investment decision

Seed-stage Investment Decisions
DUSHNITSKY, Gary | SARKAR, Sayan

In 2019, there were over 4,700 seed-stage investments globally, along with significant recent interest in how resources are mobilized during the earliest stages of the entrepreneurial journey. Seed-stage startups work towards fin ...

Leveraging IT Investment for Firm Performance
SALDANHA, Terence J. V. | LEE, Dongwon | MITHAS, Sunil

Information technology (IT) business-alignment is a key component of managing data and information within the context of business operations. However, achieving this can be quite difficult for many businesses due to being time-con ...

More Risk, Less Reward: Venture Capital Investment in China
ZHENG, Yanfeng | XIA, Jun

Chinese venture capital (VC) firms suffer from imperfect information and poor legal protections when deciding whether to continue to invest in a company or cut it loose, according to HKUST researcher Yanfeng Zheng and a colleague. ...

Need Funds? Ask Investors on A Sunny Day

How and why can irrelevant, short-lived factors shape investment decisions? This can happen in investment decisions in nascent, seed-stage startups, where information is scarce and uncertainty is intense. Taking sunshine on the d ...

The Future of Robo-Advising Risk Profiling in Hong Kong

Before providing individual investors with any investment advice or recommendations, financial consultants would usually conduct risk assessments for them in face-to-face meetings. Nevertheless, with the advancement of Fintech, co ...

Why and When Do Crowdfunding Backers Invest?
LI, Gen | WANG, Jing

Crowdfunding—collecting small donations from a large number of investors—is an increasingly popular way of raising capital, particularly for creative projects. With the rise of crowdfunding platforms such as Kickstarte ...

Enhancing Portfolio Performance in the 21st Century
AO, Mengmeng | LI, Yingying | ZHENG, Xinghua

Mean-variance analysis is a tool used to make investment decisions by weighing risk (or variance) against expected returns. It helps investors determine how much risk they are willing to accept in exchange for bigger (or smaller) ...

The Value of Analysts' Capital Expenditure Forecasts

Financial analysts are important information intermediaries in capital markets. Traditional research outputs of analysts, such as buy/sell recommendations and EPS forecasts, have been the mainstream focus of market participants. I ...

Firms’ Information Environment: Implications for Investors’ and Managers’ Decisions
HANN, Rebecca N. | KIM, Heedong | ZHENG, Yue

An earnings announcement – a public statement of a company’s profitability, usually issued on a quarterly basis – provides useful information to assess peer firms’ expected cash flows, as well as the uncert ...

Good and Bad Trades: An Optimal Strategy for Currency Trading
BEKAERT, Geert | PANAYOTOV, George

Currency carry trading is an investment strategy whereby traders invest in high-interest rate currencies and fund in low-interest rate ones. Historically, this trade has generated substantial returns. Typical analysis of the trade ...