最新資訊

01.04.2020

[eNews] From Offline to Online: BizInsight Launches a New Season

Launched in 2009, the BizInsight presentation series offers a platform for our faculty to share their research with a wider community. On March 26, in view of the pandemic situation, the new season of BizInsight launched online for the first time with a webinar titled Understanding Risks in Investments and Corporate Management, and attracted over 170 participants.

The webinar featured three highly regarded speakers from our Department of Finance – Professor ZHANG Chu, Professor Peter MACKAY, and Professor Alminas ZALDOKAS. They presented their rigorous studies that looked at various forms and levels of risk faced by international firms and local investors. By presenting the potential risks involved especially under crises, the event enabled participants to better understand and properly manage and plan for the foreseeable future.

Professor Zhang shared his knowledge of counterparty risks in Hong Kong’s derivative warrant market. It is one of the most important markets worldwide with the largest trading volume in the world. While “counterparty credit risk has a significant impact on derivative pricing” in general, the impact is more pronounced during the 2008 financial crisis and the 2012 European debt crisis.  The issue is relevant to the current COVID-19 situation as well.

Professor Mackay presented findings from his co-authored study entitled Corporate Risk Management around the World – the most encompassing global survey on corporate risk management ever conducted. While prior studies focused on Western markets and large firms, few of them included small to medium and private firms. Respondents in this survey span a broad cross-section of firms across the world, including small firms, both listed and unlisted. Consistent with the inclusion of smaller companies, the authors find that the first lines of defence against risk are 1) credit lines, 2) risk avoidance, and 3) cash balances. Derivatives rank surprisingly low among all methods studied.

Professor Zaldokas shared his insights into antitrust enforcement and its impact on corporate finance decisions. These valuable insights are relevant to the Hong Kong market since the competition ordinance came into effect in 2015 with the Competition Commission enforcing these regulations. “Regulators around the world are concerned about declining competition in product markets, and increased antitrust enforcement leads firms to readjust their strategies."

The webinar concluded with an interactive discussion between the professors and participants on financial risks related to their presentations and COVID-19. Professor Zaldokas suggested that “more and more firms will have to think of the real risk management and the real adjustments, diversifying their supply chain...in order to sustain a more agile response to future critical situations.” 

TO REVIEW the Webinar

Extending its tradition of positive interaction with the business community and the wider public, other webinars under the BizInsight Series will be conducted online. Stay connected with us for more presentations in coming months.

NEXT EVENT -  Unleash the Power of Adaptive Learning, Diversity and Social Networks
Date: 7 April 2020 (Tuesday)
Time 12:30 - 2:00 pm
To Register


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