She teaches the course Advanced Financial Empirical Research in the Master Programme of Banking and Finance.

Research Interest 

Climate and sustainable finance, corporate and social networks, interconnectedness in financial markets, household finance.

Journal Publications

Asgharian, H., Dzieliński, M., Hashemzadeh, Z., & Liu, L. (2023). Green links: corporate networks and environmental performance. Accepted at Review of Finance.

Asgharian, H., Liu, L., & Lundtofte, F. (2023). Institutional quality, trust and stock-market participation: Learning to forget. Accepted at Quarterly Journal of Finance.

Asgharian, H., & Liu, L. (2022). Product market competition and stock return dependence. Finance Research Letters, 50, 103207. 

Hermansson, C., Jonsson, S., & Liu, L. (2022). The medium is the message: Learning channels, financial literacy, and stock market participation. International Review of Financial Analysis, 79, 101996.

Hossein Asgharian, Lu Liu, and Marcus Larsson. 2018. Cross-border asset holding and comovements in sovereign bond markets. Journal of International Money and Finance, Vol 86, Pages 189-206.

Lu Liu, 2014. Extreme downside risk-spillover from the U.S. and Japan to Asian Pacific stock markets. International Review of Financial Analysis, Vol 33, pages 39-48.

Lin Gao and Lu Liu, 2014. The volatility behaviour and dependence structure of commodity futures and stocks. Journal of Futures Markets, Vol 34, Pages 93-101.

Hossein Asgharian, Wolfgang Hess, and Lu Liu, 2013, A spatial analysis of international stock market linkages. Journal of Banking and Finance, Vol 37, Pages 4738-4754.

Lu Liu, 2013, International stock market interdependence: Are developing markets the same as developed markets?. Journal of International Financial Markets, Institutions & Money, Vol 26, Pages 226–238.

A selection from Stockholm University publication database

• The medium is the message: Learning channels, financial literacy, and stock market participation

  2022. Cecilia Hermansson, Sara Jonsson, Lu Liu. International Review of Financial Analysis 79

  Article

  This paper investigates the effects of learning channels on stock market participation. More specifically, we investigate the direct effects of learning about financial matters from one's private network, financial advisors, and the media, as well as the moderating effects of financial literacy on the relationship between learning from these channels and stock market participation. Analyzing a unique cross-section data that combine survey data and bank register data on individual retail investors, we find that media is the only learning channel that increases the likelihood of owning stocks and the portfolio share invested in stocks. We also find that financial literacy has a significant moderating effect: Interactions point to the joint importance of learning from media and financial literacy for individuals' stock market participation. Our findings suggest implications to policymakers when designing financial education programs.

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• Cross-border asset holdings and comovements in sovereign bond markets

  2018. Hossein Asgharian, Lu Liu, Marcus Larsson. Journal of International Money and Finance 86, 189-206

  Article

  We analyze the importance of different asset holdings for the interdependence of the yield curves in the Euro area using a spatial VAR model. We find that the cross-border holdings of long-term debt and bank lending are important for the interdependence. We also find that comovement in the Euro area declines after 2008. We show that this decline is not related to the difference among countries in reacting to shocks from the US during the financial crisis. Rather, it largely reflects the segmentation between GIIPS and non-GIIPS countries. Our analysis of dispersion in sovereign-CDS-spread term structure shows that the differential in sovereign creditworthiness in the Euro area is a main driver of the yield-curve divergence after 2008.

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• Product market competition and stock return dependence

  2022. Hossein Asgharian, Lu Liu. Finance Research Letters 50

  Article

  We model the spillover effect between competing firms’ daily idiosyncratic stock returns, using spatial econometric techniques. Contagion effect from rival firms dominates competitive effect, and the net effect is larger from negative return shocks of rival firms than from positive ones. The net effect is strong for firms in product markets with low concentration and high product market fluidity. 

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Show all publications by Lu Liu at Stockholm University