Victoria Liu - Princeton University

Victoria Liu
Contact Information
001 Fisher Hall
Department of Economics
Princeton University
Princeton, NJ 08544
Placement Director: Stephen Redding
Graduate Administrator: Laura Hedden
[email protected]
Phone (732) 829-9730
Citizenship: U.S.A.
[email protected]
[email protected]
(609) 258 4016
(609) 258 4006
Princeton University, Ph.D., Economics
Princeton University, M.A., Economics
University of California – Berkeley, B.A., Economics (summa cum laude)
University of California – Berkeley, B.A., Mathematics (magna cum laude)
Research and Teaching Fields
Empirical Finance, Corporate Finance, Asset Pricing, Banking
Job Market Paper
“Impact of Bank Lending on Trade Credit”
In addition to bank credit, firms could also obtain financing from their suppliers in the form of trade credit.
Research on the interaction between these two components of firm’s capital structure has been previously limited
to binary measures of banking relationships. During adverse macro shock to the banking sector in the recent
financial crisis, firms experienced variant exposures to bank credit contraction as a result of differences in their
banking portfolios. I hereby construct a dispersed measure of banking relationships that is orthogonal to firm
characteristics, and investigate the impact of banking lending on interfirm borrowing with it. I find direct
evidence that firms are able to substitute bank lending with trade credit when bank liquidity dries up. Firms facing
less healthy banking portfolio, hence larger bank credit contraction, experienced higher growth rate in supplier
credit. This rate of substitution is higher for firms with fewer outside financing options. I also provide evidence
that firms with higher rate of substitution recover faster from the adverse shock in financial market. This is
consistent with previous theory and empirical finding that suppliers can act as liquidity providers to their
customers in hostile bank credit environments.
Works in Progress
“Trade Credit and Firm Level Risk Sharing”
The size of accounts payable for US manufacturing firms has increased steadily over the past two decades. At the
same time, firm level risk has also increased due to competition on the product market. I develop a framework
with information friction to reconcile these two facts, where supplier firms act as “shadow” banks with advantage
in learning about quality of projects at customer firms. As signals from product market become less precise, the
information wedge between traditional banks and suppliers widens. This leads to customers obtaining more credit
from their suppliers for liquidity reasons and risk sharing purposes. I also find supporting empirical evidence for
the model predictions. Firms with higher firm level risk hold larger accounts payable, and industries with higher
risk dispersion have higher levels of accounts payable on average. Using customer-supplier pairing data, I find
heavier usage of trade credit by customers that have suppliers with lower firm level risk.
“Trade Credit Network and Return Predictability”
Research Experience
July 2011 – Aug 2011
June 2010 – July 2010
Research Assistant for Professor Hyun Shin
Research Assistant for Professor David Sraer
Teaching Experience
Fall 2011 - 2014
Fall 2014
Spring 2013
Fall 2012
Spring 2011
ECO 464/FIN 519 Corporate Restructuring
with Professor Ormond Sexton
Stata Workshop for Junior Independent Work
ECO 100 Introduction to Microeconomics
with Professor Uwe Reinhardt
ECO 324 Law and Economics
with Professor Thomas Leonard
ECO 301 Macroeconomics
with Professor Nobuhiro Kiyotaki
Honors and Fellowships
2009 – 2015
Princeton University Fellowship and Summer Fellowship
Phi Beta Kappa National Honor Society
Percy Lionel David Award for Outstanding Scholarship in Mathematics,
University of California – Berkeley
Computer: Stata, Matlab, Latex, working knowledge of C++, R
Languages: English (native), Mandarin Chinese (native), German (advanced)
Hyun S. Shin (chair)
Economic Adviser and Head of Research
Bank for International Settlements
[email protected]
Valentin Haddad
Bendheim Center for Finance
Princeton University
(609) 258-4020, [email protected]
Date of birth: May 19, 1988
David Sraer
Department of Economics and Haas School of Business
University of California – Berkeley
(510) 642-8363, [email protected]