CITBA Research Clusters Banking and Financial Markets Research

Banking and Financial Markets Research

A healthier banking and financial market can greatly improve the efficiency of capital allocation in the economy. Over years with the help of information technology, the global financial marketplace has evolved into a state that investors can choose various financial tools to achieve their desired wealth goals. However, at the same time many financial markets have had to manage period of instability since the financial crisis of 2008. In addition to this, increased algorithmic trading and the recent anti-globalization policies implemented by major developed countries have triggered even larger uncertainties in the financial marketplace. Given such an environment, how can the banking and financial sector react and further improve its performance capabilities?

At CITBA, we focus on the banking and financial market frictions in Asian markets. Our research interests include empirical asset pricing, market microstructure, bank operational efficiency and productivity, bank performance, and income inequality. Given such interests, our research has been published in various top finance journals including Journal of Financial Economics, Financial Review, International Review of Finance, Pacific-Basin Finance Journal, Empirical Economics, and Applied Economics.

Currently, we are working on the risk factor constructions in the major Asian markets, the industrial level analysis of various corporate policies such as corporate social responsibility (CSR) on firm performance, loan growth and bank risk, bank competition and funding costs, financial market development and determinants of income inequality.

If you are keen to discuss banking and finance research opportunities in Asia, please contact Dr. Thanh Nguyen at nguyen.thanh@jcu.edu.au or Huiping Zhang at huiping.zhang@jcu.edu.au

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More recently, our team member, Associate Professor Huiping Zhang, has published a research article at the prestigious Journal of Empirical Finance. Her study shows that, to obtain a precise measure of the liquidity premium in the stock market, it is important to recognise the influence of information uncertainty on the pricing of liquidity. Information uncertainty is positively correlated with stock illiquidity but negatively priced in the stock market and therefore obscures the estimation of the liquidity premium. Her study addresses the recent debate about whether liquidity is still priced in recent decades, given the significant improvement in the trading technology and increase of the trading volume during this period.More recently, our team member, Associate Professor Huiping Zhang, has published a research article at the prestigious Journal of Empirical Finance. Her study shows that, to obtain a precise measure of the liquidity premium in the stock market, it is important to recognise the influence of information uncertainty on the pricing of liquidity. Information uncertainty is positively correlated with stock illiquidity but negatively priced in the stock market and therefore obscures the estimation of the liquidity premium. Her study addresses the recent debate about whether liquidity is still priced in recent decades, given the significant improvement in the trading technology and increase of the trading volume during this period.