Zhiwu Chen Professor of Finance Yale School of Management
Zhiwu Chen is best known for his study on how different option-pricing models perform in practice. It is widely cited in academia and used in practice, where minute differences in valuation models can become the basis for multi-million dollar arbitrage trades. Zhiwu has recently developed a sophisticated technique, based on the science of derivatives, for determining whether stocks are fairly priced - a tool, which he is now using for money management. While most of Zhiwu's work is broadly termed "asset-pricing," he remains interested in the role of capital markets in society. As a theorist he has studied the effects of the spirit of capitalism on markets. As an empiricist - working with recently acquired data from China, his research has documented important factors influencing Chinese share prices - this in turn has led to policy implications for Chinese regulatory agencies. At present, a personal interest of his, and that of the International Center for Finance, is working towards the development of functional and efficient capital markets in China - a mission for which the Yale name has provided useful leverage.
During his recent six-month visit in China, Zhiwu focused most of his research efforts on press freedom and market development, and lectured on this topic at more than a dozen universities and institutions. His writings and lectures on press freedom, rule of law and economic development made him featured as one of the five influential economists in China in the December 30, 2002 year-end edition of the Economic Observer (a weekly national publication in China).
The list below is a sampling of Professor Chen's articles that have appeared in the Chinese media. The list below does not include the numerous interviews published in Chinese newspapers and magazines.
1."Judicial Independence, Case Law and Shareholder Protection," The Southern Weekend, February 27, 2003.
2."Robert Shiller's Pursuit of Behavioral Finance," Economic Observer, February 24, 2003.
3."Why Do Firms Pay Dividends -- on the implications of Microsoft's new dividend policy," New Fortune, March 2003.
4."Where Should Companies Go Public?" New Fortune, January 2003.
5."Press Freedom and Market Development," published in four installments in 21st Century Economic Herald, December 2002.
6."On Informationally Opaque Stock Markets: why is a free press so important?" New Fortune, December 2002.
7."Without a Reliable Rule of Law, Do Not Expect Public Capital Markets to Play Much Economic Role in China," Caijing magazine, December 5, 2002.
8."What Prevents Us from Growing Our Business? -- on the negative roles of government regulations," New Fortune, November 2002.
9."The Dilemma Faced by Chinese Accountants: to manipulate or not to manipulate earnings?" China News Weekly, November 2002.
10."Why Shareholder Class Action Suits?" The Securities Law Review, October 2002.
11."On Privatization of State-Owned Shares: who benefits more?" with Xiong Peng, New Fortune, October 2002.
12."On Competition in China's Banking Industry," The Banker, October 2002.
13."The Legal Dilemma of the Chinese Press: how have media defendants fared in court?" published in two installments in 21st Century Economic Herald, September 2002.
14."Executive Stock Options: the right incentive mechanism for China," New Fortune, September 2002.
15."Stock Market Bubbles and Hard Landing: understanding the recent corporate scandals in the U.S.," New Fortune, August 2002.
16."What Went Wrong at WorldCom?" with Zheng Yue, New Fortune, August 2002.
17."Economic Consequences of Stock Market Crashes: revisit the 1929 crash in the U.S.," with Xiong Peng, New Fortune, August 2002.
18."An Evolutionary View on Chinese Capital Market Development: lessons from the American experience in the 1880s," New Fortune, July 2002.
19."The Meaning of the Press Freedom Right: comments on the court ruling in Fountain v. Caijing Magazine case," Southern City News, June 15, 2002.
20."Press Freedom and Protection of Shareholder Rights," Economic Observer, June 2002.
21."A Potential Lawsuit Storm against Media Publications: why should China's court protect media defendants?" New Fortune, June 2002.
22."Why Risk Management at Investment Funds?" New Fortune, May 2002.
23."The CSRC, the Court and the National People's Congress: How Should They Share the Responsibility of Capital Market Regulation?" Caijing magazine, April 20, 2002.
24."Government Intervention and Rent Seeking on Capital Markets" Caijing magazine, April 20, 2002.
25."Why Securities Class Action Litigation in China? --- Speaking from the U.S. Experience," New Fortune, April 2002.
26."Why Should the Social Security Fund of China Adopt an Index Investing Strategy? --- A Behavioral Perspective," New Fortune, March 2002.
27."The Tokyo Joe Stock Manipulation Case," with Shi Hong, New Fortune, March 2002.
28."Should China Experiment with Case Law in Securities Litigation?" New Fortune, February 2002.
29."Common Law versus Civil Law: which system is better for financial market development?" New Fortune, February 2002.
30."Who Discovered Enron?" with Franklin Yang, Caijing magazine, January 2002.
31."Structured Finance and Corporate Strategies of Enron," with Yue Zheng, Caijing magazine, January 2002.
32."Insider Trading Litigation in the U.S.: the IBM insider case," with Yue Zheng, New Fortune, January 2002.
33."Index Investing: A Proposal for China's Social Security Fund," New Fortune, January 2002.
34."The Cendant Class Action Case: How the U.S. Protect Shareholder Rights," New Fortune, December 2001.