FAN CHEN. 223 Netzer Administration Building (405)

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1 FAN CHEN 223 Netzer Administration Building (405) SUNY Oneonta, Oneonta, NY PROFESSIONAL INTERESTS Research: Teaching: EMPLOYMENT Corporate Finance, Market Microstructure, Energy Economics Corporate Finance, Financial Institutions, International Finance Assistant Professor, Finance State University of New York at Oneonta, NY 2015-Present Visiting Assistant Professor, Finance Portland State University, Portland, OR EDUCATION Ph.D., Finance, University of Oklahoma (Price College of Business), August 2014 Dissertation: Essays on Corporate Bond Markets Co-Chairs: Louis Ederington and Pradeep Yadav M.S., Finance, Singapore Management University (Lee Kong Chian School of Business), Singapore, 2009 M.A., Economics, Xiamen University (Wang Ya nan Institute for Studies in Economics), China, 2009 B.A., Financial Engineering, Xiamen University, China, 2006 RESEARCH A. Publications The Wealth Effects of Dividend Announcements on Bondholders: New Evidence from the Over-thecounter Market, Journal of Economics and Business 86 (2016): Presented at: Financial Management Association (FMA, 2012 Top Ten Sessions), the Semifinalist for the Best Paper Award of Corporate Finance at 2012 Financial Management Association (FMA). Investment and Operating Choice: Oil and Natural Gas Futures Prices and Drilling Activity, with Scott Linn, Energy Economics 66 (2017): Presented at: Commodity Futures Trading Commission Conference on Commodity Markets (CFTC, 2011), Financial Management Association (FMA, 2011), University of Oklahoma (2011), International French Finance Conference (Cergy, France 2015). Pre-trade Transparency in Over-the-Counter Bond Markets, with Zhuo Zhong, forthcoming at the Pacific-Basin Finance Journal Special issue on Behavioral Finance and Recent Developments in Capital Markets. Presented at: China International Conference in Finance (CICF, 2012), University of Oklahoma (2012), Cornell University (2014), the Best Paper award sponsored by Capital Markets CRC at the 5th Behavioral Finance and Capital Markets Conference (Adelaide, Australia 2015). B. Working Paper The Impact of New Debt Offerings on Existing Corporate Bondholders, April 2017 (with Duane Stock). Presented at: University of Texas at El Paso (2016), European Finance Association Annual Meeting (EFA), Lugano Semifinalist for the Best Paper Award of Corporate Finance at 2016 Financial Management Association (FMA). The Wealth Effects of Mergers and Acquisitions on Bondholders: New Evidence from the Over-the- Counter Market, January 2017, (with John Marino, and Wei Wu) The Impact of New Bond Offerings on Existing Bonds Liquidity, January 2016, (with Duane Stock) How are Short-Sales Different from "Regular" Trades? April 2014 (with Florian Bardong, Söhnke M. Bartram, and Pradeep K. Yadav) 1

2 Rumors and Financial Asset Prices, April 2017, (with Scott Linn and Lawrence Berger) Presented at: 2011 China International Conference in Finance, CICF (Wuhan, China), 2011 Meeting of the Financial Management Association, FMA (Denver, CO) HONORS and AWARDS A. Teaching Price Finance Teaching Excellence Award, Price College of Business, University of Oklahoma. (September, 2013). B. Research Semifinalist for the Best Paper Award in Corporate Finance, Financial Management Association. (July, 2012 and 2016). Best Paper Award sponsored by Capital Markets CRC, the 5th Behavioral Finance and Capital Markets Conference. (October, 2015). SUNY Oneonta Faculty Development Funds, SUNY Oneonta. (November, 2015). Alley Rayonier International Travel Grant, University of Oklahoma. (2014, 2013, 2012, 2011). The American Finance Association (AFA) Doctoral Student Travel Grant, American Finance Association. (October, 2012). Doctoral Student Summer Research Fellowship, University of Oklahoma. (March, 2011). Business Energy Solutions Center Research Fellowship, University of Oklahoma. (March, 2010). C. Service SUNY Oneonta Faculty Discretionary Salary Award (December, 2016) TEACHING A. SUNY Oneonta: 2015~2017 (1 5 scale with 1 being outstanding) Principles of Microeconomics (3 sections: 1.64; most recent section: 1.54) Corporation Finance (6 sections: 1.92; most recent section: 1.69) Investment Management (4 sections: 