Henry Cao

Dr. Cao Huining (Henry) is a Professor of Finance and Chair of the Finance Department at CKGSB. He earned a PhD in Finance in 1995 from UCLA and a PhD in Pathology in 1991 from Yale University.

Before joining CKGSB, he taught at UC Berkeley, UCSD, Ohio State University, Carnegie Mellon and UNC Chapel Hill.

Cao’s research has been published in journals including Journal of Finance, Review of Financial Studies, Journal of Financial Economics, Journal of Economic Theory, Journal of Business, Review of Finance and Marketing Science. Cao is the co-editor of International Financial Review and sits on the editorial board of Annals of Economics and Finance and China Financial Review.

Education

• UCLA - phD, Finance 1991 - 1995
• Yale University - phD , Pathology 1985 - 1991
• Shanghai Biochem. Ins - MS Program, Biochem. 1984 - 1985
• Univ. Sci. Tech. China - Bachelor of Science - BS, Mol. Biol. 1979 - 1984

Areas of Expertise:

Asset Pricing, Behavioral Finance, Cryptocurrencies, Hedge Funds and Alternative Investments, Microstructure, Options Pricing, International Finance

Selected Publications

• “Taking The Road Less Traveled By: Does Conversation Eradicate Pernicious Cascades?” H. Henry Cao, Bing Han, and David Hirshleifer, Journal of Economic Theory, 146 (4), July, (2011): 1418-1436.
• Fear of The Unknown: The Effects of Familiarity on Financial Decisions, H. Cao, Bing Han, David Hirshleifer and Harold H. Zhang, Review of Finance, 2011,15 (1): 173-206. Won the runner-up of the “2011 Spängler IQAM Best PaperPrize”.
  
• Portfolio Performance Measurement: A No Arbitrage Bounds Approach,” with Dong-Hyun Ahn, H. Caoand Stephane Chretien, European Financial Management，2009, 15 (2):298-339.
• “Differences of Opinion of Public Information and Speculative Trading in Stocks and Options,” H. Caoand Hui Ou-Yang, Review of Financial Studies, 2009, 22(1):299-335; Won the third place best paper award at 2004 CIFC and best paper award most relevant to practitioners at 2005 WFA.
  
• “Inventory Information,” H. Cao, Martin Evans and Rich Lyons, Journal of Business, 2006, 79：325-364.
• “Model Uncertainty, Limited Market Participation and Asset Prices,” H. Cao, Tan Wang and Harold H. Zhang, Review of Financial Studies, 2005，1219 – 1251.
• “The Dynamics of International Equity Market Expectations,” Michael J. Brennan, H. Cao, Norman Strong and Xinzhong Xu, Journal of Financial Economics, 2005，257-288
• “Product Strategy for Innovators in Markets with Network Effects,” Sun, B., Xie, J. and H. Cao, Marketing Science, 2004, 243-254.
• “Sidelined Investors, Trading-Generated News, and Security Returns,” H. Cao, J. Coval and D. Hirshleifer, Review of Financial Studies, 2002, 15, 615-648.
• “Imperfect Competition Among Informed Traders,” K. Back, H. Caoand G. Willard, Journal of Finance, 2000, 5, 2117-2155. Nominated for Smith-Breeden Prize.
• “The Effect of Derivative Assets on Endogenous Information Acquisition and Price Behavior in a Rational Expectations Equilibrium,” H. Cao, Review of Financial Studies, 1999, 12, 131-163.
• “International Portfolio Investment Flows,” Michael J. Brennan and H. Cao, Journal of Finance, 1997, 52, 1851-1880, Nominated for Smith-Breeden Prize. Best paper award in emerging market research at NFA. Reprinted in International Library of Critical Writings in Financial Economics, Edited by Richard Roll.
• “Information, Trade, and Derivative Securities,” Michael J. Brennan and H. Cao, Review of Financial Studies, 1996, 9, 163-208.