	University of Hong Kong	Finance	The Round Number Heuristic and Crowdfunding Performance
2018/09/17	Li Gan	Texas A&M University	Finance	Relocating Migrants or In Situ Migrants: a New Perspective of Urbanization in China
2018/09/04	Yongxiang Wang	Marshall School of Business, University of Southern California	Finance	Target Setting and Allocative Inefficiency in Lending: Evidence from Two Chinese Banks
2018/09/11	Wenyu Wang	Kelley School of Business, Indiana University	Finance	Weak Governance by Informed Active Shareholders
2018-09-04	Yongxiang Wang	Marshall School of Business, University of Southern California	Finance	Target Setting and Allocative Inefficiency in Lending: Evidence from Two Chinese Banks
2018-05-30	Jinhui Bai	School of Economic Sciences, Washington State University	Finance	The Welfare and Distributional Effects of Fiscal Volatility: a Quantitative Evaluation
2018-05-22	Xing Huang	Olin Business School Washington University in St. Louis	Finance	Extrapolative Beliefs in the Cross-Section: What Can We Learn from the Crowds?
2018-05-15	Lei Zhang	The University of Hong Kong	Finance	Complex Asset Markets
2018-05-08	Zhenyu Gao	Chinese University of Hong Kong	Finance	Attention to Global Warming
2018-04-03	Raymond Leung	CKGSB	Finance	An Intrinsic Theory of Information Acquisition: Application to Dynamic Portfolio Choice, Asset Pricing and Information Recovery
2018-03-27	Eliezer M. Fich	LeBow College of Business Drexel University	Finance	Are Market Reactions to M&As Biased by Overextrapolation of Salient News?
2018-03-20	Laurent Fresard	Robert H. Smith School of Business University of Maryland	Finance	Technological Changes and the Evolution of IPO and Acquisition Activities
2018-03-13	Michaela Pagel	Columbia Business School	Finance	Fully Closed: Individual Responses to Realized Capital Gains and Losses
2018-01-25	Ruan Hongxun	The Wharton School, University of Pennsylvania	Finance	Social Capital and Innovation: Evidence from Connected Holdings
2018-01-25	Ye Shuai	Cornell University	Finance	How do ETFs Affect the Liquidity of the Underlying Corporate Bonds?
2018-01-24	Chen Yixin	Massachusetts Institute of Technology (MIT)	Finance	Individual Stock-picking Skills in Active Mutual Funds
2018-01-23	Zhang Teng	Georgia Institute of Technology	Finance	Uniform Mortgage Regulation and Distortion in Capital Allocation
2018-01-23	Li Jie	INSEAD	Finance	An Anatomy of Arbitrageurs: Evidence from Open-End Structured Funds
2018-01-22	Su Yinan	The University of Chicago	Finance	Interbank Runs: A Network Model of Systemic Liquidity Crunches
2018-01-22	Peng Cameron	Yale University	Finance	Price and Volume Dynamics in Bubbles
2017-11-21	Jan Bena	Sauder School of Business, University of British Columbia	Finance	Labor Dismissal Costs and Process Innovation
2017-11-07	Andres Liberman	Stern School of Business New York University	Finance	The Equilibrium Effects of Asymmetric Information: Evidence from Consumer Credit Markets
2017-10-24	Hui Chen	MIT Sloan School of Management	Finance	The Dark Side of Circuit Breakers
2017-09-26	Jia Hao	The Chinese University of Hong Kong	Finance	Liquidity Provision Contracts and Market Quality: Evidence from the New York Stock Exchange
2017-09-19	Mark Westerfield	Foster School of Business University of Washington	Finance	Dynamic Asset Allocation with Hidden Volatility
2017-09-12	Zhangkai Huang	Tsinghua University School of Economics and Management	Finance	Limits to Autocracy: An Analysis of China’s Renationalization
2017-09-12	Xiaoyun Yu	Kelley School of Business Indiana University	Finance	The Power of the Passive Information Intermediary: Evidence from Google’s China Exit
2017-09-05	Hong Ru	Nanyang Technological University	Finance	Rise of Bank Competition: Evidence from Banking Deregulation in China
2017-08-08	Yajun Wang	Robert H. Smith School of Business University of Maryland	Finance	Beliefs Aggregation and Return Predictability
2017-06-20	Lorenzo Garlappi	Sauder School of Business, University of British Columbia	Finance	The Carry Trade and Uncovered Interest Parity when Markets are Incomplete
2017-06-13	Rui Albuquerque	Boston College Carroll School of Management	Finance	Relative Performance, Banker Compensation, and Systemic Risk
2017-06-06	Ron Kaniel	Simon School of Business University of Rochester	Finance	Relative Pay for Non-Relative Performance: Keeping up with the Joneses with Optimal Contracts
