Research

Working Papers

• Finance

"Competing Effects of Income Inequality on Corporate Innovation: Incentive and Deprivation" (Job Market Paper)

This study examines the effects of state income inequality on corporate innovation activities. Income inequality is characterized by monetary incentives and deprivation. While monetary incentives promote quantitative innovation, deprivation weakens qualitative innovation. This study reveals that the impact on corporate innovation activities can vary based on whether corporate employees' perspectives on income inequality place more weight on monetary incentives or deprivation. Further analyses suggest that policies aimed at reducing deprivation can foster corporate innovation and contribute to the social sustainability of the economy.

"Innovation Centrality, Profitability, and Stock Return" (co-authored with S. Ghon Rhee and Qianqiu Liu)

This paper studies the effect of firms’ relative position in the corporate patent citation network on profitability and stock returns. The relative position indicates the firm’s relative importance and influence in the network, expressed as centrality efficiency. The centrality-efficient firms have lower innovation quality on average. Furthermore, while firms achieving higher centrality efficiency have improved profitability, the centrality efficiency negatively predicts the firms’ future stock prices. Based on the concentration effect and general-purpose technology characteristics, the innovation network's centrality efficiency implies low market risk and financial distress risk.

"Income Inequality, Political Uncertainty, and Corporate Innovation"

This paper examines the effect of state income inequality on the relationship between political uncertainty and corporate innovation activities. In states with high income inequality, political uncertainty hinders corporate innovation, and political sentiment also significantly impacts innovation activities. However, in states with low income inequality, these political factors have little impact on corporate innovation. The effects of welfare expenditure and political alignment with the progressive party are mainly found in states with high income inequality. The results suggest that the high level of income inequality causes political unrest, which significantly impacts political factors on corporate innovation in states with high income inequality.

• Machine Learning / Data Analytics

"Effectively Delivering Author’s Point to Reader: Pointer-Generator Network Approach" (co-authored with Sukhwa Hong)

We propose a communication-based text summarization approach utilizing a pointer-generator network. The proposed summarization algorithm combines elements of abstractive summarization with keyword extraction. These keywords are associated with threats, causality, evidence, and solutions, all aimed at influencing readers' behavior. This paper is grounded in the theoretical frameworks of Language-Action Perspective (LAP) and Speech Act Theory (SAT), which are applied within the context of social and behavior change communication (SBCC). Consequently, our ultimate model considers the target readers to enhance the effectiveness of communication for promoting social and behavioral change. The SBCC-based summary incorporates more persuasive and emotive language while prioritizing SBCC-related content from the original article. This study demonstrates the potential effectiveness of a summary that encapsulates the author's intentions in shaping readers' thoughts and behaviors.

"Advancing Mobile Neurofinance: EEG-Based User Authentication and Financial Advisory" (co-authored with Gi-Chul Yang and Sukhwa Hong), under review.

This study addresses the need for advanced user authentication in mobile finance, proposing an electroencephalography (EEG)-based method using 1D CNN and Bi-LSTM networks. Results show superior performance, securing financial transactions on mobile platforms. The research explores deep learning for processing EEG signals, offering potential applications in investment and financial advisory services. Practical pathways are outlined to enhance security and accuracy within the FinTech sector, prioritizing simplicity for mobile devices. The proposed models show promise in reshaping authentication practices and extending into financial advisory services.

Work In Progress

"ESG Policy and Corporate Innovation" (co-authored with Jing Ai and Tianyang Wang)

“Firms' Intention to Innovate and Asset Prices: Pointer-Generator Network Approach” (co-authored with Sukhwa Hong)