Jimmy Yang

541-737-6005

jimmy.yang@bus.oregonstate.edu

Faculty

Jimmy Yang

Overview

Background

Publications

Overview

Career Interests

Jimmy Yang is a Professor of Finance in the College of Business. He currently teaches courses in Corporate Finance and International Financial Management. His research has focused on market stabilization mechanisms, international financial markets, and equity offerings.

Background

Education

Ph.D. University of Cincinnati (2003)
Finance

MBA Saint Louis University (1997)
Finance

BA National Chung Hsing University (1993)
Public Finance

Experience

Professor, College of Business, Oregon State University (2015 - present)
Associate Professor, College of Business, Oregon State University (2009 - 2015)
Assistant Professor, College of Business, Oregon State University (2003 - 2009)
Instructor, College of Business Administration, University of Cincinnati (2001 - 2002)

Professional Affiliations

American Finance Association
Financial Management Association
Western Finance Association

Honors & Awards

Toomey Faculty Fellow, COB, Oregon State University (2012-2014)
Faculty International Grant, International Programs, Oregon State University (2013)
International Programs Faculty Grant, Oregon State University (2011, 2012)
Newcomb Fellowship, COB, Oregon State University (2009)
Gazette-Times Faculty Leadership Award, COB, Oregon State University (2009)
Outstanding Faculty Service Award, COB, Oregon State University (2007, 2008)
Summer Research Fellowships, COB, Oregon State University (2004, 2005, 2006, 2008, 2009, 2010, 2013)
University Distinguished Dissertation Fellowship for Behavioral & Social Sciences, University of Cincinnati (2002-2003)
University Graduate Scholarships, University of Cincinnati (1998-2002)
Summer Research Fellowships, University of Cincinnati (2000)

Publications

Academic Journal

Supply Chain

“The magnet effect of price limits: a logit approach”

We investigate the magnet effect of price limits using transaction data from the Taiwan Stock Exchange. A logit model incorporates explanatory variables from microstructure literature and reveals that the conditional probability of a price increase (decrease) increases significantly when the price approaches the upper (lower) price limit, in support of the magnet effect. Our approach recognizes when the magnet effect starts to emerge and identifies possible determinants of magnet effect. The probability of information-based trading has a significant impact on the magnet effect for lower price limits.

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Academic Journal

Finance

“The Effect of Price Limits on Intraday Volatility and Information Asymmetry”

We investigate the effect of price limits on intra-day volatility and information asymmetry using transactions data from the Taiwan Stock Exchange. Proponents of price limits argue that they provide an opportunity for investors to reevaluate market information and make more rational trading decisions. We identify three different limit hits – closing, single, and consecutive – and hypothesize that only the consecutive limit hits are likely to provide such an opportunity, namely, to counter investor overreaction (volatility hypothesis) and to enhance information revelation (information asymmetry hypothesis). Our empirical evidence supports the volatility hypothesis. Our findings generate important policy implications for stock markets that have price limits.

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Academic Journal

Finance

“Relative Performance of Trading Halts and Price Limits: Evidence from the Spanish Stock Exchange”

We study the relative performance of trading halts and price limits using data from the Spanish Stock Exchange where both mechanisms have coexisted. According to our evidence, trading activity increases after either mechanism is triggered. Volatility stays the same after trading halts but increases after price limit hits. Our evidence also shows that the bid–ask spread is narrower after trading halts but wider after price limit hits. Information is efficiently reflected in stock prices once trading resumes after trading halts, but there is evidence of market overreaction for upper price limits. Our overall result may have important policy implications for financial markets in the world.

Full Details

Yong Kim, José Yagüe and Jimmy Yang "Relative Performance of Trading Halts and Price Limits: Evidence from the Spanish Stock Exchange" International Review of Economics and Finance 197-215 pages 2008 View on: Google Scholar

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Academic Journal

Finance

“Teaching an Old Dog New Tricks: Using the Dividend Growth Model in Financial Planning”

The Dividend Growth Model is a standard pedagogical tool in pricing stocks where the dividend grows at a constant rate. However, few dividend policies conform to this restrictive pattern and therefore the model is often quickly discarded in finance classes. The constant growth assumption of a cash flow stream fits well with other financial problems such as saving for a college education or contributions to a pension plan. This paper presents a couple of applications for the Dividend Growth Model plus an extension to the model and belies the adage: you can’t teach an old dog new tricks.

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Academic Journal

Finance

“What makes circuit breakers attractive to financial markets? A survey”

After the stock market crash of October 1987, the Brady Report (1988) and several academic researchers suggested the imposition of "circuit breakers" to prevent the market from fluctuating excessively. Most financial markets in the world have imposed circuit breaker systems, in the form of price limits and trading halts, in an attempt to reduce excessive market volatility. Similar to any other regulations, circuit breakers have proponents and opponents. In this survey, we analyze the benefits and costs of each type of circuit breaker, provide existing theoretical models and predictions related to each type of circuit breaker, and present findings from empirical studies to justify or disqualify the existence of circuit breakers. In addition, we synthesize existing studies and offer directions for further research in this area.

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