Stock Market
Source: https://bm.hkust.edu.hk/bizinsight/tag/stock-market Parent: https://bm.hkust.edu.hk/bizinsight/bizstudies
QIN, Yu
FAN, Yangyang
ZHANG, Zhongju
Harnessing Alternative Data for Financial Forecasting
Financial technology is transforming the world of financial services. Using big data analytics to enhance decision-making in areas such as portfolio and risk management has become a top priority for many financial institutions. Thanks to HKUST’s Yi Yang and co-researchers, institutions and investors now have a novel system for predicting financial risk that ... Read More
[ BizStudies ]
YAN, Jingda
More and more research suggests that the past return of one firm’s stock can predict the stock returns of other, connected firms—with momentous implications for firm networks and investors. “Such cross-stock return momentum is found among stocks connected by the same industry, supply chain, and geographic location,” explain Jialin Yu of HKUST and a colleague ... Read More
[ BizStudies ]
WANG, Rencheng
WHIPPLE, Benjamin C.
Non-GAAP Reporting Can Store Up Trouble
Research by the HKUST’s Charles Hsu shows that disclosures of non-GAAP earnings numbers are associated with a greater risk of stock price crashes. Working with international collaborators, Hsu found that non-GAAP disclosures enable managers to divert investors’ attention from bad news included in GAAP earnings. This mechanism, which is substitutive to ... Read More
[ BizStudies ]
HOU, Kewei
HSU, Po-Hsuan
WATANABE, Akiko
XU, Yan
The “R&D Effect” is Real but Risky
Research and development (R&D) is a major contributor to technological progress and economic well-being. From the standpoint of the individual firm, R&D is a key aspect of doing business and a determinant of long-term growth. In the U.S., R&D intensive firms enjoy higher market valuations and greater stock returns than their peers. HKUST researcher Shiheng ... Read More
[ BizStudies ]
Stock Surprises—The Impact of Interest Rate Fluctuations on Stock Prices
The interest rate charged on business loans, known as the discount rate, affects stock prices. This is particularly important, given the fast rate increases by the Federal Reserve this year. However, traditional methods of calculating its impact are not sophisticated enough, according to HKUST’s Zhanhui Chen. To address this limitation, the researcher ... Read More
[ BizStudies ]
GE, Weili
MATSUMOTO, Dawn
ZHANG, Jenny Li
Listing on a U.S. stock exchange can be good for business, but U.S.-listed foreign firms pay a big price for deliberately misleading investors, according to a 2020 study by Ge, Matsumoto, Wang, and Zhang. . The authors compared the responses of U.S. stock markets to accounting irregularities—intentionally misstated financial information—disclosed by U.S ... Read More
[ BizStudies ]
LI, Gang
The Importance of Counterparty Credit Risk in Financial Markets
Counterparty credit risk (CCR) refers to the risk that a counterparty will not pay up as obligated in a contract. Under such circumstances, an economic loss would occur if the transaction with the counterparty has a positive economic value at the time of default. In recent years, counterparty credit risk has become a prominent risk for market participants ... Read More
[ BizStudies ]
JACOBSEN, Stacey
Explaining the Share Repurchase Puzzle
When firms announce they will repurchase shares, the market tends to see this as good news and responds positively – even though there is no requirement on the firm to actually repurchase. In fact, a number of firms never do so. So why does the market react as it does? Researchers Utpal Bhattacharya and Stacey Jacobsen think they have an answer: the ... Read More
[ BizStudies ]