Xia, Han

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Han Xia Is an Associate Professor of Finance and Managerial Economics. He is also a Sydney Smith Hicks Faculty Fellow. His researh interests include:

  • Empirical and Theoretical Corporate Finance with a focus on Financial Institutions
  • Credit Rating Agencies
  • Securitization

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    Follow the Money: Investor Trading around Investor-Paid Credit Rating Changes
    (Elsevier B.V.) Bhattacharya, U.; Wei, Kelsey D.; Xia, Han; 77421245 (Wei, KD); Wei, Kelsey D.; Xia, Han
    Using institutional equity trading data, we find that a set of small institutional investors consistently follow credit ratings issued by an investor-paid rating agency in their trading decisions. Although rating information is credit related, we find that these followers often respond more strongly to investor-paid ratings than to influential trading signals, such as earnings announcements, analysts' earnings forecast revisions, and recommendation changes. Followers outperform non-followers, and show improved trading performance after becoming followers. We conclude that investor-paid rating agencies offer small institutional investors a cost-effective alternative to in-house research. ©2019 Elsevier B.V.

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