[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. 

• Conferences: SFS Cavalcade 2023 (scheduled)

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

• We explore the implications of introducing a central bank digital currency (CBDC) through commercial banks that differ in size, focusing on two design features of CBDCs: the interest rate and payment convenience.

• Presentations: AFA 2022, SEM 2022 (Calgary, invited session)

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

• "Guaranteed close" executes orders for investors at close prices set on the primary exchange, and is subject to dual trading. Trade volume at "guaranteed close" reached about 30% of that in close auctions. We find that "guaranteed close" improves price discovery, both empirically and theoretically.

• Presentations: EuroFA 2022, NFA 2022*, FMA 2022*, AsianFA 2022, Microstructure Exchange 2022, MIT Finance Lunch, MFA 2020, Wharton Inter-Finance PhD Seminar 2022 (* by coauthor)

[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. 

• Policy-induced out-of-town housing demand increases house prices. The rising house prices lead to an increase in household consumption through the housing wealth effect channel. The welfare consequences of the house price increase are redistributive: renters lose and homeowners gain.

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

• Financial stimulus policies during macro distress not only improve restaurants' performance, but also strengthen private efforts to resurrect. Franchise-based restaurants however benefit more from financial stimulus than company-owned restaurants. 

• Presentations: MIT Finance Lunch, MFA 2021

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

• The Gornall and Strebulaev (2020) upward bias in later-stage pre-money-valuations, while affecting all funding-round-to-exit returns, does not affect the performance of Aggregate Portfolio of All Equity Investments (APAEI). APAEI had an internal rate of return of 22%, and a superior Generalized Public Market Equivalent of 1.44. APAEI declines after 1999. 

• Presentations: AFA 2020 (by coauthor)