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Real Effects of Share Repurchases Legalization on Corporate Behaviors
Real Effects of Share Repurchases Legalization on Corporate Behaviors
We use staggered share repurchases legalization from 1985 to 2010 across the world to examine its impact on corporate behaviors. We find that share-repurchasing firms do not cut dividends as a substitution. The cash for repurchasing shares comes more from internal cash than external debt issuance, leading to reductions in capital expenditures and R&D expenses. While this strategy boosts stock prices, it results in lower long-run Tobin's Q, profitability, growth, and innovation, accompanied by lower insider ownership. Tax benefits and paying out temporary earnings are two primary reasons that firms repurchase.

When Does Guanxi Hurt Interfirm Cooperation? The Moderating Effects of Institutional Development and IT Infrastructure Capability
When Does Guanxi Hurt Interfirm Cooperation? The Moderating Effects of Institutional Development and IT Infrastructure Capability
Relying on the resource-based view, this study tests the moderating effects of the region’s institutional development and the firm’s IT (information technology) infrastructure capability, and examine how and when interpersonal and government-firm (GF) guanxi influence the distributor’s opportunism and cooperative performance. Using both survey data from 550 industrial manufacturers and secondary data, the study shows that both types of guanxi can mitigate the distributor’s opportunism and facilitate cooperative performance. However, the region’s institutional development strengthens the effects of interpersonal guanxi while weakening the effects of GF guanxi, and the firm’s IT infrastructure capability weakens the effects of interpersonal guanxi while strengthening the effects of GF guanxi. These findings enrich both the literature on guanxi in the emerging economy by distinguishing two types of guanxi and RBV by testing the moderating effects of institutional development and IT infrastructure capability. Theoretical and practical implications are discussed.

The Real Value of China’s Stock Market
The Real Value of China’s Stock Market
What capital allocation role can China’s stock market play? Counter to perception, stock prices in China have become as informative about future profits as they are in the US. This rise in stock price informativeness has coincided with an increase in investment efficiency among privately owned firms, suggesting the market is aggregating information and providing useful signals to managers. However, price informativeness and investment efficiency for state-owned enterprises fell below that of privately owned firms after the postcrisis stimulus, perhaps reflecting unpredictable subsidies and state-directed investment policy. Finally, evidence from realized returns suggests Chinese firms face a higher cost of equity capital than US firms.

Finding the Cost of Friendships at Work
Finding the Cost of Friendships at Work
Dr Sangwoon Park’s study takes a scientific look at what makes friendships at work tick and how these friendships affect productivity in the workplace. His findings reveal that worker productivity declines when friends socialize at work, but that, surprisingly, people are also willing to “pay” almost 5% of their wages to work near a friend – suggesting that friends who work together get more out of their jobs than just money.
Racing Against Time: Using artificial intelligence to find and help people in emotional distress
Racing Against Time: Using artificial intelligence to find and help people in emotional distress
Dr Michael Chau’s study uses the machine learning and rule-based classification components of artificial intelligence to find people online who are in emotional distress. Using these techniques may help health professionals locate struggling individuals faster, getting help to them before it’s too late.
The Cost of Distraction
The Cost of Distraction
What could be the result if some compelling opportunities, like lottery jackpots, were potentially lucrative enough to distract the investors' attention from monitoring the stock market?
Professor James Kung
A “Time Travel” – Discover the Link Between Ancient China’s Civil Examination And modern Economic Development
HKU Business School Professor James K.S. Kung has recently won the Royal Economic Society Prize for the best article published in The Economic Journal in 2020. His paper, “Long Live Keju! The Persistent Effects of China's Civil Examination System”, co-authored with Dr. Chicheng Ma and Dr. Ting Chen, examines the long-term consequences of China’s millennium-long civil examination system for human capital or educational outcomes.

Cultivate Thought Leadership: Lessons from Blackstone CEO on Global Leadership in the New Normal
Cultivate Thought Leadership: Lessons from Blackstone CEO on Global Leadership in the New Normal
On Thursday, January 21, the online dialogue between Mr. Stephen A. Schwarzman, Chairman, CEO and Co-founder of Blackstone, and Professor Hongbin Cai, Dean of HKU Business School, attracted over 500 attendees from around the world. As an event kicking off the School’s 20th Anniversary celebration, the dialogue between two masterminds perfectly aligns with the School’s commitment to engaging globally impactful academic and business leaders in cultivating thought leadership and inspiring our young leaders. During the event, the two speakers discussed insightful topics ranging from management skills to global economic prospects.

Special drawing rights and global economic recovery
Special drawing rights and global economic recovery
新冠肺炎肆虐已逾一年。若以每日新增案例為指標,全球情況並沒有好轉。最近的80、90萬宗,是2月時30、40萬宗中的兩倍多。一些國家如美國和英國,由於疫苗接種計劃順利展開,新增案例自年初起大幅減少。但在其他國家,情況並沒有穩定下來,稍有不慎,便會出現如印度最近的慘況。現時全球都寄望於疫苗,但疫苗的供應有先後之分。高收入國家已購買的劑量,是成年人口的兩倍半,但中收入和低收入國家購買的劑量,只及成年人口的1/3。
人口老化 危中有機
Challenges and opportunities of ageing population
本地人口結構正經歷人口老化的轉變,特區政府估計20年後,每3個香港人中,約有1人是65歲或以上的長者,而長者人口增長的一個特點就是,80歲及以上的增幅在未來40年間尤為顯著。2021年80歲及以上人口約為40萬(5.3%),到2040年會倍增至接近99萬(12.2%),2060年更將跳升到125萬(16.3%)
How did socialism come to China?
How did socialism come to China?
自從國安法通過以來,香港特區進入了一國兩制2.0階段,香港人有需要進一步認識國情,現在中國實施的是有中國特色的社會主義。追本溯源,究竟社會主義如何來到中國?
【公共年金】港大教授劉修謙﹕計劃參與率仍然偏低  可考慮引入新加坡遞增制解決通漲
【公共年金】港大教授劉修謙﹕計劃參與率仍然偏低  可考慮引入新加坡遞增制解決通漲
香港年金計劃(公共年金)在2018年推出,截至去年12月底,計劃總共售出10,216份保單,保費總額為69.5億元。港大經管學院經濟學教授劉修謙教授認為,對比起現時長者人口數字,目前計劃參與率仍然偏低。

Professor Heiwai Tang
SAR risks ‘losing a generation of tech talent’
Hong Kong could lose a generation of technological talent because of scarce opportunities amid industrial polarization, with its economy revolving around just finance, an academic has warned.

Professor Heiwai Tang
Iron ore is saving Australia’s trade with China. How long can it last?
Wine and wheat. Lobsters and logs. Beef and barley. If Australia exports it, China has likely put up barriers to entry over the past year, as diplomatic relations between the two countries rapidly deteriorated. Now, one commodity is almost single-handedly keeping the trade relationship afloat: iron ore.