Counterparty credit risk (CCR) refers to the risk that a counterparty will not pay up as obligated in a contract. Under such circumstances, an economic loss would occur if the transaction with the counterparty has a positive economic value at the time of default. In recent years, counterparty credit risk has become a prominent risk for market participants ... 閱讀更多

For multinational enterprises (MNEs), expanding internationally into untapped markets can be costly. Promisingly, however, such expansion also offers opportunities to gain competitive advantages. Such opportunities have been neglected in international business research to date—a gap that HKUST’s Professor Jiatao Li and a colleague set out to fill. Building ... 閱讀更多

Many organizations recruit a large number of people in a short amount of time, a practice known as high volume recruitment. Organizations hire in volume for various reasons. For example, they are growing exponentially, they are opening new locations or offices, or to create economy of scale and synchronize with the school calendar, they have regular ... 閱讀更多

Social interactions play a crucial role in the markets of social goods. This paper examines the optimal selling scheme when products show such social good feature. This paper examines a monopoly firm model adopting sequential launch strategy to sell social goods to a customer group in a network. Under this strategy, not only can the firm determine prices ... 閱讀更多

With the rise of search engines such as Google, it is becoming increasingly important to determine how consumers use these tools to find products, services, or information. Companies that understand their customers’ search behaviour can better tailor the content of their websites and pay for the right advertising on search engines. To help firms make best ... 閱讀更多

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 uncertainty regarding their expected cash flows. While there is a large body of research on whether there are intra-industry information transfers around ... 閱讀更多

Matching supply with demand is an important way to secure profits for businesses in many industries. However, supply–demand mismatch is common, because decisions about supplies are often made before demand is fully characterized. To address this problem, HKUST’s Xuan Wang and collaborators modeled how resource flexibility can be leveraged to reduce supply ... 閱讀更多

Price-fixing cartels are pervasive. However, antitrust enforcement around the world has been recently picking up speed. Higher fines and new tools such as leniency programs for cartel whistleblowers have led to unprecedented antitrust enforcement actions against the collusion and led to crumbling cartels. Theoretically, the breakdown of collusive activities ... 閱讀更多

As unfairness in business transactions widely exists nowadays, consumers are increasingly worried about fairness. This kind of concern of fairness drives them to compare their payoffs with the sellers’ profits, and where a transaction is deemed inequitable, consumers may refuse to accept it. At the same time, such concern of price fairness also impacts a ... 閱讀更多

Supply chains are an integral part of business and form the network between a company and its suppliers to produce and distribute products to consumers. A supply chain also often contains various forms of information asymmetry (where one party has more information than the other) that drive business transactions. A manufacturer usually has less information ... 閱讀更多