11/26/2012 09:54 AM
BATON ROUGE – Ji-Chai Lin, Lloyd F. Collette Endowed Chair in Financial Services and
C. C. “Cliff” Cameron Professor in the LSU Department of Finance, coauthored an article
that the Journal of Financial Markets recently accepted for publication. The article,
“Price Delay Premium and Liquidity Risk,” was coauthored with Ping-Wen Sun, a postdoctoral
researcher at LSU, Ajai Singh from Lehigh University and Wen Yu from University of
According to the paper’s abstract, the findings suggest that price delay premium is
not due to inadequate risk sharing, but due to systematic liquidity risk. The paper
focuses on the fact that firms with greater price delay have more difficulty attracting
traders and their investors face higher liquidity risk, which accounts for their anomalous
Lin joined LSU’s faculty in 1988, the same year he earned his Ph.D. in finance from
the University of Iowa. His research interests include investments, market microstructure
and investor behavior.
According to its website, the Journal of Financial Markets “publishes high quality
original research on applied and theoretical issues related to securities trading
The Department of Finance is a Chartered Financial Analyst, or CFA, Program Partner
and a Certified Financial Planner, or CFP, Board-Registered Program that offers high
quality curricula to undergraduate and graduate students interested in careers in
corporate finance, asset management, real estate, insurance, banking, financial planning
and business law. The department boasts internationally renowned research faculty
in several areas, including derivatives, asset management, banking and spatial econometrics.
The department’s Securities Markets Analysis Research & Trading, or SMART, Lab boasts
the Bloomberg Professional service, the platform used by more than 300,000 leading
business and financial professionals worldwide to make informed business decisions,
and an extensive library of financial data bases including the Wharton WRDS System.
Additionally, the department encourages, supports and conducts research in real estate
by housing the nationally renowned Real Estate Research Institute.
For more information, visit www.business.lsu.edu/finance or call 225-578-6291.
Posted on Monday, November 26, 2012