Scholars@Duke
Xu Jiang

Xu Jiang

Associate Professor of Business Administration
Fuqua School of Business

Scholarly Works

Transparency and Bank Liability Structure

Journal article The Accounting Review · May 1, 2026 ABSTRACTWe study the desirability of transparent accounting information for banks depending on their liability structure. In our model, a bank finances a long-term project with both uninsured and insured ... Full text Cite

Target Return Strategy

Journal article Financial Review · November 1, 2025 We study the target return strategy (TRS), which exits the market once the return reaches a preset target. We show that the holding-period return (HPR) cannot mean-variance dominate TRS, but TRS can mean-variance dominate HPR. We theoretically analyze TRS ... Full text Cite

The Economic Consequences and Underlying Mechanisms of Implementing Common Accounting Standards

Journal article Accounting Horizons · September 1, 2025 SYNOPSISWe empirically examine the channels through which the implementation of common accounting standards affects liquidity. Theory suggests two channels through which adopting a common standard can affect ... Full text Cite

The asset pricing and real implications of relationship intensity disclosure

Journal article Journal of Accounting and Economics · August 1, 2025 Investors in financial markets are often uncertain about the relationship intensity between firms and have to rely on firms’ disclosure of such relationship intensity. We analytically study the asset pricing implications of this relationship intensity unce ... Full text Cite

Disclosing Endogenous Cost Information

Journal article Accounting Review · March 1, 2025 We study voluntary cost disclosure by duopoly firms when they can invest in a cost-reduction technology, i.e., when their private cost is endogenously determined. We find that, contrary to most of the literature, firms disclose their endogenous cost inform ... Full text Cite

Manipulation, panic runs, and the short selling ban

Journal article Journal of Economic Theory · January 1, 2025 Short selling regulation has been a longstanding topic of debate in financial markets, particularly during times of crisis. While proponents argue that short selling aids in price discovery and market efficiency, critics raise concerns about manipulative s ... Full text Cite

Optimal Accounting Rules, Private Benefits of Control, and Efficient Liquidation

Journal article Management Science · September 1, 2024 We study optimal accounting rules that alleviate inefficiencies caused by managerial private benefits. Accounting signals generated by the accounting rules guide the continuation decision at an interim project stage. The entrepreneur enjoys private benefit ... Full text Cite

Penalizing Shirking in Discovering Unsuitability

Journal article Review of Law and Economics · July 1, 2024 We study the optimal penalty scheme for an expert firm and a layman client against shirking in their costly interaction that helps the firm discover the unsuitable transaction, i.e. one that yields a loss for the client. The market solution to the bilatera ... Full text Cite

What Role Do Boards Play in Companies with Visionary CEOs?

Journal article Journal of Accounting Research · June 1, 2024 Visionary CEOs have strong beliefs about the right course of action for their firms. How should a board of directors that does not necessarily share the visionary CEO's confidence advise and monitor the CEO? We consider a model in which the board can acqui ... Full text Cite

Harmonized Accounting Standards and Investment Beauty Contests

Journal article Accounting Review · November 1, 2023 We study the economic impacts of adopting harmonized accounting standards when firms’ investments exhibit beauty contest features. We model harmonized accounting standards as common/correlated noises in firms’ accounting reports. We show that while more ha ... Full text Cite

Reporting of Investment Expenditure: Should It Be Aggregated with Operating Cash Flows?

Journal article Accounting Review · July 1, 2023 Corporate managers are often better informed than outside investors about the uncertain future benefits of investments. However, information about investment prospects is not verifiable and therefore not amenable to direct disclosure, but instead inferred ... Full text Cite

The influences of livestreaming on online purchase intention: examining platform characteristics and consumer psychology

Journal article Industrial Management and Data Systems · March 9, 2023 Purpose: Livestreaming, as a relatively new online marketing model, has generated numerous business opportunities for e-commerce and social commerce. The purpose of this paper is to investigate to what degree livestreaming content impacts online users' cog ... Full text Cite

The Value of Mandatory Certification: A Real Effects Perspective

Journal article Journal of Accounting Research · March 1, 2023 We study the real effects of certification to demonstrate the value of mandatory certification over and above mandatory disclosure in enhancing investment efficiency. In our model, a firm's manager selects a project to maximize the firm's short-term stock ... Full text Cite

Morale, performance and disclosure

Journal article Canadian Journal of Economics · February 1, 2023 We study the optimal disclosure policy in a sender–receiver communication game where the receiver's morale, defined as his expected state of the world, affects his performance. The sender observes the state and chooses whether to disclose it to the receive ... Full text Cite

Tax Incidence and Tax Avoidance*

Journal article Contemporary Accounting Research · October 1, 2022 Economists broadly agree that the economic burden of corporate taxes is not entirely borne by shareholders but also borne in part by employees and consumers. We examine corporate tax avoidance in a setting where shareholders do not bear the entire economic ... Full text Cite

Tax Incidence and Tax Avoidance

Journal article · May 24, 2022 Open Access Cite

Economic consequences of managerial compensation contract disclosure

Journal article Journal of Accounting and Economics · April 1, 2022 We analytically study the economic consequences of the disclosure of managerial compensation contracts in a setting where two firms, by designing compensation contracts for their respective managers, compete for a new investment opportunity. Each manager i ... Full text Cite

Financial Reporting Discretion, Managerial Myopia, and Investment Efficiency

Journal article Accounting Review · January 1, 2022 We explicitly model financial reporting discretion and earnings management in an investment setting where managers have incentives to behave myopically. We show that when managers are sufficiently, but not excessively, myopic, granting them some discretion ... Full text Cite

Tax Incidence and Tax Avoidance

Journal article TRR 266 Accounting for Transparency Working Paper Series · December 6, 2021 Cite

Asymmetric reporting timeliness and informational feedback

Journal article Management Science · August 1, 2021 We examine the effects of asymmetric timeliness in reporting good versus bad news on price informativeness when prices provide useful information to assist firms' investment decisions. We find that a reporting system featuring more timely disclosure of bad ... Full text Cite

Are interim performance evaluations optimal when the evaluations are subject to manipulation?

