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News & Events

17 Jul 2018 "Rumor Mill or Crowd Wisdom? The Effects of Social Media in the Presence of False Rumors" Read more
13 Jul 2018 "How Marco Conditions Affect the Information Content of Analyst Forecasts" Read more
18 Apr 2018 Our Students won the Nominated Case Award in 2017 Global Contest for the Best China-Focused Cases Read more
1 Jan 2018 AF Newsletter 2017 Read more

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News

AF Newsletter - Spring 2014
Date: 7 May 2014

 

The Launch of the School’s Brand New Website

 

The School’s brand new website has been launched for better reflection of the strengths of the School and for better communication.  The website has been re-designed for easier navigation and enriched with more insights of the School.  The website with a fresh new look allows important information of the School more easily accessible by our students, our staff, our stakeholders and the public.


School of Accounting and Finance Website (http://www.af.polyu.edu.hk)

 

Donation from Mr Stephen Liu

 


Mr Stephen Liu Yiu-Keung (fourth from left)

The School received a generous donation of HK$200,000 from Mr Stephen Liu Yiu-Keung, Managing Director, and the Head of Corporate Restructuring and Insolvency, Ernst & Young for supporting student activities. Mr Liu is our alumni graduated in 1982/83 and is now a member of our Departmental Advisory Committee (DAC). He has been very supportive for the initiatives of the School. Mr Liu joined Ernst & Young in 1983 and is now the Head of Ernst & Young’s Corporate Restructuring & Insolvency practice in Hong Kong. He participates in all forms of insolvency assignments including estate administration, compulsory and voluntary winding-up of publicly listed and privately owned companies in Hong Kong, PRC and overseas. He also acts as receivers and managers for court and mortgagee bank appointments.

 

Guest Lectures by Adjunct Professors and Practitioners

 

Our Adjunct Professors and Practitionershave been very supportive to the School and actively participating in School activities.  Some of them helped deliver guest lectures and guest speeches to our students.

Mr Wilson Cheng, Partner, Tax & Business Advisory Services, Ernst & Young, gave a guest speech on “The Court Decisions of Nice Cheer Investment Case” on 13 Mar 2014.


Mr Wilson Cheng

Mr Derek Lai, Asia Pacific Leader, Restructuring Services; Managing Partner, Financial Advisory Services, Great China, Deloitte Touche Tohmatsu, delivered a guest lecture on “Corporate Restructuring and Liquidation” on 18 Mar 2014.  Mr Lai is our Adjunct Professor.


Mr Derek Lai

Mr Patrick Yeung, Executive Chairman, Asian Capital Holdings Limited, delivered a guest lecture on “An Overview - IPO Fund Raising and the Myth of “Oversubscription” on 25 Mar 2014.  Mr Yeung is our Adjunct Professor.


Mr Patrick Yeung

Mr Simon Wang, Partner, Tax EY Hong Kong, gave a guest speech on “the China tax issues in relation to Indirect Transfer and Business Restructurings” on 28 Mar 2014.


Mr Simon Wang (right)

 

AF Achievements
Internal Awards - FB Fellow Award

 


Prof. CS Agnes Cheng (left) receiving the FB Fellow Award for 2012/13 from Dean Prof. Edwin Cheng (right)

Prof. CS Agnes Cheng received the FB (Faculty of Business) Fellow Award for 2012/13 for her significant contribution to raising Faculty’s and the University's prestige and enhancing our strength in terms of research, finance and other areas.

 

Faculty Awards of Outstanding Performance in Teaching, Research and Services

 

Faculty members of our School won all the Faculty Awards for Outstanding Performance/Achievement 2012/2013 for their remarkable performance in teaching, research and services:

Dr Woo-jong Lee received the Faculty Award for Research and Scholarly Activities.


Dr Woo-jong Lee (left) - awardee of the Faculty Award for Research and Scholarly Activities,
Mr Stephen Chan (right) - awardee of the Faculty Prize for Teaching and Prof. CS Agnes Cheng (middle)

Company Law team of the School with Dr Felix Mezzanotte, Mr Stephen Chan, Mr Leo Sek and Ms Rain Huang received the Faculty Award for Teaching.


