Charlie Cai

Member of IBI
Associate Faculty

Categories:
Institute of Banking and Investment (IBI), Associate Faculty
Profile

Qualifications

2000-2004, Ph.D (full and part time) in Finance, Leeds University Business School, The University of Leeds, UK.

1999-2000, M.A. in Accounting and Finance, Leeds University Business School, The University of Leeds, UK.

1995-1999, B.A. in Economics, Guangdong University of Foreign Studies, China.

Experience

Charlie X Cai is a Professor at Liverpool University, UK. Before this he was a Professor in Finance at Leeds University Business School. Charlie’s research career started from his PhD on the market microstructure of the London Stock Exchange, a research journey that taught him the foundations of financial markets and provided him with solid empirical modelling skills. Since then he has continued his research interest in examining the impact of technology on financial markets (issues such as algorithmic and high-frequency trading) and developed expertise in big data analytic. He subsequently broadened his research interests into asset pricing, corporate governance and banking.

His recent research focus has been in the area of financial technology (fintech) in emerging market, pricing anomalies around the world and systemic risk in a global context, all of which are significant aspects of today’s global financial system. Many of his work has been published in ABS listed 3 and 4 start journals including Journal of Accounting and Economics, Journal of Money, Credit and Banking  British Journal of Management and Financial Management. He is currently serving on the editorial board of the International Small Business Journal and Accounting and Finance. 

Charlie’s informed and rigorous approach has benefitted from his active collaboration with scholars from a wide range of academic, industrial and regulatory organizations. He has also worked outside academia as a research consultant, and he is committed to building research links with other disciplines and academic institutions worldwide. 

Charlie’s teaching is research-lead with emphasis on real-world applications.  He was instrumental in creating a Trading Room in Leeds University Business School which brought the city experience to students.  Besides his academic life Charlie has strong interests in website and app developments.  One of his recent projects is the development of a classroom and presentation mobile interaction app: text2vote.

Academic Employment

Professor: 2017 to date, Liverpool University, UK

Professor of Finance: 2014 to 2016, Leeds University Business School, UK

Professor of Finance: 2012 to 2013, Research Cluster: Accounting, Finance and Economics, Bradford University School of Management, UK

Senior Lecturer in Accounting & Finance: 2008 to 2012, International Institute of Banking and Financial Services (IIBFS), Leeds University Business School, UK

  •  Deputy Director of IIBFS
  • Leading international research collaborations
  • Managing and reviewing postgraduate programmes
  • Programme Director of MSc Finance programmes
  • Teaching and supervision of undergraduate and postgraduate students
  • Personal tutor for undergraduate and postgraduate students
  • Supervision of PhD students
  • Programme Director of MSc Finance programmes
  • Research: ongoing research project on Market microstructure of the London Stock Exchange
  • Data management: maintaining and integrating data for research, including tick data from LSE, corporate governance data, accounting data
  • Quantitative Research Methods course
  • IT Management course 

Lecturer in Accounting & Finance: 2005 to 2008, Leeds University Business School, UK

Research Fellow: 2002 - 2005, International Institute of Banking and Financial Services (IIBFS), University of Leeds, UK

Teaching Assistant: 2001 to 2002, Leeds University Business School, UK

Research

Research Interests:

  • Microstructure of financial markets
  • Asset pricing
  • Information disclosure
  • Corporate governance
  • Behavioural finance
  • Banking and risk management

Charlie’s research agenda covers financial markets, asset pricing, corporate governance, behavioural finance, banking and emerging markets. During the current REF assessment period he has published eight papers in ABS Grade 3-rated journals and one in a Grade 4-rated journal; and he has a number of papers under submission to Grade 3- and 4-rated journals.

Charlie’s research career started from his PhD on the market microstructure of the London Stock Exchange, a research journey that taught him the foundations of financial markets and provided him with solid empirical modelling skills. Early success in this work earned him a research post in the International Institute of Banking and Financial Services (IIBFS) two years before his PhD graduation. He subsequently broadened his research interests into asset pricing, corporate governance and banking. In maturing as a researcher, Charlie focused increasingly on issues of importance not only academically but also socially. His recent research focus has been in the area of limited arbitrage, systemic risk and corporate governance in emerging economies, all of which are significant aspects of today’s global financial system.

