RESEARCH BRIEFS A look at some results of faculty studies on business topics
BENJAMIN JANSEN
Assistant Professor of Finance
“Cash Flow Growth and Stock Returns” Journal of Financial Research Jansen developed and tested a model showing cash flow growth (CFG) is positively associated with stock returns. Furthermore, additional information is reflected through CFG relative to cash flow levels, profits, and dividends. Evidence suggests that operating activities explain more than investment activities of the firm. Investors can earn significant profits by focusing on CFG. $1,000 invested in 1988 across the whole stock market would grow to $9,845 in 2019. However, $1,000 invested in the highest 20% of CFG stocks grows to $42,290, and the portfolio invested in the lowest 20% of CFG stocks only grows to $2,199.
26 | ENTERPRISE
THOMAS LI-PING TANG Professor of Management
“Teaching Entrepreneurship in China: Business Simulation & Games—A New Theoretical Model of Experiential Learning” • Organizational Science: A Global Perspective In conjunction with W. Fan, Tang explores business education pedagogy through business simulation and games (S&G). Using a qualitative approach, they conducted semi-structured interviews using WeChat, made field observations in the classroom, and identified six core themes in teaching business S&G. Their new theoretical model contains the following components: causes of participation, participation and engagement, intrinsic and extrinsic motivational stimulus, psychological process, learning behaviors, and learning outcomes. These components lead to learning outcomes: intellectual human capital; knowledge, skill, and ability (KSA); real-world experience/knowledge transfer; team building/social capital; and the entrepreneurial mindset. Their research offers practical implications for teaching entrepreneurship using business simulation and games, experiential learning, in particular, and organizational science.
WISARUT SUWANPRASERT Assistant Professor of Economics “The International Spillover Effects of US Trade Policy Uncertainty“ Economics Letters Suwanprasert examines the international spillover effects on the exports from 30 of the United States’ major trading partners upon the removal of U.S. trade policy uncertainty, when China joined the WTO in 2001. The empirical analysis discovers that removing U.S. trade policy uncertainty has sizable positive spillover effects on Canada, Mexico, Brazil, Belgium, France, Germany, the Netherlands, Norway, Spain, Sweden, Switzerland, the United Kingdom, Hong Kong, India, and New Zealand. The countries that experience negative spillover effects are Austria, Japan, and Taiwan.
