Charles C.Y. Wang
Tandon Family Professor of Business Administration
Tandon Family Professor of Business Administration
He is currently course head of Financial Reporting and Control in the MBA core curriculum; he is also a coordinator of the school's doctoral program, for which he has taught doctoral courses in financial reporting and corporate governance and applied econometrics as well as served on numerous dissertation committees. His teaching also included Business Analysis and Valuation in the MBA elective curriculum and Strategic Financial Analysis in executive education.
Professor Wang's research in corporate governance and valuation has been published in leading academic journals such as the Journal of Financial Economics, Review of Financial Studies, the Journal of Accounting and Economics, and the Accounting Review as well as practitioner publications such as Harvard Business Review, the Wall Street Journal, and the Boston Globe. Media outlets including The Economist, Wall Street Journal, the Financial Times, the New York Times, Washington Post, Bloomberg, Fortune, Forbes, U.S. News, and The Atlantic have cited his research findings. His work has also been cited in legal proceedings and policy discussions, including the council of economic advisor's economic report to the president and congressional testimonies. Professor Wang's research has won several awards, including the Jensen Prize for the Best Paper in Corporate Finance in the Journal of Financial Economics and the Investor Responsibility Research Center Institute's Annual Investor Research Award.
Charles C.Y. Wang is the Tandon Family Professor of Business Administration at Harvard Business School. He is a research member of the European Corporate Governance Institute (ECGI) and an associate editor of Management Science and Journal of Accounting Research, two leading management journals. His research and teaching focus on corporate governance and valuation.
He is currently course head of Financial Reporting and Control in the MBA core curriculum; he is also a coordinator of the school's doctoral program, for which he has taught doctoral courses in financial reporting and corporate governance and applied econometrics as well as served on numerous dissertation committees. His teaching also included Business Analysis and Valuation in the MBA elective curriculum and Strategic Financial Analysis in executive education.
Professor Wang's award winning research in corporate governance and valuation has been published in leading academic journals such as the Journal of Financial Economics, Review of Financial Studies, the Journal of Accounting and Economics, and the Accounting Review as well as practitioner publications such as Harvard Business Review, the Wall Street Journal, and the Boston Globe. Media outlets including The Economist, Wall Street Journal, the Financial Times, the New York Times, Washington Post, Bloomberg, Fortune, Forbes, U.S. News, and The Atlantic have cited his research findings. His work has also been cited in legal proceedings and policy discussions, including the council of economic advisor's economic report to the president and congressional testimonies.
Professor Wang's research has won several awards, including the Jensen Prize for the Best Paper in Corporate Finance in the Journal of Financial Economics and the Investor Responsibility Research Center Institute's Annual Investor Research Award.
His teaching at HBS has also received recognition, including the Charles M. Williams Award for Outstanding Teaching and the Wyss Award for Excellence in Doctoral Mentoring.
Charles holds a Ph.D. and an MA in economics from Stanford University and an MS in statistics, also from Stanford. He graduated from Cornell University with a bachelor’s degree in industrial and labor relations. Before his graduate studies, he worked in economic and litigation consulting. Prior to joining Harvard Business School, Charles was a Lecturer in Law and Economics at Harvard Law School and a fellow in its Olin Program on Corporate Governance.
