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A Frog in Every Pan: Information Discreteness and the Lead-lag Returns Puzzle
A Frog in Every Pan: Information Discreteness and the Lead-lag Returns Puzzle
We re-examine the puzzling pattern of lead-lag returns among economically-linked firms. Our results show that investors consistently underreact to information from lead firms that arrives continuously, while information with the same cumulative returns arriving in discrete amounts is quickly absorbed into price. This finding holds across many different types of economic linkages, including shared-analyst-coverage. We conclude that the ǣfrog in the panǥ (FIP) momentum effect is pervasive in co-momentum settings, suggesting that information discreteness (ID) serves as a cognitive trigger that reduces investor inattention and improves inter-firm news transmission.

Listening in on Investors’ Thoughts and Conversations
Listening in on Investors’ Thoughts and Conversations
A large literature in neuroscience and social psychology shows that humans are wired to be meticulous about how they are perceived by others. In this paper, we propose that impression management considerations can also end up guiding the content that investors transmit via word of mouth and inadvertently lead to the propagation of noise. We analyze server log data from one of the largest investment-related websites in the United States. Consistent with our proposition, we find that investors more frequently share articles that are more suitable for impression management despite such articles less accurately predicting returns. Additional analyses suggest that high levels of sharing can lead to overpricing.

Paying for Beta: Leverage Demand and Asset Management Fees
Paying for Beta: Leverage Demand and Asset Management Fees
We examine how investor demand for leverage shapes asset management fees. We show that in the sample of U.S. equity mutual funds: (1) fees increase in fund market beta precisely for beta larger than one; (2) this relation becomes stronger and high-beta funds experience larger inflows when leverage constraints tighten; and (3) low net alphas are especially common among high-beta funds. These results are consistent with a model in which asset managers compete for leverage-constrained investors with heterogeneous risk aversion. The asymmetric relation between betas and fees also extends to the HML and SMB factors.

How to Recover from Work Stress, According to Science
How to Recover from Work Stress, According to Science
To combat stress and burnout, employers are increasingly offering benefits like virtual mental health support, spontaneous days or even weeks off, meeting-free days, and flexible work scheduling. Despite these efforts and the increasing number of employees buying into the importance of wellness, the effort is lost if you don’t actually recover. So, if you feel like you’re burning out, what works when it comes to recovering from stress? The authors discuss the “recovery paradox” — that when our bodies and minds need to recover and reset the most, we’re the least likely and able to do something about it — and present five research-backed strategies for recovering from stress at work.

Purple Haze, All in My Brain
Purple Haze, All in My Brain
Jian Zhang from the HKU Business School along with authors from the Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, INSEAD in Singapore and the PBC School of Finance at Tsinghua University, helped to advance understanding of this phenomenon in their recent paper, called Air Pollution, Behavioral Bias, and the Disposition Effect in China. The team studied how air pollution can affect mental health by intensifying a certain type of cognitive bias observed in financial markets.
Future Anxiety – How COVID-19 Led People to Save More Money
Future Anxiety – How COVID-19 Led People to Save More Money
Take the recent study by Chen Lin and Mingzhu Tai from the HKU Business School, conducted with collaborators from the University of California, Berkeley and the Chinese University of Hong Kong. Their paper addressed a fundamental worry for almost everyone during the pandemic: Money. Specifically, they examined how people in the U.S. saved money in response to COVID-19.
Learning to Coordinate in Firms’ Behaviours  – Dr. Jasmine Yu HAO
Learning to Coordinate in Firms’ Behaviours – Dr. Jasmine Yu HAO
While computer languages may sound alien to economics, I aim to showcase that good programming skills are conducive not limited to economic research, it can also open up endless career possibilities for you in the business world.

To Imagine the Future of Digital Currencies – Dr. Yang YOU
To Imagine the Future of Digital Currencies – Dr. Yang YOU
As a teacher, I will push myself to understand the expectations of local employers' and the market dynamics of Hong Kong.

From Quantum Physics to Quantitative Marketing – Dr. Chu (Ivy) Dang
From Quantum Physics to Quantitative Marketing – Dr. Chu (Ivy) Dang
As a science person, I am impressed by our students' strong business acumen. But as a teacher, other than teaching them how to use quantitative tools to make scientific claims, I also hope that I can encourage them to continue to stay inquisitive about the world and apply their classroom knowledge for the betterment of the society.