Law team of the School (from left to right): Mr Leo Sek, Dr Felix Mezzanotte, Ms Rain Huang and Mr Stephen Chan – awardees of the Faculty Award for Teaching and Prof. CS Agnes Cheng (middle)

Tax team of the School with Dr Samuel Chan, Dr Daniel Cheung, Dr Teresa Fung, Dr Jody Wong and Mr Percy Wong received the Faculty Award for Services. In recognition of the very good performance of faculty members of the Faculty of Business, Mr Stephen Chan was also awarded the Faculty Prize for Teaching.


Tax team of the School (from left to right): Dr Jody Wong, Dr Samuel Chan, Mr Percy Wong and Dr Daniel Cheung – awardees of the Faculty Award for Services and Prof. CS Agnes Cheng (middle)

 

External Awards

 

Faculty members have been very active in attending international conferences to share their research interests and outcomes with scholars around the globe. Their hard work have been well recognized and just to name a few of the awards that were recently received:

Dr Kevin X Zhu received the Graham and Dodd Scroll Award for 2011 for the paper titled "The ABCs of Hedge Funds: Alphas, Betas, and Costs" published in the January/February 2011 issue of the Financial Analysts Journal (FAJ).

Dr Li Wei and Dr Steven Wang won the Best Paper Award at the 2nd EJF (European Journal of Finance) Special Issue Conference (2012) with their paper titled "The Growth, Determinants, and Profitability of Nontraditional Activities of Chinese Banks".

Dr Anthony Ng presented his paper titled “Meet/Beat Market Expectation, Accounting Conservatism and Corporate Governance” at the International Business Research Conference (2012), Melbourne, Australia and won the best paper in accounting award.

Prof. Wilson Tong and Dr Shaojun Zhang won the Best Paper Award on China Capital Markets at the Asian Finance Association Conference (2013) with their paper titled “Trading Restriction, Tick Size and Price Discovery of Cross-listed Firms: Evidence from a Natural Experiment in China” (co-authored with Prof. Kalok Chan).

Dr Walid Saffar received the Best Paper Award in Corporate Governance at the 21st Annual Global Finance Conference with his paper “Geographic Location, Foreign Ownership and Cost of Equity Capital: Evidence from Privatization” (co-authored with Prof. Narjess Boubakri and Dr Omrane Guedhami).

 

External Research Grants

 

The School has been awarded 21 General Research Fund (GRF) and Early Career Scheme (ECS) projects by the Research Grants Council (RGC) in 2013/14. This is also record breaking in terms of the number of GRF funded projects received by an individual PolyU department. In addition, 14 proposals were rated 3.5 out of 5.0 and 7 of them received an internal grant from the University of around $100,000 for each.

Prof. Wilson Tong, as Co-Principal Investigator of the project titled “Enhancing Hong Kong's Future as a Leading International Financial Centre”, has secured a grant of $15.365 million from the Theme-based Research Scheme (TRS) administered by RGC in 2012. It is a joint project by The Chinese University of Hong Kong, The University of Hong Kong and The Hong Kong Polytechnic University.

 

Other Achievements

 

Prof. Xu Xinpeng served as an expert consultant to the Organisation for Economic Cooperation and Development (OECD) for the period December 2012 to June 2013 for a consultant project to estimate the industry level productivity growth path using farm level data and identify drivers of productivity growth with a special interest in policy impact. As the sole expert consultant of the project, Prof. Xu worked out a manual on productivity measurement at the farm level. The project provided OECD member countries with a solid basis to make consistent productivity measurement using farm level data, to identify drivers of productivity growth and to facilitate international comparison of farm productivity across countries.

 

Staff Publications in Top-tier Journals

 

Since January 2012, 20 papers from faculty members of the School have been published in/accepted for publication at A* or University of Texas at Dallas (UTD) listed journals, including
Contemporary Accounting Research
(5 papers),
The Accounting Review (3 papers),
Journal of Financial and Quantitative Analysis (2 papers),
Journal of Finance (1 paper),
Journal of Financial Economics
(3 papers),
Journal of Accounting Research
(2 papers),
Management Science (2 papers),
Journal of International Business Studies
(1 paper) and
Journal of Accounting and Economics (1 paper).

