CSDS Fellow:
CHEN, Ting
Project title:
Subsidizing High-Rises for Growth? An Empirical Assessment of Chinese Skyscrapers
Collaborators:
Zhiyang, Chen, Yatang, Lin, and Jin Wang (HKUST)
Abstract:
More than half of the world's skyscrapers were built after 2000, predominately in developing countries. In this paper, we present new stylized facts summarizing the substantially weaker responses of these new high-rises to economic fundamentals in developing countries, which suggest that the traditional land—capital substitution explanation only weakly accounts for the new placements. Using spatially matched skyscrapers, land transactions, and new business entry data from China, we employ a political economy lens to explain the country’s recent high-rise boom, which accounts for 59.8% of the world’s high-rises built since 2000. We find that local governments in China incentivize the creation of new urban agglomerations by offering developers huge discounts on land prices in non-central locations—particularly in cities where local leaders are driven by stronger career incentives and during the period of the central government’s monetary easing policy. Yet our finding that subsidized skyscrapers generate almost no spatial spillovers in the form of a land price premium or new business creation calls into question the effectiveness of state-engineered urban development.
Funding sources:
N.A.
Status:
On-going
CSDS Fellow:
CHEN, Ting
Project title:
Delineating China’s Metropolitan Areas Using Commuting Flow Data
Collaborators:
Yizhen Gu (HSBC, PKU) and Ben Zou (Michigan State)
Abstract:
This study provides the first delineation of China’s commuting-based metropolitan areas (MAs) using a new source of commuting flows data at fine geographic levels. We find that the commuting-based MAs rarely cross prefectural boundaries and are small relative to those in other countries. This is consistent with the fact that commutes in China are overwhelmingly short and largely confined by administrative boundaries. We compare commuting-based Mas with other definitions of cities and show that different definitions lead to different system-of-city properties. Our preferred definition provides an approximation of local labor markets in China while balancing practical considerations such as the comparability with the official definition and the availability of statistics.
Funding sources:
N.A.
Status:
On-going
CSDS Fellow:
CHENG Yuk-shing
Project title:
Mainland Immigrants in Hong Kong: Dynamic Changes in Socioeconomic Status
Collaborators:
Zhang Hongliang and Kwan Chun-yin
Funding sources:
Society for Community Organisation
Status:
Completed
CSDS Fellow:
HAO Pu
Project title:
Rural landholdings and the geographic and social mobility of China’s rural migrants
Status:
Ongoing
CSDS Fellow:
HAO Pu
Project title:
Economic geography of unplanned commercial establishments: An investigation of Shenzhen’s urban villages
Funding sources:
Research Grants Council (RGC), General Research Fund (GRF) HKBU12605715 (completed)
Status:
Completed
CSDS Fellow:
HAO Pu
Project title:
The effect of landholdings on the mobility and wellbeing of rural migrants in urban China
Funding sources:
Lincoln Institute of Land Policy CPH021916
Status:
Completed
CSDS Fellow:
HAO Pu
Project title:
The location choice and spatial organization patterns of urban informal economies in big cities
Funding sources:
National Natural Science Foundation of China, NSFC 41401167
Status:
Completed
CSDS Fellow:
JIANG Jin
Project title:
Staying in the nest? A study of young adults' co-residence with parents in the United Kingdom, mainland China and Hong Kong
Collaborators:
LUI Hon-Kwong, Lingnan University; Dr ZHANG Chunni, Peking University
Abstract:
Academic research and social media suggest that parent-adult child co-residence is a growing trend in both Western and Chinese societies. This trend differs from the general perception of the spread of individualism accompanying economic development and modernisation. Less is known about who co-resides with their parents and why. This study aims to examine how and why the co-residence of young adults (aged 21-35) with their parents has changed over the past 25 years in three societies with different family cultures: the United Kingdom (UK, Western culture), mainland China (Chinese culture) and Hong Kong (Chinese culture with a British colonial history). Drawing upon multiple waves of representative data since 1990, this study will address two main research questions: (1) how the parent–adult child co-residence changed over the past 25 years, specifically, (1.1) what are the main characteristics of co-residing adult children and their parents and (1.2) how these characteristics changed; and (2) why young adults co-resided with their parents. To answer the second question, this study will first analyse how the changes in co-residence associate with the key factors derived from three main perspectives: the perspective of cultural norms, the life course perspective and the social inequality perspective on intergenerational transfer. To examine the causal relationship between co-residence and the factors identified in the data analysis, this study will conduct a random telephone survey with vignettes in Hong Kong, a modern city that mixes Chinese and Western cultures. This study will make four contributions. First, to the PI’s best knowledge, it will be the first study to describe the co-residence trends in the past 25 years of the societies. The potential findings will provide a better understanding of the changes in co-residence and highlight this living arrangement as an important domain of youth transition. Second, unlike the cultural norm perspective with its emphasis on filial piety and adult child– to–parent support in co-residence, this study will present a new perspective of social inequality that addresses the intergenerational transmission of parental resources to their offspring in an effort to explain parent–adult child co-residence. Also, this study will assess the quantitative importance of the key factors in determining co-residence. Third, this study will identify the causal relationships between co-residence and the key contributing factors of the theoretical perspectives. Finally, the potential findings will provide policy recommendations for planning residential policies, mitigating intergenerational inequality, and supporting youth development in Hong Kong.
