The 347th Wenlan Financial Forum

Abstract：

Conventional wisdom suggests that declining market friction improves the information con-tent of stock prices, strengthening managerial learning from the stock market. By incorporating material career risks following negative price reactions, we show that lowered trading friction may actually diminish stock price feedback. Lower market friction—by enabling stronger price reactions—incentivizes managerial information acquisition, substituting out feedback. In the presence of multiple dimensions of managerial information, career concerns—particularly from short-sale threats—can amplify strategic complementarity in information acquisition between speculators and managers along the dimension of speculator focus, at the cost of reduced managerial information production in other value-relevant dimensions. Our findings highlight the significance of features of managerial information acquisition in shaping how market friction alters firms’ economic efficiency.

Speaker Introduction：

Qi Liu, Associate Professor of Finance at Guanghua School of Management, Peking University, and a Ministry of Education Young Yangtze River Scholar. He graduated from The Wharton School of the University of Pennsylvania and received a Ph.D. in Finance. His research areas include corporate finance, financial markets, and behavioral finance. His research work has been published in domestic and international academic journals, such as American Economic Review, Management Science, Journal of Financial and Quantitative Analysis, Review of Finance, American Economic Journal: Microeconomics, and Journal of Financial Research, among others. His research is funded by the National Natural Science Foundation of China and Peking University. His research achievements have received awards such as the Second Prize for Papers at the 2024 Financial Street Forum Annual Conference, the GARP Outstanding Paper Award at the 2022 China International Risk Forum, the Eighth Ministry of Education Young Achievement Award for Higher Education Scientific Research (Humanities and Social Sciences), the Li Yining Research Award in 2020, and the Best Paper Award at the 2018 China Financial Academic Annual Conference, among others. In terms of teaching, he has received awards such as the Zhengda Teaching Fellowship in 2016, the Cao Fengqi Outstanding Financial Teaching Award in 2020, the Peking University Teaching Excellence Award in 2021, and the Industrial and Commercial Bank of China Teaching Fellowship (Outstanding Scholar in Economics) in 2024, among others.