Period

Name of Staff

Title of paper

Journal

Feb 2012

Dr Huang Yuan

"Executive Pay Disparity and the Cost of Equity Capital", co-authored with Zhihong Chen and John Wei

Journal of Financial and Quantitative Analysis, 2013, Vol.48(3), pp.849-885

Apr 2012

Dr Simon Fung

"City-level Auditor Industry Specialization, Economies of Scale, and Audit Pricing", co-authored with Ferdinand A Gul and Jagan Krishnan

The Accounting Review, Vol. 87, No. 4, pp. 1281-1307, 2012

Apr 2012

Prof. CS Agnes Cheng

"The Effect of Hedge Fund Activism on Corporate Tax Avoidance", co-authored with Henry Huang, Yinghua Li and Jason Stanfield

The Accounting Review, Vol. 87, No. 5, pp. 1493-1526, 2012

Apr 2012

Dr Mujtaba Mian

"Investor sentiment and stock price response to earnings news",  co-authored with Srinivasan Sangakaraguruswamy

The Accounting Review, Vol. 87, No. 4, pp. 1357-1384, 2012

Jun 2012

Dr Wan Kam-ming

"CEO Compensation and Board Structure Revisited", co-authored with Katherine Guthrie, Jan Sokolowsky

Journal of Finance, 2012, Vol. 67 (3), pp.1149-1168

2012

Dr Mujtaba Mian

"Industries and Stock Return Reversals", co-authored with Allaudeen Hameed

Journal of Financial and Quantitative Analysis (accepted)

Jan 2013

Dr Li Gang

"Diagnosing affine models of options pricing: Evidence from VIX", co-authored with Chu Zhang

Journal of Financial Economics, Vol. 107, Issue 1, pp. 199-219, Jan 2013

Jan 2013

Dr Walid Saffar

"The Role of State and Foreign Owners in Corporate Risk-Taking: Evidence from Privatization" with Jean-Claude Cosset and Narjess Boubakri

Journal of Financial Economics, Vol. 108, Issue 3, pp. 641-658, June 2013

Jan 2013

Dr Walid Saffar

"Political Institutions, Connectedness, and Corporate Risk-Taking" co-authored with Narjess Boubakri and Sattar Mansi

Journal of International Business Studies, Vol. 44, No. 3, pp. 195-215, April 2013

Jan 2013

Dr Woo-jong Lee

"Does information risk affect the implied cost of equity capital? An analysis of PIN and adjusted PIN," co-authored with Lee-Seok Hwang, Seung-Yeon Lim and Kyung-Ho Park

Journal of Accounting and Economics, Vol. 55, No. 2-3, pp. 148-167, April -May 2013

Mar 2013

Dr Woo-jong Lee

"Financial Reporting Quality and Labor Investment Efficiency" co-authored with Jung Boochun and David Weber

Contemporary Accounting Research (accepted)

Mar 2013

Dr Zhang Yong

"CEO Compensation and Fair Value Accounting: Evidence from Purchase Price Allocation", co-authored with Ron Shalev and Ivy Zhang

Journal of Accounting Research, Vol. 51, No.4, pp.819-854

Jun 2013

Dr Woo-jong Lee

“Debt Financing and Accounting Conservatism in Private Firms" co-authored with In-Mu Haw and Jay Junghun Lee

Contemporary Accounting Research (accepted)

Jul 2013

Dr Simon Fung

"Investment Banks’ Entry into New IPO Markets and IPO Underpricing", co-authored with Ferdinand A. Gul and Suresh Radhakrishnan

Management Science (accepted)

Sep 2013

Dr Zhang Yong

"The Long-Run Role of the Media: Evidence from Initial Public Offerings", co-authored with Laura Liu and Ann Sherman

Management Science (accepted)

Sep 2013

Dr Walid Saffar

"Auditor Choice in Politically Connected Firms", co-authored with Omrane Guedhami and Jeffrey Pittman

Journal of Accounting Research, Vol. 52, No. 1, pp.107-162

Nov 2013

Prof. CS Agnes Cheng

"Hedge Fund Intervention and Accounting Conservatism", co-authored with Li Yinghua and Huang Henry

Contemporary Accounting Research (accepted)

Jan 2014

Dr Yue-cheong Chan

“Price informativeness and stock return synchronicity: Evidence from the pricing of seasoned equity offerings”, co-authored with Kalok Chan

Journal of Financial Economics (accepted)

Jan 2014

Dr Mike Fung

“Cumulative prospect theory and managerial incentives for fraudulent financial reporting”

Contemporary Accounting Research (accepted)

Apr 2014

Dr Timothy Chue

“Understanding Cross-Country Differences in Valuation Ratios: A Variance Decomposition Approach”

Contemporary Accounting Research (accepted)

Abstracts of recently published/accepted papers in top-tier journals.