- Academic
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- Roe, Mark J., and Charles C.Y. Wang. "Half the Firms, Double the Profits: Public Firms' Transformation, 1996–2022." Journal of Law, Finance, and Accounting (forthcoming). View Details
- Baker, Andrew C., David F. Larcker, and Charles C.Y. Wang. "How Much Should We Trust Staggered Difference-In-Differences Estimates?" Journal of Financial Economics 144, no. 2 (May 2022): 370–395. (Editor's Choice, May 2022; Jensen Prize, First Place, June 2023.) View Details
- Daines, Robert, Shelley Xin Li, and Charles C.Y. Wang. "Can Staggered Boards Improve Value? Causal Evidence from Massachusetts." Contemporary Accounting Research 38, no. 4 (Winter 2021): 3053–3084. View Details
- Fried, Jesse M., and Charles C.Y. Wang. "Short-Termism, Shareholder Payouts, and Investment in the EU." European Financial Management 27, no. 3 (June 2021): 389–413. View Details
- Roe, Mark, Holger Spamann, Jesse M. Fried, and Charles C.Y. Wang. "The Sustainable Corporate Governance Initiative in Europe." Yale Journal on Regulation Bulletin 38 (2021): 133–153. View Details
- Chattopadhyay, Akash, Matthew R. Lyle, and Charles C.Y. Wang. "Expected Stock Returns Worldwide: A Log-Linear Present-Value Approach." Accounting Review 97, no. 2 (March 2022): 107–133. View Details
- Rouen, Ethan, Eric C. So, and Charles C.Y. Wang. "Core Earnings: New Data and Evidence." Journal of Financial Economics 142, no. 3 (December 2021): 1068–1091. View Details
- Lee, Charles M.C., Eric C. So, and Charles C.Y. Wang. "Evaluating Firm-Level Expected-Return Proxies: Implications for Estimating Treatment Effects." Review of Financial Studies 34, no. 4 (April 2021): 1907–1951. View Details
- Chattopadhyay, Akash, Matthew D. Shaffer, and Charles C.Y. Wang. "Governance Through Shame and Aspiration: Index Creation and Corporate Behavior." Journal of Financial Economics 135, no. 3 (March 2020): 704–724. View Details
- Fried, Jesse M., and Charles C.Y. Wang. "Short-Termism and Capital Flows." Review of Corporate Finance Studies 8, no. 1 (March 2019): 207–233. View Details
- Wang, Charles C.Y., and Alma Cohen. "Reexamining Staggered Boards and Shareholder Value." Journal of Financial Economics 125, no. 3 (September 2017): 637–647. View Details
- Wang, Charles C.Y. "Commentary on Implied Cost of Equity Capital Estimates as Predictors of Accounting Returns and Stock Returns." Journal of Financial Reporting 2, no. 1 (Spring 2017): 95–106. View Details
- Lee, Charles M.C., Paul Ma, and Charles C.Y. Wang. "Search-Based Peer Firms: Aggregating Investor Perceptions Through Internet Co-Searches." Journal of Financial Economics 116, no. 2 (May 2015): 410–431. View Details
- Lyle, Matthew R., and Charles C.Y. Wang. "The Cross Section of Expected Holding Period Returns and Their Dynamics: A Present Value Approach." Journal of Financial Economics 116, no. 3 (June 2015): 505–525. View Details
- Bebchuk, Lucian A., Alma Cohen, and Charles C.Y. Wang. "Golden Parachutes and the Wealth of Shareholders." Journal of Corporate Finance 25 (April 2014): 140–154. View Details
- Cohen, Alma, and Charles C.Y. Wang. "How Do Staggered Boards Affect Shareholder Value? Evidence from a Natural Experiment." Journal of Financial Economics 110, no. 3 (December 2013): 627–641. View Details
- Larcker, David F., Eric C. So, and Charles C.Y. Wang. "Boardroom Centrality and Firm Performance." Journal of Accounting & Economics 55, nos. 2-3 (April–May 2013): 225–250. View Details
- Bebchuk, Lucian A., Alma Cohen, and Charles C.Y. Wang. "Learning and the Disappearing Association Between Governance and Returns." Journal of Financial Economics 108, no. 2 (May 2013): 323–348. (2013 IRRCi Investor Research Award.) View Details
- For Broader Audience
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- Roe, Mark J., and Charles C.Y. Wang. "Public Companies Are Alive and Well: They’re Fewer in Number but Bigger and More Profitable than Ever Before." Wall Street Journal (May 9, 2024), A.13. View Details
