Author
Wayne Yu
Other affiliations: Queen's University, Hong Kong Polytechnic University, University of Lethbridge
Bio: Wayne Yu is an academic researcher from City University of Hong Kong. The author has contributed to research in topics: Stock market & Stock (geology). The author has an hindex of 13, co-authored 23 publications receiving 2805 citations. Previous affiliations of Wayne Yu include Queen's University & Hong Kong Polytechnic University.
Papers
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TL;DR: This paper found that stock prices move together more in poor economies than in rich economies, and this "nding is not due to market size and is only partially explained by higher fundamentals".
2,122 citations
TL;DR: In this paper, the authors conjecture that weak private property rights impede informed trading and increase systematic noise trader risk, and also conjecture that, in countries that protect public investors poorly from corporate insiders, intercorporate income shifting may make firm-specific information less useful to risk arbitrageurs and therefore impede its capitalization into stock prices.
Abstract: Stock prices move together more in low-income economies than in high-income economies. This finding is clearly not due to market size differences, and is only partially explained by slightly higher fundamentals correlation in low-income economies. However, measures of a country?s institutionalized respect for property rights do appear to explain these differences. We conjecture that weak private property rights impede informed trading and increase systematic noise trader risk. We also conjecture that, in countries that protect public investors poorly from corporate insiders, intercorporate income shifting may make firm-specific information less useful to risk arbitrageurs and therefore impede its capitalization into stock prices. Although our tests support these conjectures to some extent, we invite other explanations of our main finding.
345 citations
TL;DR: This article examined the relation between layoffs and stockholders' wealth, and corporate performance subsequent to layoffs, finding that layoffs are preceded by a period of poor stock market and earnings performance, and are followed by significant improvements in both.
117 citations
TL;DR: By identifying how signaling and search costs are reduced by big data analytics for credit risk management of P2P lending, this paper discusses how information asymmetry is reduced in the big data era.
Abstract: In the past decade, online Peer-to-Peer (P2P) lending platforms have transformed the lending industry, which has been historically dominated by commercial banks. Information technology breakthroughs such as big data-based financial technologies (Fintech) have been identified as important disruptive driving forces for this paradigm shift. In this paper, we take an information economics perspective to investigate how big data affects the transformation of the lending industry. By identifying how signaling and search costs are reduced by big data analytics for credit risk management of P2P lending, we discuss how information asymmetry is reduced in the big data era. Rooted in the lending business, we propose a theory on the economics of big data and outline a number of research opportunities and challenging issues.
71 citations
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TL;DR: The authors argue that property rights, judicial efficiency, clean government and meaningful accounting information let stock markets process information and allocate capital better, and thus contribute to economic growth in emerging markets, while the absence of these factors may discourage informed trading and foster noise trading.
Abstract: Stock prices in emerging economies move in step much more than in advanced economies. Emerging markets' prices capitalize less firm specific information, and appear subject to more economy-wide fluctuations. Measures of this consonance of stock returns are positively correlated with indicators of poor property rights protection, inefficient legal systems and corrupt government. Lax accounting standards strengthen these correlations, but do not have an independent effect. We argue that property rights, judicial efficiency, clean government and meaningful accounting information let stock markets process information and allocate capital better, and thus contribute to economic growth. The absence of these factors may discourage informed trading and foster noise trading.
64 citations
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TL;DR: In this article, the authors argue that the legal approach is a more fruitful way to understand corporate governance and its reform than the conventional distinction between bank-centered and market-centered financial systems, and discuss the possible origins of these differences, summarize their consequences, and assess potential strategies of corporate governance reform.
6,387 citations
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TL;DR: In this article, the authors introduce the concept of ''search'' where a buyer wanting to get a better price, is forced to question sellers, and deal with various aspects of finding the necessary information.
Abstract: The author systematically examines one of the important issues of information — establishing the market price. He introduces the concept of «search» — where a buyer wanting to get a better price, is forced to question sellers. The article deals with various aspects of finding the necessary information.
3,790 citations
TL;DR: Li et al. as discussed by the authors examined three sectors of the economy: the State Sector (state-owned firms), the Listed Sector (publicly listed firms), and the Private Sector (all other firms with various types of private and local government ownership).
Abstract: China is an important counterexample to the findings in the law, institutions, finance, and growth literature: neither its legal nor financial system is well developed by existing standards, yet it has one of the fastest growing economies. We examine 3 sectors of the economy: the State Sector (state-owned firms), the Listed Sector (publicly listed firms), and the Private Sector (all other firms with various types of private and local government ownership). The law-finance-growth nexus established by existing literature applies to the State and Listed Sectors: with poor legal protections of minority and outside investors, external markets are weak, and the growth of these firms is slow or negative. However, with arguably poorer applicable legal and financial mechanisms, the Private Sector grows much faster than the State and Listed Sectors, and provides most of the economy's growth. This suggests that there exist effective alternative financing channels and governance mechanisms, such as those based on reputation and relationships, to support this growth.
2,829 citations
TL;DR: Li et al. as mentioned in this paper showed that the private sector grows much faster than the other three sectors and provides most of the economy's growth, while the law-finance growth nexus applies to the State Sector and the Listed Sector, with arguably poorer applicable legal and financial mechanisms.
2,721 citations
TL;DR: In this article, Hong Kong, Malaysia, Singapore and Thailand provide rare insight into the interaction between accounting standards and the incentives of managers and auditors, showing that their financial reporting quality is not higher than under code law, with quality operationalized as timely recognition of economic income.
2,059 citations