Mi (Meg) Luo, PhD

Associate Professor of Finance and Real Estate | Villanova School of Business Villanova University

Villanova PA

Mi (Meg) Luo, PhD, specializes in empirical corporate finance, investments, equity valuation and corporate decision making.

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Villanova University
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Areas of Expertise

Business

Leveraged Buyouts

Executive Compensation

Merger and Acquisition

Managerial Decision Making

Corporate Finance

Corporate & Business Strategy

Cash Management

Equity Valuation

Private Equity Firms

Biography

Mi (Meg) Luo, PhD, is an associate professor of Finance at the Villanova School of Business. Her research area is empirical corporate finance, and she is interested in understanding how market frictions affect corporate executives’ decision-making and the value implication of managerial decisions. Meg’s research interests include merger and acquisition, cash management, and executive compensation. Her works have been published in top-tier finance journals such as Journal of Financial Economics and Journal of Corporate Finance. She has presented her works at academic conferences, university seminars, and to practitioners such as hedge fund managers. Her current research centers on how Private Equity firms create value at portfolio firms by increasing working capital efficiency following a leveraged buyout. Meg mainly teaches Corporate Restructuring both at the undergraduate and MBA level.

Education

University of Utah

PhD

Nanjing University

Select Accomplishments

Best Conference Paper Premier Award

2012
Awarded at the Global Marketing Conference (GMC)

Bridge Builders Award for Excellence in Teaching Students with Learnings Disabilities

2009

Select Media Appearances

How Tax Reform Affects Stock Value

U.S. News & World Report

2018-04-03

U.S corporate tax reform is kicking in this year and lowers the marginal corporate tax rate at the federal level from 35 percent to 21 percent.

How will the reduced tax rate affect stock values? Conventional wisdom states that lower corporate taxes will be good news: each penny saved from the IRS presumably will go to shareholders. But is that really true? Investors need to be aware of several factors to gauge the impact of tax break on stock returns. Though the tax cut applies to all the companies, each company will benefit from the tax break differently.

Are Stocks Cheap or Expensive?

U.S. News & World Report

2017-10-24

The stock market is never shy of clashing views. After all, if we all agreed with each other, there would be no trading and no markets. But the current clash seems to be especially severe nowadays, as we ride a nine-year winning streak since the 2008 financial crisis.

When asked if concerned about stock prices being too high earlier this year, Warren Buffett answered that stocks are actually cheap. In August, after the Standard & Poor's 500 index made further gains, Buffett said stocks are less cheap, but still better than bonds. At the same time, we see increasing worries that stock market is overpriced, and investors should brace themselves for a possible crash.

3 Things to Do When Stocks Lose

U.S. News and World Report online

2017-08-25

What do you do with a stock that falls below purchase price? Hang onto it or sell it?

Some would say buy more so that you can lower the average cost.

Others would say losers average losers, like the sign over hedge fund legend Paul Tudor Jones' desk. He would say, "Don't add to your losing position, get out."

What do investors typically do?...

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Research Grants

Summer Research Fellowship

Villanova University

2008

Select Academic Articles

REIT Ownership and Property Performance: Evidence from the Lodging Industry

Journal of Real Estate Portfolio Management

2012

A Bright Side of Financial Constraints in Cash Management

Journal of Corporate Finance

2011

How Much Is Trust Worth? Evidence from the International Online Textbook Market

Journal of Internet Commerce