Hao Jiang (MSU)

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Hao Jiang


A seminar by Hao Jiang from Michigan State University

Title: Reaching for Dividends

Abstract: This paper studies how lowered interest rates induce changes in the investment be-havior of investors and the implications for asset prices and returns. We nd that when interest rates fall, ows into income-oriented equity funds increase, with higher dividend-yielding funds attracting more in ows after controlling for fund returns. Re-sponding to their incentives, income fund managers tend to aggressively over-weight high dividend stocks in a low-rate environment. This behavior of \reaching for dividends" appears to generate market impact: high dividend stocks tend to have higher prices when interest rates fall, and lower excess returns when interest rates subsequently normalize.

Start date:

11am Friday, 28 Jun 2019

End date:

12.30pm Friday, 28 Jun 2019




Hao Jiang

Updated:   24 June 2019 / Responsible Officer:  CBE Communications and Outreach / Page Contact:  College Web Team