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Professor of Finance

Professor Zhiwu Chen is an expert on finance theory, securities valuation, emerging markets, and China's economy and capital markets. Dr. Chen started his career by publishing research papers in top economics and finance journals on topics related to financial markets and theories of asset pricing. Around 2001, Dr. Chen began to expand his research focus by going beyond mature markets and investigating market development and institution-building issues in the context of China’s transition process and other emerging markets. What institutions are necessary for markets to develop? Why is finance important for society? How does financial development affect social structure and individual freedom? His work has been featured in newspapers and magazines in the United States, Hong Kong, China and other countries. He is a frequent contributor to media publications in China on topics of economic policy, market development and legal reform. His list of books published in China includes: How Is Wealth Created? (2005), Media, Law and Markets (2005), Why Are the Chinese Industrious and Yet Not Rich? (2008), Irrational Overconfidence? (2008), The Logic of Finance (2009), 24 Wealth Lectures (2009), and Assessing China’s Economic Growth of the Past 30 Years (2010).

Achievements and Awards
Named "10 Public Intellectuals influencing China in 2010" by Times Weekly (a national newspaper in China)
Received 23 "Best Books of the Year" awards in various categories for his book, The Logic of Finance, 2009 & 2010
First Prize, "Hexun Best Books of 2008", for his book, Why Are the Chinese Industrious and Yet Not Rich?
Named "10 Most Influential Economists in China" by Wall Street Wire, 2006
Pacesetter Research Award, Ohio State University, 1999
Merton Miller Prize, 1994
Chicago Board Options Exchange Competitive Research Award, 1994

Boards
Chief Academic Advisor, China Central Television (CCTV) documentary series, 10 episodes, "Wall Street" 2009-2010 and "Money" 2010-
Expert Advisory Commission to the Beijing Government on the 12th Five-Year Plan, 2010-
Board of Directors, Yale-China Association, 2010-
Board of Directors, Bank of Communications, China, 2010-
Academic Committee, Unirule Institute, Beijing, China, 2008-
Board of Directors, Lord Abbett China Fund Management Company, China, 2006-
Expert Advisory Panel on the Formation of the China Investment Corporation, State Council, China, 2007

Editorships
Editor:
Annals of Economics and Finance
Associate Editor:
Journal of Financial and Quantitative Analysis
Journal of Empirical Finance
Pacific-Basin Finance Journal

Selected Articles
"A Valuation Study of Stock-Market Seasonality and Firm Size"  (with J. Jindra), Journal of Portfolio Management, Vol. 36, No. 2, 78-92, Spring 2010

"Mechanisms of Rural Credit Markets in Modern China" (with P. Kaixiang and Y. Weipeng), Economic Research Journal (China), Vol. 43, No. 5, May, 2008

"China’s Stock Market in Historical Perspective," The PB Newsletter, No. 5, 29-40, July, 2006

"Development Prospects of Chinese Industries," in S.C. Jain, ed., Emerging Economies and the Transformation of International Business, Edward Elgar Publishing, Inc., 2006

"Can Compensation for Cash Flow Risk and Discounting Risk Reconcile the Equity Premium Puzzle? (with G. Bakshi), 2005, in R. Mehra and E. Prescott, eds., A Quantitative Analysis, forthcoming

Handbook of Investments: Equity Risk Premium, edited by "Stock Valuation in Dynamic Economies" (with G. Bakshi), Journal of Financial Markets, May, 2005

"Informed Trading in the Options Market" (with C. Cao and J. Griffin), Journal of Business, 2004

"Capital Markets and Legal Development: The China Case," China Economic Review, Vol. 14, No. 4, 451-472, 2003

"Viable Costs and Equilibrium Prices in Frictional Securities Markets," Annals of Economics and Finance, Vol. 2, No. 2, 297-323, November, 2002

"Do Call Prices and the Underlying Stock Always Move in the Same Direction?" ( with G. Bakshi and C. Cao), Review of Financial Studies, Vol. 13, 549-584, 2000

"Pricing and Hedging Long-Term Options" (with G. Bakshi and C. Cao), Journal of Econometrics, 1998

"Empirical Performance of Alternative Option Pricing Models" (with G. Bakshi and C. Cao), Journal of Finance, Vol. LII, No. 5, 1997

"Equilibrium Valuation of Foreign Exchange Claims" (with G. Bakshi), Journal of Finance, Vol. LII, No. 2, 1997

"An Alternative Valuation Model for Contingent Claims" (with G. Bakshi), Journal of Financial Economics, Vol. 44, 1997

"The Spirit of Capitalism and Stock Market Prices" (with G. Bakshi), American Economic Review, Vol. 86, No. 1, 1996

"Portfolio Performance Measurement: Theory and Applications" (with P. Knez), Review of Financial Studies, Vol. 9, No. 2, 1996

"Inflation, Asset Prices, and the Term Structure of Interest Rates in Monetary Economies" (with G. Bakshi), Review of Financial Studies, Vol. 9, No. 1, 1996

Working Papers
"Price Impact Costs and the Limit of Arbitrage" (with W. Stanzl and M. Watanabe)

"Discounts for Illiquid Stocks: Evidence from China" (with P. Xiong)

"Stock Valuation and Investment Strategies" (with M. Dong)

"Stock Valuation in Dynamic Economies" (with G. Bakshi)

"Market Frictions and the Preferred Habitat Theory of the Term Structure of Interest Rates" (with G. Bakshi)

Education
PhD Yale University, 1990
MS Changsha Institute of Technology, China, 1986
BS Central-South University of Technology, China, 1983