- Fried, Jesse M., and Charles C.Y. Wang. "The Virtues of Stock Buybacks." Wall Street Journal (August 10, 2022). View Details
- Wang, Charles C.Y. "Should We Embrace Crypto?" Harvard Business Review 99, no. 6 (November–December 2021). (Case Study and Commentary.) View Details
- Fried, Jesse M., and Charles C.Y. Wang. "The EU's Unsustainable Approach to Stakeholder Capitalism." Harvard Business Review Digital Articles (January 29, 2021). View Details
- Fried, Jesse M., and Charles CY Wang. "Le capitalisme durable menace la durabilité des entreprises." Les Echos (December 18, 2020). View Details
- Fried, Jesse M., and Charles CY Wang. "Buyback Critics Are Not Letting the COVID-19 Crisis Go to Waste." Harvard Law School Forum on Corporate Governance (April 2, 2020). https://corpgov.law.harvard.edu/2020/04/02/buyback-critics-are-not-letting-the-covid-19-crisis-go-to-waste/. View Details
- Fried, Jesse M., and Charles C.Y. Wang. "Senators Take Aim at the Buyback Boogeyman." Boston Globe (February 20, 2019). View Details
- Fried, Jesse M., and Charles C.Y. Wang. "The Real Problem with Stock Buybacks." Wall Street Journal (July 9, 2018). View Details
- Fried, Jesse M., and Charles C.Y. Wang. "Are Buybacks Really Shortchanging Investment?" Harvard Business Review 96, no. 2 (March–April 2018): 88–95. View Details
- Working Papers
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- Fried, Jesse M., Paul Ma, and Charles C.Y. Wang. "Stock Investors' Returns Are Exaggerated." Harvard Business School Working Paper, No. 22-036, November 2021. View Details
- Chattopadhyay, Akash, Sa-Pyung Sean Shin, and Charles C.Y. Wang. "Governance Transparency and Firm Value: Evidence from Korean Chaebols." Harvard Business School Working Paper, No. 22-012, September 2021. (Revised November 2021.) View Details
- Choi, Ki-Soon, Eric So, and Charles C.Y. Wang. "Going by the Book: Valuation Ratios and Stock Returns." Harvard Business School Working Paper, No. 21-126, May 2021. View Details
- Datar, Srikant, Apurv Jain, Charles C.Y. Wang, and Siyu Zhang. "Is Accounting Useful for Forecasting GDP Growth? A Machine Learning Perspective." Harvard Business School Working Paper, No. 21-113, December 2020. View Details
- Chattopadhyay, Akash, Matthew R. Lyle, and Charles C.Y. Wang. "Connecting Expected Stock Returns to Accounting Valuation Multiples: A Primer." Harvard Business School Working Paper, No. 21-081, January 2021. View Details
- Ma, Paul, Jee-Eun Shin, and Charles C.Y. Wang. "rTSR: Properties, Determinants, and Consequences of Benchmark Choice." Harvard Business School Working Paper, No. 19-112, April 2019. (Revised May 2021.) View Details
- Cao, Sheng, Xianjie He, Charles C.Y. Wang, and Huifang Yin. "Government Shareholdings in Brokerage Firms and Analyst Research Quality." Harvard Business School Working Paper, No. 18-095, March 2018. (Revised June 2021.) View Details
- Stein, Luke C.D., and Charles C.Y. Wang. "Economic Uncertainty and Earnings Management." Harvard Business School Working Paper, No. 16-103, March 2016. (Revised April 2017.) View Details
- Lee, Charles M.C., Paul Ma, and Charles C.Y. Wang. "The Search for Peer Firms: When Do Crowds Provide Wisdom?" Harvard Business School Working Paper, No. 15-032, October 2014. (Revised November 2016.) View Details
- Wang, Charles C.Y. "Measurement Errors of Expected-Return Proxies and the Implied Cost of Capital." Harvard Business School Working Paper, No. 13-098, May 2013. (Revised February 2015.) View Details
- Wang, Charles C.Y. "Can Implicit Regulation Change Financial Market Behavior? Evidence from Spitzer's Attack on Market Timers." Working Paper, 2012. View Details
- Cases and Teaching Materials
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- Kang, Jung Koo, Charles CY Wang, David Allen, and Kwangmoon So. "Wemade: (Re)Establishing Trust in Blockchain Games (B)." Harvard Business School Supplement 125-018, September 2024. View Details
