Hugh Hoikwang Kim

Email: hugh.kim 'at' moore.sc.edu

Research Interests:
    Investment; Asset Pricing; Investor Behavior; Financial Markets and Institutions; Lifecycle Portfolio Choice

CurriculumVitae (updated: March 2017)

Affiliations:
    Assistant Professor of Finance, Darla Moore School of Business, University of South Carolina, 2016 ~ present
    Faculty Associate, The Pension Research Council, The Wharton School, University of Pennsylvania, 2013 ~ present

    Assistant Professor of Finance, SKK Graduate School of Business, Sungkyunkwan University, Korea, 2013 ~ 2016
    Visiting Scholar, Sloan School of Management, M.I.T., May ~ August 2015

Education:
    University of Pennsylvania, The Wharton School, Ph.D. in Applied Economics, 2013
    University of Pennsylvania, The Wharton School, M.S. in Applied Economics, 2011
    Seoul National University, B.A. in Economics, 2004

Refereed Publications:

    1. "It Pays to Write Well" (with Byoung-Hyoun Hwang), Journal of Financial Economics 124(2): 373-394, May 2017
        * Media mention: Wall Street Journal, Harvard Law School Forum

    2. "Time is Money: Rational Life Cycle Inertia and the Delegation of Investment Management", (with Raimond Maurer and Olivia S. Mitchell), Journal of Financial Economics 121(2): 424-447, August 2016.

    3. "The Impact of Shrouded Fees: Evidence from a Natural Experiment in the Indian Mutual Funds Market" (with Santosh Anagol), American Economic Review 102(1):576-93, February 2012.

    4. “When and How to Delegate? A Life Cycle Analysis of Financial Advice” (with Raimond Maurer, Olivia S. Mitchell), 2016 (Forthcoming, Financial Decision Making and Retirement Security in an Aging World. Eds P Brett Hammond, O. S. Mitchell, and S. Utkus. Oxford: Oxford University Press). 

Working Papers:

     5. "Information Spillover of Insurance"

Abstract: This paper examines an information spillover effect of financial institutions’ enrollment in a government bailout insurance program. Analyzing money market funds’ dynamic enrollment status in the U.S. Treasury Temporary Guarantee Program in 2008, this paper finds that funds’ disclosure of enrollment in the insurance program lead to significantly reduced outflows from other non-enrolled funds. I address the endogeneity issue of funds’ enrollment status based on survival analysis and an instrumental variable approach. This finding is consistent with the information spillover effect of insurance; investors extract valuable information about financial institution’s underlying stability from their purchase of insurance. 

    • The Best Paper Award, Semi-finalist, FMA Annual Meeting (2013, Chicago)
    • The Best Doctoral Dissertation Award, Winner, The Korea-America Finance Association (2012, Atlanta, GA)
    • Previously circulated under the title "Contagious Runs in Money Market Funds and the Impact of a Government Guarantee."

      6. "Pessimistic Fund Managers"(with Yongqiang Chu)

Abstract: This paper examines managers’ sentiment revealed in their letters to shareholders and its relation with their future performance, focusing on closed-end funds (CEFs). The result shows that the pessimistic tone in managers’ letters to shareholders predicts superior future risk-adjusted returns and narrows CEFs’ discount. The result is robust to controlling for potential mean-reversion pattern of investment performance. An increase of pessimistic tone by one standard deviation leads to a 3.6% ~ 5.0% increase of risk-adjusted NAV return per annum. The predictive power is more pronounced when the stock market is expected to be less volatile in the future. Analyzing CEFs-held stocks’ return in subsequent earnings announcement dates, we find that CEFs with pessimistic tone are more likely to initiate profitable stock trades. Our result suggests that investment managers’ sentiment revealed in disclosure documents might contain useful information for future performance. 

Teaching:

    Investment Management (Full-time MBA/Professional MBA), University of South Carolina (2016, 2017)
    Capital Budgeting (Full-time MBA/Professional MBA), SKK GSB (2015, 2016)
    Managerial Economics (Full-time MBA/Professional MBA/Executive MBA), SKK GSB (2014, 2015, 2016)
    Financial Management (Professional MBA), SKK GSB (2015)
    Economic Analysis (Full-time MBA/Professional MBA), SKK GSB (2013, 2014)

Dataset and codes:

  1. Online appendix for "The Impact of Shrouded Fees: Evidence from a Natural Experiment in the Indian Mutual Funds Market" (AER, 2012)
  2. Online appendix for "Time is Money: Rational Life Cycle Inertia and the Delegation of Investment Management" (JFE, 2016)
  3. Code for "It Pays to Write Well" (JFE, 2017)

Revised in March 2017

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