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Back to School: CEOs’ Pre-Career Exposure to Religion, Firm’s Risk-Taking, and Innovation
Back to School: CEOs’ Pre-Career Exposure to Religion, Firm’s Risk-Taking, and Innovation
Recent research has shown that a CEO's personal experiences in his or her early days have an influence on his or her decision-making as an executive later on. Our study extends this emerging stream of research by examining how CEOs’ pre-career exposure to religion affects their firms’ risk-taking and subsequent innovation performance. Drawing upon developmental psychology research and imprinting theory, we argue that CEOs who have attended a religious college are more likely to develop or reinforce their risk-averse mentality. This carries over to their professional life when they are in a top management position, and it leads to less risk-taking behavior in their firms and ultimately a lower level of firm innovation. Using a large sample of U.S. publicly listed companies, we find strong support on our hypotheses: Firms managed by CEOs who attended a religious college tend to be less risk-taking; this effect is stronger when the firm has more board members with pre-career exposure to religion; in addition, the firm's risk-taking behavior mediates the negative relationship between CEO pre-career religious exposure and firm innovation. We discuss the implications of our study for the strategic leadership literature, firm's risk-taking, and innovation research.

Military Investment and the Rise of Industrial Clusters: Evidence From China’s Self-strengthening Movement
Military Investment and the Rise of Industrial Clusters: Evidence From China’s Self-strengthening Movement
This paper investigates the short- and long-term impact of large-scale military investment on civilian industrial growth by focusing on China’s first attempt to modernize its military sector between 1861 and 1894. Panel data from 1858 to 1937 suggest that the program generated positive effects on civilian firm entry, but these effects appeared only after the government relaxed constraints on the entry of private firms. Long-term analysis shows that counties that received more military investment through the program, driven by plausibly exogenous ex ante political connections, had greater output in civilian industries in the 1930s. Analysis of the mechanisms suggest that the program boosted local economies through input–output linkages, human capital accumulation, and the rise of modern banks.

Testing and Support Recovery of Correlation Structures for Matrix-valued Observations With an Application to Stock Market Data
Testing and Support Recovery of Correlation Structures for Matrix-valued Observations With an Application to Stock Market Data
Estimation of the covariance matrix of asset returns is crucial to portfolio construction. As suggested by economic theories, the correlation structure among assets differs between emerging markets and developed countries. It is therefore imperative to make rigorous statistical inference on correlation matrix equality between the two groups of countries. However, if the traditional vector-valued approach is undertaken, such inference is either infeasible due to limited number of countries comparing to the relatively abundant assets, or invalid due to the violations of temporal independence assumption. This highlights the necessity of treating the observations as matrix-valued rather than vector-valued. With matrix-valued observations, our problem of interest can be formulated as statistical inference on covariance structures under sub-Gaussian distributions, i.e., testing non-correlation and correlation equality, as well as the corresponding support estimations. We develop procedures that are asymptotically optimal under some regularity conditions. Simulation results demonstrate the computational and statistical advantages of our procedures over certain existing state-of-the-art methods for both normal and non-normal distributions. Application of our procedures to stock market data reveals interesting patterns and validates several economic propositions via rigorous statistical testing.

Research: The Unintended Consequences of Pay Transparency
Research: The Unintended Consequences of Pay Transparency
Pay transparency refers to a pay communications policy in which a company voluntarily provides pay-related information to employees — for example, about the process of the pay system (process transparency) and actual pay levels or ranges (outcome transparency), or even an open policy for employees to freely share information about their pay (communications transparency). Companies around the world have been increasingly adopting pay transparency policies and practices as a means of narrowing the gender pay gap and fostering an engaged and positive working environment that builds trust. Pay transparency can help companies achieve these goals — but it can also have unintended consequences. The authors present three pitfalls to watch out for, plus ways to avoid them.

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.
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.
The U.S. in the Debt Limit Quagmire Again
The U.S. in the Debt Limit Quagmire Again
過去半個世紀以來,除了金融危機和新冠肺炎期間,美國聯邦政府的開支和收入佔GDP的比例都相對穩定,平均分別為20.8% 和17.3%。這兩者的差距即為財政赤字,由政府發債填補。
Hong Kong Returning to Normalcy with Resumption of Mainland Travel
Hong Kong Returning to Normalcy with Resumption of Mainland Travel
香港特區實施長達3年的嚴控新冠疫情措施後,隨着2022年過去而成為歷史。鑑於去年本地經濟表現遜於預期,加上環球局勢不明朗等因素,特區政府將全年實質本地生產總值(GDP)下調至負3.2%。
One Dollar, one Bag: Too much or Too little?
One Dollar, one Bag: Too much or Too little?
從5角到1元,雖然價格翻倍,但有市民認為加幅不痛不癢,對制止濫用塑膠購物袋難以奏效。早前也有議員在立法會會議上提出加價至2元,但其決議案被否決。到底應該如何對塑膠購物袋收費,才能達到保護環境的目標呢?
The U.S. in the Debt Limit Quagmire Again
The U.S. in the Debt Limit Quagmire Again
過去半個世紀以來,除了金融危機和新冠肺炎期間,美國聯邦政府的開支和收入佔GDP的比例都相對穩定,平均分別為20.8% 和17.3%。這兩者的差距即為財政赤字,由政府發債填補。
Exodus of Wealthy Chinese Accelerates With End of Covid Zero
Exodus of Wealthy Chinese Accelerates With End of Covid Zero
“If several million people go out and travel this year, that may still amount to tens of billions of dollars of downward pressure on the foreign exchange reserves that China has,” said Chen Zhiwu, chair professor of finance at Hong Kong University.

Hong Kong Returning to Normalcy with Resumption of Mainland Travel
Hong Kong Returning to Normalcy with Resumption of Mainland Travel
香港特區實施長達3年的嚴控新冠疫情措施後,隨着2022年過去而成為歷史。鑑於去年本地經濟表現遜於預期,加上環球局勢不明朗等因素,特區政府將全年實質本地生產總值(GDP)下調至負3.2%。