Funding sources:
Research Grants Council, Early Career Scheme (ECS), HK$ 588,824
Status:
Ongoing
CSDS Fellow:
JIANG Jin
Project title:
The Greater Bay Area and Career Opportunity for Hong Kong Youth: Integrating Big Data Analysis and Survey Experiments
Collaborators:
JIANG Jin (PI), MOK Ka Ho, Lingnan University; ZHANG Dong, HKUST
Abstract:
Since the launch of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) initiative in 2015, the development of young Hong Kongers has been increasingly recognised in national policies on the GBA. The Hong Kong SAR government places great emphasis on encouraging young adults to engage in the GBA development. From the government’s perspective, the GBA represents a ‘golden opportunity’ for local youth’s development. However, recent surveys revealed the absence of interest from the majority of local people. In particular, a large proportion of local youth expressed their unwillingness to either pursue careers or live in the nine mainland cities of the GBA. This sharp contrast between the government’s enthusiasm and young adults’ lack of interest will create challenges for the Hong Kong government in responding to the central government’s call to develop the GBA. Alarmingly, it may be a sign that Hong Kong will be left behind in the GBA development. The research team believes that effective strategies for engaging youth in the GBA initiative rely on a good understanding of local young people’s genuine ideas about the GBA. Given Hong Kong’s high Internet penetration rate, this project will collect online data to examine Hong Kongers’ perceptions of the role of the GBA in youth development. Using big data analysis, the research team will investigate local people’s online discussion and opinions of the GBA and youth development. Based on the big data analysis, the research team will synthesise several core perceptions and evaluations of the opportunities and challenges posed by the GBA for local youth development. Survey experiments will be conducted with Hong Kong youth aged 18-35 to examine how these perceived opportunities and challenges affect young people’s inclination to pursue careers in the nine mainland cities of the GBA. The respondents will be asked to indicate their desire to take up internships, seek employment and engage in entrepreneurship in the GBA under randomly assigned vignettes. The vignettes will be experimentally manipulated to address the concerns and worries and strengthen their perceptions of the opportunities available for local youth development in the GBA. Having developed a better understanding of young people’s aspirations, ideas and concerns in relation to the GBA through big data analysis and survey experiments, the research team will prepare a concrete report on the findings and policy recommendations for helping local youth to understand and seize the opportunities and overcome the challenges presented by the GBA.
Funding sources:
Policy Innovation and Co-ordination Office, Public Policy Research (PPR) Funding Scheme, HK$500,000, 01/11/2019-31/11/2021.
Status:
Completed
CSDS Fellow:
KANG Yi
Project title:
Data Literacy of Hong Kong Internet Users
Collaborators:
KANG Yi (PI)
Abstract:
In a digital society, new forms of literacy are needed for individual citizens to navigate the changing digital landscape. The development of the smart city requires citizen’s trust and engagement in the process of digitalization. For instance, they are willing to share their person data, make use of the government’s e-services, and engage in informed discussions about policy solutions to regulate data applications. However, recent research suggests that the applications of big data analytics are not always benign. They could lead to loss of privacy, discrimination, social exclusion and facilitate deliberate distributions of misinformation. Managing the risks that come with increasing datafication requires something more than technical solutions. To function as a proactive member in a digital society requires not only hard skills to use digital technologies but also an extended data literacy in the population as measured by citizens’ awareness and critical reflection of big data practices and their implications, as well as the ability to implement such knowledge in their digital attitudes and behavior. Our research project thus focuses on the data literacy of Hong Kong internet users, which consists of data thinking, data doing, and data participation. What is the current level of data literacy of Hong Kong internet users? What are the potential factors influencing a person’s data literacy? Are there any demographic groups which are more data literate than others? What kind of intervention, if any, may effectively improve data literacy levels? To answer these questions, the research team will conduct an online survey and a survey experiment. The survey experiment is designed to test the effectiveness of two forms of data literacy intervention—exposure to information and participation in deliberation—on improving data literacy for the participants. In addition, the research team will conduct in-depth interviews with randomly selected respondents to explore in detail how different interventions have affected the respondents’ data thinking, data doing and data participation.
