“Youth is the hope of the nation; when youth flourishes, the nation flourishes, and when youth is strong, the nation is strong.” Since the 18th National Congress of the CPC, General Secretary Xi Jinping has shown great concern for youth and holds great expectations for the younger generation. Our young students have taken to heart the earnest teachings of General Secretary Xi, seize the youthful hours, and strive forward with effort.
Recently, Ren Yaru and Qi Zhenyan, 2021 master’s students in the Management Science and Engineering program, published academic papers in high-quality English journals!
Abstract of the Paper
The study shows that acquirer’s free cash flow (FCF) levels have significant impacts on their takeover activities and consequences. Acquirers with low FCF, despite their high levels of cash holdings, tend to pay in stocks rather than cash. The targets acquired by low-FCF acquirers are of inferior quality relative to those obtained by high-FCF acquirers. After acquisition, low-FCF acquirers seriously underperform their peers, but this under-performance does not exist in high-FCF acquirers. Further, the financial leverage of low-FCF acquires increases sharply following acquisitions, and a significant number of them become bankrupt or are acquired by other firms. The study suggests the importance of acquirer’s financial position to sustain the normal operation of the combined entity following the deals. Firms with financial constraints, therefore, should be conservative in advancing takeovers.
Research Reflection
Publishing a paper is a length process, starting from the initial selection of the topic, data analysis, drafting the first draft, to participating in academic conferences, submitting the paper, and revising it multiple times. Every step requires meticulous attention and patience. This journey has made me appreciate the challenges of scientific research and has also given me a sense of achievement as I make progress bit by bit.
In this process, I am extremely grateful to my supervisor, Professor Li Lin, for his patient guidance and assistance. Not only did the professor help me revise the paper again and again, and urge me to keep up with my research schedule, but also guided me step by step on how to submit papers, participate in conferences, and respond to reviewers. All of this has greatly promoted my growth in paper writing and deepened my understanding of the research process. Finally, I would like to express my gratitude to the institute for the support in paper publication and for cultivating our innovative and practical abilities.
In August 2023, Qi Zhenyan, a student in our institute published a paper titled “Familiarity Bias and Economic Decisions: Evidence from a Survey Experiment” as the second author in the high-quality English journal Economics Letters (SSCI Q 3, ABS 3-star, with the supervisor as the first author).
Abstract of the Paper
The paper uses a questionnaire survey to investigate the familiarity bias among Chinese decision-makers. The research results show that when facing the choice of merger and acquisition projects, decision-makers exhibit a strong familiarity bias, especially for their hometown and the place of education. Furthermore, the researchers also take into account the role of emotions and gender in the decision-making process: when influenced by positive (negative) emotions, decision-makers tends to show a certain degree of risk aversion (preference); female often generally exhibit more risk aversion.
Research Reflection
The topic of this paper was inspired by Professor Li Jingjing’s course - “Experimental Economics and Behavioral Finance”, which sparked my interest in exploring investor behavior. Later, my supervisor, Professor Zhu ZhaoBo, provided a great deal of assistance in expanding my ideas, refining and writing the paper. Many thanks to the two teachers for their support.
Scientific research is a process of creating value by standing on the shoulders of predecessors. So we need to read literature extensively and keep abreast of the latest research developments in relevant fields. The path of research is filled with unknowns and uncertainties, but our individual capabilities are limited. Therefore, it is essential that we actively communicate and exchange with classmates and teachers.