Emerging Scholar to discuss credit risk spillovers

How does the credit risk of its peers affect a firm’s financial flexibility? Assistant Professor of Finance Jin Lei in the Goodman School of Business set out to answer this question, filling a gap in the current body of finance research.

On Friday, March 6, Lei will address his paper “Credit Risk Spillovers and Cash Holdings” as part of the Goodman School of Business’ Luncheon Speaker Series.

Assistant Professor of Finance Jin Lei.

Noting the recent financial crisis and how the distress of Lehman Brothers affected several other firms, the paper builds upon existing research that shows the interconnectedness of corporate credit risk. Lei, along with co-authors Jiaping Qiu, Chi Wan and Fan Yu, analyze how the financial distress of one firm impacts the cash holdings and cost of borrowing for other firms in the industry. The paper focuses on this relationship through two channels of spillovers: credit risk contagion and product market rivalry.

Lei was named Goodman’s 2019 Emerging Scholar of the Year. Known for his innovative research in corporate and behavioural finance, as well as financial accounting, he also teaches courses in corporate finance, investments, financial theory, international finance and managerial economics. Lei served as a member of the Senate Undergraduate Program Committee for Goodman.

The Goodman Speaker Series provides an informal opportunity to listen and discuss recent advances in research, teaching and practices with international business colleagues.

His talk will run from 12:30 to 2 p.m. in Sankey Chambers. Goodman faculty, staff and students are invited to attend. Brock community members interested in attending are encouraged to email Jennifer Brisson at jbrisson@brocku.ca to reserve a seat.

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