Lately, Prof. Pan Deng, a “Minjiang Scholar” and a specially appointed professor from the Department of Finance in the School of Management of Xiamen University, co-published an academic paper entitled New Investors and Bubbles: An Analysis of the Baosteel Call Warrant Bubble as the corresponding author in Management Science, one of the top international scholarly journals, in collaboration with Gong Binglin from East China Normal University and Shi Donghui from Shanghai Stock Exchange. Management Science is one of the 24 internationally acknowledged top class journals defined by UT∕DALLAS in the fields of economics and management, and ranks among the top 50 Business School journals recognized by Financial Times.

Supported by account level data, this paper found that new investors not only initiated the Baosteel Call Warrant Bubble, but also sustained it for the whole trading period, keeping it from bursting too quickly. In the international academia, the paper first proposed the notion of New Investors Effect, which helps explain the frequent occurrence of bubbles in recent decades and offers a clue to the conundrum of the ineffectiveness of investors’ learning and experience.

In the financial realm, this paper is the first academic paper published in a world-class academic journal by scholars from Mainland China totally independent of international co-authorship. Prof. Pan Deng received his PhD of Management Science and Engineering from Shanghai Jiao Tong University, and was subsequently invited to join onboard the XMU School of Management as a finance professor on the honor roll of “Qun Xian Plan”. Professor Pan mainly conducts studies on financial market bubble, market microstructure and behavioral finance, and has presided over three projects from the National Science Foundation of China, subsidiary subjects of major programs from the National Social Science Foundation as well as a research project on Humanities and Social Sciences from the Ministry of Education.

Edited by Luo Shuang 

Source: http://news.xmu.edu.cn/bf/34/c1552a245556/page.htm