University of California, Riverside

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Professor Hong's research is published in the Journal of Accounting Research and the Journal of Accounting, Auditing and Finance

 

Two papers by Hyun 'Shana' Hong, assistant professor of accounting at UCR School of Business, will be published in the Journal of Accounting Research and the Journal of Accounting, Auditing and Finance.

Professor Hong’s paper titled, “Divergence of Cash Flow and Voting Rights, Opacity, and Stock Price Crash Risk: International Evidence” was published in the Journal of Accounting Research. The research shows that opaque firms with a large wedge are more crash-prone than opaque firms with a small wedge. In addition, it finds the positive relation between the wedge and crash risk is less pronounced for firms with more effective external monitoring and for firms with greater growth opportunities. The paper was co-authored by Jeong-Bon Kim, City University of Hong Kong and University of Waterloo, and Michael Welker, Queen’s University.

The second paper, titled “Does Financial Reporting Conservatism Mitigate Underinvestment?” was published in the Journal of Accounting, Auditing and Finance. The research argues that financial reporting conservatism reduces underinvestment and shows that agency conflicts cause underinvestment when firms experience insufficient internal cash flows to finance their growth opportunities because new providers of external capital may require a higher return to protect themselves from managers’ alignment with existing shareholders. The paper was co-authored by Yongtae Kim, Santa Clara University, and Gerald J. Lobo, Bauer College of Business University of Houston.

Professor Hong’s research focuses on price discovery in derivative markets, such as the credit default swap market, the options market, and the equity lending market, as well as the effect of corporate governance and regulation changes in an international setting. More generally, she is interested in how value-relevant information is transferred between different markets and whether and how corporate governance or regulation changes, such as mandatory IFRS adoption, shape the price formation process and corporate financial statements. Her research has been published in top accounting journals, including The Accounting ReviewContemporary Accounting Research, and Review of Accounting Studies.



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