BizTalks
Source: https://bm.hkust.edu.hk/bizinsight/biztalks Parent: https://bm.hkust.edu.hk/
Here you can watch the videos of our faculty members’ sharing of their latest research and insights. Most of these talks/seminars are conducted in a friendly language accessible to academics and the business community.
How Does Community Political Ideology Affect Foreign Firms' M&A Deals' Completion?
The intensifying rivalry between major global economies highlights the need to better understand the politicized nature of international business. This study introduces a new political factor—community political ideology (i.e., the dominant political ideology along the liberalism-conservatism spectrum among a community’s members)—and examines its influences ... Read More
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Computer Vision for Firm Networks and Spillovers
Many investors focus on either individual companies or broad market factors like value and size. But our research reveals a powerful middle layer: the network of connections between stocks. Here's the pattern: when a group of "leader" stocks moves today, related "laggard" stocks tend to follow tomorrow. This relationship is strong enough to generate ... Read More
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Does Detailed Financial Data Help in Predicting Future Earnings Changes?
For decades, investor have relied on intuition, a limitedset of financial ratios, and traditional regression analyses to predict future earnings changes. Are detailed financial data even useful? We present empirical evidence that combining detailed financial data with machine learning models significantly enhances predictive accuracy. By using eXtensible ... Read More
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Forgetful Consumers and Consumption Tracking
Consumers often pay an excessive amount of fees for bank overdrafts and service overage, because they overestimate their ability to track their spending. We conduct an analytical study to examine how the advances in consumption tracking technologies — such as mobile banking apps that help consumers monitor their spending and avoid overdrawn accounts – can ... Read More
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Too Good to Go: Combating Food Waste with Surprise Clearance
Too Good to Go (TGTG) is a food waste app that aims to connect consumers to stores and restaurants with surplus food that would otherwise be sent to landfills. Launched in Denmark in 2015, TGTG has expanded to 19 countries, amassing over 100 million users worldwide. A key ingenuity of TGTG is that it allows stores to sell ``surprise bags" composed of ... Read More
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How can experts effectively manage empowered lay clients? How should experts respond when online markets give clients a megaphone? Ignoring feedback can backfire in disintermediated, review-driven markets; over-accommodating can hollow out expertise. Studying 67 porcelain artists in Jingdezhen, China, after market reforms, we identify a third path: decompose ... Read More
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When people try to infer how well someone will do on a task, they often rely on group characteristics. For example, people who graduated from university may be perceived as more conscientious, leading employers to prefer those with degrees even for jobs that do not require specific knowledge related to the degree. In many cases, these inferences are likely ... Read More
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Competition and Price War Risk: Rationalizing Anomalies in Capital Markets
One of the most striking trends in the aggregate economy over the past few decades is the persistent rise in industry concentration. Firms operating in concentrated industries engage in highly strategic price competition to capture market share and maximize profits. In this research agenda, we examine the implications of strategic competition among firms in ... Read More
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Using AI to Predict Stock Returns
Cross-section of Stock Returns
This paper delves into the application of machine learning to forecast international stock returns based on firm characteristics. We reveal that market-specific training significantly enhances the performance of neural networks (NNs), as NNs trained on individual markets outperform those using a global model based on U.S. data. Our analysis shows that NNs ... Read More
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Whistleblowing: the More, the Merrier?
Whistleblowers play a crucial role in maintaining trust in capital markets by exposing fraud. However, is it always true that more whistleblowing is better? The authors identify a nuanced finding: while whistleblowing can enhance audit quality by alerting enforcers to potential misstatements (positive direct effect), it may also reduce the enforcer's ... Read More
[ BizTalks ]