A recent study co-authored by HKUST’s Arthur K. Morris sheds light on how laws and taxes that affect the renegotiation of debt contracts—making the process easier or cheaper, for example—influence the way companies and lenders design these agreements at the outset. The researchers explore how changes in laws can affect these early choices, revealing how laws ... 阅读更多

Given the recurring nature and pernicious effects of banking crises, a vast regulatory infrastructure has developed to minimize banks’ likelihood of failure by influencing the types of risks they take. Against this backdrop, HKUST’s Arthur Morris and colleagues shed new light on how to structure executive compensation to balance risk-taking with prudence in ... 阅读更多

We are interested in understanding how credit crises spread through the real economy. To this end we focus on an understudied aspect of financial crises, the effect of borrowers' defaults on the contracts the bank writes with other borrowers. In a crisis this is one means by which restrictive credit environments pass from borrower to borrower. We provide ... 阅读更多