Author Shan Wu
23 Aug 2025
Three faculty members from the Department of Finance at International Business School Suzhou at Xi’an Jiaotong-Liverpool University — Dr Shan Wu, Dr Jiatao Liu, and Dr Wenquan Li — were invited to present their latest research at the 2025 China International Conference in Finance (CICF). Professor Stephen Gong, Head of the Department of Finance, also attended the conference to support the faculty and promote potential collaborations with leading international academic and research institutions.
CICF is one of the most prestigious international academic conferences in finance worldwide, bringing together renowned scholars from top universities and research institutions to discuss cutting-edge research in corporate finance, asset pricing, banking, and related fields. CICF is renowned for its rigorous peer-review process and attracts submissions from top scholars globally, making acceptance highly competitive. This year, 1,758 high-quality papers were submitted to the conference, of which only about 236 were accepted into the programme, resulting in an acceptance rate of 13%. The conference hosted over 1,300 registered participants, highlighting its scale and prominence in the global finance research community. During the event, Professor Thomas J. Sargent, winner of the 2011 Nobel Prize in Economic Sciences, delivered the keynote speech, titled ‘Implementing an Optimal Tax Plan with Short-Term Debt’, which offered forefront insights in economics and finance. The participation of multiple Finance faculty members not only demonstrates the department’s research strength but also reflects its vibrant and internationally engaged academic culture.
Professor Thomas J. Sargent, Nobel Prize Winner, delivered the keynote speech
Dr Shan Wu: Beyond Monetary Incentives – The Role of Meaningfulness in Professional Behaviour and Performance
Dr Wu shared her research showing that when people approach ‘milestone ages’ ending in 9, such as 29 or 39, they often re-evaluate their careers and make meaningful changes. The study finds that during these periods, professionals tend to be more engaged, take bolder actions, and make decisions that improve the quality of their work and its impact. The findings highlight that purpose—not just pay—can drive better performance, offering insights for employees seeking fulfilment, managers aiming to motivate their teams, and regulators interested in enhancing decision quality in organisations and markets. Scholars from the U.S., Canada, Hong Kong, and mainland China engaged in heated discussions on this topic during and after her presentation.
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Dr Jiatao Liu: Dynamic Momentum Strategies: Return Dispersion and Predictability
This study investigates how markets behave around key economic turning points. The research shows that when stock return dispersion becomes unusually large — a sign that investors strongly disagree about the economic outlook — the economy is often on the verge of shifting, particularly moving from recession to recovery. In these moments, the classical momentum strategies that typically perform well may suddenly reverse, as previously undervalued stocks experience sharp rebounds. The paper proposes a dynamic factor timing approach to help investors adjust strategies in real time and better manage risks, with evidence spanning both U.S. and international markets.
Dr Jiatao Liu presented his research
Dr Wenquan Li: Environmental Pollution and Corporate Credit Spreads
At the conference, Dr Wenquan Li presented his paper ‘Environmental Pollution and Corporate Credit Spreads’, which investigates how industrial pollution influences corporate credit risk using transaction-level data on U.S. corporate bonds. The study documents a robust positive relationship between pollution emissions and credit spreads, even after controlling for climate-related risks and carbon intensity. By identifying industrial pollution as a novel determinant of corporate borrowing costs, the research shows how environmental externalities can affect capital allocation through debt market pricing of regulatory risk. Following his presentation, Professor Kai Li from Peking University (the discussant) provided deeply insightful comments on the paper’s methodology and implications. Dr Wenquan Li also engaged in productive academic exchanges with distinguished scholars. These discussions covered the paper’s positioning, conceptual framework, and theoretical innovations, offering valuable perspectives for the future development of the study.
Dr Wenquan Li presented his research
The active participation of Finance faculty at CICF 2025 is a testament to the department’s commitment to advancing high-quality research and engaging with the global academic community. Their achievements underscore the growing influence of XJTLU’s Finance Department in the field of international finance scholarship.
Author Shan Wu
23 Aug 2025