[SK Awards Interview] Professor Minjae Koo: In an Era of Uncertainty, Diverse Cultural Backgrounds Improve Forecast Accuracy

Uncertainty does not affect everyone equally. As U.S. firms faced growing import competition from China, most analysts saw their forecast accuracy decline. Yet some were less affected than others. Professor Minjae Koo focused on precisely that difference. His research suggests that the cultural context behind the numbers — and analysts’ own cultural backgrounds — can shape how information is processed in capital markets.
Professor Koo, who joined Korea University Business School (KUBS) in 2025, received his second SK Award for the study, “Forecasting Under Uncertainty: Import Penetration and Analysts’ Cultural Advantage.” The study empirically examines how international competition affects the role of information intermediaries. In an era when geopolitical tensions have become a daily reality, the research shows that diversity can be more than a value — it can also provide a tangible competitive advantage.
The following is an interview with Professor Koo about the research and the award.

Q1. Congratulations on being recognized with the SK Awards. Could you share your thoughts on the award?
First, I would like to express my sincere gratitude for this meaningful award. It is a great honor to have my research recognized at Korea University. I would also like to take this opportunity to extend my deep appreciation to my co-authors, who worked with me on this research, and to everyone who supported our work.

Q2. Could you briefly introduce the research for which you received the award?
This study analyzes how Chinese import penetration affects the earnings forecast accuracy of financial analysts covering U.S. firms. In particular, we examined whether Chinese analysts have an informational advantage in such an environment.
Our empirical analysis shows that the more U.S. firms were affected by Chinese import penetration, the more analysts’ forecast accuracy declined overall. However, the decline in forecast accuracy was substantially smaller among Chinese analysts. This suggests that cultural background and contextual knowledge can improve analysts’ ability to process information in complex international competitive environments.

Q3. What motivated you to begin this research?
The international competitive landscape has shifted rapidly due to recent developments such as the U.S.–China trade tensions and the restructuring of global supply chains. I became interested in whether these macro-level changes might affect not only firm performance and corporate strategy but also how information is produced in capital markets.
The study began with the question, “How do international economic shocks change the role of information intermediaries?” The research ultimately showed that cultural background can play an important role in complex international environments.

Q4. What impact do you expect this research to have on society or industry?
This study demonstrates the value that cultural diversity and expertise can bring to financial markets as globalization deepens and geopolitical risks increase. For companies and financial institutions, the findings highlight the importance of professionals with diverse cultural backgrounds and international perspectives, alongside strong technical capabilities.
From a policy perspective, the study also highlights the role of human capital in reducing information asymmetry amid rising international tensions.

Q5. Since joining KUBS in 2025, you have already received the SK Awards twice. Is there a secret behind these consecutive achievements?
I wouldn’t say there is any particular secret. I believe these achievements were made possible by strong teamwork with my co-authors and constructive feedback from reviewers and editors. Through this study, I was reminded once again that research is not a solitary journey, but a collaborative process that becomes increasingly refined through diverse perspectives and constructive critique.
 
Q6. Many students today are interested in pursuing careers in accounting. What message would you like to share with them?
Accounting is no longer just a discipline that records numbers. In class, I often refer to Nietzsche’s famous statement: “There are no facts, only interpretations.” I understand this to mean that even identical numbers can be viewed and interpreted differently through various lenses.
In today’s increasingly dynamic and fast-changing world, I believe such interpretation can become even more complex. Therefore, I would encourage students interested in accounting careers — whether in financial accounting, auditing, or management accounting — to broaden their horizons. They should explore not only fields directly connected to accounting, such as international politics and ESG, but also subjects that may seem less related at first glance, including literature and philosophy. Doing so can help them develop stronger intuition and critical thinking skills. I believe a humanities-based perspective can be very helpful when making broader, more strategic decisions.
 
About the Paper :  
In 2026, “Forecasting Under Uncertainty: Import Penetration and Analysts’ Cultural Advantage,” co-authored by Professor Minjae Koo of Korea University Business School, was accepted for publication in the Journal of International Business Studies. The paper also earned Professor Koo an SK Award. The study examines how analysts’ earnings forecast accuracy shifts as U.S. firms face mounting import competition from China and identifies cultural background as an important factor in information processing under complex international competition. The milestone is especially meaningful as it marks Professor Koo’s second SK Awards since joining KUBS in 2025.
 
“Forecasting Under Uncertainty: Import Penetration and Analysts’ Cultural Advantage”
This study empirically analyzes how import competition from China affects the earnings forecast accuracy of analysts covering U.S. firms. The analysis finds that analysts’ forecasts grew less accurate as U.S. firms faced higher exposure to Chinese import competition. However, Chinese analysts were relatively less affected by this negative impact and delivering more accurate forecasts than their non-Chinese peers.
 
This informational advantage was even more pronounced when analysts had strong industry expertise or extensive experience covering Chinese firms, and it became stronger during periods of intensifying U.S.–China tensions. Furthermore, the study finds that investors recognized these differences and responded more strongly to forecasts issued by Chinese analysts. By demonstrating that cultural background and expertise can serve as important informational assets in international competitive environments, the study offers new insights into the role of information intermediaries in global capital markets.
 
▶ View the full paper: “Forecasting Under Uncertainty: Import Penetration and Analysts’ Cultural Advantage”
 

KUBS Student Reporter
Reporting and Photography by Yeontae Kim