Information Disclosure
Source: https://bm.hkust.edu.hk/bizinsight/tag/information-disclosure Parent: https://bm.hkust.edu.hk/
GAO, Baojun
DING, Xiaojie
GUO, Yue
The Pitfalls of Soliciting Online Reviews
Today’s consumers heavily rely on online peer reviews to guide their purchase decisions. Yet, review platforms and businesses alike are struggling with a shortage of online reviews and declining review length. In response, many businesses have turned to offering incentives, such as discounts or even direct payments, in exchange for (often positive) reviews ... Read More
[ BizStudies ] [ Digital Platform: Design and Strategy ]
SRINIVASAN, Kannan
ZHANG, Kaifu
Full Disclosure: Not Always the Best Option?
In online retail marketplaces, consumers learn more about products through reviews or ratings, which can then increase their willingness to buy. HKUST’s Zijun (June) Shi and colleagues assess the optimal level of information disclosure in these reputation systems, which can reduce the information asymmetry between sellers and consumers. As the researchers ... Read More
[ BizStudies ]
YANG, Liyan
To conceal or disclose? The impact of secret and overt information acquisition on financial markets
Investors seek information to guide their investment decisions and maximize their profits. These information-acquisition activities are often kept secret. However, some investors voluntarily disclose such activities, and some regulators have mandates (such as the Regulation Fair Disclosure in the U.S. and China’s Shenzhen Stock Exchange requiring the ... Read More
[ BizStudies ]
JIANG, Xu
Managerial Myopia: A Prisoner’s Dilemma Caused by Regulations
A rule designed to protect investors may encourage managerial short-termism, to the detriment of firms. This sobering finding comes from a study led by HKUST’s Yan Xiong. According to Xiong and a U.S. colleague, the American government is tying firms’ hands with the requirement to disclose managers’ pay offers. The paper shows how managers become more myopic ... Read More
[ BizStudies ]
JIANG, Xu
Managerial Myopia: A Prisoner’s Dilemma Caused by Regulations
A rule designed to protect investors may encourage managerial short-termism, to the detriment of firms. This sobering finding comes from a study led by HKUST’s Yan Xiong. According to Xiong and a U.S. colleague, the American government is tying firms’ hands with the requirement to disclose managers’ pay offers. The paper shows how managers become more myopic ... Read More
[ BizBites ]
LI, Frank Weikai
SEN, Rik
New Light on Corporate Insider Trading
Insider trading—buying and selling shares based on non-public information—can threaten the equilibrium of the stock market by giving some traders an advantage over others. Although the term “insider trading” often carries the implication of illegal activity, top managers can legally trade company stock if they report their trades to the authorities in a ... Read More
[ BizStudies ]
SHEN, Jianghua
Risk Disclosure Law Has an Unexpected Upside
Publicly-traded firms in the U.S. are legally required to disclose the material risks they face. Although the regulation was designed to protect investors, research by HKUST’s Allen H. Huang and Amy Y. Zang shows that it has unintended benefits for firms too. Working with a graduate of HKUST’s Accounting Ph.D. program, they explored how the legal language of ... Read More
[ BizStudies ]
SAIDI, Farzad
ZALDOKAS , Alminas
Firm Patents and Signalling Value in Loan Contracting
Economic partnerships and other transactions have some degree of information asymmetry between the contracting parties. As such, the information environment is vital when it comes to determining relationship quality and stability. In many markets, superior private information is seen as a competitive advantage when compared to publicly available information ... Read More
[ BizStudies ]
XIAO, Shihong
TANG, Christopher
Customer Clusters and Online Reviews
With a wealth of products and services at our fingertips in the modern marketplace, online reviews have become an invaluable source of information for consumers. This is especially true for “experience goods” such as a haircut or a hotel stay, whose true quality cannot be determined before purchase. Many retailers post user-generated product reviews online ... Read More
[ BizStudies ]
ZHOU, Junjie
FAN, Xiaoshuai
TANG, Christopher
Developing Policies to Benefit Farmers
Deciding how much to grow can be difficult for farmers in developing countries, who largely operate without crucial market information. Governments and non-governmental organizations (NGOs) are attempting to address this knowledge gap, but how widely should they deliver such information to the maximum benefit of farmers? Is wider information distribution ... Read More
[ BizStudies ]