Latest Research Publications
Research Insights
Impact Stories
HKEJ Column
In the Media
The rate of communication
The Rate of Communication
We study the transmission of financial news and opinions through social interactions among retail investors in the United States. We identify a series of plausibly exogenous shocks, which cause “treated investors” to trade abnormally. We then trace the “contagion” of abnormal trading activity from the treated investors to their neighbors and their neighbors’ neighbors. Coupled with methodology drawn from epidemiology, our setting allows us to estimate the rate of communication and how it varies with the characteristics of the underlying investor population.

Corporate immunity to the COVID-19 pandemic
Corporate Immunity to the COVID-19 Pandemic
We evaluate the connection between corporate characteristics and the reaction of stock returns to COVID-19 cases using data on more than 6,700 firms across 61 economies. The pandemic-induced drop in stock returns was milder among firms with stronger pre-2020 finances (more cash and undrawn credit, less total and short-term debt, and larger profits), less exposure to COVID-19 through global supply chains and customer locations, more corporate social responsibility activities, and less entrenched executives. Furthermore, the stock returns of firms controlled by families (especially through direct holdings and with non-family managers), large corporations, and governments performed better, and those with greater ownership by hedge funds and other asset management companies performed worse. Stock markets positively price small amounts of managerial ownership but negatively price high levels of managerial ownership during the pandemic.

The telegraph and modern banking development, 1881–1936
The Telegraph and Modern Banking Development, 1881-1936
The telegraph was introduced to China in the late 19th century, a time when China also saw the rise of modern banks. Based on this historical context, this paper documents the importance of information technology in banking development. We construct a data set on the distributions of telegraph stations and banks across 287 prefectures between 1881 and 1936. The results show that the telegraph significantly expanded banks’ branch networks in terms of both number and geographic scope. The effect of the telegraph remains robust when we instrument it using proximity to the early military telegraph trunk.

A Shield with a Razor’s Edge: Understand the Pros and Cons of CDS With an Empirical Lens
A Shield with a Razor’s Edge: Understand the Pros and Cons of CDS With an Empirical Lens
A research by Professor Dragon Youngjun Tang, Professor in Finance at HKU Business School and other co-authors discovers that banks using CDS for capital relief have effectively freed up extra capital for businesses, but at the same time are more likely to extend loans and build up riskier loan portfolios.

Socially Responsible Investment Funds Fail to Inspire Firms to Improve
Socially Responsible Investment Funds Fail to Inspire Firms to Improve
New research by Professor Roni Michaely and other co-authors shows that while Socially Responsible Investment Funds are good at picking firms that adopt such behaviours, they do not inspire those firms to further improve their performance.

HK Conference
Event recap – Visionary knowledge curated by honourable guests in the “Conference on The Future of Hong Kong Economy”
The Conference on The Future of Hong Kong Economy was successfully held on May 14, 2021.
How to nurture a truthworthy generation
How to nurture a truthworthy generation
How to incentivise vaccination in Hong Kong?
How to incentivise vaccination in Hong Kong?
How to gain people's trust
How to gain people’s trust
疫市數碼轉型 HR責任擴大遇難題
疫市數碼轉型 HR責任擴大遇難題


hku business school