Yini Liu joins DAN Department of Management & Organizational StudiesSeptember 22, 2020
Yini Liu has joined the DAN Department of Management & Organizational Studies as an Assistant Professor. She recently completed her Ph.D. degree in Finance from the University of Texas at San Antonio.
Liu researches private investment in public equities (PIPEs). Through PIPE financing, public companies sell shares to a group of accredited private investors. Liu also researches revere mergers, through which a public shell company is acquired by a private company, in essence making the private company public, and how these reverse merger firms utilize private placements to raise capital. Liu’s most recent publication examined the role of placement agents in assisting reverse merger firms facilitate a PIPE deal. Her recent working paper examines how litigation risk affects the security type choices and contract design in a PIPE offering.
Liu says the market of private placements of public equity has become increasingly popular as a cost-efficient mechanism to raise capital in the past 15 years, since the 2008 financial crisis. The private equity placements market has surpassed the seasoned equity offering (public offering) market in terms of both dollar volume and number of transactions. Many public firms repeatedly access this market because private placements offer greater flexibility, confidentiality, and timeliness. Liu thinks this is an interesting topic, because although firms issuing private equities were considered more risky, characterized with greater information asymmetry and financial distress in the past, the recent trend is that more mature and larger firms are also embracing this option.
Liu will teach Advanced Corporate Finance at the 3rd level. In this course, she will teach students about how corporate decisions around financing and investments are made.
There is a general pattern of financing activities of corporations, Liu said, with smaller firms relying on individual or ‘angel’ investors in their initial phase. As they develop and grow, they may look to strategic investors such as venture capital and private equity, and then larger institutional investors, and eventually possibly an IPO or a buyout. “I generally bring in my own research when we talk about this phase of the firm, to discuss a variety of capital raising methods and exit choices,” said Liu. “With the development of technology, we can expand beyond the traditional corporate financing methods such as crowdfunding for entrepreneurial firms.”
In joining DAN Management, Liu said she is excited to join a department with several subfields, which will be beneficial for cross-disciplinary studies.
Yini Liu is looking forward to helping students in DAN Management as a teacher and a mentor.
“I know that college students are in a critical stage in their life, and they may need suggestions, encouragements, and inspirations from their advisors or mentors, in both academic-wise and career development," said Liu.
“Having just come through that path, I am able to better connect to my students and it would be a great joy to share their success,” said Liu.