To Inspire and be Inspired – Dr. Tingting FAN
To Inspire and be Inspired – Dr. Tingting FAN
Born with a curious mind, Dr. Tingting Fan craves to explore and explain human behaviours with scientific models. Joining us in December 2021, she is a Senior Lecturer in Marketing.
An Interdisciplinary Approach to Digital Innovation & Transformation – Professor Yulin FANG
An Interdisciplinary Approach to Digital Innovation & Transformation – Professor Yulin FANG
Professor Yulin Fang is a seasoned scholar, professional case writer, veteran IT consultant, and editor for several internationally renowned journals. Seeing HKU Business School as a supernova in the academic landscape, Professor Fang is keen to contribute his intellectual might on digital innovation and transformation to our School’s journey of excellence.  Joining us in September 2021, Professor Fang will be leading our School’s newly formed research centre, the Institute of Digital Economy and Innovation (IDEI).  
Thriving at the Forefront of Information Technologies – Dr. Zhepeng LI
Thriving at the Forefront of Information Technologies – Dr. Zhepeng LI
Aspired to make a difference than making a fortune, Dr. Zhepeng Li is dedicated to propel the development of information systems and machine learning technologies.
Relaxed Quarantine Policy: A Light in the Pandemic Tunnel
Relaxed Quarantine Policy: A Light in the Pandemic Tunnel
近日香港新冠疫情回穩,特區政府於9月26日開始放寬入境檢疫安排,把實施一個多月以來的「3+4」門檻下調至「0+3」,亦即抵港人士毋須接受強制檢疫,只須進行3天醫學監察。顯而易見,此舉旨在掌控疫情、保障市民健康的大前提之下,盡量擴大香港連接國際的空間,讓經濟有序地重拾正軌,社會得以脫離困境。
Lyndon Johnson’s Political Maneuver
Lyndon Johnson’s Political Maneuver
近年美國民意兩極化,許多社會重大問題如槍械管制、墮胎等難以化解。民眾的分歧,本該以少數服從多數的原則,在國會通過立法來解決,但這一原則常常無法奏效。少數派的拿手絕活是「拉布」,亦即通過長時間發言、討論,阻止對某項法案投票以至法案的通過。從古羅馬到當今各國議會,包括香港特區立法會的不同黨派,都使用過這種手段。美國國會參眾兩院則只有參議院可以拉布,這自然成為法案通過的重要關卡。
Developing agriculture technology is a necessary step towards food security
Developing agriculture technology is a necessary step towards food security
自全球新冠肺炎疫情及俄烏戰爭爆發以來,各國在維持供應鏈穩定和糧食安全問題方面一直面對史無前例的挑戰。2050年,預計全球將需要養活接近100億的人口,加上糧食供應會受到一些不可預測的短期衝擊,以至長期氣候變化加劇對土地水源的影響,環球農業將面臨巨大的考驗,對豐富和廉價食品的供應造成嚴重壓力。香港90%以上的食品供應是從國外進口,所以700多萬人口的糧食安全,長遠來看亦會備受衝擊。
Lyndon Johnson’s Political Maneuver
Lyndon Johnson’s Political Maneuver
近年美國民意兩極化,許多社會重大問題如槍械管制、墮胎等難以化解。民眾的分歧,本該以少數服從多數的原則,在國會通過立法來解決,但這一原則常常無法奏效。少數派的拿手絕活是「拉布」,亦即通過長時間發言、討論,阻止對某項法案投票以至法案的通過。從古羅馬到當今各國議會,包括香港特區立法會的不同黨派,都使用過這種手段。美國國會參眾兩院則只有參議院可以拉布,這自然成為法案通過的重要關卡。
Fortress China: Xi Jinping’s plan for economic independence
Fortress China: Xi Jinping’s plan for economic independence
Chen Zhiwu, a professor of finance at the University of Hong Kong, says Chinese leaders understand military conflicts may be “hard to avoid” if Beijing wants to unify Taiwan with the mainland. “The comprehensive economic sanctions against Russia after its invasion of Ukraine have only added urgency to [China] achieving self-sufficiency in technology, finance, food and energy,” Chen adds. “Self-sufficiency as a phrase has regained currency in the party’s publications.”