Lu Zhang

Dr. Lu Zhang is The John W. Galbreath Chair in Finance at Fisher College of Business, The Ohio State University, as well as Research Associate at National Bureau of Economic Research (Asset Pricing program) and Associate Editor for Journal of Financial Economics and Journal of Financial and Quantitative Analysis. He is Founding President of Macro Finance Society, which is an international academic society devoted to advancing and disseminating high-quality research at the intersection of financial economics and macroeconomics. Before joining Ohio State in 2010, he taught at Stephen M. Ross School of Business at University of Michigan and William E. Simon Graduate School of Business Administration at University of Rochester.

Dr. Zhang’s research focuses on asset pricing, in connection with macroeconomics, corporate finance, labor economics, and capital markets research in accounting. His major contribution is ''The investment CAPM,'' which provides a unified conceptual framework for understanding asset pricing anomalies. As its empirical implementation, ''The q-factor model'' is a leading workhorse factor pricing model in both academia and the investment management industry. His recent theoretical work on "Endogenous disasters" shows how labor market frictions give rise endogenously to economic disasters. Dr. Zhang has published extensively at prestigious academic journals. One chapter of his doctoral thesis "The value premium" won the Smith-Breeden Award for Best Paper for 2005 from American Finance Association and Journal of Finance. His academic research has been frequently featured in prominent media outlets such as The Wall Street Journal, Bloomberg, Shanghai Financial News, and The Economist.

Dr. Zhang has extensive teaching interests and experience at the undergraduate, M.B.A., and Ph.D. levels. He has taught a variety of courses including Investment Management, Derivative Securities, Capital Markets and Investment Strategy, Corporate Finance, Empirical Methodology in Finance, Theory of Finance, and Advanced Asset Pricing. In 2015, he was voted the Outstanding Working Professional MBA Elective Faculty Award recipient at Fisher College of Business, The Ohio State University.

• PhD in Finance from The Wharton School, University of Pennsylvania, 2002
• MA in Economics from Washington University (St. Louis), 1997
• BA in Economics from Jiangxi University of Finance and Economics, 1993

• Hou, Kewei, Haitao Mo, Chen Xue, and Lu Zhang, 2022, The economics of security analysis, Management Science.

• Bai, Hang, and Lu Zhang, 2022, Searching for the equity premium, Journal of Financial Economics 143 (2), 897-926. 

• Hou, Kewei, Haitao Mo, Chen Xue, and Lu Zhang, 2021, An augmented q-factor model with expected growth, Review of Finance 25 (1), 1-41.

• Petrosky-Nadeau, Nicolas, and Lu Zhang, 2021, Unemployment crises, Journal of Monetary Economics 117, 335-353.

• Zhang, Lu, 2020, Q-factors and investment CAPM, Oxford Research Encyclopedia of Economics and Finance, Oxford University Press.

• Goncalves, Andrei, Chen Xue, and Lu Zhang, 2020, Aggregation, capital heterogeneity, and the investment CAPM, Review of Financial Studies 33 (6), 2728-2771. 

• Hou, Kewei, Chen Xue, and Lu Zhang, 2020, Replicating anomalies, Review of Financial Studies 33 (5), 2019-2133.

• Bai, Hang, Kewei Hou, Howard Kung, Erica X. N. Li, and Lu Zhang, 2019,The CAPM strikes back? An equilibrium model with disasters, Journal of Financial Economic 131 (2), 269-298. 
• Hou, Kewei, Haitao Mo, Chen Xue, and Lu Zhang, 2019, Which factors? Review of Finance 23 (1), 1-35. Editor's Choice, 2019 Spängler IQAM Best Paper Prize for the best investments paper published in Review of Finance, European Finance Association

• Petrosky-Nadeau, Nicolas, Lars-Alexander Kuehn, and Lu Zhang, 2018, Endogenous disasters, American Economic Review 108 (8), 2212-2245.

• Zhang, Lu, 2017, The investment CAPM, European Financial Management 23 (4), 545-603.

• Petrosky-Nadeau, Nicolas, and Lu Zhang, 2017, Solving the Diamond-Mortensen-Pissarides model accurately, Quantitative Economics 8 (2), 611-650.

