Huai Zhang

 

Biography

Dr Huai Zhang received his Ph.D in Accounting from Columbia University in 2000. He taught at University of Illinois at Chicago and was promoted to Associate Professor with tenure at University of Hong Kong before joining Nanyang Business School in 2006. He has published in major accounting and finance journals, including Journal of Accounting and Economics, Journal of Finance and Review of Accounting Studies. He received the Best Paper Award at the 2004 International Finance Conference and the 2016 Midwest Finance Association Meeting. He was also the recipient of Nanyang Business School Research Excellence Award in 2011 and 2013. He sits on the editorial board of Review of Accounting and Finance and The International Journal of Accounting, both refereed academic journals, and is an ad hoc reviewer for journals such as Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research and Review of Accounting Studies. He is the keynote speaker at the 5th Annual International Conference on Accounting and Finance, the 1st Boya Management Accounting Research Forum, and the 14th International Symposium on Accounting Research in China. In recognition of his contributions to China-related studies and his efforts in nurturing local researchers, the Fujian Province Government in China conferred him the title of “Ming Jiang Scholar” (闽江学者) in 2015.

Sterling HUANG

 

Biography

Dr. Sterling Huang joined Singapore Management University in 2014. He received his Master of Science and Ph.D. in Management from INSEAD Business School. Prior to his doctoral studies, he was an auditor with PricewaterhouseCoopers (Sydney) and a lecturer at Macquarie University Australia. He has published in the Journal of Accounting Research, The Accounting Review, Review of Financial Studies, Strategic Management Journal, European Accounting Review and Journal of Accounting, Auditing, and Finance. His work has been cited multiple times in major media outlets and practitioner forums, such as Wall Street Journal, Thomson Reuters, Bloomberg, INSEAD Knowledge, Harvard Business Review, Booz & Co Strategy & Business Magazine, Chief Executive Magazine, American Banker Online, Finance & Development (IMF), the Harvard Law School Forum on Corporate Governance and the Columbia Law School’s Blog on Corporations and the Capital Markets. He is a Chartered Financial Analyst Charterholder and a member of Institute of Chartered Accountant Australia.

 

Peer Firm Selection and Executive Compensation: The Case of Dual-role Peers

Abstract

The Securities and Exchange Commission’s 2006 Executive Compensation Disclosure Rules require firms to disclose how executive pay is determined by benchmarking total compensation at the competitive labor market level (compensation benchmarking) and by benchmarking performance targets in relative performance evaluation (performance benchmarking). Prior studies examining the selection of peer firms typically focus on one or the other benchmark. Using Incentive Lab’s detailed data on proxy statements from 2006 through 2015, we find that approximately 57% of the peers are used simultaneously for both compensation and performance benchmarking, a pattern largely ignored in prior literature. We label these peers as “dual-role peers” and show that firms can indeed succeed in selecting such peers in order to achieve high pay and yet low expected performance. Moreover, we find that the extent of such discretionary peer selection is positively associated with realized excess CEO pay, and negatively associated with ex-post stock performance in the subsequent year. Additional evidence shows that the power of CEOs to intervene the boards’ compensation decisions exacerbates the opportunistic peer selection. Our study provides new evidence on managerial self-serving behavior in compensation practices and highlights the importance of considering dual-role peers in compensation research.

Government Ownership, Non-CEO Top Executives’ Horizontal Pay Dispersion and Firm Performance

Wei Jiang, Bin Ke, Hong Ru, and Yue Xu

Abstract
The objective of this study is to analyze the compensation practices of non-CEO top executives as a group measured by horizontal pay dispersion. We address two specific questions. First, we examine whether government ownership affects non-CEO executives’ horizontal pay dispersion. Second, we examine how such ownership-induced horizontal pay dispersion affects firm performance. We find that non-CEO top executives’ horizontal pay dispersion is lower in government-controlled firms (SOEs) than in privately-controlled firms (non-SOEs). We show that the difference in horizontal pay dispersion between SOEs and non-SOEs is consistent with the institutional differences between the two ownership types. There is evidence that such ownership-induced horizontal pay dispersion is associated with lower firm performance, suggesting that SOEs’ horizontal pay dispersion is suboptimal from the perspective of shareholder value maximization.

Direct Evidence on Earnings Used in Executive Compensation Performance Measurement

Abstract

Motivated by competing theories on the properties of earnings required for compensation performance measurement, we provide direct evidence on the properties of actual accounting earnings that are used in determining compensation payouts (Compensation Earnings). Using a large sample of manually collected Compensation Earnings for U.S. firms, we show that firms make economically significant adjustments to GAAP Earnings in arriving at Compensation Earnings. While GAAP Earnings exhibit conservatism, we fail to detect conservatism (either by statistical significance or by magnitude of coefficient) in Compensation Earnings using the same sample and the same research design. The absence of conservatism in Compensation Earnings is also documented in various subsamples partitioned on market-to-book ratio, leverage, firm size, and corporate governance. Further analyses indicate that the adjustment from GAAP Earnings to Compensation Earnings involves the removal of less persistent components of GAAP Earnings, resulting in Compensation Earnings that are more persistent than GAAP Earnings.

Oriana- Company information across the Asia-Pacific region in the trial

2014-04-21

ORIANA is a comprehensive database containing financial information on over 20 million public and private companies in 46 countries including the Middle East and Asia-Pacific regions. Each company is part of a default peer group based on its activity codes; integral graphs and a specific report demonstrate its position in this peer group. A company tree diagram instantly illustrates the structure of the group.

 

Language  Chinese/English

Trial Period  Until Dec 31, 2014

Access:   https://oriana.bvdep.com/ip (On campus)

Update:  Daily

 

More information

Bankscope in the trial

2014-04-21

Bankscope combines widely-sourced data with flexible software for searching and analysing banks. Bankscope contains comprehensive information on banks across the globe. You can use it to research individual banks and find banks with specific profiles and analyse them. Bankscope has up to 16 years of detailed accounts for each bank. Bankscope recently added the Fitch Bank Credit Model to Bankscope. This is a statistical model that produces a financial implied rating and daily implied CDS spread for over 11,000 banks across the globe. This model helps you evaluate banks that aren’t traditionally assessed by rating agencies and validate and benchmark your own credit opinions. 

 

Language:  English

Trial Period: Until Dec 31, 2014

Access:   https://bankscope2.bvdep.com/ip (On campus)

 

More information

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.

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