e-bulletin August 2017
Professor Edwin Cheng is a Supervisor in Hong Kong Scholars Program 2017
Hong Kong Scholars Program, jointly launched by the Society of Hong Kong Scholars and China National Postdoctoral Council under the Ministry of Human Resources and Social Security, is aimed at pooling resources of Hong Kong and the Chinese mainland to train researchers. Selected PhD graduates come from the Mainland to conduct research normally for 24 months under the guidance of professors at universities in Hong Kong.
Under the 2017 program, Faculty Dean Professor Edwin Cheng will supervise a fellow from South China University of Technology on the topic of Production and Distribution Scheduling in Supply Chain Management.
AF Team was Third Runner-up in Tax Debate Competition
Four students from the School of Accounting and Finance (AF) formed a team to win the third runner-up prize in TIHK Tax Debate Competition 2017. They were Miss Chow Yuk Ying, Miss Cheung Mei Ying, Miss Lam Yuen Han, and Mr Chim Ho Shing reading for the BBA (Hons) degree in Accountancy.
The competition, organized by TIHK (The Taxation Institute of Hong Kong), aims at arousing students' interest in taxation as well as career development in related professions. This year's final was held on 27 to 28 May with the judging panel comprising representatives from academia, business and professional bodies in addition to tax practitioners.
Secondary School Students Joined Business School Summer Programme
Around 120 secondary four and secondary five students took part in this year's summer programme organized by PolyU business school. During the four days from 18 to 21 July 2017, participants toured PolyU campus, attended lectures given by constituent departments of the school, visited Hong Kong Telecom and companies in Hong Kong Science Park apart from playing a business simulation game.
The programme was designed to introduce business studies and tertiary education to the participants who also gained a basic understanding of the living and learning environment and teaching style of PolyU.
The Role of Audit Verification in Debt Contracting: Evidence from Covenant Violations
Review of Accounting Studies , 22, 469-501 (2017)
Liangliang Jiang, The Hong Kong Polytechnic University
Hui Zhou, The University of Melbourne
The authors investigate the role of audit verification in the resolution process following debt covenant violations. Using two sets of proxies for demand – audit fees and the independence and diligence of audit committees – they find evidence that covenant violations result in a demand for differentially higher levels of audit verification. Further analyses demonstrate the link between the increased demand for audit verification and the mechanisms designed to control agency costs in debt contracts. The authors document cross-sectional variations in the observed fee differential with respect to the level of reliance on financial covenants, the type of covenants violated, and waiver decisions. Moreover, they find that the observed audit fee increases are associated with more favourable movements in borrowing costs and the adoption of more conservative investment policies post violation. Their findings suggest that covenant violations increase the demand for audit services to help control contracting costs post violation.
The Face of the Firm: The Influence of CEOs on Corporate Reputation
Academy of Management Journal, forthcoming
E. Geoffrey Love, University of Illinois at Urbana-Champaign
Jaegoo Lim, The Hong Kong Polytechnic University
Michael Bednar, University of Illinois at Urbana-Champaign
It is widely assumed that CEOs as the firms' top leaders shape how people view the corporations they lead, but the question of how these leaders influence corporate reputations has received little theoretical or empirical attention. This study takes a first step to respond to this situation by addressing two core questions regarding CEOs' influence on corporate reputation: to what degree do leaders really matter for firm reputation, and which leaders affect their firms’ reputation? The authors develop theory explaining how and why leaders should enter into perceptual evaluations of the firms that they lead. More specifically, they propose that CEOs will affect corporate reputations depending on leader prominence and on perceptions of leader quality. They test these hypotheses by examining how CEOs' media coverage, industry awards, and outsider standing affect the reputations of their firms. Using data on CEO and firm reputation from large firms that appeared on Fortune magazine's annual "Most Admired Companies" lists, the authors found that highly regarded CEOs do in fact enhance the corporate reputation of the firms they represent. Findings indicate that award-winning CEOs enhance their firms' reputation, sometimes substantially, and media tenor regarding CEOs affects corporate reputation. A CEO receiving positive media attention leads to higher corporate reputation for that CEO's firm. In contrast, if a CEO receives negative media attention, it damages the firm’s reputation. However, simply receiving more media attention is not sufficient to positively influence the corporate reputation of the firm.
One Hundred Years of Employee Turnover Theory and Research
Journal of Applied Psychology, 102, 530–545 (2017)
Peter W. Hom, Arizona State University
Thomas W. Lee, University of Washington
Jason D. Shaw, The Hong Kong Polytechnic University
John P. Hausknecht, Cornell University
The authors review seminal publications on employee turnover during the 100-year existence of the Journal of Applied Psychology. Along with classic articles from this journal, they expand their review to include other publications that yielded key theoretical and methodological contributions to the turnover literature. The authors first describe how the earliest papers examined practical methods for turnover reduction or control and then explain how theory development and testing began in the mid-20th century and dominated the academic literature until the turn of the century. They then track 21st century interest in the psychology of staying (rather than leaving) and attitudinal trajectories in predicting turnover. Finally, they discuss the rising scholarship on collective turnover given the centrality of human capital flight to practitioners and to the field of human resource management strategy.