Jiaheng Yu

Welcome! I am a PhD Candidate in Finance at the MIT Sloan School of Management. I will join The University of Hong Kong (HKU) as an Assistant Professor of Finance in July 2023. 

My research interests are: corporate finance, financial markets, financial intermediation and regulation. My recent work studies the interaction of supply chains and the financial market, and the design of the Central Bank Digital Currency (CBDC). 

Email: yujh@mit.edu. My CV is available here.

Research Papers

[1] "Getting the Banks on Board: Accounts Receivable Financing in the US [Job Market Paper] 

This paper studies the informational role of trade credit and the accounts receivable financing market. I hand collect new data on the contracts of accounts receivable based loans and trade credit terms. I find that sellers experiencing payment delays are primarily financed through accounts receivable based loans. These loans are 2-4% per year more expensive than buyers’ borrowing rates and require a 20% average haircut on invoice value. Seller moral hazard that leads to bad-quality products is a determinant of payment delays, and although difficult to observe in existing data, can be uncovered from terms of accounts receivable based loans. Lenders help improve the quality of sellers: sellers who successfully receive credit experience a 5% decline in receivable days and have higher sales and longer relationships with buyers. I propose and structurally estimate a trade credit model that incorporates accounts receivable financing. In the model, the buyer trades off the financial cost and the incentive effect of trade credit and learns from the lender’s loan decisions. I show through counterfactual analyses that regulatory limits on payment delays increase the presence of bad products and lower output, while subsidizing accounts receivable financing may increase output at relatively low expense. 

[2] "The Case for Convenience: How CBDC Design Choices Impact Monetary Policy Pass-Through", with Rodney Garratt and Haoxiang Zhu [updated June 2022].

[3] "Undercutting the Exchanges: Private Trading, Fee Competition, and Price Discovery at the Market Close", with Jingxiong Hu [updated August 2022]

[4] "Capital Spillover, House Prices, and Consumer Spending: Quasi-Experimental Evidence from House Purchase Restrictions", with Yinglu Deng, Li Liao and Yu Zhang, The Review of Financial Studies 35(6), June 2022, pp.3060-3099. 

[5] "Subsidizing Failing Firms: Evidence from Chinese Restaurants", with Yinglu Deng, Fangzhou Lu and Hao Zheng. R&R, Journal of Financial and Quantitative Analysis

[6] "Return to Venture Capital in the Aggregate", with Ravi Jagannathan, and Shumiao Ouyang, NBER working paper