Journal article Journal of Institutional and Theoretical Economics · January 1, 2021 The paper considers, in a principal–agent framework, whether or not providing interim performance evaluations is more efficient when agents can manipulate the very performance reports by which they are evaluated. Providing interim performance evaluation in ... Full text Cite

The economic consequences of discrete recognition and continuous measurement

Journal article Journal of Accounting and Economics · February 1, 2020 Discrete recognition is a long-standing and ubiquitous accounting practice, but it has been widely criticized for suppressing information and inducing accounting-motivated transactions. We study a model to examine the economic consequences of shifting away ... Full text Cite

Firm value and market liquidity around the adoption of common accounting standards

Journal article Journal of Accounting and Economics · August 1, 2019 The adoption of common accounting standards generates both a precision effect and a network effect. When firms use common standards, investors can leverage their knowledge about the standards to process more financial reports. Embedding both effects into t ... Full text Cite

The effects of audit quality disclosure on audit effort and investment efficiency

Journal article Accounting Review · January 1, 2019 We develop a model to evaluate the costs and benefits of disclosing information about audit quality. Specifically, we examine whether audit quality disclosure affects auditors' effort and investors' investment efficiency. In our setting, an auditor exerts ... Full text Cite

Reporting choices in the shadow of bank runs

Journal article Journal of Accounting and Economics · February 1, 2018 This paper investigates banks’ reporting choices in the context of bank runs. A fundamental-based run imposes market discipline on insolvent banks, but a panic-based run closes banks that could have survived with better coordination among creditors. We aug ... Full text Cite

Properties of optimal accounting rules in a signaling game

Journal article Journal of Accounting and Economics · April 1, 2017 We characterize the properties of optimal accounting rules in a signaling game. An impatient firm sells shares to competitive investors. The firm can signal its private information about the fundamental by retaining a fraction of the shares. In addition, t ... Full text Cite

Biases in Accounting and Nonaccounting Information: Substitutes or Complements?

Journal article Journal of Accounting Research · December 1, 2016 This paper studies how bias in nonaccounting and in accounting information should be related. Bias in accounting information is modeled, as in some recent literature, as an alteration in the relative information content of accounting numbers. The optimal b ... Full text Cite

Biases in Accounting and Non-Accounting Information: Substitutes or Complements?

Journal article Journal of Accounting Research · 2016 Cite

The impact of financial histories on individuals and societies: A replication of and extension of Berg el al. (1995)

Journal article Research in Experimental Economics · January 1, 2015 We replicate and extend the social history treatment of the Berg, Dickhaut, and McCabe (1995) investment game, to further document how the reporting of financial history influences how laboratory societies organize themselves over time. We replicate Berg e ... Full text Cite

Diffuse scattering from the liquid-vapor interfaces of dilute Bi:Ga, Tl:Ga, and Pb:Ga alloys

Journal article Physical Review B Condensed Matter and Materials Physics · December 15, 2005 As part of a study of the in-plane wave-vector (qxy) dependence of the effective Hamiltonian for the liquid-vapor interface, H (q), the wave-vector dependences of diffuse x-ray scattering from the liquid-vapor interfaces of dilute alloys of Bi in Ga, Tl in ... Full text Cite

A theoretical study of the structure of the liquid Ga-diamond (111) interface

Journal article Journal of Chemical Physics · September 8, 2005 We present the results of a computer simulation study of the structure of the interface between liquid Ga and the (111) face of diamond, with which we reinterpret the findings from an x-ray reflectivity study of that interface [W. J. Huisman, J. F. Peters, ... Full text Cite

Theoretical study of the longitudinal density distribution in the liquid-vapor interface of a dilute ternary alloy: Pb and Sn in Ga

Journal article Physical Review B Condensed Matter and Materials Physics · September 1, 2005 We report the results of self-consistent Monte Carlo simulations of the density distribution along the normal to the interface of the liquid-vapor interface of a dilute ternary alloy of Sn and Pb in Ga. The results of the simulations are in general agreeme ... Full text Cite

Phase transitions in the liquid-vapor interface of dilute alloys of Bi in Ga: New experimental studies

Journal article Journal of Chemical Physics · June 8, 2005 We report the results of measurements of x-ray reflectivity and grazing incidence x-ray diffraction from the liquid-vapor interfaces of four dilute alloys of Bi in Ga with mole fractions xBi =0.0032, 0.0023, 0.000 37, and 0.000 037. The monolayer coverage ... Full text Cite

Longitudinal density distribution in the liquid-vapor interface of a dilute alloy of Tl in Ga

Journal article Physical Review B Condensed Matter and Materials Physics · March 1, 2005 We report the results of self-consistent Monte Carlo simulations of the density distribution along the normal to the liquid-vapor interface of a dilute binary alloy of Tl in Ga. The results of the simulation are in agreement with those obtained from experi ... Full text Cite