Jeffrey (Jun) Chen, PhD
Corporate Bonds and Financial Derivatives Research
Finance is a combination of Science and Art. Finance
1) reallocates economic value through time;
2) reallocates risk;
3) reallocates capital; and
4) expands the access to, and the complexity of, these reallocations.
--- Money Changes Everything: How Finance Made Civilization Possible (William N. Goetzmann, 2016, p.4)
Over the recent decades, finance has been dramatically changing our society, economy and lives. It is the knowledge helping people manage money into wealth, it is the technology providing business the access to capital, and it is the innovation reshaping the model of economic development. Dr. Chen’s research in finance focuses on corporate finance and investments, with the topics of bond contracts, covenant structure, M&As and alliances, corporate hedging with financial derivatives, and fund performance evaluation.
One of his current research projects intends to examine the influence of local gambling preference on the decision of mergers and acquisitions. This research contributes new evidence to social science literature on how economic behaviors and business decisions are affected by social norms and group identity. Another project of his research investigates the benefits and costs of de-risking strategy used for corporate pension plans. The primary goal of this research is to provide a comprehensive analysis of corporate pension plans and to benefit corporate sponsors, pension schemes, and trustees by providing them with valuable references for pension risk management. Additionally, he has an interest in the role of non-executive equity holding in the value of debt. His paper finds novel evidence that non-executive ownership is recognized by creditors in pricing private loans and the incentives of employees are aligned with the incentives of other stakeholders to exert a unique influence on the agency relationship. Dr. Chen is also collaborating with the faculty from MIS and organizational behavior areas on the multidiscipline projects, which are accepted to be presented at the 47th International Business Research Conference in 2017 and the conference of Association for Information Systems in 2018.
Dr. Chen’s scholarly articles have been published in various finance journals, such as Quarterly Journal of Finance, Journal of Banking & Finance, and Journal of Corporate Finance. His research won the research awards from NDSU College of Business (finalist), Financial Management Association International (semi-finalist of Best Paper in Investments), and Eastern Finance Association (Best Paper in Special Topic), as well as the research grants from Society of Actuaries and American Finance Association.