Baolian Wang is the Bank of America assistant professor of finance in the Finance, Insurance and Real Estate Department. His research areas are empirical asset pricing, behavioral finance, investor behavior and corporate governance. His research has been published in leading academic journals including the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, and the Strategic Management Journal.
Areas of Expertise (5)
Demand Curves for Stocks Slope Down in the Long Run: Evidence from the Chinese Split-Share Structure ReformCritical Finance Review forthcoming
This paper uses China’s Split-Share Structure Reform to study the slope of long-term demand curves. The reform increased local A-share float but did not affect foreign B-share float. Across firms, larger increases in A-share float lead to larger decreases in A-share price relative to B-share price, even up to around ten years after the reform, suggesting that demand curves slope down in the long run. Larger increases in float also lead to larger decreases in turnover and volatility, and demand curves are steeper when the divergence of opinion is greater, consistent with the theory modeling investors with heterogeneous beliefs.
The Gender Effects of COVID-19 on Equity AnalystsSSRN
Frank Weikai Li and Baolian Wang
We use COVID-19 as an experiment to study the effects of childcare and household duties on sell-side analysts. We find that female analysts' forecast accuracy declined more than male analysts, especially when schools were closed and among analysts who were more likely to have young children, inexperienced, busier, and lived in southern states. Relative to male analysts, females also reduced forecast timeliness and resorted to more heuristic forecasts but did not reduce coverage or updating frequency. Overall, our results show that the pandemic impacted female analysts more than males through the quality of their forecasts but not the quantity.
The cash conversion cycle spreadJournal of Financial Economics
The cash conversion cycle (CCC) refers to the time span between the outlay of cash for purchases to the receipt of cash from sales. It is a widely used metric to gauge the effectiveness of a firm's management and intrinsic need for external financing. This paper shows that a zero-investment portfolio that buys the lowest CCC decile stocks and shorts the highest CCC decile stocks earns 5%–7% alphas per year. The CCC effect is prevalent across industries, remains even for large capitalization stocks, distinct from the known return predictors, and cannot be explained by the financial intermediary leverage risk.