Professor Kewei Hou’s primary research interest is in the area of empirical asset pricing with a specialization in the predictability of stock returns. He has published in the Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Accounting and Economics, and Management Science.

He is a an Associate Editor of the Journal of Empirical Finance, and is the recipient of research grants from the Institute for Quantitative Research in Finance (Q-Group), INQUIRE-Europe, INQUIRE-UK, BSI GAMMA Foundation, Chicago Quantitative Alliance, and Research Grants Council (RGC) of Hong Kong. Professor Hou joined the Ohio State University Fisher College of Business in 2001. He received his B.S. in Electrical Engineering from the University of Science and Technology of China (USTC) and his Ph.D. in Finance from the University of Chicago Booth School of Business.

Areas of Expertise

• Investments
• Corporate Finance
• Derivative Securities

Education

• PhD, University of Chicago, Booth School of Business
• BS, Electrical Engineering

Finance 823 - Derivatives

Overview of the fundamentals of derivatives.

• Course website

Finance 921 - Specifying and Testing Models of Asset Pricing

Detailed analysis and experimentation with models of asset pricing.

• Course website

Student Investment Management (SIM)

The Ohio State Student Investment Management Program (SIM) combines traditional academic objectives with the practical demands of hands on investment management. The program offers the university a unique opportunity to deliver high quality practical education in an area of considerable interest to students and employers alike.

• Course website

Publications in Refereed Journals

• "What Factors Drive Global Stock Returns?"
  forthcoming Review of Financial Studies
  • Winner of BSI Gamma Foundation Research Grant Award, INQUIRE-UK Research Grant Award, and Best Paper Award First International Conference on Asia-Pacific Financial Markets (with Andrew Karolyi and Bong-Chan Kho)
• "The Accrual Anomaly: Risk or Mispricing?"
  forthcoming Management Science
  • (with David Hirshleifer and Siew Hong Teoh)
• "Accruals, Cash Flows, and Aggregate Stock Returns," 2009, Journal of Financial Economics 91, 389-406.
  • (with David Hirshleifer and Siew Hong Teoh)
• "Industry Information Diffusion and the Lead-Lag Effect in Stock Returns," 2007, Review of Financial Studies 20, 1113-1138.
• "Industry Concentration and Average Stock Returns," 2006, Journal of Finance 61, 1927-1956.
  • (with David Robinson)
• "Market Frictions, Price Delay, and the Cross-Section of Expected Returns," 2005,  Review of Financial Studies 18, 981-1020.
  • Winner of Q-Group Research Grant Award
  • (with Tobias Moskowitz)
• "Do Investors Overvalue Firms with Bloated Balance Sheets?" 2004, Journal of Accounting and Economics 38, 297-331.
  • (with David Hirshleifer, Siew Hong Teoh and Yinglei Zhang)

• "Private Firms and the Importance of Industry Concentration for Financial Market Behavior"
  • (with David Robinson)
• "On Estimation of Risk Premia in Linear Factor Models"
  • (with Robert Kimmel)
• "Profitability Shocks and the Size Effect in the Cross-Section of Expected Stock Returns"
  
  • Winner of INQUIRE-Europe Research Grant Award
  • (with Mathijs A. van Dijk)
• "The Implied Cost of Capital: A New Approach"
  • Winner of INQUIRE-UK Research Grant and Research Grants Council (RGC) of Hong Kong
  • CERG (Competitive Earmarked Research Grant) Award
  • (with Mathijs A. van Dijk and Yinglei Zhang)
• "Understanding the Variation in the Value Relevance of Earnings: A Return Decomposition Analysis"
  • (with Yinglei Zhang and Zili Zhuang)
• "Dissecting the Aggregate Earnings-Return Relation"
  • (with Roger Loh)
• "Profitability, Distress, and the Accrual Anomaly"
  • Winner of Research Grants Council (RGC) of Hong Kong CERG (Competitive Earmarked Research Grant) Award
  • (with Yinglei Zhang)
• "A Tale of Two Anomalies: The Implication of Investor Attention for Price and Earnings Momentum"
  • Winner of Q-Group Research Grant Award
  • (with Lin Peng and Wei Xiong)
• "R2 and Price Inefficiency"
  • (with Lin Peng and Wei Xiong)
• "Towards a Property Rights View of Government Ownership"
  • (with David Robinson)
• "Do Takeovers Increase Stockholder Value?"
  • (with Per Olsson and David Robinson)