Download Shan Yan - Eli Broad College of Business

Shan Yan
Department of Finance
Eli Broad College of Business
330 Eppley Center
East Lansing, MI 48824
Phone: 517-420-4591(Mobile)
Fax: 517-432-1080
Email: [email protected]
Education
Eli Broad College of Business, Michigan State University, East Lansing, MI
Ph.D. in Finance,
Expected May 2012
Department of Statistics and Probability, Michigan State University, East Lansing, MI
Ph.D. student in Statistics
Fall 2006 – Summer 2007
Eller College of Management, University of Arizona, Tucson, AZ
MA. in Economics
Fall 2004 – Summer 2006
College of Economics, Huazhong University of Science and Technology, Wuhan, China
M.A. in Econometrics
Fall 2000 – Summer 2003
B.A. in International Finance
Fall 1996 – Summer 2000
Research Interests
Empirical Corporate Finance, Merger and Acquisition, Financial Intermediation, Managerial
Overconfidence, Textual Analysis, Corporate Governance, CEO Compensation, Hedge Funds
Teaching Interests
Corporate Finance, Investment, International Finance, Financial Markets and Institutions, Empirical
Methods in Finance and Economics
Working Papers
Managerial Attitudes and Merger Outcomes: Evidence from Corporate Takeover
Filings (Job Market Paper)
Abstract: We examine the textual content of merger and acquisition related SEC filings in an effort to
understand the role of managerial attitudes and beliefs in merger negotiations and outcomes.
Using a textual algorithm to identify the degree to which filings of bidders and targets exhibit
negative/cautious tones vs. positive/optimistic tones, we find that bidders employing the
most optimistic language in their filings actually experience the worst long-run performance
following the transactions. In contrast, bidding managers who appear to acknowledge and understand
the risks of the transactions experience relatively better post-merger performance. For
targets, we use the tone of their filings as a measure of how positive or negative their management
teams are towards the proposed transaction. We find that target filings are more negative
for deals with lower initial premiums, and that negative filings are associated with lower deal
completion rates. For completed mergers, bidders are more likely to increase premia for resistant
targets. Thus our analysis of the textual content of merger filings appears to give us a new
method for investigating the role of bidder and target attitudes and beliefs on merger outcomes.
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Bank Debt, Flexibility, and the Use of Proceeds from Asset Sales (with Ted Fee,
Joshua Pierce, Hoontaek Seo)
Abstract: In the theory of financial intermediation, bank debt is often characterized as being more readily
renegotiable than public debt. Banks are also conjectured to gain valuable non-public information
through closer monitoring. Given these features, bank debt can theoretically be more flexible than public
debt and can lead to better investment/liquidation decisions. We investigate this possibility using a
sample of firms facing the important decision of whether to reinvest the proceeds from asset sales or
whether to distribute the proceeds to debtholders. While higher levels of leverage are associated with an
increased probability of distributing proceeds to creditors, this relationship is significantly muted for bank
debt as opposed to public debt. This finding is consistent with the conjecture that bank debt provides
enhanced flexibility when compared to public debt. Further we find that asset sale announcement period
abnormal stock returns are increasing in firms’ use of bank debt, but not public debt. This suggests that
market participants believe that banking relationships are leading to better decision making for this
particular type of investment/liquidation decision. We find no significantly different effects of bank vs.
public debt on the initial decision to undertake an asset sale in the first place. Thus, in the context of asset
sales, the main observable difference arises in the use of proceeds decision, rather than the initial asset
sale decision.
How Hedge Funds' Alpha is Created (with Massimo Massa, Andrei Simonov)
Abstract: We argue that hedge funds are able to take the opposite side of unprofitable (for mutual fund)
trades. Hedge funds exploit inefficiencies of mutual funds, especially domestic ones. We show that the
performance of hedge funds is significantly higher when mutual fund market coverage is higher. This
effect is mostly concentrated among domestic mutual funds and is stronger the higher the investment
horizon of the hedge funds compared to mutual funds. Hedge funds are more likely to earn "alpha” in the
presence of a high degree of mutual fund market coverage and their probability of survival is higher. This
is especially true for the alpha funds. The degree to which hedge funds react to changes in public
information (either analyst recommendations or EPS forecasts) is directly related to the degree of mutual
fund market coverage.
Teaching Experience
Instructor
Department of Finance, Michigan State University
FI 312: Introduction to Investments, Summer 2011, Summer 2010, Summer 2009
Most Recent Teaching Evaluation: 1.67 [1 highest, 5 lowest]
FI 321: Theory of Investments, Spring 2009
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Teaching Assistant
Department of Finance, Michigan State University
FI 312: Introduction to Investments,
Fall 2011, Fall 2010, Summer 2009, Fall 2009, Fall 2008, Fall 2007
FI 311: Financial Management, Fall 2009, Summer 2009, Summer 2008
FI 379: Advanced Derivatives Spring 2010
FI 852 Financial Markets & Strategies, MBA level Spring 2010
FI 851 Introduction to Investments, MBA level Spring 2010, Spring 2008
Department of Economics, University of Arizona
INDV 103, Individuals and Society Spring 2006, Fall 2005, Spring 2005, Fall 2004
BNAD 301, Global and financial Economics and Strategies Fall 2004
Professional Activities
Discussant: Financial Management Association Meeting, New York, 2010
Member of American Finance Association
Member of Financial Management Association
Industry Experiences
Security Analyst, Industrial (Xing Ye) Security Corporation, Shanghai, China 2003-2004
Researched Mutual fund public offering in the Chinese market and Mutual fund style and
performance
Awards and Honors
Graduate Student Instructor Teaching Award, Department of Finance, Michigan State University 2011
Summer Research Fellowship, the Graduate School at Michigan State University 2010, 2009
AFA Doctoral Student Travel Grant, Atlanta, GA, 2010
George W. Coleman Scholarship, University of Arizona, 2004-2005
Boland V. F. Scholarship, University of Arizona, 2004-2005
Graduate Registration Scholarship, University of Arizona, 2004-2006
Excellent Graduate Thesis, Huazhong University of Science and Technology, 2000
Skills
Computer: SAS, Stata, Matlab, C++, PERL, R, Latex
Languages: English and Chinese
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References
Ted Fee (Chair)
Associate Professor
Philip J. May Endowed Professor of Finance
Department of Finance
Eli Broad College of Business
Michigan State University
315 Eppley Center
East, Lansing, MI 48824
Phone: (517)-353-2920
Email: [email protected]
Charles Hadlock
Professor
A.J.Pasant Endowed Professor of Finance
Department of Finance
Eli Broad College of Business
Michigan State University
315 Eppley Center
East, Lansing, MI 48824
Phone: (517)-353-9330
Email: [email protected]
Michael Mazzeo
Associate Professor
Interim Chairperson
Department of Finance
Eli Broad College of Business
Michigan State University
315 Eppley Center
East, Lansing, MI 48824
Phone: (517)-884-6036
Email: [email protected]
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