• Hou, Kewei, Chen Xue, and Lu Zhang, 2015, Digesting anomalies: An investment approach, Review of Financial Studies 28 (3), 650-705. Editor’s Choice, lead article.
• Liu, Laura Xiaolei, and Lu Zhang, 2014, A neoclassical interpretation of momentum, Journal of Monetary Economics 67, 109-128.
• Tang, Yue, Jin (Ginger) Wu, and Lu Zhang, 2014, Do anomalies exist ex ante? Review of Finance 18 (3), 843-875.
• Belo, Frederico, Chen Xue, and Lu Zhang, 2013, A supply approach to valuation, Review of Financial Studies 26 (12), 3029-3067.
• Lin, Xiaoji, and Lu Zhang, 2013, The investment manifesto, Journal of Monetary Economics 60 (3), 351-366.
• Gulen, Huseyin, Yuhang Xing, and Lu Zhang, 2011, Value versus Growth: Time-Varying Expected Stock Returns, Financial Management 40 (2), 381-407. 
• Chen, Long, and Lu Zhang, 2011, Do time-varying risk premiums explain labor market performance? Journal of Financial Economics 99 (2), 385-399. 
• Li, Dongmei, and Lu Zhang, 2010, Does q-theory with investment frictions explain anomalies in the cross-section of returns? Journal of Financial Economics 98 (2), 297-314.
• Wu, Jin (Ginger), Lu Zhang, and X. Frank Zhang, 2010, The q-theory approach to understanding the accrual anomaly, Journal of Accounting Research 48 (1), 177-223.
• Liu, Laura Xiaolei, Toni M. Whited, and Lu Zhang 2009, Investment-based expected stock returns, Journal of Political Economy 117 (6), 1105-1139.
• Li, Erica X. N., Dmitry Livdan, and Lu Zhang, 2009, Anomalies, Review of Financial Studies 22 (11), 4301-4334.
• Livdan, Dmitry, Horacio Sapriza, and Lu Zhang, 2009, Financially constrained stock returns, Journal of Finance 64 (4), 1827-1862.
• Liu, Laura Xiaolei, and Lu Zhang, 2008, Momentum profits, factor pricing, and macroeconomic risk, Review of Financial Studies 21 (6), 2417-2448.
• Lyandres, Evgeny, Le Sun, and Lu Zhang, 2008, The New Issues Puzzle: Testing the Investment-Based Explanation, Review of Financial Studies 21 (6), 2825-2855.
• Liu, Naiping, and Lu Zhang, 2008, Is the value spread a useful predictor of returns? Journal of Financial Markets 11 (3), 199-227.
• Campello, Murillo, Long Chen, and Lu Zhang, 2008, Expected Returns, Yield Spreads, and Asset Pricing Tests, Review of Financial Studies 21 (3), 1297-1338.
• Chen, Long, Ralitsa Petkova, and Lu Zhang, 2008, The expected value premium, Journal of Financial Economics 87 (2), 269-280.
• Gomes, Joao, Amir Yaron, and Lu Zhang, 2006, Asset pricing implications of firms’ financing constraints, Review of Financial Studies 19 (4), 1321-1356.
• Petkova, Ralitsa, and Lu Zhang, 2005, Is value riskier than growth? Journal of Financial Economics 78 (1), 187-202.
• Zhang, 2005, The value premium, Journal of Finance 60 (1), 67-103.
• Brandt, Michael W., Qi Zeng, and Lu Zhang, 2004, Equilibrium stock return dynamics under alternative rules of learning about hidden states, Journal of Economic Dynamics and Control 28 (10), 1925-1954.
• Gomes, Joao, Amir Yaron, and Lu Zhang, 2003, Asset prices and business cycles with costly external finance, Review of Economic Dynamics 6 (4), 767-788.
• Gomes, Joao, Leonid Kogan, and Lu Zhang, 2003, Equilibrium cross section of returns, Journal of Political Economy 111 (4), 693-732.

• Asymmetric investment rates (with Bai, Li, and Xue), 2022

• Anomalies, 2005, NBER working paper 11322