Li Jin currently serves as Chair Professor of Finance at Guanghua School of Management of Peking University. In 2015 he stepped down as Professor of Emerging Market Finance at Oxford University's Saïd Business School but continues to teach EMBA courses.
Before he joined Saïd Business School and GSM, Li taught at the Harvard Business School from 2001 to 2012. In that capacity he has taught the second year MBA elective courses on 'Investment and Finance in Emerging Markets' and 'International Financial Management' and the first year MBA required courses on 'Finance I' and 'Finance II', as well as in various senior executive programs. His primary research interest is in empirical corporate finance and empirical asset pricing. His current researches study emerging financial markets. He has also studied the compensation of corporate managers, the trading patterns of institutional investors such as hedge funds, mutual funds and pension funds, and the comparison of securities markets efficiency across countries.
Li has published articles at leading academic journals including Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Accounting And Economics, Review of Economics and Statistics, etc. He has won research rewards such as FAME Research Prize, PanAgora Quantitative Research Award, and Best Paper Award in TCFA Conference, Financial Management Association European Conference, and Global Financial Association Annual Conference, etc.
Li received his PhD in finance from the MIT Sloan School of Management in 2001, and a bachelor's degree in economics from Fudan University in 1992. Before entering graduate school, he was a full time faculty member at Fudan University, Department of International Finance.
Li's academic research spans a wide range of topics within finance, including emerging market finance, financial institutions, and corporate governance. His research output includes eight publications on 'A-level' journals, such as the Journal of Financial Economics, Journal of Finance, and Review of Financial Studies. Nowadays research articles are often jointly authored. He has a number of co-authored papers (with different co-authors ranging from Nobel laureate to assistant professors), but also has two single-authored papers showcasing his independent research capabilities. His research has considerable impact on the academic community and is well-cited, with about 1,000 citations. He also received high accolades from colleagues as demonstrated by many prestigious international research prizes that he has been awarded.
Li is a world class scholar on emerging markets particularly the Chinese financial market. His research interest about such topic start with his work with Stewart Myers, former president of the American Finance Association. Their article, R-squared around the world: new theory and new evidence, published on the JFE, is among the most influential research in studying the informational efficiency of emerging market stock markets. The study won the 2005 FAME Research Prize (an annual prize given to the most influential paper that year).
Following that, Li has studied the role of relationship in emerging markets. An article with Yasheng Huang at MIT and Yi Qian at Northwestern conducts a comprehensive analysis of return on investment of relationship-intensive enterprises. The article, forthcoming in the Review of Economics and Statistics, found that relationship-intensive businesses often command an operational disadvantage, at least over time. This is in sharp contrast to conventional wisdom, since most researchers believe that relationship-based transactions can bring greater value because they can enhance informational efficiency and reduce moral hazards and search costs. They demonstrate empirically that relationship-intensive economic transactions may not necessarily generate high returns as it could reduce the scope of competition, and may lead to complacency and long-term non-sustainability.
Li also aims to use China as a strategic research site to study investor behaviour, hoping to shed new lights on the academic literature about behavioural finance and household finance. His deep connection with financial authorities in China allows him to get data with unprecedented detail and scope, to conduct researches that are often infeasible elsewhere. As a concrete example, to study how irrationality affects investor behaviour and asset prices, he is working with James Choi and Hongjun Yan (both at Yale) to study the impact of breadth of ownership on the future returns of stocks. This paper uses rich data in China to sort out a variety of influential theories on why and how breadth of ownership should predict future stock returns, testing important hypotheses by Chen, Hong and Stein (2003), Miller (1977), and Merton (1987). Unlike existing data from the US, the China data allows much cleaner tests of these theories and thus more unambiguous conclusions. The paper is currently under second round review at the Review of Finance and has already received positive reviews among academics.
Li frequently participates in the most important international conferences in his field, as presenter, discussant, organisation committee member, and session chair. These include the American Finance Association, American Economic Association, Western Finance Association, European Finance Association, Financial Management Association, and National Bureau of Economic Research. He also gives talks on his research at top universities around the world, such as Harvard, MIT, Chicago, Wharton, Oxford, INSEAD, Yale, Columbia, and Michigan.
Over the years, Li has accumulated a large amount of first-hand observations on many prominent Chinese businesses, and has been able to provide coaching/advice to some of the top business elites from China. They also take pride in coming to his classes and interacting with him. In the last year alone, Li has welcomed Chairman Chen Yuan of China Development Bank, world’s largest development bank (with a balance sheet bigger than that of the World Bank and Asian Development Bank combined), Chairman and founder Wang Shi of Vanke, world’s largest real estate developer, Dr. Yin Yong, Director General of the Reserves Management for SAFE, world’s largest asset manager (over USD 3 Trillion Asset Under Management), Dr. Lin Wen, CEO of China Shenghua Energy Co., world’s largest coal producer, and Dr. Pan Gongsheng, EVP and ED of the Agricultural Bank of China, key person behind two of the world’s largest IPOs (ABC for USD 22.1Billion and ICBC for USD 21.9 Billion). Many business leaders look to Li for advice, and this in turn offers him unique insights about the evolution of the Chinese economy and financial system.
He teaches courses in Investment and Finance in Emerging Markets: China, and Advanced International Corporate Finance at the School, and contributes to executive programmes.
Saïd Business School
Park End Street