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Dong Chen, Ph.D.

Associate Professor of Finance

Department of Finance and Economics
Office: Business Center 485
Phone: 410.837.4919
Personal Web Site:


  • Ph.D., Duke University
  • M.A., Duke University
  • M.A., The University of Mississippi
  • M.E., Tongji University
  • B.E., Tongji University
  • Bio

    Professor Chen joined the faculty in 2008 after earning his Ph.D. from Duke University. He has a research interest in the area of corporate governance and has published and presented in the subject worldwide.

  • Research Interests

    Corporate Finance/Governance, Board of Directors, Credit Risk, Executive Compensation, Risk Taking Incentives, Corporate Social Responsibility

  • Teaching Interests

    Corporate Finance, Financial Management

  • Recent Publications

    Intellectual Contributions

    Refereed Journal Articles

    Chen, D., & Bradley, M. H. (2015). Does Board Independence Reduce the Cost of Debt?. Financial Management. 44(1), 15-47.

    Chen, D., & Zheng, Y. (2014). CEO Tenure and Risk-taking. Global Business and Finance Review. 19(1), 1-27 (lead article).

    Chen, D. (2014). The Non-monotonic Effect of Board Independence on Credit Ratings. Journal of Financial Services Research. 45(2), 145-171 (lead article).


    Gerlowski, D. A., Zhang, T., & Chen, D. North American Regional Science Association 2015, "Housing Price Index Movements Across Cities," RSAI - Regional Science Association International, Portland, OR. (2015).

    Chen, D., & Zheng, Y. Eastern Finance Association 2014 Annual Meeting, "CEO Tenure and Risk-Taking," Eastern Finance Association, Pittsburgh, PA. (2014).

    Chen, D., & Bradley, M. Eastern Finance Association 2014 Annual Meeting, "Does Board Independence Reduce the Cost of Debt?," Eastern Finance Association, Pittsburgh, PA. (2014).

    Chen, D., & Bradley, M. Midwest Finance Association 2014 Annual Meeting, "Does Board Independence Reduce the Cost of Debt?," Midwest Finance Association, Orlando, FL. (2014).

    Chen, D., & Rose, M. Midwest Finance Association 2013 Annual Meeting, "Golden Parachutes, Takeover Probability, and Risk-Taking," Midwest Finance Association, Chicago, IL. (2013).

    Research in Progress

    "Housing Price Variability: National and Local Impacts" (On-Going)

    "How Does Headquarter Location Affect Firm Valuation?" (On-Going)
    I analyze the influence of headquarter location on firm value. I document that firms headquartered in more crowded places enjoy a valuation premium.

    "Overconfidence, Corporate Governance, and Bank Risk-Taking" (On-Going)
    We analyze the interaction of CEO overconfidence and corporate governance on bank risk-taking.

    "Religion and CEO Compensation" (On-Going)
    We analyze the influence of religiosity on CEO pay-performance sensitivity (delta) and pay-volatility sensitivity (vega).

    "Seeing is Believing – The Effect of Natural Disasters on Climate Change Policy and Firm Performance" (Writing Results)
    Using the county-level severe weather event data in the United States, I document that the intensity of climate change prone natural disasters in a county are associated positively with the rating of the climate change policy of the firms headquartered in that county. I also show that the facilitating effect of natural disasters on firms’ climate change policy is more pronounced in coastal counties and states controlled by the Republican Party, which largely holds a negative view toward human-induced climate change theory. Finally, I show that although the average effect of climate change policy on firm performance is negative, this negative effect disappears for firms situated in counties with more natural disasters. Putting together, these results suggest that firms respond to natural events in setting their environmental responsibility policies, and that the apparent evidence as shown by severe natural disasters in support of climate change theory motivates them to be more serious about these policies.

    "Target Price and Analysts’ Recommendations" (Planning)

    "The Changing Incentives of Classified Boards" (Planning)
    I explore the conflicting incentives of classified boards - entrenchment and independence from management, with opposite implications on agency costs and firm performance. Prior studies have focused on an average effect of classified boards across different time periods. I show that the effect of classified boards depends on the time period characterized by different institutional environments to induce either entrenchment or independence from management.