Yang Zhao

Yang Zhao
PhD Program, Finance
PhD Program Office
Graduate School of Business
Stanford University
655 Knight Way
Stanford, CA 94305

Yang Zhao

I am a fifth-year Finance Ph.D. student and job market candidate at the Stanford Graduate School of Business. My research interest is in empirical corporate finance and financial intermediation. I will be available for interviews at the 2020 ASSA Annual Meeting in San Diego.
Faculty Advisors
Amit Seru Joshua D. Rauh
Research Interests
Empirical Corporate Finance
Financial Intermediation

Job Market Paper

Corporate Liquidity and Real Investments PDF
This paper examines the effect of a firm's liquidity holdings on its real investments and its impact on broader outcomes. I exploit the regulation-driven increase in the supply of wealth management products (WMPs) -- deposit alternatives issued in the shadow banking sector -- as a shifter of liquidity holdings by Chinese firms. I find that an increase in corporate liquidity leads to a sharp reduction in capital and R&D expenditures by firms. Using exogenous variation in banks' WMP supply induced by regulation, I argue that the effect of corporate liquidity holdings on real investments is causal. I find the reduction in real investments leads to a decrease in firm-level TFP, patent application, primary business revenue, and employment. Aggregating firm-level responses at the regional level in a difference-in-difference setting that uses the same regulatory shock suggests that the growth of corporate liquidity holdings has a negative impact on local economic outcomes. Cities more exposed to banks that increased their supply of WMPs exhibit slower capital and consumption growth. My findings suggest that a firm's liquidity holding decisions have a direct impact on its real investments and broader economic activities.
Working Papers
The Passthrough of Treasury Supply to Bank Deposit Funding PDF
with Wenhao Li and Yiming Ma
Last Updated 6 Dec 2019