PUBLICATIONS

1. Face Value: Trait Impressions, Performance Characteristics, and Market Outcomes for Financial Analysts
- with Lin Peng, Siew Hong Teoh, and Yakun Wang, 2022, SSRN
- Journal of Accounting Research 60 (2): 653-705. Top Downloaded Article
- Media Coverage: WSJ, UCLA Anderson Review, Chicago Booth Review

Abstract: Using machine learning–based algorithms, we measure key impressions about sell-side analysts using their LinkedIn photos. We find that impressions of analysts’ trustworthiness (TRUST) and dominance (DOM) are positively associated with forecast accuracy, especially after recent in-person meetings between analysts and firm managers. High TRUST also enhances stock return sensitivity to forecast revisions, especially for stocks with high institutional ownership. In contrast, the impression of analysts’ attractiveness (ATTRACT) is only positively associated with accuracy for new analysts or when a firm has a new CEO or CFO. Furthermore, while high DOM helps male analysts’ chances of attaining All-Star status, it reduces female analysts’ accuracy and the likelihood of winning the All-Star award. In addition, the relation between TRUST and accuracy is modulated by the disclosure environment and is attenuated by Regulation Fair Disclosure. Our results suggest that face impressions influence analysts’ access to information and the perceived credibility of their reports.

2. Do Shared Auditors Facilitate Follow-on Innovation?
- with Xuan Tian and Luo Zuo, 2025, SSRN
- Journal of Accounting Research, Forthcoming
- Best Paper Award at 2022 MIT Asia Conference in Accounting

We investigate whether shared auditors promote the dissemination of innovative knowledge among their clients, thereby fostering follow-on innovation. We find that a company cites more patents from another company when they are audited by the same audit office. To address concerns about potential confounding factors stemming from commonalities in the fundamentals of the two companies, we leverage a quasi-exogenous shock to auditor sharing: the demise of Arthur Andersen and the subsequent increase in auditor switching in 2002. Further analysis reveals that the effect of a shared auditor on cross-client patent citations is stronger when both clients engage in intensive innovation activities. Additional evidence suggests that shared auditors exert more influence on the citations of recent patents and patents that are easier for outsiders to utilize. Overall, our findings suggest that auditors affect corporate innovation by facilitating the transfer of innovative knowledge among their clients.

WORKING PAPERS

1. Circuitousness in Disclosure Narratives
- with Nicholas Guest, 2025, SSRN

Abstract: This paper examines circuitousness, which reflects the extent to which related information is spread throughout a narrative as opposed to being grouped together. Circuitousness in the MD&A is negatively associated with the persistence of earnings, especially for firms with negative earnings. Higher circuitousness is also associated with greater ERCs, analyst forecast revisions, abnormal trading volume, and intraperiod price timeliness. Taken together, these results suggest revisiting topics helps inform investors. However, circuitousness also predicts returns over the subsequent year, consistent with it being costly to process. We find that circuitousness is incrementally and more consistently predictive than other textual characteristics that are typically associated with obfuscation, including Fog index and length, which are extremely popular, as well as repetition, boilerplate, and stickiness, which are closely related. Overall, circuitousness appears to help investors integrate disparate information, on average, while generating additional processing costs.

2. Earnings Pressure and Corporate Refocus
- with Eric Yeung and Xingyu Shen, 2025

Abstract: Facing the pressure to meet short-term earnings expectations, managers often take actions that are thought to be destroying firm value. Our study provides empirical evidence supporting an alternative view: Earnings pressure forces the managers to refocus on the firm's core products through cost-cutting, which can be value-enhancing. The documented product refocus is more pronounced when the CEO exhibits high-level agency problems. For identification, we exploit the setting of analyst brokerage mergers and closures. Our study suggests a bright side of earnings pressure - it helps reduce agency-motivated product diversification.