- Kang, Jung Koo, Krishna G. Palepu, and Charles C.Y. Wang. "Silicon Valley Bank: Gone in 36 Hours." Harvard Business School Teaching Note 124-096, April 2024. (Revised August 2024.) View Details
- Kang, Jung Koo, Krishna G. Palepu, Charles C.Y. Wang, and David Lane. "Silicon Valley Bank: Gone in 36 Hours." Harvard Business School Case 124-001, January 2024. (Revised August 2024.) View Details
- Heese, Jonas, and Charles C.Y. Wang. "Dan McCrum - Unmasking Wirecard." Harvard Business School Teaching Note 124-050, December 2023. View Details
- Heese, Jonas, Charles C.Y. Wang, Tonia Labruyere, and Carlota Moniz. "Dan McCrum - Unmasking Wirecard." Harvard Business School Case 123-098, June 2023. View Details
- Wang, Charles CY, and Johnson Elugbadebo. "Identifying Quality Stocks using Quantitative Screens." Harvard Business School Case 123-063, January 2023. View Details
- Wang, Charles C.Y. "Corporate Governance in Business Analysis and Valuation." Harvard Business School Module Note 122-073, March 2022. View Details
- Wang, Charles C.Y. "Asian Corporate Governance Association: Stemming a 'Race to the Bottom' by Stock Exchanges? (TN)." Harvard Business School Teaching Note 122-060, March 2022. View Details
- Heese, Jonas, Charles C.Y. Wang, and James Weber. "Introducing EVA at ISS: A Better Way to Evaluate CEO Performance and Compensation?" Harvard Business School Case 122-061, January 2022. (Revised February 2022.) View Details
- Heese, Jonas, and Charles C.Y. Wang. "Introducing EVA at ISS: A Better Way to Evaluate CEO Performance and Compensation?" Harvard Business School Teaching Note 122-062, February 2022. View Details
- Heese, Jonas, and Charles C.Y. Wang. "ISS EVA Instructor Template." Harvard Business School Spreadsheet Supplement 122-708, February 2022. (Revised February 2024.) View Details
- Wang, Charles C.Y., and Tonia Labruyere. "The Florange Law: Encouraging Long-Termism in Equity Markets?" Harvard Business School Background Note 122-065, January 2022. View Details
- Wang, Charles C.Y. "Analysis of Financial and Non-Financial Information for Forecasting Performance." Harvard Business School Module Note 122-071, January 2022. (Revised March 2022.) View Details
- Wang, Charles C.Y., and Albert Shin. "Residual Income Valuation Model." Harvard Business School Background Note 122-070, January 2022. View Details
- Wang, Charles C.Y., and Amram Migdal. "Business Roundtable 2019 Statement: A New Paradigm or Business as Usual?" Harvard Business School Case 122-023, February 2022. View Details
- Wang, Charles C.Y., and Kaden Chien. "DuPont Decomposition of Return on Equity." Harvard Business School Background Note 122-013, September 2021. View Details
- Heese, Jonas, Charles C.Y. Wang, and Tonia Labruyere. "Wirecard: The Downfall of a German Fintech Star." Harvard Business School Case 121-058, March 2021. (Revised April 2021.) View Details
- Heese, Jonas, and Charles C.Y. Wang. "Wirecard: The Downfall of a German Fintech Star." Harvard Business School Teaching Note 122-002, July 2021. (Revised February 2024.) View Details
- Wang, Charles C.Y., and Billy Chan. "Asian Corporate Governance Association: Stemming a 'Race to the Bottom' by Stock Exchanges?" Harvard Business School Case 121-073, June 2021. (Revised November 2021.) View Details
- Wang, Charles C.Y., and Siyu Zhang. "Accounting for Bitcoin at Tesla." Harvard Business School Case 121-074, May 2021. (Revised September 2021.) View Details
- Wang, Charles C.Y. "Accounting for Bitcoin at Tesla." Harvard Business School Teaching Note 122-030, December 2021. (Revised October 2023.) View Details
- Rouen, Ethan C., and Charles C.Y. Wang. "Measuring Impact at JUST Capital." Harvard Business School Teaching Note 121-037, February 2021. (Revised March 2022.) View Details
- Wang, Charles C.Y., and Ethan Rouen. "Measuring Impact at JUST Capital." Harvard Business School Multimedia/Video Case 121-703, February 2021. View Details
