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Faculty Corner – Dr. Dongnyoung Kim, Associate Professor Finance

A critical role of CoBA is the creation of new knowledge to inform leading edge skills and capabilities for our students and community partners. Through such innovation, CoBA has societal impact by empowering future workers, entrepreneurs, and leaders in business. A major contributor to moving thought forward is faculty research on current business organizations and tools. In this faculty corner article, we talk to Dr. Dongnyoung Kim, associate professor of finance, about his recent journal publication, “Government Financing for Clean Technology Development: Financial Risk and Environmental Benefits,” with Dr. SH Jung, Dr. L Dong, and Dr. Y Qiu. The 2024 article was published in Production and Operations Management, a Financial Times 50 (FT50) journal, representing the highest level of quality and knowledge innovation in business research. The FT50 is used as a primary measure of research quality and prestige by Research 1-level (highest level) business schools across the United States, including the University of Georgia, University of Michigan, and the University of Southern California. An FT50 publication is a great achievement, especially at colleges that have a more balanced research-teaching mission, such as CoBA. The following is an edited conversation with Dr. Kim. 

Dr. Kim, when did you start at �������� CoBA and where did you study for your PhD? What is your primary area of teaching? 

I began my career at CoBA as an associate professor of finance in 2019. Before joining ��������, I was a tenured associate professor at Texas A&M University–Kingsville. I earned my PhD in finance from the Muma College of Business at the University of South Florida. My PhD dissertation focused on the role of political ideology in corporate finance. The first essay of my dissertation examined how a manager’s political ideology influences merges and acquisition (M&A) decisions. The project was one of the first in the area and the research was published in the Journal of Corporate Finance and cited by The Wall Street Journal. My teaching primarily focuses on corporate finance and investments at both the undergraduate and MBA levels.   

Beyond your teaching and research roles, tells us a little about your service activity.  

I have been deeply involved in service at university, college, and department levels. This includes service on the university Faculty Senate, the college R&D committee, and the Finance Department’s MS in Finance Taskforce. I also now serve as the chair of the Finance Department. 

Among all service roles, I take particular pride as the faculty advisor for the CoBA CFA Research Challenge. From the moment I joined CoBA, I wanted to help our students participate in this prestigious competition, and it has been incredibly rewarding to watch students grow, refine research skills, and build a foundation for sustained participation. The challenge demands a significant time commitment, running from October to February, but seeing our students push themselves and produce high-quality work makes it all worthwhile. This year, our team has already submitted their research to the CFA and is now preparing for their presentation. I’m eager to see how they perform and how their hard work translates into real-world success. 

You recently published an article in Production and Operations Management, a Financial Times 50, premier level journal. This is quite an accomplishment. Can you briefly describe the paper.  

My research focuses on corporate finance, with an emphasis on corporate policies, including investment decisions, financing strategies, and environmental responsibility. Recently, the effectiveness of the Department of Energy’s financing programs has faced scrutiny due to recipient failure. Our paper examines the impact of government financing on clean technology development, particularly loans for financially constrained firms. Using an analytical model, we demonstrate that, compared to traditional financing, government support encourages firms to pursue aggressive strategies, increasing technology investment and production. While this drives environmental benefits, it also raises bankruptcy risk. To mitigate this, we propose a strategy that balances financial stability with environmental goals. Our study sheds light on the overlooked risks of government financing and offers insights into notable clean-tech firm bankruptcies. 

What is a research project you are working on currently? What is its potential value? 

I am currently working on multiple projects, with a primary focus on local renewable policies and firm performance. A project of note examines how state-level renewable policies and incentives impact firm performance. The key finding is that state-mandated policies tend to weaken firm performance and increase operating income volatility, contrary to the expectations of ESG proponents. 

What do you like about being at CoBA? 

What I value most about CoBA is the genuine sense of camaraderie and encouragement among colleagues, staff, and students. The collaborative spirit here creates an environment where ideas are exchanged freely, and faculty are genuinely invested in each other’s success. Whether through research partnerships, student mentorship, or service initiatives, there’s a strong culture of mutual support that makes the work both meaningful and rewarding. Being part of a community that prioritizes both professional growth and collective success makes CoBA an incredibly fulfilling place to be. 

To learn more about Dr. Kim’s research or to support Finance education programs and its students, please reach out at dkim@csusm.edu.