Jing Shi is a Professor in the School of Economics, Finance and Marketing.
Professor Shi received the award for Outstanding Journal Publication at the 2014 College of Business Research Excellence Awards for his article: “Coinsurance within Business Groups: Evidence from Related Party Transactions in an Emerging Market”, Management Science.
Tell us briefly about your journal article and what drew you to this topic?
Research has been devoted to understanding the role of business groups. While some scholars have blamed the pyramidal corporate structure of business groups for its tunnelling function, others found that business groups enhance firm value due to its propping up function. This study provides direct evidence of the dynamic interactions of members within business groups and finds support for coinsurance effect of business groups.
What attracted you to the particular problems you have researched?
Direct investigations of the theoretical mechanisms that drive the costs and benefits of group affiliations are scant. This is perhaps due to weak research settings and lack of data. This weakness is exacerbated by focusing solely on either the tunnelling function or the propping up function of business groups. In fact, the effects of two functions counterbalance each other. In the paper, we acknowledge the coexistence of both functions and also evaluate how the two functions interact.
Can you describe your research in lay terms?
Related party transactions between a listed firm and the wholly owned subsidiary could serve to transfer value to its controller by setting favourable transfer prices. On the one hand, the controller may help the firm by paying a higher price for services or goods provided to the firm. It is therefore important to take a holistic view of the relationship between a firm and its controller.
What research problems and areas are you likely to explore in the future?
I will focus on the areas of empirical corporate finance, corporate governance, emerging markets, and fund management, which involves:
- Investigating whether firms strategically build their political connections
- Assessing the role of media coverage as an important channel through which political connections affect firm value
- Examining the relation between work experience and managerial performance
How do you balance your teaching, supervising, and your own research time?
- By finding ways to work more efficiently and increase productivity
- By setting boundaries and control over schedules
Your non-academic interests?
Travel and sports.