New Open-Bid Applied Research Papers
In March 2024, three papers under our Open-Bid Applied Research
Programme were
published on the HKIMR website, covering topics on financial connectivity, ESG, and the
digitalisation of financial services. The researchers visited the HKIMR recently and
each
delivered a seminar to share their research findings with an engaged audience.
Earnings Management and Price Informativeness
(Professor Wenxi Jiang, The Chinese University of Hong Kong, HKIMR Visiting
Scholar)
“Chinese stocks with a high valuation tend to have higher
subsequent earnings but not higher payouts…high valuation firms
could intentionally inflate reported earnings to cater to investors’
expectations. We provide supportive evidence by considering a direct
measure of earnings management, a component measuring non-
recurring gains
and losses (NRGL), and by investigating the impact of
2020 reform of stock market delisting rules on earnings management.”
Digital Money Demand and Monetary Policy
(Dr Han Qiu, Bank for International Settlements)
“We observe significant fund inflows into E-wallets in response to
monetary tightening, with a preference for E-wallet Yu’E Bao balances
that offer liquidity and are interest-bearing. This results in an increased
sensitivity of bank deposits to monetary policy tightening, with an
increase in the effectiveness of the deposit channel of monetary
policy.”
Climate Regulations and Corporate Demand for ESG Talent
(Professor Dragon Yongjun Tang, The University of Hong Kong, HKIMR
Visiting Scholar)
“We document that highly polluting Chinese firms boosted their
demand for employees with green skills after China introduced its first
environmental tax law in 2018. This effect is stronger in provinces with
higher environmental tax rates.”
