Tracy Yue Wang

About

Tracy Yue Wang is the John Spooner Professor of Finance at the Carlson School of Management. Her expertise lies in the fields of corporate governance, law and economics, and behavioral finance. Her current research explores the impact of prominent societal trends such as increasing attention to ESG and DEI, increasing polarization in ideology, and increasing income inequality on corporate finance and corporate governance. She has also established expertise in research related to corporate securities fraud, securities market regulation, and the value impact of management. She has published in top economics, finance, and accounting journals such as the Journal of Finance, Review of Financial Studies, Review of Economic Studies, Journal of Law, Economics, and Organization, and Journal of Accounting and Economics. She currently serves as an editor for the Journal of Corporate Finance.

Research topics

• Economics
• Business
• Political Science
• Sociology
• Finance
• Public relations
• Accounting
• Financial economics
• Marketing
• Law

Selected publications

• Corporate Scandals and Household Stock Market Participation

  The Journal of Finance · 2016-02-20 · 386 citations

  articleSenior author

  ABSTRACT We show that, after the revelation of corporate fraud in a state, household stock market participation in that state decreases. Households decrease holdings in fraudulent as well as nonfraudulent firms, even if they do not hold stocks in fraudulent firms. Within a state, households with more lifetime experience of corporate fraud hold less equity. Following the exogenous increase in fraud revelation due to Arthur Andersen's demise, states with more Arthur Andersen clients experience a l…

  PublisherDOI

• Learning About CEO Ability and Stock Return Volatility

  Review of Financial Studies · 2015-02-11 · 197 citations

  article

  Consistent with predictions from a stylized Bayesian learning model stock return volatility declines with CEO tenure in a convex manner, even for CEOs whose appointments occur for exogenous reasons. The decline is faster when there is higher uncertainty about the CEO's ability when there is more transparency about the firm's prospects, and when CEO ability is more important in value creation. We quantify the importance of uncertainty about CEO ability relative to the firm's fundamental cash flow…

  PublisherDOI

• CEO Investment Cycles

  Review of Financial Studies · 2016-05-14 · 146 citations

  article

  This paper documents the existence of a CEO investment cycle, in which disinvestment decreases over a CEO's tenure, while investment increases, leading to “cyclical” firm growth in assets and employment. The estimated variation in investment rate over the CEO investment cycle is of the same order of magnitude as the differences caused by business cycles or financial constraints. Results from a number of tests generally support the view that the investment cycle is caused by agency problems, lead…

  PublisherDOI

• Do Equity Markets Care <b>about Income Inequality? Evidence from Pay Ratio Disclosure</b>

  The Journal of Finance · 2022 · 125 citations

  Senior author

  ABSTRACT We examine equity markets’ reaction to the first‐time disclosure of the CEO‐worker pay ratio by U.S. public companies in 2018. We find that firms disclosing higher pay ratios experience significantly lower abnormal announcement returns. Firms whose shareholders are more inequality‐averse experience a more negative market response to high pay ratios. Furthermore, during 2018 more inequality‐averse investors rebalance their portfolios away from stocks with a high pay ratio relative to oth…

  PublisherDOI

• Public Attention to Gender Equality and Board Gender Diversity

  Journal of Financial and Quantitative Analysis · 2022 · 82 citations

  Senior authorCorresponding

  Abstract We document that heightened public attention to gender equality is associated with an increase in board gender diversity. Improvements in diversity are more pronounced in firms with a corporate culture that is already sympathetic to gender equality. When public attention to gender equality increases, firms reach out to a larger pool of women, such as women without industry experience or outside their network, but female director appointments do not appear to be dilutive of the board’s s…

  PublisherOA PDFDOI

Frequent coauthors

• Yihui Pan

  University of Utah

  64 shared

• Michael S. Weisbach

  National Bureau of Economic Research

  64 shared

• Andrew Winton

  University of Minnesota

  27 shared

• Mariassunta Giannetti

  19 shared

• Stephan Siegel

  18 shared

• Yue Qiu

  14 shared

• Craig Burnside

  13 shared

• Christian Leuz

  13 shared

Similar researchers at University of Minnesota

• Robert Goldsteinh-58
• Murray Z Frankh-40