Publications
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Industrial Policy and Asset Prices: Evidence from the Made in China 2025 Policy, with William Megginson and Junjie Xia. Forthcoming, Journal of Banking and Finance. (SSRN link)
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State Ownership and Corporate Governance, with William Megginson. 2022. Oxford Handbook on State Capitalism and the Firm, Oxford University Press. (Link to the book)
Working Papers
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The Effect of Policy Uncertainty on VC Investments Around the World. (SSRN link) With Lubomir Litov and Romora Sitorus. Revise and Resubmit, Journal of Law, Finance, and Accounting
Presentations: University of Oklahoma, FMA European 2019, FMA Asian 2019, 36th AFFI Conference, 2019 INFINITI Conference on International Finance, SWFA 2019, AFA 2020 Ph.D. Poster Session, FMCG 2022, JLFA Conference 2022.
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We documents a significant negative relationship between economic policy uncertainty (EPU) and venture capital (VC) investment in startups across emerging venture capital markets.
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The adverse effect of policy uncertainty is exacerbated for younger and early-stage startups.
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The adverse effect of policy uncertainty is attenuated for startups that have headquarters in cities with a high concentration of global VC investment, in countries with more developed stock markets, or if the VC is led by a bank or a corporate.
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The EPU increases the number of financing rounds, decreases the fraction of investment amount during the first round, and reduces the likelihood of successful exit through acquisition.
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Venture Capitalist Directors and Managerial Incentives. (SSRN link) With Lubomir Litov, William Megginson, and Romora Sitorus.
Media Coverage: Columbia Law School Blue Sky Blog, Oxford Business Law Blog
Presentations: University of Oklahoma, FMA 2020, Missouri State University, University of Richmond, University of Scranton, The College of New Jersey, FMCG 2022, FMA European 2022, World Finance Conference 2022.
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Firms which have board members with venture capital experience (i.e., VC directors) on compensation committee are associated with greater CEO risk-taking incentives (i.e., vega) and pay-for-performance sensitivity (i.e., delta).
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Such effect is more pronounced if VC directors are from highly reputable VC firms.
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Increasing managerial incentives is a possible channel through which VC directors promote corporate innovation.
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Having VC directors on nominating and/or governance committee is associated with higher likelihood of forced CEO turnover.
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Do Corporate Insiders Take Advantage of Their Political Connections? Evidence from Insider Trading. (SSRN link).
Presentations: University of Oklahoma, 37th AFFI Conference PhD Workshop, EFMA 2021, SWFA 2022, EFA 2022, FMCG 2022, FMA 2022 (Scheduled).
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Purchases (sales) by politically connected corporate insiders are associated with lower (higher) abnormal returns compared with non-politically connected insiders, indicating that politically connected insiders in general are sophisticated and cautious about potential legal risk.
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Politically connected insiders are more likely to have longer trading horizons, and more likely to make routine trades.
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The STOCK Act passed in April 2012 effectively decreases (increases) the abnormal returns associated with insider purchases (sales) made by Congress members and staff in short horizons.