Research Projects

  1. Private equity and SME financing in China (with P Jiang and K Keasey ), funded by UIBE, Beijing, 2010 to date.
  2. IFRS and market efficiency: Studying the impact of IFRS adoption on market efficiency around the world (with S Mollah, University of Stockholm) funded by Handelsbanken, 2012 to date.
  3. Determinants and consequences of cross-country interdependence in the international stock markets before, after and during the global shocks (with Q. Zhang & A Mobarek, University of Stockholm) funded by Handelsbanken, 2012 to date.
  4. Credit rating and IPO pricing (with P. B. McGuinness & Q Zhang) in collaboration with Standard & Poor Capital IQ, Hong Kong and Singapore, 2014 to date.
Responsibilities

Administration

Director of Study for Doctor in Business Administration (DBA) programme (more than 150 students)
Bradford, 2013

Director of postgraduate Finance programmes
Bradford, 2012 to 2013
Leeds, 2007 to 2010

Teaching and research mentor for junior staff
Leeds, 2014 to date
Bradford, 2012 to 2013
Leeds, 2008 to 2012

Member of Academic Advisory Group for University Information System Services
Leeds, 2010 to 2012

Deputy Director of International Institute of Banking and Financial Services (IIBFS)
Leeds, 2009 to 2012

Member of Blended Learning Strategy Group for Leeds University Business School faculty
Leeds, 2007 to 2012

Faculty representative on University Committee for High Performance Computing
Leeds, 2008 to 2010

Personal tutor for undergraduate students
Leeds, 2006 to 2010

Tutor for industrial placement students
Leeds, 2008 to 2009

Doctoral Supervisions

  • Ingmar Schaefer, Corporate governance and mutual fund, (since 2013; DBA and Portfolio Manager, Delta Lloyd Asset Management One, UK).
  • Tim Nichol, Corporate governance in family firms, (since 2013; part-time student and Associate Dean, Learning and Teaching, Newcastle Business School, UK).
  • Hossein Jahanshahloo, High frequency FX trading, (since 2012).
  • Peng Li, Asset growth and asset pricing, (since 2012).
  • Thang Nguyen, Diversification and corporate liquidity, (graduated 2013; now Research Fellow, Plymouth University, UK).
  • Minjoo Kim, Finance applications of functional form autoregressive modelling, (graduated 2011; now Lecturer, Glasgow University, UK).
  • Forrest Jun Wang, Interaction of internal and external corporate governance mechanisms, (graduates 2011; now Lecturer, University of Dundee, UK).
  • Jacky Qi Zhang, Investor behaviours and post-event drift, (graduated 2010; now Associate Professor, Leeds University Business School, UK).
  • Suntharee Lhaopadchan, Forecasting volatility in the UK, (graduated 2007; now Head of Research, Kasetsart University, Thailand).
  • Kadida Mashaushi, The predictability of asset returns, (graduated 2007; now Head of Banking, Institute of Finance Management, Tanzania). 
Publications

Refereed Articles

Forthcoming, Diversification and internal cash flow (with T Nguyen & P. McColgan), Review of Quantitative Finance and Accounting accepted Jan 2016.

Forthcoming, Short- and long-run price leadership traits in cross-listed securities (with Q Zhang & P. B. McGuinness), European Journal of Finance, accepted Nov 2015.

Forthcoming, Noise momentum around the world (with R Faff & Y Shin), ABACUS, forthcoming, accepted 2015.

2016, Value-enhancing Learning from Industry-wide Diversification Experience (with T Nguyen), British Journal of Management, Vol. 27, Issue 2, pp. 323-337, 2016

2016, Multiple large shareholder structure and firm performance: Theory and evidence (with D Hillier & J Wang), Financial Management, Volume 45, Issue 2, pages 401–430, Summer 2016

2016, High-frequency exchange rate forecasting (with Q Zhang), European Financial Management, Volume 22, Issue 1, pages 120–141, January 2016

2015, Do audit committees reduce the agency costs of ownership structure? (with D Hillier, G Tian & Q Wu), Pacific Basin Journal of Finance, Volume 35, Part A, November 2015, Pages 225–240

2015, Are market-based rankings of global systemically important financial institutions useful for regulators? (with K Keasey, F Vallascas & Q Zhang), Journal of Money, Credit and Banking,  Volume 47, Issue 7, pages 1403–1442, October 2015

2015, Informed trading and market structure (with J Harris, R Hudson & K Keasey), European Financial Management, 21(1), 148-177, 2015.

2014, The profitability, costs and systematic risk of the post-earnings-announcement-drift trading strategy (with Q Zhang & K Keasey), Review of Quantitative Finance and Accounting, 43(3), 605-625, 2014.

2014, The role of venture capitalists in emerging markets: A study of Chinese IPOs (with P Jiang, K Keasey, M Wright & Q Zhang), International Journal of Small Business, 32(6), 619-643, 2014.

