Hao Zhang — Saunders College of Business
Some of Dr. Hao Zhang’s recent studies focus on corporate tax avoidance, which means that corporations take various actions to reduce tax payment. Dr. Hao Zhang, along with Saunders College of Business professor Dr. Stan Hoi and co-authors from RPI and Fordham University, published articles in Journal of Financial Economics (JFE) and The Accounting Review (TAR) about corporate tax avoidance. The TAR paper shows that firms with excessive irresponsible CSR activities have aggressive corporate tax avoidance, lending credence to the argument that corporate culture shapes tax avoidance behaviors. The JFE paper provides convincing evidence that debtholders, including banks and public bond investors, perceive corporate tax avoidance as risk-engendering activities and therefore charge higher interest cost when lending to firms that are aggressively avoiding taxes.
Dr. Hao Zhang is also interested in issues related to market microstructure and information intermediaries. The Journal of Financial Markets (JFM) paper, titled “A Simple Approximation of Intraday Spreads Using Daily Data” (with Dr. Kee Chung), provides a simple approximation of intraday bid-ask spread. Bid-ask spread is a widely-used measure of information asymmetry and market liquidity, therefore this study should be of interest to both academia and industry practitioners. This study and its proposed bid-ask spread measure have been cited and taught in a recent textbook that teaches financial modeling.
DEPARTMENT OF FINANCE
SAUNDERS COLLEGE OF BUSINESS