2017-05-31	Maria Cecilia Bustamante	Robert H. Smith School of Business University of Maryland	Finance	Does Firm Investment Respond to Peers’ Investment?
2017-05-16	Sheng Huang	Singapore Management University	Finance	Are Longer-tenured Independent Directors Less Effective Monitors? Insights from Insider Trading
2017-04-11	Péter Kondor	London School of Economics	Finance	Financial Choice and Financial Information
2017-03-28	Dirk Jenter	London School of Economics	Finance	Good and Bad CEOs
2017-03-21	Vidhan Goyal	The Hong Kong University of Science and Technology	Finance	Index Membership and Capital Structure: International Evidence
2017-03-14	Xuewen Liu	The Hong Kong University of Science and Technology	Finance	Financial Markets, the Real Economy, and Self-fulfilling Uncertainties
2017-03-07	Xintong Zhan	Erasmus School of Economics Erasmus University Rotterdam	Finance	How Do Smart-beta ETFs Affect Asset Management Industry? Evidence from Mutual Fund Flows
2017-02-13	Mingzhu Tai	Harvard University	Finance	House Prices and the Allocation of Consumer Credit
2017-01-18	Weikai Li	The Hong Kong University of Science and Technology	Finance	Synthetic Shorting with ETFs
2017-01-12	Jun Wu	Kelley School of Business, Indiana University Bloomington	Finance	Do Mutual Funds Have News Trading Skills? Evidence from Daily Trading Ahead of News Releases
2017-01-12	Ting Xu	University of British Columbia, Sauder School of Business	Finance	Learning from the Crowd: The Feedback Value of Crowdfunding
2016-12-20	Xu Tian	University of Toronto	Finance	Uncertainty and the Shadow Banking Crisis: A Structural Estimation
2016-12-13	Jun Yu	School of Economics and Lee Kong Chian School of Business Singapore Management University	Finance	New Methodology for Constructing Real Estate Price Indices Applied to the Singapore Residential Market
2016-12-09	Jun Yu	School of Economics and Lee Kong Chian School of Business Singapore Management University	Finance	Market Sentiment and Paradigm Shifts in Equity Premium Forecasting
2016-11-22	Yufeng Wu	University of Illinois	Finance	Why Are Underperforming Firms Rarely Acquired?
2016-11-01	Shiyang Huang	The University of Hong Kong	Finance	The Effect of Options on Information Acquisition and Asset Pricing
2016-10-25	Nengjiu Ju	SAIF	Finance	Locked Wealth, Subjective Valuation and Managerial Hedging under High-Water Marks: A Structural Model
2016-10-25	Raymond Leung	CKGSB	Finance	Financial Intermediation and the Market Price of Risk: Theory and Evidence
2016-10-11	Tan Wang	SAIF	Finance	Financial Network and Systemic Risk – A Dynamic Model
2016-10-11	Justin Birru	Fisher College of Business The Ohio State University	Finance	Day of the Week and the Cross-Section of Returns
2016-9-13	Howard Kung	London Business School	Finance	Competition, Markups, and Predictable Returns
2016-6-28	Lu Zhang	Max M. Fisher College of Business, The Ohio State University	Finance	A Comparison of New Factor Models
2016-6-21	Hong Liu	Washington University in St. Louis	Finance	A Portfolio Rebalancing Theory of Disposition Effect
2016-6-14	Yi Wen	Federal Reserve Bank of St. Louis	Finance	The Making of An Economic Superpower Unlocking China’s Secret of Rapid Industrialization
2016-5-24	Darrell Duffie	Stanford Graduate School of Business	Finance	Size Discovery
2016-5-24	Murray Frank	Carlson School of Management University of Minnesota	Finance	Rational Stock Market Catering
2016-5-17	Zhenyu Wang	Kelley School of Business, Indiana University	Finance	Dynamics of the Expectation and Risk Premium in the OIS Term Structure
2016-5-17	Xiaoji Lin	Ohio State University	Finance	The Elephant in the Room: the Impact of Labor Obligations on Credit Risk
2016-5-10	Marcin Kacperczyk	Imperial College London Business School	Finance	Chasing Private Information
2016-5-10	Xiaolan Zhang	McCombs School of Business The University of Texas at Austin	Finance	Financing Intangible Capital
2016-4-26	Federico Bandi	Johns Hopkins Carey Business School	Finance	Economic Uncertainty and Predictability
2016-4-7	Sreedhar Bharath	W.P. Carey School of Business Arizona State University	Finance	Ephemeral Experiences, Long Lived Impact : Disasters and Portfolio Choice
2016-4-5	Kathy Yuan	London School of Economics	Finance	Network Risk and Key Players: A Structural Analysis of Interbank Liquidity
