BizTalks delivered two thought-provoking sessions that tackled some of the most pressing issues in finance, management, and accounting.
In April, the theme of the talk was “Enhancing Financial Insights: AI Predictions and Whistleblowing Dynamics”. Prof. Darwin CHOI (second left) from the Department of Finance explored how machine learning techniques can enhance the prediction of international stock returns by utilizing firm characteristics. His research demonstrated that market-specific neural network models outperform global models, highlighting the importance of training these models separately for each market. The session also featured Prof. TANG Chao (right) from the Department of Accounting who discussed the complexities of whistleblowing in relation to audit quality. His findings indicated that while promoting whistleblowing can improve detection of misstatements, it may also inadvertently reduce the auditor's incentive to enhance audit quality.
To review:
Using AI to Predict Stock Returns - Prof. Darwin Choi
Whistleblowing: the More, the Merrier? - Prof. Tang Chao
In May, the final session of this season was themed: “Unpacking Bias and Competition – Insights into Decision-Making and Market Dynamics”. This session features Prof. David HAGMANN (left) from the Department of Management, who presented research on statistical discrimination and its impact on hiring decisions. His study revealed that individuals often underestimate the abilities of smaller groups, leading to biased hiring practices, particularly against women and non-White candidates. Following this, Prof. JI Yan (second right) from the Department of Finance examined the relationship between competition and price war risks in capital markets. His asset-pricing model highlighted how rising discount rates can intensify competition and affect profitability.
To review:
Discriminating by Accident - Prof. David Hagmann
Competition and Price War Risk: Rationalizing Anomalies in Capital Markets - Prof. Ji Yan
Stay tuned for more inspiring talks this fall!