1.80; most recent section: 1.54) Thesis Advisees 2016: Connor Day, John Marino, * Michael Spinelli * 2017: Raymond Bicocchi, Matthew Ceglio, Anthony Vecre * *Student Research and Creative Activity Day Participant; Robert Barry Carson Award Winner for Best Paper and Recognized at Commencement; Accepted by 34th USAEE/IAEE North American Conference; B. Portland State University: 2014~2015 (1 5 scale with 5 being outstanding) International Financial Management (1 MSFA and MBA section: 4.65) Business Finance (4 sections most recent section: 4.50) C. University of Oklahoma: 2012~2014 (1 5 scale with 5 being outstanding) Financial Intermediaries and Markets. (6 sections: 4.52) International Financial Management (2 sections: 4.67). Business Finance (1 online section: 4.55). August 2013 and 2014: Group Leader and Panel Discussion Speaker, Development for International Teaching Assistant, Center for Teaching Excellence. Teaching Assistant, Fixed Income Securities (MBA); Derivative Securities (MBA); Energy Assets and Commodities (MBA). 2

3 PRESENTATIONS Chen, Fan (Author Only), Stock, D. (Presenter and Author), University of Texas at El Paso, "How Relative Maturity, Intended Uses, and Covenants Determine the Impact of New Debt Offerings on Existing Bondholders," El Paso, Texas. (November, 2016). Chen, Fan (Presenter and Author), Stock, D. (Author Only), 2016 Financial Management Association Annual Meeting, "How Relative Maturity, Intended Uses, and Covenants Determine the Impact of New Debt Offerings on Existing Bondholders," Financial Management Association International, Las Vegas, Nevada. (October, 2016). Chen, F. (Author Only), Zhong, Z. (Presenter & Author), 5th Behavioral Finance and Capital Markets, "Pre-trade Transparency in Over-the-Counter Markets," Centre for Applied Financial Studies at the School of Commerce, University of South Australia Business School, Adelaide, Australia. (September, 2015). Chen, F. (Author Only), Linn, S. (Presenter & Author), 32nd International Conference of the French Finance Association, "Investment and Operating Choice: Oil and Natural Gas Futures Prices and Drilling Activity," French Finance Association Conference, Cergy, France. (June, 2015). Chen, F. (Presenter & Author), European Finance Association Annual Meeting, "Do New Bond Offerings Expropriate Wealth from Bondholders? Theory and Evidence," European Finance Association, Lugano, Switzerland. (August, 2014). Chen, F. (Presenter & Author), Financial Management Association Annual Meeting, "The Wealth Effects of Dividend Announcements on Bondholders: New Evidence from the Over-the-counter Market," Financial Management Association, Atlanta, GA. (October, 2012). Chen, F. (Author Only), Zhong, Z. (Presenter & Author), China International Conference in Finance, "Pre-trade Transparency in Over-the-Counter Markets," China Center for Financial Research (CCFR), Tsinghua University and Sloan School of Management, MIT, Chongqing, China. (July, 2012). Chen, F. (Presenter & Author), Financial Management Association Annual Meeting, "Investment and Operating Choice: Oil and Natural Gas Futures Prices and Drilling Activity," Financial Management Association, Denver, CO. (October, 2011). Chen, F. (Presenter & Author), Financial Management Association Annual Meeting, "Rumors in Financial Markets," Financial Management Association, Denver, CO. (October, 2011). Chen, F. (Presenter & Author), Commodity Futures Trading Commission Conference on Commodity Markets, "Energy Futures Prices and Drilling Activity," U.S. Energy Information Administration and Commodity Futures Trading Commission. (August, 2011). Chen, F. (Presenter & Author), Linn, S. (Author Only), Berger, L. (Author Only), China International Conference in Finance, "Rumors in Financial Markets," China Center for Financial Research (CCFR), Tsinghua University and Sloan School of Management, MIT, Wuhan, China. (July, 2011). OTHER CONFERENCES ATTENDED 21st Annual Society of Labor Economists Meeting, Seattle, WA. (May, 2016) Council on Undergraduate Research Dialogues, Washington, D.C. (February, 2016) American Finance Association Annual Conference, Boston, MA. (January, 2015) Financial Management Association Annual Meeting, Nashville, TN. (October, 2014) 3

