Lin Tong


Tippie College of Business

S217 Pappajohn Business Building

Iowa City, IA 52242


Cell: 515-509-1112

Office: 319-335-0926

Fax: 319-335-3690





 Curriculum Vitae    Research Statement  Teaching Statement







Ph.D. candidate in Finance, University of Iowa, 2014 (Expected)


Dissertation: “Essays on Mutual Fund Performance”


Dissertation Chair: Ashish Tiwari


Minor in Statistics




M.S. in Mathematics, Iowa State University, 2009


Thesis: "Pricing Mortgages with Default and Prepayment”




B.S. in Mathematics, Nanjing University, 2007






Mutual fund, high frequency trading, behavioral finance, asset pricing






“A Blessing or a Curse: The Impact of High Frequency Trading on Institutional Investors” (job market paper)



¾       Media coverage: Barron’s (Focus on Funds), Themis Trading,  TABB Forum, etc. 

¾       Presented at University of Iowa




“Investment Decisions under Ambiguity: Evidence from Mutual Fund Investor Behavior,” with Ashish Tiwari and Wei Li


¾       To be presented at the American Finance Association (AFA) Annual Meetings 2014, Philadelphia

¾       To be presented at the Financial Management Association (FMA) Annual Meetings and Doctoral Student Consortium 2013, Chicago

¾       Presented at University of Iowa




“On the Consequences of Mutual Fund Tournaments,” with Ashish Tiwari and Wei Li




“Does Familiarity Breed Good Investments?” with Wei Li and Tong Yao






American Finance Association (AFA) 2014, Philadelphia  (scheduled)


Financial Management Association (FMA) 2013, Chicago


Financial Management Association (FMA) Doctoral Student Consortium 2013, Chicago


University of Iowa, 2012






Discussant for Financial Management Association (FMA) Annual Meetings 2012, Atlanta


Session chair for Financial Management Association (FMA) Annual Meetings 2013, Chicago (scheduled)




Instructor (Full Responsibility)


06F:100 Introductory Financial Management (Average Evaluation: 5.3/6.0)




Instructor (Discussion Session Leader)


06F:100 Introductory Financial Management, 2010-2012 (Average Evaluation: 5.3/6.0)




Teaching Assistant


06F:111 Investment Management, 2009


06F:117 Corporate Finance, 2010




Research Assistant


Professor Tong Yao, 2009-2010


Professor Yu Yuan, 2009-2010


Professor Yiming Qian, 2011


Professor Tyler Leverty, 2012


Professor Wei Li, 2012-2013


Professor Ashish Tiwari, 2013






FMA Doctoral Student Consortium, Chicago, 2013


Ponder Fellowship, University of Iowa, 2009-2013


Undergraduate Fellowship, Nanjing University, 2003-2007


Excellent Graduate Award, Nanjing University, 2007






Equity Research Analyst Intern, Shanghai Jun Ting Investment, 2011






Professor Ashish Tiwari (Dissertation Chair), University of Iowa


Tel: 319-353-2185,  Email:




Professor Tyler Leverty, University of Iowa


Tel: 319-335-0963,  Email:




Professor Wei Li, University of Iowa


Tel: 319-335-0911, Email:




Professor Erik Lie, University of Iowa


Tel: 319-335-0846, Email:




Professor Tong Yao, University of Iowa


Tel: 319-335-3924,  Email:





Barron’s (Focus on Funds)      Themis Trading   TABB Forum   Floating Path







Download full paper

“A Blessing or a Curse: The Impact of High Frequency Trading on Institutional Investors” (job market paper)



Abstract: This paper examines the impact of high frequency trading (HFT) on the trading costs of traditional institutional investors. Combining data on institutional trading from Ancerno and NASDAQ data on HFT activities of a sample of 120 stocks, I find strong evidence that HFT increases the trading costs of institutional investors. In addition, high frequency (HF) traders are net buyers (sellers) when institutions on average are net sellers (buyers). Periods of increased HFT buying (selling) activity are marked by an increase in the selling (buying) costs of institutional investors. Further analysis rules out an alternative explanation that HF traders are attracted to stocks that have high trading costs. First, HFT is more active on liquid stocks. Second, the results are robust to the control of stable stock liquidity characteristics and events that might jointly affect HFT and trading costs. Third, I analyze the behavior of HF traders in the aftermath of the temporary short selling ban that was imposed on a group of financial stocks in September 2008. For the stocks in my sample that are subject to the short selling ban, HF traders’ market participation was reduced while institutional trading costs rose sharply. This natural experiment highlights the opportunistic nature of the liquidity provision by HF traders. Finally, Granger causality tests show that intensive HFT activity contributes to an increase in trading costs, but not vice versa.



Download full paper

“Investment Decisions under Ambiguity: Evidence from Mutual Fund Investor Behavior,” with Ashish Tiwari and Wei Li



Abstract: This study provides novel evidence on the role of ambiguity aversion in determining the response of mutual fund investors to historical fund performance information. We present a model of ambiguity averse investors who receive multiple performance-based signals of uncertain precision about manager skill. A key implication of the model is that when investors receive multiple signals of uncertain quality, they place a greater weight on the worst signal. We
find strong empirical support for this prediction in the data. Fund flows display significantly higher sensitivity to the worst performance measure even after controlling for fund performance at multiple horizons, performance volatility, flow-performance convexity, and a host of other relevant explanatory variables. This effect is particularly pronounced in the case of retail funds in contrast to institutional funds. Our results suggest that fund investor behavior is best characterized as reflecting both Bayesian learning and ambiguity aversion.