Background

Professor Kewei Hou’s primary research interest is in the area of empirical asset pricing with a specialization in the predictability of asset 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.

Professor Hou is an editor of the Journal of Empirical Finance, associate editor of the Journal of Banking and Finance and Asia-Pacific Journal of Financial Studies, faculty research fellow of the Charles A. Dice Center for Research in Financial Economics and the China Academy of Financial Research, and 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

Corporate Finance

  • Valuation

Finance

  • Asset Pricing
  • Capital Markets
  • Derivatives
  • Financial Markets
  • Investments
  • Theoretical and Empirical Asset Pricing

Education

  • Ph.D., Finance,  University of Chicago, Booth School of Business
  • B.S., Electrical Engineering, University of Science and Technology of China (USTC)

Publications

  • “Have We Solved the Idiosyncratic Volatility Puzzle?” 2016, Journal of Financial Economics 121, 167-194.
    • (with Roger Loh)
  • “Digesting Anomalies: An Investment Approach,” 2015, Review of Financial Studies 28, 650-705. Lead article.
    • (with Chen Xue and Lu Zhang)
  • “The Implied Cost of Capital: A New Approach,” 2012, Journal of Accounting and Economics 53, 504-526.
    • (with Mathijs A. van Dijk and Yinglei Zhang)
  • “The Accrual Anomaly: Risk or Mispricing?” 2012, Management Science 58, 320-335.
    • (with David Hirshleifer and Siew Hong Teoh)
  • “What Factors Drive Global Stock Returns?” 2011, Review of Financial Studies 24, 2527-2574. Lead article.
    • (with Andrew Karolyi and Bong-Chan Kho)
  • “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.
    • (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)

Courses

  • BUSFIN 4226 - Applied Fundamental Investing

    Theories and applications in asset management including the roles of investment strategies. Prereq: 4211, 4221, and CPHR 3.3 or above. Not open to students with credit for 728.

  • BUSFIN 7230 - Derivatives I

    Advanced investments class studying how to value options and related instruments using binomial pricing models and how to value and implement strategies using futures. Prereq or concur: MBA 6221 (810) or 6222 (BusFin 811). Not open to students with credit for 823.

  • BUSFIN 7223 - Investment Management III

    Advanced investment strategies need for asset management and portfolio allocation. Prereq: MBA 6221 (810) and 6222 (BusFin 811), or prereq or concur: BusFin 7210, 7220 (822), or 7230 (823). Not open to students with credit for 822 or 827.