Mian Wei joined the Telfer PhD in Management program in 2018, specializing in Finance, under the supervision of Professor Ali Akyol. His current research interests center around corporate finance with a focus on exploring the impact of corporate disclosure on corporate governance. Mian’s research also includes examining investor information demand within the context of Special Purpose Acquisition Companies (SPACs), and analyzing the financial effects of political ideology alignment amongst executives and other entities.
Why did you choose to study finance?
After completing my master’s degree in finance in the United States, I gained valuable experience working as a financial analyst in China. During that time, I developed a strong interest in the complex interplay between firm policies and investor behavior. I also recognized the potential for academic research to provide answers to many of the practical finance dilemmas I encountered in my work in finance.
What is your research about and how will it contribute to the academic literature?
My current research examines the impact of within-firm inequality on investor behavior and its subsequent effects on firm policies. The primary objective of my research is to ascertain the degree to which executives are attentive to within-firm inequality in their own firms, and how they respond to negative reactions from investors and the market. My research will provide much-needed analysis of the implications on firm policy changes after the issue of firm inequality-related disclosures.
What are the highlights from your study?
My research demonstrates that firms with high levels of within-firm inequality are more likely to alter their policies in favor of both current shareholders and potential investors. This strategic move is driven by the negative reactions of investors and the market to the existence of within-firm inequality, which can result in a loss of shareholder base. The findings of my research are robust to exogenous shocks and different market conditions.
What impact could your research have for financial markets?
My research provides valuable implications for both firm executives and investors. It provides guidance to executives on how to adjust their policies in response to within-firm inequality in order to prevent further losses and maintain the support of shareholders. On the investor side, my research provides insight into the implications of different levels of within-firm inequality and the subsequent policy changes that may occur within firms, assisting investors in making more informed decisions and leading to more favorable outcomes with their investments.