4 American Finance Association Annual Conference, Philadelphia, PA. (January, 2014) Financial Management Association Annual Meeting, Chicago, IL. (October, 2013) American Finance Association Annual Conference, San Diego, CA. (January, 2013) PROFESSIONAL ACTIVITIES Ad-hoc Reviewer: Asian Review of Accounting, Finance Research Letters, Journal of Innovation Management, New York Economic Review Program Committee Member: 2015 European Finance Association Annual Meeting, Vienna, Austria Discussant: 2011 & 2016 Financial Management Association Conference COLLEGE and COMMUNITY SERVICE A. College Appointments Student Advisory Council Advisor (April 2017-Present). Ad-hoc Committee on Student Grievance, Member. (December 2015-Present). College Library Committee, Member. (August 2016-Present). B. Department Appointments DECA Chapter Advisor, SUNY Oneonta (February 2017-Present) Student Org Advisor (Professional Org), Student Finance Club, Advisor. (August, Present). Economics and Finance Committee (2015-Present) Economics Program Review Committee ( ) Program Liaison-Finance, Actuary Science program, SUNY Oneonta (January 2016-Present). Attendee, Meeting, Economics, Finance and Accounting, Member. (September, Present). Attendee, Meeting, EFA Personnel Committee, Member. (August, Present). Reviewer, Evaluation of Course for Transfer Credit, Member. (September, Present). Interaction with Industry, Business Advisory Council meeting, Member. (December, 2015). SKILLS and MEMBERSHIP Programming: SAS, Matlab, R, STATA, Eviews, and VB for Excel macros Certificates: Bloomberg Market Concepts Memberships: AFA, EFA, FMA, International Honor Society Beta Gamma Sigma Languages: Mandarin (fluent), English (fluent), Hokkien (fluent) REFERENCES Louis H. Ederington Michael F. Price Chair in Finance and George Lynn Cross Professor, University of Oklahoma Phone: (404) ; lederington@ou.edu Duane R. Stock Professor of Finance and Oklahoma Bankers Chair in Finance, University of Oklahoma Phone: (405) ; dstock@ou.edu Pradeep K. Yadav W.Ross Johnston Chair in Finance, University of Oklahoma Phone: (405) ; pyadav@ou.edu 4

5 PAPER ABSTRACTS The Wealth Effects of Dividend Announcements on Bondholders: New Evidence from the Over-thecounter Market, March Abstract: This paper investigates the announcement effect of dividend changes on bondholders using bond transaction data from the over-the-counter market. Abnormal bond returns over a three-day event window are positive surrounding dividend increase announcements and negative surrounding dividend omission announcements. The bond market reaction to the dividend increases is more positive for larger dividend increases, speculative grade bonds and the period from 2008 to Most of the results are consistent with the signaling hypothesis. Additionally, bond market reactions to dividend decreases and initiations are insignificant. The stock market reacts negatively to dividend decreases and positively to dividend initiations. The bond and stock market reactions to dividend decreases and initiations suggest that there is also a wealth transfer effect. Investment and Operating Choice: Oil and Natural Gas Futures Prices and Drilling Activity, August 2017 (with Scott C. Linn) Abstract: We present evidence that changes in oil and natural gas field investment measured by drilling rig use respond positively to changes in the futures prices of oil and natural gas, consistent with predictions based upon value-maximizing behavior. These results hold for world regions dominated by private independent oil companies but not national oil companies. In those cases where futures price changes are identified as drivers, the role of spot prices is either absent or weak. The results are robust to several alternative specifications including controls for changes in rig productivity. Pre-trade Transparency in Over-the-Counter Bond Markets, November 2016 (with Zhuo Zhong) Abstract: Using bond transaction data from TRACE from 2005 to 2015, we investigate the impact of pretrade transparency on over-the-counter markets, and find that NYSE pre-trade transparency reduces US corporate bond transaction costs by $846 million per year. NYSE pre-trade transparent bonds also maintain smaller standard deviation in bid-ask spreads and institutional investors face smaller bid-ask spreads when trading the pre-trade