 

Prof. CS Agnes Cheng has a paper accepted for publication by Contemporary Accounting Research.  The co-authors of her paper, entitled "Hedge Fund Intervention and Accounting Conservatism", are Dr Henry He Huang of Yeshiva University and Dr Yinghua Li of The City University of New York.

Hedge fund intervention has been shown as an important vehicle for informed shareholder monitoring. Effective monitoring has also been positively associated with accounting conservatism. This study finds that (1) conditional conservatism increases after hedge fund intervention; (2) many positive corporate changes resulting from intervention are accompanied by greater increases in conditional conservatism; (3) conditional conservatism increases more when dedicated institutional investors lack monitoring before the intervention. The findings suggest that hedge fund activists improve accounting monitoring tools and thus add important evidence on the effectiveness of shareholder monitoring on accounting practices.

 


Prof. CS Agnes Cheng

Dr Zhang Yong has a paper accepted for publication at Management Science.  The co-authors of his paper, entitled "The Long-Run Role of the Media: Evidence from Initial Public Offerings" are Dr Laura Liu of The Hong Kong University of Science and Technology and Dr Ann Sherman of DePaul University.

The authors document the important role of investor attention through media coverage. Using a comprehensive sample of IPO (initial public offering) firms in the U.S., the authors show that a simple, objective measure of pre-IPO media coverage is positively related to firms’ post-IPO analyst coverage, institutional investor ownership, liquidity, and stock market valuation, and is negatively related to firms’ post-IPO cost of capital. These effects persist for at least three years after IPO. In all, the authors find a long-term role for media coverage, consistent with Merton’s attention or investor recognition hypothesis.

 

Dr Zhang Yong

Dr Yue-cheong Chan has a co-authored paper accepted for publication at Journal of Financial Economics.  The co-author of his paper, entitled “Price informativeness and stock return synchronicity: Evidence from the pricing of seasoned equity offerings” is Prof. Kalok Chan of the Hong Kong University of Science and Technology.

Stock return synchronicity measures the degree to which individual stocks co-move with the market. The paper investigates what stock return synchronicity reflects in terms of price informativeness by examining its effect on the pricing of seasoned equity offerings (SEOs).  The authors find a significantly negative relation between stock return synchronicity and SEO discounts. The negative relation is strongest when there is no analyst coverage, and declines as analyst coverage increases. Given that SEO discount is positively related to the degree of information asymmetry among market participants, the results suggest that stock price is more informative when stock return synchronicity is higher, and also that information asymmetry can be mitigated by analyst coverage.

 

Dr Yue-cheong Chan

Dr Walid Saffar has a paper published in Vol. 52, No. 1 of Journal of Accounting Research.  The co-authors of his paper, entitled "Auditor Choice in Politically Connected Firms" are Dr Omrane Guedhami of University of South Carolina and Prof. Jeffrey A. Pittman of Memorial University of Newfoundland.

The authors extend recent research on the links between political connections and financial reporting by examining the role of auditor choice.  They find evidence that public firms with political connections are more likely to appoint a Big Four auditor. In addition, the authors find that this relation is stronger for firms operating in countries with relatively poor institutional infrastructure, implying that tough external monitoring by Big Four auditors becomes more valuable for preventing diversion in these situations.  Finally, the authors report that connected firms with Big Four auditors exhibit less earnings management and enjoy greater transparency, higher valuations, and cheaper equity financing.

 

Dr Walid Saffar

Dr Timothy Chue has a single-authored paper, entitled “Understanding Cross-Country Differences in Valuation Ratios: A Variance Decomposition Approach” accepted for publication in Contemporary Accounting Research

Due to international differences in accounting convention, the financial press often suggests that cross-country comparisons of valuation ratios are not informative. In contrast to this idea, the author finds that more than half of all differences in the price-to-book ratio across countries reflect international differences in future profitability. The results imply that international investors are able to identify substantial cross-country differences in future earnings prospects and incorporate them into stock market valuations. The valuation differences across countries also contain information on future stock returns, which can be used to construct a long-short, zero-net-investment strategy that delivers an average annual return of over 6%.

