Investment Decision

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 ... 閱讀更多

Gone are the days of small-scale investment - the rise of institutional investors has changed the game completely. In 1950, only 6% of publicly traded US companies were owned by institutional investors, but fast forward to 2017 and that number has skyrocketed to 65%. The "Big Three" - BlackRock, Vanguard, and State Street Global Investors - hold a ... 閱讀更多

Gone are the days of small-scale investment - the rise of institutional investors has changed the game completely. In 1950, only 6% of publicly traded US companies were owned by institutional investors, but fast forward to 2017 and that number has skyrocketed to 65%. The "Big Three" - BlackRock, Vanguard, and State Street Global Investors - hold a ... 閱讀更多

Executives at manufacturing companies have many ways to express how they expect their organizations to perform. Indeed, they regularly issue forecasts that spell out how they see the future unfolding. These forecasts often include predictions about a wide range of variables, which include economic conditions, market trends, customer behavior, and company ... 閱讀更多

HKUST’s Danqing Wang and co-researchers claim that political term, which they define as “the tenure of an official at a certain level on the career ladder,” can influence the incentives of newly appointed government officials and their efforts to achieve the state’s foreign direct investment (FDI) goals. In a novel study that sheds light on intra-country FDI ... 閱讀更多

Real business cycle (RBC) models describe how firms make investment and labour decisions. They assume that technological shocks and changes in productivity are the primary drivers of macroeconomic fluctuations. However, these models generally fall short of explaining how choices made within firms—which might modify external shocks—might affect macroeconomic ... 閱讀更多

In 2019, there were over 4,700 seed-stage investments globally, along with significant recent interest in how resources are mobilized during the earliest stages of the entrepreneurial journey. Seed-stage startups work towards finalizing their product or services in addition to gathering market data. This also includes finding enough funding to develop an ... 閱讀更多

Information technology (IT) business-alignment is a key component of managing data and information within the context of business operations. However, achieving this can be quite difficult for many businesses due to being time-consuming and costly. As this alignment process is dynamic in nature, one approach can be to align IT with a business during the ... 閱讀更多

Chinese venture capital (VC) firms suffer from imperfect information and poor legal protections when deciding whether to continue to invest in a company or cut it loose, according to HKUST researcher Yanfeng Zheng and a colleague. Analysing more than a decade’s worth of deals, the authors established that Chinese VCs are more likely to terminate investments ... 閱讀更多

How and why can irrelevant, short-lived factors shape investment decisions? This can happen in investment decisions in nascent, seed-stage startups, where information is scarce and uncertainty is intense. Taking sunshine on the day of deal evaluation as a context, we show that in the face of intense uncertainty, sunnier days may affect investors’ mood and ... 閱讀更多