2016-3-29	Stefan Zeume	Stephen M. Ross School of Business University of Michigan	Finance	Corporate Tax Havens and Transparency
2016-3-29	Yasushi Hamao	Marshall School of Business University of Southern California	Finance	Selective Disclosure: The Case of Nikkei Preview Articles
2016-3-22	Gennaro Bernile	Singapore Management University Lee Kong Chian School of Business	Finance	Board Diversity, Firm Risk, and Corporate Policies
2016-2-23	Wei Dou	MIT Sloan School of Management	Finance	Embrace or Fear Uncertainty: Growth Options, Limited Risk Sharing, and Asset Prices
2016-2-1	Guojun Chen	Columbia University	Finance	Corporate Savings, Investment, and Financing with Aggregate Uncertainty Shocks
2016-2-1	Wenhao Yang	University of Utah	Finance	Mutual Fund Management: Does Active Management Pay?
2016-1-15	Chengwei Wang	INSEAD	Finance	Lesser-Known Stocks and Signal Cleans
2016-1-14	Zhen Zhou	New York University	Finance	Systemic Bank Panics in Financial Networks
2016-1-14	Zhenduo Du	Northwestern University	Finance	Endogenous Information Acquisition: Evidence from Web Visits to SEC Filings of Insider Trades
2016-1-12	Song Ma	Duke University’s Fuqua School of Business	Finance	The Life Cycle of Corporate Venture Capital
2016-1-12	Raymond C. W. Leung	University of California, Berkeley Haas School of Business	Finance	Centralized versus Decentralized Delegated Portfolio Management under Moral Hazard
2015-12-22	Bo Sun (Brown Bag)	Federal Reserve Board	Finance	Contracting with Feedback
2015-12-22	Lin Cong	Booth School of Business, University Chicago	Finance	Dynamic Coordination and Intervention Policy
2015-12-15	Wenlan Qian	NUS Business School, National University of Singapore	Finance	Unfair Trade Practices and Financial Intermediary Regulation
2015-12-7	Xuemin (Sterling) Yan	Robert J. Trulaske Sr. College of Business University of Missouri	Finance	Fundamental Analysis and the Cross-Section of Stock Returns: A Data-Mining Approach
2015-12-1	Shaojun Zhang	The University of Hong Kong	Finance	Systemic Default and Return Predictability in the Stock and Bond Markets
2015-11-11	Li An	PBC School of Finance, Tsinghua University	Finance	Lottery-Related Anomalies: The Role of Reference-Dependent Preferences
2015-11-3	Zheng Michael Song	Booth School of Business, University of Chicago	Finance	The Rise of China’s Shadow Banking System
2015-11-3	Ming Gu (Brown Bag)	Renmin University of China	Finance	Market Regulation and Private Equity Placements in China
2015-10-27	Cong Wang	CUHK Business School, The Chinese University of Hong Kong	Finance	Labor Unemployment Risk and CEO Incentive Compensation
2015-10-20	Tao Li	City University of Hong Kong	Finance	Does Speculative Activity Have Real Effects?
2015-10-20	Wei Wang	Stephen J.R. Smith School of Business, Queen’s University	Finance	Catch Me If You Can: Financial Misconduct around Corporate Headquarters Relocations
2015-9-29	Brandon Julio	Lundquist College of Business	Finance	The Bright Side of Political Uncertainty: The Case of R&D
2015-7-21	Jennifer Carpenter	Stern School of Business, New York University	Finance	The Real Value of China’s Stock Market
2015-7-7	Kose John	NYU	Finance	Institutions, Markets and Growth: A Theory of Comparative Corporate Governance
2015-7-6	Neng Wang	Columbia Business School	Finance	Investment under Uncertainty and the Value of Real and Financial Flexibility
2015-7-6	Dion Bongaerts	Rotterdam School of Management, Erasmus University	Finance	Cross-sectional Identification of Informed Trading
2015-6-30	Michael Weisbach	The Ohio State University	Finance	Does Uncertainty about Management Affect Firms’ Costs of Borrowing?
2015-6-9	Bing Liang	University of Massachusetts	Finance	The Role of Hedge Funds in the Security Price Formation Process
2015-6-2	Yiming Qian	University of Iowa	Finance	Pre-Market Trading and IPO Pricing
2015-5-26	Stavros Panageas	University of Chicago	Finance	Impediments to Financial Trade: Theory and Measurement
2015-5-19	Zhi Da	University of Notre Dame	Finance	Price Pressure from Coordinated Noise Trading: Evidence from Pension Fund Reallocations
2015-5-19	Feng Zhang	University of Utah	Finance	Overreaction to Merger and Acquisition Announcements
2015-5-12	Ronald Masulis	University of New South Wales	Finance	Deal Initiation in Mergers and Acquisitions
2015-5-12	Adlai Fisher	University of British Columbia	Finance	Levered Noise and the Limits of Arbitrage Pricing: Implications for Dividend S

