Lynn Linghuan WANG
Prof. Lynn Linghuan WANG
Accounting and Law
Assistant Professor

3910 3080

KK 1306

Academic & Professional Qualification
  • Ph.D in Accounting, Hong Kong University of Science and Technology
  • M.S. in Economics, Chinese University of Hong Kong
  • M.A. in Finance, Peking University (Dual master program)
  • B.A. in Economics and Finance, University of International Business and Economics
Biography

Dr. Wang joined the HKU Business School in July 2022. Her research area is in the field of empirical financial accounting with a focus on the real effects of non-financial disclosure regulation and bank accounting. She previously held academic position at Bocconi University. She was a visiting scholar at the University of Cologne in 2014 and Michigan Ross in 2020.

Teaching
  • Introduction to Financial Accounting (ACCT1101)
Research Interest
  • Disclosure and Accounting Regulation
  • Financial Institutions
  • Bank Accounting
  • Debt Contracting
  • ESG
Awards and Honours
  • Outstanding Reviewer Award, Joint AAA IAS/IAAER Midyear Meeting, 2021
  • Dean’s Ph.D. Fellowship for Research Excellence, HKUST, 2020 – 2021
  • Hong Kong Ph.D. Fellowship (HKPFS), HKUST, 2016 – 2020
  • FARS Doctoral Consortium Fellow, 2020
Selected Publications
  • “Transmission Effects of ESG Disclosure Regulations through Bank Lending Networks”, Journal of Accounting Research, 2023, 61(3): 935-978.
    (https://doi.org/10.1111/1475-679X.12478)
  • “Do Depositors Respond to Banks’ Social Performance?”, co-authored with Yi-Chun Chen and Mingyi Hung, The Accounting Review, 2023, 98(4): 89-114
    (https://doi.org/10.2308/TAR-2019-0653)
  • “Learning from Peers: Evidence from Disclosure of Consumer Complaints”, co-authored with Yiwei Dou, Mingyi Hung and Guoman She, Journal of Accounting and Economics, available online on July 11, 2023
    (https://doi.org/10.1016/j.jacceco.2023.101620)
Recent Publications
Do Depositors Respond to Banks’ Social Performance?

We study whether and how banks’ social performance affects depositors, who hold demandable debt with pervasive government protection. Exploiting the regulatory releases of bank performance ratings for community development and a difference-in-differences design, we find a decline in deposit growth after the release of negative bank social performance. In addition, deposits that are impacted by the negative events flow to nearby banks with high social performance. Further analyses find that the results hold similarly among insured and uninsured deposits and are primarily driven by banks with a large proportion of deposits from high-trust and pro-social counties, and in poor information environments. Overall, we contribute to the literature by documenting the importance of social performance to nonshareholder stakeholders and providing implications for bank stability.

Transmission Effects of ESG Disclosure Regulations Through Bank Lending Networks

This paper studies whether and how environmental, social, and governance (ESG) disclosure regulations imposed on banks generate transmission effects along the lending channel. I use a setting of U.S. firms borrowing from non-U.S. banks and exploit the staggered adoption of ESG disclosure regulations in banks’ home countries. I find that exposed borrowers of affected banks improve their environmental and social (E&S) performance following the disclosure mandate. Consistent with banks enhancing both their engagement and selection activities, affected banks impose more environmental action covenants in loan contracts, and they are more likely to terminate a borrower with bad E&S records following the regulation. Further evidence shows that the transmission effects are stronger when a disclosure regulation is well-enforced (as indicated by a greater increase in banks’ disclosure) and among borrowers with greater switching costs. Collectively, the findings document the role of lending relationships in transmitting the real effect of ESG disclosure regulations from banks to borrowing firms.