- Rouen, Ethan C., and Charles C.Y. Wang. "Measuring Impact at JUST Capital." Harvard Business School Case 119-092, March 2019. (Revised April 2019.) View Details
- Wang, Charles C.Y., Tonia Labruyere, and Vincent Dessain. "CIAM: Home-Grown Shareholder Activism in France." Harvard Business School Case 120-072, March 2020. (Revised March 2024.) View Details
- Wang, Charles C.Y., Tonia Labruyere, and Vincent Dessain. "CIAM: Home-Grown Shareholder Activism in France (B)." Harvard Business School Supplement 121-078, July 2021. View Details
- Wang, Charles C.Y., Tonia Labruyere, and Vincent Dessain. "CIAM: Home-Grown Shareholder Activism in France." Harvard Business School Teaching Note 122-012, July 2021. View Details
- Wang, Charles C.Y. "CIAM Instructor Template." Harvard Business School Spreadsheet Supplement 122-703, July 2021. View Details
- Wang, Charles C.Y. "CIAM Student Template." Harvard Business School Spreadsheet Supplement 122-704, July 2021. View Details
- Srinivasan, Suraj, Charles C.Y. Wang, and Jonah Goldberg. "Growth Investing at Totem Point." Harvard Business School Case 119-091, March 2019. (Revised May 2019.) View Details
- Srinivasan, Suraj, and Charles C.Y. Wang. "Growth Investing at Totem Point." Harvard Business School Teaching Note 121-098, June 2021. View Details
- Srinivasan, Suraj, and Charles CY Wang. "ADI Worksheet Instructor Template." Harvard Business School Spreadsheet Supplement 121-100, June 2021. View Details
- Srinivasan, Suraj, and Charles CY Wang. "ADI Worksheet Student Template." Harvard Business School Spreadsheet Supplement 121-099, June 2021. View Details
- Wang, Charles C.Y., and Raaj Zutshi. "Tesla's Bid for SolarCity (A)." Harvard Business School Case 118-044, December 2017. (Revised June 2021.) View Details
- Wang, Charles C.Y. "Tesla's Bid for SolarCity (A)." Harvard Business School Teaching Note 121-101, June 2021. View Details
- Wang, Charles CY. "TSLA Instructor Template." Harvard Business School Spreadsheet Supplement 121-104, June 2021. View Details
- Wang, Charles CY. "TSLA Student Template." Harvard Business School Spreadsheet Supplement 121-103, June 2021. View Details
- Wang, Charles C.Y., and Athena Zhang. "Tesla's Bid for SolarCity (B)." Harvard Business School Supplement 119-075, January 2019. View Details
- Gow, Ian, Charles C.Y. Wang, Naoko Jinjo, and Nobuo Sato. "Misaki Capital and Sangetsu Corporation." Harvard Business School Case 117-007, October 2016. (Revised October 2017.) View Details
- Wang, Charles C.Y., Akiko Saito, and Nobuo Sato. "Misaki Capital and Sangetsu Corporation (B)." Harvard Business School Supplement 121-072, April 2021. View Details
- Wang, Charles C.Y. "Misaki Capital and Sangetsu Corporation." Harvard Business School Teaching Note 119-031, September 2018. (Revised March 2022.) View Details
- Paine, Lynn S., Charles C.Y. Wang, Dawn H. Lau, and Anthony K. Woo. "China Vanke: Battle for Control (A)." Harvard Business School Case 318-117, March 2018. (Revised January 2021.) View Details
- Paine, Lynn S., Charles C.Y. Wang, Dawn H. Lau, and Anthony K. Woo. "China Vanke: Battle for Control (B)." Harvard Business School Supplement 318-118, March 2018. View Details
- Paine, Lynn S., Charles C.Y. Wang, Dawn H. Lau, and Anthony K. Woo. "China Vanke: Battle for Control (C)." Harvard Business School Supplement 318-119, March 2018. View Details
- Paine, Lynn S., Charles C.Y. Wang, Dawn H. Lau, and Anthony K. Woo. "China Vanke: Battle for Control (D)." Harvard Business School Supplement 318-120, March 2018. View Details
- Wang, Charles C.Y., Paul M. Healy, Penelope Rossano, and Kyle Thomas. "Air Products' Pursuit of Airgas (A)." Harvard Business School Case 116-024, November 2015. (Revised March 2018.) View Details
- Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (B)." Harvard Business School Supplement 116-025, November 2015. (Revised March 2018.) View Details
- Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (C)." Harvard Business School Supplement 118-080, February 2018. View Details
- Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (D)." Harvard Business School Supplement 118-081, February 2018. View Details
- Wang, Charles C.Y., and Paul M. Healy. "Air Products' Pursuit of Airgas." Harvard Business School Teaching Note 122-020, August 2021. View Details
- Wang, Charles C.Y. "Airgas Valuation Instructor." Harvard Business School Spreadsheet Supplement 122-706, August 2021. View Details
- Wang, Charles CY. "Airgas Valuation Student." Harvard Business School Spreadsheet Supplement 122-705, August 2021. View Details
- Wang, Charles C.Y., and Kyle Thomas. "New Constructs: Disrupting Fundamental Analysis with Robo-Analysts." Harvard Business School Case 118-068, February 2018. (Revised June 2021.) View Details
- Wang, Charles C.Y., and Albert Shin. "New Constructs: Disrupting Fundamental Analysis with Robo-Analysts." Harvard Business School Teaching Note 122-059, January 2022. (Revised March 2022.) View Details
- Wang, Charles C.Y. "New Constructs Worksheet - Student Template." Harvard Business School Exercise 122-057, January 2022. View Details
- Wang, Charles CY. "New Constructs Worksheet - Instructor Template." Harvard Business School Exercise 122-058, January 2022. View Details
- Palepu, Krishna, Suraj Srinivasan, Charles C.Y. Wang, and David Lane. "Alibaba Goes Public (A)." Harvard Business School Case 115-029, December 2014. (Revised November 2015.) View Details
- Palepu, Krishna, Suraj Srinivasan, and Charles C.Y. Wang. "Alibaba Goes Public (A)." Harvard Business School Teaching Note 116-034, November 2015. View Details
- Palepu, Krishna, Suraj Srinivasan, Charles C. Y. Wang, and David Lane. "Alibaba Goes Public (B)." Harvard Business School Supplement 116-031, February 2016. View Details
- Oberholzer-Gee, Felix, Charles C.Y. Wang, and Esel Cekin. "Turkcell." Harvard Business School Case 715-009, September 2014. (Revised February 2017.) View Details
- Oberholzer-Gee, Felix, Charles CY Wang, and Esel Çekin. "Turkcell (TN)." Harvard Business School Teaching Note 116-040, January 2016. (Revised March 2022.) View Details
- Wang, Charles C.Y. "Turkcell Student Template." Harvard Business School Spreadsheet Supplement 122-709, March 2022. View Details
- Wang, Charles C.Y. "Turkcell Instructor Template." Harvard Business School Spreadsheet Supplement 122-710, March 2022. View Details
- Gow, Ian D., Charles C.Y. Wang, and Kyle Thomas. "Walgreen and Alliance Boots." Harvard Business School Case 115-046, March 2015. (Revised August 2015.) View Details
- Gow, Ian D., and Charles C.Y. Wang. "Walgreen and Alliance Boots." Harvard Business School Teaching Note 115-047, March 2015. (Revised August 2015.) View Details
- Wang, Charles C.Y., Selina Jan, and Kyle Thomas. "Board of Directors: An Introductory Note." Harvard Business School Background Note 114-096, June 2014. (Revised November 2020.) View Details
- Gow, Ian D., and Charles C.Y. Wang. "Cisco Systems and Offshore Cash." Harvard Business School Case 114-027, September 2013. (Revised June 2014.) View Details
- Gow, Ian D., and Charles C.Y. Wang. "Cisco Systems and Offshore Cash." Harvard Business School Teaching Note 114-094, June 2014. (Revised December 2015.) View Details
- Srinivasan, Suraj, Charles C.Y. Wang, and Kelly Baker. "Say on Pay: Qualcomm, Inc. Shareholders Vote 'Maybe'." Harvard Business School Case 114-005, July 2013. (Revised September 2019.) View Details
- Srinivasan, Suraj, and Charles C.Y. Wang. "Say on Pay: Qualcomm, Inc. Shareholders Vote 'Maybe'." Harvard Business School Teaching Note 114-065, March 2014. (Revised September 2019.) View Details
- Research Summary
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In the area of equity valuation, Professor Wang explores how firm fundamentals and valuation models can be used to understand expected return variation, with a focus on valuation-implied cost of capital and its use as a proxy for expected returns. In his study of corporate governance, he empirically analyzes the impact of governance arrangements on shareholder value.
