OU-YANG Hui

Prof Ou-Yang is the Dean’s Distinguished Chair Professor of Finance at CKGSB. He also serves as Associate Dean for Executive Education Programs. His academic research focuses on the development of asset pricing and corporate finance models. He had previously served as an Associate Professor at Duke University and an Associate Professor at UNC-Chapel Hill. Prof Ou-Yang was voted the best teacher by Duke’s Global EMBA Class of 2004. He won the Barclays Global Investors/Michael Brennan Runner-Up Award for the best paper published in the Review of Financial Studies in 2003 as well as the best paper award (joint with Henry Cao) presented by the Society of Quantitative Analysts in 2005.

Before joining CKGSB, Dr Ou-Yang served as a managing director at UBS where he headed the Quantitative Solutions/Algo Strategies division. His work focused on alpha-generating trading strategies and quantitative portfolio strategies, as well as on the development of structured products. His team developed various structured products, such as “Hedging and Outperforming Inflations in China, Hong Kong, Korea, Malaysia, Singapore and Thailand”, “Asset Allocation using Macro Signals” and “Relative Value Commodity Strategies”. In addition, he provided customized solutions for major UBS clients such as utility companies, airlines and banks. Ou-Yang also served as a managing director at Lehman Brothers and Nomura Securities, where he headed Quantitative Strategies and Quantitative Credit Research. He was heavily involved with many of Lehman’s credit/interest rate structured products as well as beta products, such as replicating Lehman’s bond indexes and replicating the global hedge fund index.

Dr Ou-Yang holds a PhD in finance from UC Berkeley and a PhD in chemical physics from Tulane University. He received his postdoctoral training in chemical physics from the California Institute of Technology, where he worked under Nobel Laureate Rudy Marcus.

Areas of Expertise

Asset Pricing, Corporate Finance, Fixed Income, Integrated Models of Asset Pricing, Internet Finance, Moral Hazard, Quantitative Strategies and Research, Risk Management

Achievements

• Barclays Global Investors/ Michael Brennan Runner-Up (Second Place) Award for the best paper published in Volume 16 of the Review of Financial Studies for “Optimal Contracts in a Continuous-Time Delegated Portfolio Management Problem”.
• Outstanding Professor Award (Professor of the Year), Global Executive MBA, Fuqua Business School, Duke University, 2004.
• The Society of Quantitative Analysts Award, 2005 Western Finance Association Meetings for “Differences of Opinion of Public Information and Speculative Trading in Stocks and Options” (with H. Cao).
• Third place award for the best paper presented at the 2004 China International Finance Association Meeting for “Differences of Opinion of Public Information and Speculative Trading in Stocks and Opinions” (with H. Cao)

Research

• JD Crowdfinancing: Shedding Light on the Sector in China, 2015
• PH Fund REITs Innovative Practices, 2016
• Internet Equity Financing Platform: Where Next?, 2016
• Chinese Companies Going Global: Difficulty and Risk of Overseas M&A, 2017
• Geely’s Acquisition of Volvo: Lasting Love for the Young and Old International Couple, 2017
• Why Is Huawei’s American Dream So Hard to Fulfill?, 2017

Selected Publications

• “Alpha Decay and Sharpe Ratio: Two Measures of Investor Performance,” with Ming Guo, Economic Modelling Volume 104, November 2021, 105558
• “Net Trade and Market Efficiency in Grossman and Stiglitz (1980),” with W. Wu, Journal of Economic Theory, Forthcoming
• “Feedback Trading between Fundamental and Nonfundamental Information“, with M. Guo, Review of Financial Studies, 28, 247—296, 2015.
• “A Model of Portfolio Delegation and Strategic Trading“, with A. S. Kyle and B. Wei, Review of Financial Studies, 24, 3778-3812, 2011.
• “Differences of Opinion of Public Information and Speculative Trading in Stocks and Options“, with H. Cao, Review of Financial Studies, 22, 299-335, 2009. (Placed third in the best paper award at CIFC in 2004 and judged best paper in the “most relevant to practitioners” category at WFA in 2005.)
• “Capital Structure, Debt Maturity, and Stochastic Interest Rates“, with N. Ju,Journal of Business, 79, 2469-2502, 2006.
• “Estimation of Continuous-Time Models with an Application to Equity Volatility“, with G. Bakshi and N. Ju, Journal of Financial Economics, 82, 227-249, 2006.
• “Prospect Theory and Liquidation Decisions“, with A. S. Kyle and W. Xiong, Journal of Economic Theory, 129, 273-288, 2006.
• “Incentives and Performance in the Presence of Wealth Effects and Endogenous Risk“, with M. Guo, Journal of Economic Theory, 129, 150-191, 2006.
• “An Equilibrium Model of Asset Pricing and Moral Hazard“, Review of Financial Studies, 18, 1219-1251, 2005.
• “Optimal Contracts in a Continuous-Time Delegated Portfolio Management Problem“, Review of Financial Studies, 16, 173-208, 2003. (Awarded the Barclays Global Investors/ Michael Brennan Runner-Up Award for the best paper published in Volume 16)
• “Return Predictability and Strategic Trading under Symmetric Information“, with M. Guo, Journal of Mathematical Finance, 7, 412-436, 2017.
• “The Power Law Characteristics of Stock Price Jump Intervals: An Empirical and Computational Experimental Study“, entropy, 2018, 20, 304