Multinational banks (MNBs) play a critical role in promoting international business and maintaining the stability of the global financial system. Offering policy implications for regulators worldwide, Tai-Yuan Chen and Mingyi Hung of HKUST, working with a colleague, show how the reporting transparency of MNBs (which operate extensively across borders) is ... Read More

By Professor CHEN Tai-Yuan Department of Accounting HKUST Business School Family businesses should strive to be more transparent, and recruit more external parties to governing positions. Family ownership is one of the most prevalent forms of corporate governance. Taking the largest 30 firms in terms of market value on the Hong Kong stock exchange as an ... Read More

Non-compete clauses in employment contracts are widely used in countries like the US to forbid certain employees, such as CEOs and specialised technicians, from working with the competition when their contract is terminated. The aim is to safeguard employers’ proprietary information and investment in human capital. But research by Tai-Yuan Chen, Guochang ... Read More

Executive compensation is often closely linked to firm performance, and therein lies a temptation for managers to manipulate financial reports in their favour. To deter this behaviour, the US has moved towards requiring firms to have clawback provisions that authorise boards to recover compensation paid to executives if the company has to restate its ... Read More

Family firms are dominant in much of the world, including the U.S. where they constitute 35.4 per cent of S&P 500 firms and 45.6 per cent of S&P 1500 firms. They are also a subject of growing academic interest but until now, there has been little investigation of their financing choices. Tai-Yuan Chen, Sudipto Dasgupta and Yangxin Yu saw in that surprising ... Read More

Clawback provisions allow firms to recover compensation from corporate executives involved in accounting improprieties. But are they a deterrent? Do they improve financial reporting? These are important questions at a time when executive compensation is under the microscope. Lilian H. Chan, Kevin C.W. Chen, Tai-Yuan Chen and Yanxin Yu have been investigating ... Read More

Getting a handle on manufacturing costs, particularly in large corporations, can be a complex task. Traditional cost systems assume long production runs with static specifications, but this is not as relevant in many of today's dynamic environments where there are smaller lot sizes, a high broad mix and frequent changeovers. New approaches to costing are ... Read More

Family firms face different conflicts of interest, or "agency problems", compared with non-family firms and this can affect their earnings quality and disclosure practices, according to a study by Tai-Yuan Chen of HKUST, Ashiq Ali and Suresh Radhakrishnan. "Family firms face less severe agency problems that arise from the separation of ownership and ... Read More