 

Dr Timothy Chue

Dr Woo-jong Lee has a paper accepted for publication by Contemporary Accounting Research. The co-authors of his paper, entitled "Financial Reporting Quality and Labor Investment Efficiency", are Dr Boochun Jung of the University of Hawaii at Manoa and Yonsei University, and Dr David Weber of the University of Connecticut.

This paper documents that accounting quality is associated with efficient investments in labor. The authors further examine the channels through which accounting quality improves net hiring efficiency and provide evidence that high quality accounting reduces both over-investment in labor (over-hiring and under-firing) and under-investment in labor (under-hiring and over-firing). Finally, they document that abnormal net hiring is costly, in that it is associated with lower future profitability. Overall, their results are consistent with higher quality accounting facilitating more efficient investments in labor by mitigating the market frictions that stem from information asymmetry and lead to sub-optimal levels of investment.

Dr Woo-jong Lee

 

 

Visiting Scholars

 

Who were here last quarter?


Prof. Charles M LEE, Stanford University, Graduate School of Business


Prof. Jerry ZIMMERMAN, University of Rochester
William E Simon Graduate School of Business Administration

 

Prof. David HIRSHLEIFER,
University of California, Irvine
The Paul Merage School of Business

 

 

Name of Visitor

University

Visiting Period

Prof. Michael BLANKENAGEL

Lucerne University of Applied Science and Arts, School of Business

Mar/Apr 2014

Prof. Philip BERGER

The University of Chicago
Booth School of Business

Mar 2014

Prof. David HIRSHLEIFER

University of California, Irvine
The Paul Merage School of Business

Mar 2014

Prof. Steven HUDDART

Pennsylvania State University
Department of Accounting

Mar 2014

Prof. Bharat SARATH

State University of New Jersey
Rutgers Business School

Mar 2014

Prof. Siew-Hong TEOH

University of California, Irvine
The Paul Merage School of Business 

Mar 2014

Prof. Jerry ZIMMERMAN

University of Rochester
William E Simon Graduate School of Business Administration

Mar 2014

Prof. William CREADY

University of Texas at Dallas,
Naveen Jindal School of Management

Feb 2014

Prof. Joshua RONEN

New York University,
Leonard N. Stern School of Business

Jan 2014

Prof. Ji-Chai LIN

Louisiana State University ,
Department of Finance, E. J. Ourso College of Business

Dec 2013/
Jan 2014

Prof. Charles M LEE

Stanford University,
Graduate School of Business

Dec 2013

Prof. Boon-Soo LEE

Florida State University,
College of Business

Dec 2013

Prof. Sergei SARKISSIAN

McGill University,
Faculty of Management

Dec 2013

 

Who will be here next quarter?

Name of Visitor

University

Visiting Period

Prof. Katherine SCHIPPER

Duke University
Fuqua School of Business

Apr 2014

Prof. Grace POWNALL

Emory University
Goizueta Business School

Apr 2014

Prof. Davin CHOR

National University of Singapore
Department of Economics, Faculty of Arts and Social Sciences

Apr 2014

Prof. K K RAMAN

The University of Texas at San Antonio
College of Business

May 2014

Prof. Alexander LJUNGQVIST

New York University
Stern School of Business

May 2014

Prof. Daniel COHEN

University of Texas at Dallas
Neveen Jindal School of Management

May 2014

Prof. Ji-Chai LIN

Louisiana State University
Department of Finance

May/Jun 2014

 

AF Academy

 


37 first year students of the three year BBA (Hons) programmes completed a series of 12 interactive workshops

The AF Academy is a student-led and faculty supervised initiative modeled upon the “Beta Alpha Psi” the honor organization for financial information students and professionals in North America. It aims at grooming capable and committed AF students with the skills essential for employment readiness. The AF Academy members are selected and invited based on their first year’s GPA. Last year, 37 first year students of the three year BBA (Hons) programmes completed a series of 12 interactive workshops on skills ranging from excelling in individual and group interviews, to preparing winning résumés, to behaving in a confident and professional manner. These students will continue their engagement by mentoring new members of AF Academy this year. All members of the Academy are challenged to be "loud and proud" and promote the PolyU brand to employers and the industry.

