Research Interests

  • Capital market frictions and the resulting effects on asset prices, corporate finance, and real investment
  • Limits to arbitrage
  • Stock return anomalies
  • Law and finance
  • Finance and growth

Published Papers

The Business Cycle, Investor Sentiment, and Costly External Finance, 2014, with Mengxin Zhao, Journal of Finance 69, 1377-1409.

The Year-End Trading Activities of Institutional Investors: Evidence from Daily Trades, 2014, with Gang Hu, Jeffrey Pontiff, and Qinghai Wang, Review of Financial Studies 27, 1593-1614.

Why Does the Law Matter? Investor Protection and its Effect on Investment, Finance, and Growth, 2012, with Tianyu Zhang and Mengxin Zhao, Journal of Finance LXVII, 313-350.


Fooled by Compounding, 2012, Journal of Portfolio Management 38 Winter, 108-116.


Share Issuance and Cash Savings, 2011, Journal of Financial Economics 99, 693-715.


Idiosyncratic Risk, Long-Term Reversal, and Momentum, 2010, Journal of Financial and Quantitative Analysis 45, 883-906.

  • Second Place Award, Best Dissertation Proposal in Investments, 2005 FMA Meetings


Costly Arbitrage and Idiosyncratic Risk: Evidence from Short Sellers, 2010, with Ying Duan and Gang Hu, Journal of Financial Intermediation 19, 564-579.


Share Issuance and Cross-Sectional Returns: International Evidence, 2009, with Jeffrey Pontiff and Akiko Watanabe, Journal of Financial Economics 94, 1-17 (Lead Article).

  • First Place Award, Jensen Prize for the Best Corporate Finance Paper in the Journal of Financial Economics in and Organizations
  • Pacific Basin Finance Journal Research Excellence Award on Investments, 2008 Asian and Nippon Finance Associations Joint International Conference


When is Stock-Picking Likely to be Successful? Evidence from Mutual Funds, 2009, with Ying Duan and Gang Hu, Financial Analysts Journal 65, 55-65.


Working Papers

Does Academic Research Destroy Stock Return Predictability? with Jeffrey Pontiff

Capital Market Development and Externally Financed Cash Savings with Mengxin Zhao

  • Revise and Resubmit at Journal of Financial and Quantitative Analysis

Investor Protection and Choice of Share Issuance Mechanism with Tianyu Zhang and Mengxin Zhao


U.S. Financial Markets Growth and the Real Economy with Claire Liang and Mengxin Zhao


Equity Market Liberalization and Equity Issuance with Jeffrey Pontiff and Mengxin Zhao

Patents and Productivity Growth: Evidence from Global Patent Awards with Xin Chang, Bohui Zhang, and Wenrui Zhang