transparent bonds, suggesting that pre-trade transparency tends to favor traders rather than dealers by enhancing traders bargaining capability. The Impact of New Debt Offerings on Existing Corporate Bondholders, April, 2017 (with Duane Stock). Abstract: Corporate bondholders may be understandably concerned about the value of their bonds when the firm issues more bonds. Using daily corporate bond data from TRACE, we study the impact of new bond issues and maturity shortening on the price of existing bonds surrounding the announcement of new bond issues. We find negative and significant average abnormal returns for existing bonds over a three-day event window. Consistent with the adverse consequences of maturity shortening, bond market returns are more strongly negative when the newly issued bonds mature before existing bonds. We find evidence of a wealth transfer effect at the time of issuance. The Wealth Effects of Mergers and Acquisitions on Bondholders: New Evidence from the Over-the- Counter Market, January 2017, (with John Marino and Wei Wu) Abstract: Using over-the-counter bond transaction data from TRACE, we investigate daily bond market reactions to merger and acquisition announcements. We find new evidence that acquiring (target) firm bondholders experience negative (positive) and statistically significant abnormal returns over a two-day event window while speculative rated bondholders experience more negative (positive) returns than investment rated bondholders. Acquiring firm bondholders losses are positively correlated with the size of the deal. In addition, acquirer bondholders suffer more losses when the payment is in cash. Consistent with the prediction that the wealth effect on target bondholders differ when the acquiring firm is private versus public, target bonds experience negative returns when the acquirer is a private firm, but experience positive returns when the acquirer is a public firm. Lastly, consistent with a loss (gain) to acquiring (target) firm bondholders in the initial market reactions, acquiring (target) firm bonds are more likely to be downgraded (upgraded) than upgraded (downgraded) following the announcement of a merger or acquisition. 5

6 How are Short-Sales Different from "Regular" Trades? April 2014 (with Florian Bardong, Söhnke M. Bartram, and Pradeep K. Yadav) Abstract: We examine the differences between short sales and "regular" trades with regard to the nature of their information content. First, we find that short-sales impound private information that is significantly longer-lived than that in regular trades, and accordingly find that short-sales play an important stabilizing role by providing short-term intraday liquidity during periods of buying pressure. Second, we find that the information advantage of short-sellers originates from skilled analysis of publicly available data rather than corporate "insider" type information. In this context, while short-sellers are strong in relation to individual firm-specific information, they react to public information rather than exploit insider knowledge, and their informational advantage over regular trades increases with estimation horizon for both market-wide and security-specific information. And, they are not using "insider" firm-specific information around negative earnings announcements but analyzing public information on the day of the announcement to derive their "private" information advantage, and furthermore, are also aggressively supplying liquidity around positive earnings announcements. Rumors and Financial Asset Prices, April 2017, (with Scott Linn and Lawrence Berger) Abstract: We present a dynamic model of asset price behavior based upon the arrival and diffusion of rumors in a securities market. The number of informed and uninformed traders varies probabilistically over time as diffusion occurs. Traders become informed by observing the original source of information or through communication with an individual who has heard the information already. Price changes result from trades that occur when an individual hears and acts on the information. Rumors can contain true or false information. False rumors are ultimately corrected. Simulation experiments based upon the model calibrate well with actual intraday common stock returns. 6