Corporate managers tend to view labor unions as presenting substantial operational threats, as strikes can disrupt production and lead to stockouts. Therefore, managers make decisions to mitigate such risks, and they use various strategies including providing pessimistic disclosures to preserve their bargaining power against labor unions. One important way ... 閱讀更多

With exponential growth in e-commerce sales, many retailers are increasing their use of online channels and social media for marketing and customer service operations. For example, Amazon and JD have launched livestreaming channels to promote their products via live video. However, the selling formats chosen by online retailers may differ. Shedding light on ... 閱讀更多

What should firms do with their patent rights when inventors jump ship? This key managerial question was recently addressed in an elegant study by HKUST’s Yanfeng Zheng and a colleague. With critical implications for firms deciding whether to maintain intellectual property after inventors leave, the authors established and empirically tested a framework ... 閱讀更多

Agriculture plays a critical role in emerging economies worldwide. Unfortunately, however, farmers in such regions remain trapped in poverty, due in large part to information asymmetry in agricultural supply chains. Governments and farming cooperatives are in urgent need of strategies to redress this imbalance and improve farmers’ welfare and profitability ... 閱讀更多

With the increasing digitization of economic and social transactions and the rapid growth of user-generated data, unprecedentedly large amounts of textual data are being generated, such as customer reviews on e-commerce platforms and discussions in online communities. However, to obtain real insights from such data, effective computational methods that ... 閱讀更多

The “short-termism” induced by executive pay schemes is a major problem for firms and investors. Allen H. Huang of HKUST, together with overseas colleagues, provides important new insights into the negative consequences of executive myopia. The researchers examined the share repurchasing and mergers-and-acquisitions (M&A) behavior of firms whose CEOs have ... 閱讀更多

Informal institutions—society’s unwritten codes of conduct—influence all aspects of international business, but they have received surprisingly little attention in the literature to date. Helping to fill this gap, HKUST’s Jiatao Li and co-researchers build a novel typology and framework for examining neglected aspects of informal institutions, as well as the ... 閱讀更多

One of the many painful lessons of the COVID-19 pandemic is that the world’s supply chains are highly vulnerable to external shocks, especially when manufacturers rely on a single source for the parts that they need. This issue created a severe problem when governments and ventures were racing to ramp up COVID-19 vaccine production. Offering cutting-edge ... 閱讀更多

A rule designed to protect investors may encourage managerial short-termism, to the detriment of firms. This sobering finding comes from a study led by HKUST’s Yan Xiong. According to Xiong and a U.S. colleague, the American government is tying firms’ hands with the requirement to disclose managers’ pay offers. The paper shows how managers become more myopic ... 閱讀更多

Is green coffee bean extract a miracle cure for obesity? Are raspberry ketones or saffron extract magic weight loss ingredients? Regardless of the veracity of these claims, the celebrity physician Dr. Mehmet Oz has endorsed those and many products to the viewers of The Dr. Oz Show. This has created “the Oz effect” of increased interest—and may perhaps have ... 閱讀更多