Dr. Lilian Chan receives Faculty Knowledge Exchange Award 2019
Introduced in 2011, the Faculty Knowledge Exchange (KE) Award was established to recognise Faculty’s outstanding KE accomplishments that have made demonstrable economic, social or cultural impacts to benefit the community, business/industry, or partner organisations.
This year, Dr. Lilian Chan, Associate Professor in Accounting and Law, received the Faculty Knowledge Award for her research accomplishments achieved in the KE project "The Impact of Clawback Research on Policy Making by The Securities and Exchange Commission (SEC) of the U.S.".
The impact summary of Dr. Chan's project is:
"In order to reform the financial regulatory system of the United States after the financial crisis happened in 2007-2008, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act hereafter) was proposed in 2010.
To comply with Section 954 of the Dodd-Frank Act, in 2015 the Securities and Exchange Commission (SEC) of the U.S. proposed Rule 10D-1 that all listed companies in the U.S. will be required to recover the excess incentive-based compensation received by an executive officer starting from 2017 if the company is required to prepare an accounting restatement to correct a material error, i.e. clawback provision.
Dr. Chan’s clawback research played a significant role in this proposal – the findings motivated the formulation of the rule and were cited in debates among policy makers, legislators, industry leaders, and market participants afterwards."