Politics Influence

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

China’s Belt and Road Initiative (BRI), launched in 2013, is a global development program involving more than US$1 trillion of investment in infrastructure projects to connect China to markets worldwide. The initiative has clear economic advantages for host countries, especially those lagging behind in infrastructural development. However, participating in ... 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

In China, start-ups with high-profile leaders are at risk of becoming victims of government expropriation, HKUST’s Jiatao Li and colleagues have found. This effect is particularly pronounced in areas where income inequality is high, and the legal system is underdeveloped. However, the authors find that entrepreneurs can protect themselves by establishing ... 閱讀更多

Firms’ survival often depends on their political participation, such as campaign donations and lobbying efforts. This is especially true in emerging markets, where the government has tight control of the economy and society. However, the success of firms’ political strategies hinges on what politicians think about interacting with the business sector. Are ... 閱讀更多

Recently, the amount of outward foreign direct investment from emerging economies has been growing at a rapid pace, with numerous state-owned enterprises (SOEs) being part of the process. State ownership affects not only the resources a company can access and its motivations, it also impacts its opaqueness, i.e., the unavailability of credible, firm-level ... 閱讀更多

The US Constitution includes many checks and balances that necessitate the ruling party to compromise with the opposition. The study by Prof Deniz OKAT looks into the nominations to the judiciary and found that confirmation in the Senate is more likely and faster when the President compromises on the strength of the candidate. This suggests that the system ... 閱讀更多

Technological innovation plays a key role in promoting a nation’s long-term economic growth and competitive advantage. When it comes to innovation, politics is an important factor to consider, as politicians have the ability to implement policy or regulatory changes that can affect a nation’s innovation incentives. To examine the effects of politics on ... 閱讀更多