2013, Market reaction to earnings news: A unified test of information risk and transaction costs (with Q Zhang & K Keasey), Journal of Accounting and Economics, 56(2-3), 251-266.

2013, Consequences of the Capital Asset Pricing Model (CAPM) – A Critical and broad perspective (with I Clacher & K Keasey), ABACUS, 49:s1, 51–61, 2013.

2012, Stock index return forecasting: The information of the constituents (with K Kyaw & Q Zhang), Economics Letters, 116:1, 72–74, 2012.

2011, The pricing dynamics of cross-listed securities: The case of Chinese A- and H-shares (with P McGuinness & Q Zhang ), Journal of Banking and Finance, 35:8, 2123–2136, 2011.

2010, Determinants of the component structure of intraday return distributions (with K Keasey & G Tian), Applied Financial Economics, 20:4, 317–322, 2010.

2009, Forecasting using high-frequency data: A comparison of asymmetric financial duration models (with Q Zhang & K Keasey), Journal of Forecasting, 28:5, 371–386, 2009.

2009, Chinese investment goes global: The China Investment Corporation (with I Clacher), Journal of Financial Regulation and Compliance, 17:1, 9–15, 2009.

2008, Trading frictions and market structure: An empirical analysis (with D Hillier, R Hudson & K Keasey), Journal of Business Finance and Accounting, 35:3-4, 563–579, 2008.

2007, Price clustering and cultural preference in Chinese stock markets (with B Cai & K Keasey), Accounting and Finance, 47:4, 623–641, 2007.

2007, Exploring the link between information quality and systematic risk (with RW Faff, D Hillier & S Mohamed), Journal of Financial Research, 30:3, 335–353, 2007.

2007, A new test of signaling theory (with D Duxbury & K Keasey), Finance Letters, 5:2, 1–5, 2007.

2006, Corporate governance and information efficiency in security markets (with K Keasey & H Short), European Financial Management, 12:5, 763–787, 2006.

2006, Which trades move prices in emerging markets? Evidence from China’s stock market (with B Cai & K Keasey), Pacific-Basin Finance Journal, 14:5, 453–466, 2006.

2006, Modelling return and conditional volatility exposures in global stock markets (with RW Faff, DJ Hillier & MD McKenzie), Review of Quantitative Finance and Accounting, 27:2, 125–142, 2006.

2005, The predictive ability and profitability of technical trading rules: Does company size matter? (with J Bokhari, R Hudson & K Keasey), Economics Letters, 86:1, 21–27, 2005.

2005, Market efficiency and returns to simple technical trading rules: Further evidence from US, UK, Asian and Chinese stock markets (with B Cai & K Keasey), Asia-Pacific Financial Markets, 12:1, 45–60, 2005.

2004, Intra day bid-ask spreads, trading volume and volatility: Recent empirical evidence from the London Stock Exchange (with R Hudson & K Keasey), Journal of Business Finance and Accounting, 31:5-6, 647–676, 2004.

2003, Trading frequency and the compass rose (with R Hudson & K Keasey), Applied Economic Letters, 10:8, 511–517, 2003.

Chapters in Books

2009, Information Transmission across Stock and Bond Markets: International Evidence, (with R. Faff, D. Hillier and S. Lhaopadchan), Handbook of Volatility, Edited by Greg N. Gregoriou, forthcoming 2009.

2008, A Practical Guide to Gold as an Investment Asset, (with I. Clacher, R. Faff and D. Hillier), the Handbook of Commodity Investing, Edited by Frank Fabozzi, Roland Fuess, and Dieter G. Kaise, 2008, John Wiley & Sons, New Jersey.

2005, Intra day Bid-Ask Spreads, Trading Volume and Volatility,  (with R. Hudson and K. Keasey), The UK Stock Market Almanac, 2005, Harriman House Publishing, 2005.

Industrial Reports

2010, The use of a real-life e-news game to support learning and teaching in finance, BMFA magazine, issue 9.

2008, The politics of sovereign wealth funds: China Investment Corporation (with I Clacher), part of The Future of Asian Financial Centres – Challenges and Opportunities for the City of London, report for the City of London.

2007, Financial services survey for UK family firms (with K Keasey & D Hillier), International Institute of Banking and Financial Services, University of Leeds.

2000, Dotcom IPO: Valuation and underpricing (with K Keasey), Executive Report, no. 39, International Institute of Banking and Financial Services, University of Leeds.

View my research on my SSRN Author page

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