Title: The Dodd-Frank Act and Hedge Fund Operational Risk

Speaker: Liang Bing, Charles P. McQuaid Endowed Chair in Finance, Isenberg School of Management, University of Massachusetts Amherst, USA; Ph.D. Supervisor. He currently serves as an Editor of "Journal of Alternative Investments", and is on the Editorial Board of "European Financial Management Journal" and "Journal of Investment Consulting". He is also a member of the SEC Hedge Fund Roundtable and a former Senior Risk Advisor of Entrust Capital Inc. He has been a Visiting Scholar at the London School of Economics and Political Science, and a Visiting Professor at Yale University and China Europe International Business School (CEIBS). His research fields include capital market efficiency, mutual funds and hedge funds, risk management, and climate finance. He has published more than 30 papers in top international journals such as "Journal of Finance", "Journal of Financial Economics", "Management Science", "Journal of Financial and Quantitative Analysis", "Review of Asset Pricing Studies" and "Financial Analysts Journal". Many of his papers have been cited by "The Wall Street Journal", "Financial Times", "The Economist", "Business Week", "Forbes" and "Barron's". He has won international academic awards such as the Graham-Dodd Scroll Award, the Q-Group Research Award, and the BSI Gamma Foundation Award.

Abstract: We examine the impact of the post-Dodd-Frank change in 2011 on hedge fund disclosure. We find that new questions added to SEC's Form ADV, post-Dodd-Frank, enhance forecasting of adverse operational events compared to pre-Dodd-Frank disclosures. Using machine learning, our analysis yields a uni-dimensional operational risk score from the public SEC data, effective in predicting liquidation events, leverage changes, and performance metrics. The score also predicts net fund flows, indicating the relevance of disclosed operational risk information to investor decisions. Over five years of the post-Dodd-Frank Act, fund flow response significantly increased following the amended Form ADV implementation.

Date & time: 4 July 2025, 09:00

Venue: B321, Zhixin Building, Central Campus, Shandong University