 

Professional Mentoring Programme (PMP) 2013-15

 


PMP Orientation Dinner on 4 March 2014 at the Staff Club Restaurant

The School hosted the Professional Mentoring Programme (PMP) Orientation Dinner on 4 March 2014 at the Staff Club Restaurant welcoming 30 mentors and 36 mentees joining the programme this year.  The event was attended by Mr Frankie Ho, ACCA Committee Member & Co-chairman of ACCA Student Affairs Sub-committee of ACCA Hong Kong.

PMP is a coaching and counseling programme organized by the School of Accounting and Finance for accounting and finance undergraduate students who will proceed to their final year of study in next year. It is designed to embrace the building up of a mentor-protégé relationship between students and individual working professionals and industry leaders. Its goal is to enhance the future professional and career development of students under the guidance and advice of their mentors.

 

Industry Interest Groups – Students, Academics and Practitioners

 

In order to let our students know more about the career prospect in various disciplines, our School organizes the “Industry Interest Groups” which include Assurance - Audit and IPO; Business - Corporate Secretarial, Accounting, Commercial and Banking Documentation; Risk Management - Internal Audit, Corporate Governance and Compliance, IT Risk, Sustainability Rating; Advisory - Corporate Finance, Restructuring and Insolvency, Litigation Support, Investigation and Forensic Accounting, Business Consulting; Tax - Hong Kong Tax, PRC Tax; Finance - Financial Management, Financial Advisory and Financial Services – Banks.

Each group shall consist of teaching staff, industry people, student representatives and student members.

 

Industry Interest Groups Orientation Dinner

 


Orientation Dinner of Industry Interest Groups on 23 April 2014 at the Staff Club Restaurant

The School hosted the Orientation Dinner of Industry Interest Groups on 23 April 2014 at the Staff Club Restaurant welcoming industry representatives, academic staff and student members of the Industry Interest Groups. The event was attended by Mr Stephen Liu, Managing Director, and the head of Corporate Restructuring and Insolvency, Ernst & Young.

 

Teaching Workshop

 


Teaching workshop on 29 April 2014 by Ms Winnie Ki and Mr Byron Khoo

The School has invited Ms Winnie Ki, Partner, Assurance and Mr Byron Khoo, Partner, Professional Practice Group from Ernst & Young to speak for a workshop on the topic “Leasing Accounting - A New Direction” to furnish us with current trend and issues in the practical field. The workshop was conducted on 29 April 2014.

 

“Bridging the Gap” Workshop

 

To strengthen the connection between our academia and professional bodies, a “Bridging the Gap” workshop will be organized on 5 June 2014.  A panel discussion will be held with Prof. CS Agnes Cheng and Dr Simon Fung from the School as panelists on the research-side and representatives from Hong Kong Institute of Certified Public Accountants (HKICPA) on the practitioner-side.  The tentative theme is “Mandatory Auditor Rotation”.

 

Upcoming Conferences

 

In 2014, there are two upcoming back-to-back international conferences. They are the JIAR Conference (with Journal of International Accounting Research of the International Accounting Section in American Accounting Association) which will be held on 6-7 June, 2014 and the CARE Conference (with the Centre for Accounting Research and Education at the University of Notre Dame) which will be held on 9-10 June, 2014.

These conferences serve as a platform to discuss cutting-edge research findings and to exchange research ideas among top-notch scholars and experts. It also opens channels of communication to facilitate exploitation of research potential.

Journal of International Accounting Research (JIAR) Conference 2014
Center for Accounting Research & Education (CARE) Conference 2014

 

 

 

School of Accounting and Finance
M715, Li Ka Shing Tower
The Hong Kong Polytechnic University
Hung Hom, Kowloon
Tel: (852) 2766-7038
Fax: (852) 2330-9845
Email: afmail@polyu.edu.hk
Website: http://www.af.polyu.edu.hk

 

 

Copyright © 2014 School of Accounting and Finance
The Hong Kong Polytechnic University

 

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