Zhang, Zhiqiang
Zhiqiang Zhang is an associate professor in the finance area at the School of Business, Renmin University of China. He currently teaches courses like corporate finance, valuation, real option etc. for the undergraduate and graduate students as well as MBA students. His primary research interest is in corporate finance and asset pricing. He has more than 30 papers published in domestic and international journals, and he has written and translated (from English to Chinese) more than 10 books in the area of finance.
His researches can be summarized as three series in finance. The first series is mainly concerning the valuation. He finds a brand-new way of valuation. Based on the new valuation method, he builds new stock valuation model, which can overcome most of the shortcomings of traditional model (such as Gordon growth model); he further derives the theoretical models of P/E, P/B, and P/S which is useful in stock and portfolio valuation as well as stock market bubble measuring. The second series is mainly concerning incorporating risk into valuation. He derives the theoretical models of certainty equivalent, risk equivalent (a brand new method to value risk), risk premium and the new capital asset pricing model (CAPM) accounting for both systematic and non-systematic risks. This may be the most important progress in this area since Sharpe’s CAPM (1964). The third series is mainly concerning firm’s capital structure decision. He solve the problem of optimal capital structure by building the new models of tax shield and bankruptcy cost and further deriving the optimal capital structure model based on the trade-off between the tax shield and the bankruptcy cost. This may be the most important progress in this area since MM model I and II (1958 and 1963).
All his solutions and models are theoretical and decision-oriented, hence have vast application potential in academic research as well as in practical decision-making, especially in the valuation, investment, capital budgeting, risk management, financing and capital structure decision, etc.
Zhiqiang Zhang is an associate professor in the finance area at the School of Business, Renmin University of China. He currently teaches courses on corporate finance, valuation, real options etc. for the undergraduate and graduate students as well as MBA students. His primary research interests are in corporate finance and asset pricing. He has published more than 30 papers in domestic and international journals, and he has written and translated (from English to Chinese) more than 10 books in the area of finance.
His research can be summarized as three series in finance. The first series mainly concerns valuation, where he develops a brand-new approach. Based on the new valuation method, he creates a new stock valuation model, which can overcome most of the shortcomings of traditional models (such as the Gordon growth model); he further derives the theoretical models of P/E, P/B, and P/S, which are useful in stock and portfolio valuation as well as stock market bubble measuring. The second series mainly focuses on incorporating risk into valuation. He derives the theoretical models of certainty equivalents, risk equivalents (a brand new method for assessing risk), risk premiums and the new capital asset pricing model (CAPM), which accounts for both systematic and non-systematic risks. This may be the most important advance in this area since Sharpe’s CAPM (1964). The third series primarily examines firm’s capital structure decisions. Here the author solves the problem of optimal capital structure by creating new models of tax shield and bankruptcy cost and further deriving the optimal capital structure model based on the trade-off between the tax shield and the bankruptcy cost, potentially the most essential progress in this area since MM model I and II (1958 and 1963).
All solutions and models presented are theoretical and decision-oriented, and hence have broad application potential in academic research as well as in practical decision-making, especially in valuation, investment, capital budgeting, risk management, financing and capital structure decision, etc.
