ZENG (TIMOTHY) FAN
|
Naveen
Jindal School of Management The University of Texas at Dallas SM
31, 800 West Campbell Road Richardson,
TX 75080-3021 |
Tel:
214-218-7214 Email: zxf082000@utdallas.edu |
AREAS OF INTEREST
Empirical corporate
finance with a focus on corporate debt markets
EDUCATION
Ph.D. in
Finance, The University of Texas at Dallas Expected May 2013
M.Sc. in
Operations Research, Case Western Reserve University 2008
B.S. in Applied
Mathematics, Beijing Institute of Technology 2004
WORKING PAPERS
“Executive
Compensation and the Covenant Structure of Debt” (Job Market Paper)
·
Presented at 2010 Financial
Management Association Conference, New York
·
Presented at 2011 Southwestern
Finance Association Conference, Houston
·
Presented at 2011 Midwest Finance
Association Conference, Chicago
·
Accepted at 2011 Southern Finance
Association Conference, Key West
“The Effect of Bank
Covenants and the Pricing of Corporate Public Debt”
·
Will be presented at 2012
Financial Management Association Conference, Atlanta
“The Effect of
Bank Covenants on the IPO Underpricing” with Robert Kieschnick
WORKING IN PROGRESS
“Long Run
Performance of Equity Premium Predication”
·
Presented at 2011 Financial
Management Association Conference, Denver
TEACHING EXPERIENCE
2012 Spring
Business Finance University of Texas at Dallas Evaluation 4.9/5.0
2012 Fall Business
Finance University of Texas at
Dallas Evaluation
N/A
HONORS AND AWARDS
2011 American
Finance Association Ph.D. student travel grant
PERFESSIONAL SERVICES
·
2010/2011/2012
FMA Presenter/Discussant
·
2011
SWFA/MFA Presenter/Discussant
MISCELLANEOUS
Computer Skill: SAS
(Certified SAS advanced programmer), STATA
Language: Chinese
Mandarin (native), English (fluent)
REFERENCES
|
Robert
Kieschnick (Chair) Associate
Professor of Finance Naveen
Jindal School of Management The
University of Texas at Dallas (972)
883-6273 Yexiao
Xu Associate
Professor of Finance Naveen
Jindal School of Management The
University of Texas at Dallas (972)
883-6703 |
Harold
Zhang Professor
of Finance Naveen
Jindal School of Management The
University of Texas at Dallas (972)
883-4777 Han
(Victor) Xia Assistant
Professor of Finance Naveen
Jindal School of Management The
University of Texas at Dallas (972)
883-6385 |
SELECTED PAPER ABSTRACT
“Executive Compensation and the Covenant Structure of
Debt” (Job Market
Paper)
I examine how the debt covenant structure of a firm varies
with managerial risk-taking incentives via sensitivities of CEO compensation to
stock return volatility (Vega). I
build a comprehensive firm debt covenant index by including both public debt
and private debt issues. I find a robust negative relation between CEO
compensation Vegas and firms’ debt
covenant structures, even after considering alternative estimation procedures
and endogeneity. I also find that the debt maturity of a firm is decreasing in Vega, and the cost of debt induced by Vega is reduced by the presence of
covenants. Taken together, my results suggest that managers with high Vegas preserve their financing and
investment flexibility by using few covenants, and that they use short-term
debt and/or the higher cost of debt to reduce agency conflicts with creditors.
“The Effect of Bank Covenants on the Pricing
of Corporate Public Debt”
I investigate how the bank loan covenants
imposed on a borrower impact its future public debt financing costs. I find
that while public bond covenants reduce the at-issue yield spreads for public
debt, the bank loan covenants increase the yield spread of public debt, even
after controlling for all known yield spread determinant and considering
endogeneity. In particular, bank covenants’ positive effect on the cost of
public debt is amplified for both initial public debt offerings and when firms
do not have Standard and Poor debt ratings. It is consistent with the
hypothesis that unobserved firm riskiness information reflected in bank
covenants is more valuable when the information asymmetry is greater. My
evidence suggests that bank covenants convey very important information for
public lenders
concerning a firm’s ex ante and ex post riskiness that cannot be
directly observed from a firm’s balance sheet.
“The Effect of Bank Covenants on
the IPO Underpricing” (with Robert Kieschnick)
This paper examines the effect of pre-IPO bank loan
covenants on a firm’s IPO underpricing. We test whether the information content
in bank covenants could help reduce IPO underpricing. We find that, both the
number of covenants and the tightness of covenants ameliorate IPO underpricing.
Our results suggest that bank covenants contain important information that can
be used to reduce the asymmetric information between firms and investors.