August 16, 2023

CHEN Yubo

CHEN Yubo is Associate Dean, Professor, and Director of Center for Internet Development and Governance at School of Economics and Management, Tsinghua University. He received his Ph.D. in Marketing from the University of Florida, M.Eng. in Systems Engineering and B.Eng. in Industrial Management Engineering from Southeast University. Before joining Tsinghua SEM., he was a tenured professor at Eller College of Management, University of Arizona, USA. He is a recipient of the National Science Fund for Distinguished Young Scholars from the National Natural Science Foundation of China, and selected for the Top-Notch Young Professionals Program of China. Prof. Chen’s main research areas include 1) big data and business innovation in the networked world; 2) market transformation and business analytics in the mobile internet era; 3) digital transformation of Chinese economy, and 4) climate change and sustainability strategy. Prof. Chen has published many articles in top marketing and business journals such as the Journal of Marketing, the Journal of Marketing Research, Marketing Science, and Management Science, including one article been listed as “Most Cited Papers” at Management Science in the last ten years by ISI. His research has won many international awards and recognitions, including INFORMS Frank M. Bass Best Paper Finalist Award, Journal of Marketing MSI/Paul H. Root Award Finalist, Journal of Marketing Research William F. O’Dell Long-term Impact Award Finalist, Journal of Interactive Marketing Best Paper Award and Emerald Citations of Excellence.

August 16, 2023August 16, 2023

Remote Access for iPhone

iPhone Client Configuration:

Find Cisco AnyConnect in the App Store and install

Tap ”Connections” in the app

Tap ”Add VPN Connection…”

Enter: ckbpn.ckgsb.com, and tap “Save” on the upper right corner

Tap “Continue…” in the pop-up

Enter your credentials, and Tap “Connect” on the upper right corner

Connected

August 16, 2023

Webrooming

Bing Jing

Most products comprise both digital and inspection attributes. For example, while the style of apparel and shoes can be conveyed online, assessing fit still requires personal inspection. In a discrete model of match, we examine the effects of webrooming in a duopoly. When the match probability of the digital attribute is sufficiently low, a counter-intuitive result is that webrooming increases both firms’ profits. Here the reason is that webrooming induces greater participation. This finding is thus opposite to the general impression from the popular press that webrooming intensifies competition by releasing more information. We then generalize this analysis to a model of continuous match values. Here, webrooming still increases both firms’ profits under broad conditions. The reason is that webrooming informs each consumer about her relative preference over the two firms’ digital attributes and, consequently, her optimal search sequence.