The characteristics and structure of boards of directors have important implications for firm performance. Professor Wang has found that firms with well-connected boards whose members have strong network connections provide economic benefits that are not immediately reflected in stock prices. Further, well-connected boards are most valuable to firms that stand to benefit most from their networks, such as young or growth organizations. Professor Wang’s research has also helped to settle an issue regarding staggered boards of directors. Staggered boards are known to be negatively correlated with firm valuation, but is this a causal effect? Using two Delaware Chancery and Supreme Court cases as a natural experiment, he found evidence consistent with the market’s view that staggered boards reduce firm value.
In studying the asset-pricing implications of board entrenchment on firm value and stock returns, Professor Wang found that the positive association between good-governance firms and abnormal positive stock returns that was documented for the 1990-1999 decade has subsequently disappeared. His study finds evidence that during the 1990s, market participants and securities analysts did not sufficiently appreciate the difference between good-governance and poor-governance firms, and therefore were more positively surprised by the earnings announcements of good-governance firms. As they learned about and paid more attention to corporate governance in the early 2000s and impounded their value implications into prices, the association between governance and returns disappeared.
Professor Wang’s findings in an examination of golden parachutes indicate that they lead to more acquisitions and acquisition bids, but that they are ultimately associated with lower acquisition premiums. Combining both effects, golden parachutes are associated with a higher expected acquisition premium. His research also finds that firms adopting golden parachutes tend to erode in value and stock returns, both around and after the time of adoption, relative to their industry peers, suggesting that the adverse effects on executive incentives and performance in the absence of acquisition offers may outweigh the shareholder benefit of increased likelihood of takeovers.Professor Wang’s research utilizes valuation theory to explain how firm fundamentals are related to the expected rates of equity returns and their term structures. His research provides strong evidence that valuation-based proxies of expected returns outperform the standard empirical proxies motivated by finance theory. He has shown that such valuation-based proxies may not be perfect. To promote a better understanding of their imperfections, Professor Wang has developed a novel diagnostic procedure to estimate the associations between measurement errors of expected returns proxies and firm characteristics.
- Teaching
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Charles C.Y. Wang is an associate professor of business administration in the Accounting and Management Unit and currently teaches the Business Analysis and Valuation course in the MBA elective curriculum. This course is aimed at all MBAs who expect at some point in their careers to use financial statements to evaluate the performance, prospects, and value of a business. The primary emphasis will be on the analysis of public companies, but many tools and techniques utilized are relevant to private enterprise financial analysis as well. This course will be particularly valuable to students who are seeking a career in consulting, corporate finance, investment banking, hedge funds, or private equity.
- Awards & Honors
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First Place Winner of the 2023 Jensen Prize for the best corporate finance paper published in the Journal of Financial Economics for “How Much Should We Trust Staggered Difference-In-Differences Estimates?” (May 2022) with Andrew Baker and David F. Larcker.Received the 2022 Charles M. Williams Award for Teaching Excellence.Received the Wyss Award for Excellence in Doctoral Student Mentoring in 2022.Winner of the European Financial Management (EFM) 2021 Best Paper Award: Editors Vote for "Short-Termism, Shareholder Payouts, and Investment in the EU" (June 2021) with Jesse M. Fried.Winner of the 2013 Academic Research Award from the IRRC Institute (Investor Responsibility Research Center Institute) for his paper with Lucian A. Bebchuk and Alma Cohen, "Learning and the Disappearing Association Between Governance and Returns" (Journal of Financial Economics, 2013).Awarded the 2011-2012 Bradley Graduate Fellowship from the Stanford Institute for Economic Policy Research (SIEPR).Received a 2011 Centennial Teaching Assistant Award from Stanford University.Received a 2010 George P. Schultz Graduate Student Fellowship in Economic Policy from the Stanford Institute for Economic Policy Research (SIEPR).Won the Outstanding Teaching Assistant Award from Stanford University, 2008–2010.Received a Stanford University Graduate Fellowship, 2006–2008.
- Additional Information
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About Me
- Areas of Interest
- In The News