Professor Shen Jia (Department of International Area Studies) and Ph.D. Candidate Lu Liyu Jointly Receive Best Paper Award at the 36th IAGBT-KITRI International Conference

- Study Examines the Impact of Geopolitical Risks on the Business Performance of Internationalized Firms -

  Lu Liyu, a Ph.D. candidate in the Department of International Area Studies, and his advisor, Professor Shen Jia, received the Best Paper Award at the 36th IAGBT-KITRI Biannual Conference and Research Symposium, held at Dongguk University from July 30 to 31.

  The international conference was jointly hosted by the International Academy of Global Business and Trade (IAGBT), the Korea Institute for Trade and Industry (KITRI), and the Center for International Development Cooperation at Dongguk University. It was co-organized by eight domestic and international institutions, including the Korean Association of Global Business and Trade (KAGBT), the Asia Trade Association (ATA), and the University of the Philippines Los Baños (UPLB). Held under the theme “Exploring Future-Oriented Business and Trade Strategies in a Changing Global Economy,” the event brought together researchers from five countries: Korea, China, Japan, the Philippines, and the United States. The Best Paper Award was selected by an evaluation committee based on the academic contribution and originality of the papers presented at the conference.

  The award-winning paper, titled “The Impact of Geopolitical Risks on the Performance of Internationalized Enterprises: Moderated by Home Country Political Connections,” was presented during a session held on the afternoon of July 31 at Hyehwa Hall at Dongguk University and was published in the conference proceedings on pages 569–580.

  The researchers analyzed more than 32,000 firm-year observations of Chinese A-share listed companies that conducted substantial overseas business activities between 2006 and 2024. The study found that increasing geopolitical risks significantly reduce firms’ return on assets (ROA) while increasing the likelihood of operating losses. In particular, a mediation analysis confirmed that this negative impact is transmitted through financing constraints. The study also demonstrated empirically that home-country political connections, represented by state ownership, serve as a buffer that mitigates these adverse effects. The findings remained consistent across a series of robustness checks, including instrumental-variable analysis and tests using alternative measures and adjusted samples.

  Professor Shen Jia, the students’ academic advisor, said, “At a time when geopolitical uncertainty has become a constant factor in corporate management, this study is meaningful in that it uses firm-level data to identify the mechanisms through which geopolitical risks are transmitted to corporate performance.” Ph.D. candidate Lu Liyu said, “Having the opportunity to exchange ideas directly with researchers from different countries on an international academic stage allowed me to identify both the strengths of our research and areas that could be further improved. I plan to expand the scope of the analysis and continue developing this research.”

  The Department of International Area Studies plans to continue supporting students and faculty in participating in international academic conferences and conducting collaborative research.