August 16, 2023August 16, 2023

C.S. Agnes CHENG

Biography

Professor Agnes Cheng graduated from National Taiwan University, Taiwan, with a Bachelor of Science degree in Business. She obtained a Master of Science degree in Accounting from National Chengchi University, Taiwan and a Doctor of Philosophy degree in Accountancy from University of Illinois at Urbana-Champaign in the USA.

Professor Cheng taught at Houston from 1986 to 2007. During her appointment in University of Houston, she has also served as the Director of the Asian MBA Programme from 2000 to 2002, Visiting Full Professor in University of Arkansas, USA, from 1999 to 2000 and Visiting Academic Scholar in the Office of Economic Analysis of U.S. Securities and Exchange Commission from 2004 to 2005. Professor Cheng has served as Ourso Distinguished Research Chair in Accounting and Ph.D. Programme Coordinator in Louisiana State University, USA from 2007 to 2013.

Professor Cheng’s current research interest focuses on empirical financial accounting research. Her published work includes a research monograph (Studies in Accounting Research #29, published by American Accounting Association) and numerous articles. She has published articles in journals such as Journal of Accounting Research, The Accounting Review, Journal of Financial Economics, Decision Sciences, Review of Economics and Statistics, Journal of International Business Studies, Journal of Business, Finance and Accounting, Auditing, A Journal of Practice and Theory, Accounting and Business Research, Journal of Management Accounting Research and many others.

Professor Cheng is Co-Editor of Journal of Contemporary Accounting and Economics; and Associate Editor of Journal of International Accounting Research and Journal of Accounting, Auditing & Finance; she also serves on the editorial board of Review of Pacific Basin Financial Markets and Policies (RPBFMP). In the past, Professor Cheng served as editor of Asia-Pacific Journal of Accounting (APJAE, a SSCI Journal) from 2010-2012; the editorial advisory and review board of The Accounting Review from 1992 to 1995, the editorial board for The Review of Business Studies / International Journal of Business from 1994 to1999, the editorial board of The International Journal of Accounting from 1998 to 2000 and the editorial board of Asian Pacific Journal of Accounting and Economics from 2002 to 2004.

Professor Cheng also held some executive positions in professional organizations. She is Asia Society Houston’s Advisory Board Member. She was the President of Chinese Accounting Professors Association of North America (CAPANA) from 1994 to 1995, Vice President, International, of American Accounting Association (AAA) from 1999 to 2001 and Vice President of International Association for Accounting Education and Research (IAAER) from 2002 to 2009. Professor Cheng won the KPMG Research Award in 2010 and Louisiana State University 100 Rainmaker Award in 2009.

August 16, 2023

Informational Complementarity

Tony Ke, Lin Song

Many products are correlated because they share some similar or common attributes. We show that when these attributes are uncertain to consumers, a complementarity effect can arise among competing products, in the sense that a lower price of one product may increase the demands of others. The effect occurs when consumers optimally search for information about both common and idiosyncratic product attributes prior to purchase. We characterize the optimal search strategy for the correlated search problem and provide the conditions for the existence of the complementarity effect. We further explore the implications of the effect for firm pricing. When firms compete in price, although product correlation may weaken differentiation between the firms, the complementarity effect due to correlated search may raise equilibrium price and profit.

Category: Uncategorized

Do Repatriation Tax Holidays Promote Corporate Social Responsibility? Evidence from the American Jobs Creation Act

Styles of regulators: Evidence from the SEC’s comment letters

Out-of-equilibrium CEO Incentives, Dynamic Adjustment and Financial Misreporting

Controllability of Risk and the Design of Incentive-Compensation Contracts

Disruptive technologies

Hybrid E-commerce Platform: When an Online Retailer Offers Own Delivery Service

Financial Research

CHEN Yubo

Remote Access for iPhone

Webrooming

C.S. Agnes CHENG

Informational Complementarity

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