Dragon Yongjun TANG
Prof. Dragon Yongjun TANG
Associate Director, Centre for Financial Innovation and Development

2219 4321

KK 1004

Property rights, political connections, and corporate investment

We study the impact of an urban land titling program on firm investment in Shenzhen, China. We find that this program increased the investment rate for titling firms, but this positive effect only holds for politically connected firms. Further analysis suggests that the titling effect is more pronounced for those titling firms associated with greater expropriation risk. During program implementation, the connected titling firms increased their investment perhaps because, as observed, they experienced fewer disputes than non-connected titling firms.

Withholding Bad News in the Face of Credit Default Swap Trading: Evidence from Stock Price Crash Risk

Credit default swaps (CDSs) are a major financial innovation related to debt contracting. Because CDS markets facilitate bad news being incorporated into equity prices via cross-market information spillover, CDS availability may curb firms’ information hoarding. We find that CDS trading on a firm’s debt reduces the future stock price crash risk. This effect is stronger in active CDS markets, when the main lenders are CDS market dealers with securities trading subsidiaries, or when managers have more motivation to hoard information. Our findings suggest that debt market financial innovations curtail the negative equity market effects of firms withholding bad news.

The Value of Employee Satisfaction in Disastrous Times: Evidence from COVID-19

Employee treatment is an important but challenging element of corporate environmental, social, and governance policies. Satisfying employee needs can increase corporate productivity, but is also costly to shareholders. Using unique data of Chinese publicly listed firms, we show that having satisfied employees is valuable to the firm. Specifically, firms with higher employee satisfaction scores withstand COVID-19 better, in terms of stock market performance. Such an effect is more pronounced for firms with more intangible assets and in knowledge-based industries. Moreover, higher employee satisfaction scores predict better operating performance. While not fully revealed in tranquil times, the effect of employee satisfaction is materialized when the firms experience negative shocks, such as COVID-19. Our findings suggest that firms can do well in crisis periods by doing good in normal times.



Sanctions on Russia Could Drive Moscow Closer to Beijing and Change the Global Financial System

Punitive sanctions incurred by President Vladimir Putin’s invasion of Ukraine are leaving Russia economically isolated. Speaking on Feb. 24, the day of the incursion, U.S. president Joe Biden announced measures that “exceed anything we’ve ever done.”

綠債發行已逾3000億 香港打造綠色金融重鎮


A Shield with a Razor’s Edge: Understand the Pros and Cons of CDS With an Empirical Lens

A research by Professor Dragon Youngjun Tang, Professor in Finance at HKU Business School and other co-authors discovers that banks using CDS for capital relief have effectively freed up extra capital for businesses, but at the same time are more likely to extend loans and build up riskier loan portfolios.

港大湯勇軍示警 綠色泡沫宜早規管


綠色債券.上|全球新趨勢 香港可成綠色金融中心

對全球及未來一代而言,氣候變化是最嚴重的威脅之一,全球日益關注當中涉及的風險,「綠色金融」(Green Finance)亦開始走入公眾視線,其中綠色債券(Green Bond)便是常見的金融工具。中國自2016年起連續四年成為綠色債券發行量最大的國家,而現時全球的金融中心在推動綠色債券上亦不遺餘力,站在發展前沿的香港亦不例外,特區政府除了積極發行綠色債券外,還致力推出不同的便利措施,吸引企業來港籌集資金,包括參與可持續發展並具有環境效益的投資。然而,綠色金融到底是解決全球暖化的關鍵,還是只是隨波逐流、迎合金融業趨勢的工具?兩者之間又該怎樣取得平衡?