The Impact of Logic (In)Compatibility: Green Investing, State Policy, and Corporate Environmental Performance
Environmental protection is widely perceived as a state responsibility, but market-based solutions such as green investing have emerged in the financial sector. Little research has addressed whether green investing can affect corporate environmental performance and how the state would moderate such an impact. Using an institutional logics perspective, we extend the literature on institutional complexity by exploring the factors leading to compatibility of logics and practices. We theorize that the success of green investing as a novel hybrid practice combining financial means and environmental goals depends on the legitimacy it achieves as an appropriate solution to the stated goal, and this legitimacy can be boosted or dampened by other hybrid practices in the field. Analyzing a panel dataset of 3,706 firms from 20 countries between 2002 and 2013, we find a positive relationship between the relative size of green investment in the economy and firm-level environmental performance in that country. This relationship is moderated by state policies: a strong environmental protection policy weakens the positive relationship between green investing and corporate environmental performance, and a strong shareholder protection policy strengthens the relationship. We contribute to research on institutional complexity, logic compatibility, and public–private cooperation in pursuing the common good.
Administrative Science Quarterly
We study the global diffusion of culture through multinationals, focusing on gender norms. Using data on manufacturing firms in China from 2004 to 2007, we find that foreign affiliates from countries with a more gender-equal culture tend to employ proportionally more women and appoint more female managers. They also generate cultural spillovers, as we find that domestic firms' female labor share increases with the prevalence of foreign affiliates in the same industry or city. Based on a multi-sector model that accounts for firm heterogeneity in productivity, gender bias, and learning, we perform counterfactual exercises. By hypothetically eliminating firms' gender biases, we observe a 5% increase in China's aggregate total factor productivity, 19% of which is due to spillovers from foreign affiliates.
Journal of International Economics
Inspired by the recent health science findings that air pollution affects mental health and cognition, we examine whether air pollution can intensify the cognitive bias observed in the financial markets. Based on a proprietary data set obtained from a large Chinese mutual fund family consisting of complete trading information for more than 773,198 accounts in 247 cities, we find that air pollution significantly increases investors’ disposition effects. Analysis based on two plausible exogenous variations in air quality (the vast dissipation of air pollution caused by strong winds and the Huai River policy) supports a causal interpretation. Mood regulation provides a potential mechanism.
Journal of Financial Economics
Since Max Weber, Confucianism has been widely viewed as being in opposition to capitalist or modern growth in historical China, especially in comparison with the rise of Western Europe after the Protestant Reformation. In pre-19th century China, the absence of industrialization or capitalism is partially attributed to the conservative nature of Confucian culture, particularly the emphasis on the ‘adjustment’ to the world and the depreciation of pursuing wealth, among others. And perhaps more importantly, the clan as a tangible organization of Confucianism restricted interpersonal cooperation to the family or lineage scope. Such ‘kinship-based morality’, in contrast to the ‘generalised morality’ enforced by market institutions in the West, paved the way for China’s divergent developmental path from the West. In a recent study, Zhiwu Chen, Andrew Sinclair and Chicheng Ma find another channel through which Confucianism inhibits capitalism: competition in financial markets.
29 Nov 2021
Dr Hongsong Zhang of HKU Business School and Dr Shengyu Li of University of New South Wales discussed in this VoxChina piece their investigation of the impact of external monitoring from the government on state-owned enterprise performance, using the variation in monitoring strength arising from a nationwide policy change and firms’ geographic location in China. We utilize a structural approach to estimate input prices and productivity separately at the firm level using commonly available production data. We show that enhanced external monitoring, as a key component of corporate governance, can substantially reduce managerial expropriation in procurement and shirking in production management. The results suggest that government monitoring can be an effective policy instrument to improve state-owned enterprise performance.
03 Nov 2021
羅尼.米凱利（Roni Michaely）教授在環球金融界是一位家喻戶曉的知名學者。米凱利教授曾在以色列證券局（Israel Securities Authority） 擔任管理職務，他同時亦是以色列一家出色的金融初創企業 — Tipranks的董事和早期投資者。米凱利教授卓越的成就和資歷深厚的背景獲港大經管學院管理層的青睞和信任，對他委以重任，未來將在以色列成立一所創業及創新研究中心，為我們學院進軍中東以及歐洲市場跨出重要的一步。
HKU Business School Signs MoU with International Cooperation Center of National Development and Reform Commission to Strengthen Dual
HKU Business School signed a two-year Memorandum of Understanding (MoU) today (January 13) with the International Cooperation Center of the National Development and Reform Commission. The two parties will leverage their unique strengths to enhance the collaboration in academic research, international exchange and talent development, with an aim of contributing to Mainland China’s Dual Circulation development and facilitating Hong Kong to become part of the national development blueprint.
13 Jan 2022
港大經管學院宣布，學院於UTD研究排名亞洲第一，而「金融學研究」更晉身全球第五。 此排名是根據各院校在2021年間，在世界最頂尖24本商學學術期刊 (UTD24期刊) 中發表的論文數量，以及作者貢獻度進行計算。UTD24期刊涵蓋管理科學、會計學、金融、市場學、信息系統、策略管理、組織科學、國際商務等商學院的主要研究領域，廣受世界各大院校認可，是評價全球商學院國際研究排名的權威性指標。
10 Jan 2022