Prof. Hassan Naqvi and SKK GSB's Prof. Raunaq Pungaliya have had their paper "Bank size and the transmission of monetary policy: Revisiting the lending channel" accepted for publication in the Journal of Banking and Finance, a peer-reviewed academic journal covering research on financial institutions, capital markets, investments, and corporate finance. Prof. Naqvi is a former professor of finance at SKK GSB, and now teaches banking and finance at Monash University. Abstract as below: We model how monetary policy shocks affect the lending behavior of small and large banks. Other things being equal, small banks are riskier than large banks since the latter are more likely to be bailed out. Thus, small banks face a higher cost of non-deposit financing and are unable to finance liquidity shocks at a cost below a certain threshold. Consequently, we show that under a tight monetary regime small bank lending is more sensitive to monetary shocks. This relation reverses under loose monetary regimes where large bank lending is more responsive to monetary shocks. Our empirical results strongly support our analysis. Keywords: Bank Size; Lending Channel; Monetary Policy; Too-Big-to-Fail
Professor Nah Lee, who joined SKK GSB this fall as a marketing professor, discusses her background, life before her academic career, and school experiences. - Please introduce your childhood and background briefly. I was born and raised until middle school in Seoul. Then I moved to the U.S. and started my high school education. After high school, I went to University of Virginia, where I also did my first master's. I also received two other M.S. degrees from Columbia University and Georgia Tech, before receiving my Ph.D. from Duke University. My initial academic interests were actually in engineering, but then I moved toward business studies, starting with operations. Over these years, I navigated different fields to find my true passion, which is in quantitative marketing and what I do now. - What made you shift from an engineering background to marketing? Engineering gave me foundational knowledge and a methodological base for further studies. It is still very important in my research, but I became more interested in applied research on how our everyday behavior affects firm performance and what the businesses should do about it. This switch was largely due to the global digital transformation. Basically, I was fascinated by the process of sharing information online and the implication of this massive amount of data that are available today. In recent years, we have seen a boom in data science, and also the problem it creates when firms have no experience dealing with such online information. With my engineering and analytical background, I can provide quantitative insights from data that can be useful for firms in understanding their consumers and shaping their marketing decisions and outcomes. - Welcome back to Korea. What made you decide to return here for your career in academia? There are quite a few reasons this was the perfect opportunity for me. First of all, COVID-19 changed everyone’s perspective: almost everything is possible virtually now. Some even say that it is easier to stay connected online than face-to-face. With this change, being a professor in Korea didn’t seem to me as such a distant leap from the global academic mainstream, especially from the faculty members and the colleagues in the U.S. that I would like to stay in touch with; rather, it actually seemed more like reaching towards Asian cultures and emerging markets, and broadening my perspectives. Moreover, I wanted to teach at graduate level at a business school, so SKK GSB was a perfect fit for me and also an opportunity for me to contribute the most from what I have learnt from my years of education in the U.S. - How have you enjoyed teaching at SKK GSB so far? I've been teaching Pricing Strategies and Digital and Social Media Analytics. I have been very much enjoying teaching these courses since they are quantitative and match my comparative strengths well, and the social media analytics is also directly related to my research. The school and Dean Shih were very considerate in trying to assign me the courses that match my strengths and interests, and this has made my SKK GSB experience more rewarding. In these courses, I want to convince students that marketing nowadays is more than just soft skills or intuitions about consumer behavior. I want them to see what I see—that the emerging trend centers on data science and quantitative modeling, and this makes marketing more technical and analytical. - You have taught in the U.S. previously. How different is teaching at SKK GSB? In the States, I taught undergraduates at Georgia Tech and served as a teaching assistant for MBA students at Duke University. But I’ve also taught graduate students and working professionals in Korea before, so I guess it wasn’t that big of a “change” as I knew what to expect and that the student profile and culture would be somewhat different here. The student body at SKK GSB is diverse and unique in its own way. I have had talented students from the United Arab Emirates, Germany, Indonesia, and other countries nearby and far. Among the professional MBA students, there are working professionals from leading major companies in Korea to smaller startups and tech companies. No matter where the students come from and where they work now, one thing I am sure of is that there is no doubt that students came to SKK GSB for world-class MBA education and to broaden their global perspectives. And we are offering this unique experience in the heart of Seoul, one of the biggest metropolises in the world, and I am very proud to be part of the team! - Congratulations on your recently published paper in the Journal of Marketing Research. Could you briefly talk about your research focus, recent paper, and any other project you are currently working on? I study information in online reviews and how it can impact the purchase decisions we make as consumers, and also the business decisions firms can make in re-aligning their products. The accepted paper is about investigating the different types of information consumers share online, because the service products, like dining at a restaurant or staying overnight at a hotel, involve many different aspects of experiences, including food, room, service you get, and the interaction with the employees at the venue. I am currently working on reviews in the healthcare industry, and it’s fascinating because patients also write about many different aspects of their visit to the hospital: their interaction with the doctors, nurses, and other staffs, the facility, wait time, the medical diagnoses they received and the treatment outcomes, and so forth. The evaluations about all these aspects can affect prospective patients’ decision on which doctor to see and which hospital they should visit in the future, and this can also affect the decisions of the healthcare providers as to whether they should focus on increasing the quality of care they provide or how to allocate their resources to improve healthcare operations. - Do you have any advice for students in your class? Time and energy management is very important. Set the priorities and do the important tasks during the day of time when your brain is at its best. Try to get a little ahead of the due dates, so that you can save yourself from a lot of stress. Outside of the class, always remember your MBA experience should include networking and bonding with your classmates. Participate in social events, sports and other activities, as well as talks and other seminars taking place at SKK GSB. Every single experience during your time in the program, and all the networks and bonds you form with your peers and faculty members will benefit you for years to come after you graduate from the school. We would love to hear back from our students. Jawahirul Mahbubi, SKK GSB PR Committee, Class of 2023
SKK GSB was delighted to host Mr. Ben Verhaert last Friday, November 11, for a special lecture on dreams, challenges, and creativity. Applying his first-hand experience, Mr. Verhaert emphasized that it is important to ‘Dream Big’. To fulfill our global future, Mr. Verhaert recommended starting by dreaming big because this mechanism re-motivates us to dream even bigger over time. Having several achievements encourages people to go out of their comfort zones, and to face new challenges that might lead to a new world. Mr. Verhaert also shared his motto: "You can’t control the wind, but you can adjust your sails." In life, we have tailwinds, and sometimes we must face headwinds. In the end, to persevere, it is most important never to give up, and to remain purposeful and positive. Thank you, Mr. Verhaert, for delivering this amazing and inspiring lecture!
On October 13th, SKK GSB welcomed prospective applicants to the Professional MBA Program open class on Marketing Strategy and Planning, given by Dean and Professor of Marketing, Eric Shih. The Marketing Strategy and Planning course is an extension of the Marketing Management course, aiming to provide frameworks and tools for addressing strategic-level marketing problems. The course focuses on marketing planning design, implementation, and evaluation from the perspective of management to maximize long-term customer value while generating the highest financial return for the company. The themes of this open class were the launch of new products, and the diffusion of innovation. In addition to getting a glimpse of the real SKK GSB, attendees were given a brief overview of the Professional MBA program and admission guidelines. Open classes are one of the best ways to connect with current students, faculty, and potentially future classmates. SKK GSB hosts open classes for potential MBA students considering starting their academic journey. Join us for upcoming open classes, and find out how to discover your global future!