Stockholm university

Lu LiuAssistant Professor

About me

Lu Liu is Assistant Professor in Finance at Stockholm Business School, Stockholm University since January 2016. She holds PhD in Economics from Lund University. She was Post Doc at the Department of Economics, Lund University prior to joining SBS. She was a visiting scholar at the University of St. Gallen in 2010. 


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 Letters50, 103207. 

Hermansson, C., Jonsson, S., & Liu, L. (2022). The medium is the message: Learning channels, financial literacy, and stock market participationInternational Review of Financial Analysis79, 101996.

Hossein Asgharian, Lu Liu, and Marcus Larsson. 2018. Cross-border asset holding and comovements in sovereign bond marketsJournal 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 marketsInternational 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 stocksJournal of Futures Markets, Vol 34, Pages 93-101.

Hossein Asgharian, Wolfgang Hess, and Lu Liu, 2013, A spatial analysis of international stock market linkagesJournal 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.

Research projects


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


    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.

    Read more about The medium is the message
  • 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


    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.

    Read more about Cross-border asset holdings and comovements in sovereign bond markets
  • Product market competition and stock return dependence

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


    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. 

    Read more about Product market competition and stock return dependence

Show all publications by Lu Liu at Stockholm University