Funding sources:
Public Policy Research Fund
Status:
Ongoing
CSDS Fellow:
KANG Yi
Project title:
Grassroots Party Building in Urban China in the Reform Era
Collaborators:
IP, Ka Wai (PI); COLE, Alistair; YUEN, Wai Hei Samson
Abstract:
The Chinese Communist Party’s (CCP’s) efforts and strategies in regard to grassroots party building in the past decade have been well documented in scholarly literature, but empirical evidence remains scattered and piecemeal. Little is known about the impact of such endeavors. How are various strategies implemented? How effective are they? Are primary party organizations (PPOs) able to accomplish their intended goals and help strengthen the governing capacity of the CCP in urban China? What is the popular perception and reception of these organizations within target populations? These questions regarding the long-term consequences of several waves of grassroots party building in the reform era are as yet unclear. Through systematically surveying and compiling cases of PPO building in urban China, as well as examining the operation conditions of a variety of PPOs in regard to handling concrete tasks such as social stability maintenance and crisis management, this proposed project aims to provide a broad and in-depth evaluation of the actual effects of intensive and extensive grassroots party building endeavors in urban China. With a focus on PPOs, this project also addresses two distinct yet related themes: the party state’s institutional restructuring efforts and the development of the non-state sector. Altogether, they allow us to tell a story of the evolving micro-foundation of urban governance in contemporary China. Two objectives are expected to have been accomplished at the end of this project: First, a database of grassroots party building since 2000 will have been constructed; second, in-depth case studies from four regions of China will have been conducted, in order to assess the actual effects of party building and identify the micro processes and causal chains that have led to different development trajectories.
Funding sources:
Research Grants Council General Research Fund
Status:
Ongoing
CSDS Fellow:
Lai, Gina
Project title:
Community Support and Resilience Network Study (CSRNS): An Evaluation of the “Wu Wu Cheng (戶互撐)” Community SupportProgramme
Collaborators:
PPrincipal Investigator:
Fung, Ka Yi (School of Social Sciences, Caritas Institute of Higher Education)
Co-Investigators:
Chan, Wing Sun (Department of Sociology, University of Manitoba)
Chu, Cheong Hay (School of Social Sciences, Caritas Institute of Higher Education)
Wong, Yu Cheung (School of Social Sciences, Caritas Institute of Higher Education)
Chiu, Dah Ming (Data Science Research Centre for Social Policies and Services, Caritas Institute of Higher Education)
Abstract:
A major role of non-governmental organizations is to create opportunities through provision of social services for community members to embed their own social networks with those of otherservice recipients to strengthen community resilience. However, thestructures of the newly established networks, the mechanisms and conditions that account for the network building process, and the resources embedded in it and its impacts on the community members are not fully understood. To fill the research gap, the study works together with the organizers of the “Wu Wu Cheng” CommunitySupport Program, which was launched in low-income communities in Hong Kong, to examine the impacts of the project on community residents’ social networks and the related network-building process. The mixed-method approach will be adopted for data collection.Research findings are expected to inform the planning, design, and implementation of future community projects.
Funding sources:
Chow Tai Fook Charity Foundation
Status:
On-going
CSDS Fellow:
Lai, Gina
Project title:
School-to-Work Transition in Urban China: High School Students from Urban Nanjing as a Case Study
Collaborators:
Feng, Xiaotian (Department of Sociology, Nanjing University)
Song, Jing (Department of Sociology, Hong Kong Baptist University)
Wong, Odalia (Department of Sociology, Hong Kong Baptist University)
Abstract:
Developed as the fourth wave of a panel study on life course transitions of 987 high school students in urban Nanjing, the study focuses on the school-to-work transition after higher education. Specifically, it aims to(1) identify the pathways of the school-to-work transition, (2) examine the effects of family origin, school, and personal aspirations on the transition, and (3) assess the impacts of transition pathways on personal well-being and social networks. About 76% of the original respondentscompleted the online survey designed for the fourth wave of the study.
Funding sources:
Research Grants Council, HKSAR
Status:
Completed
CSDS Fellow:
Kaxton Siu
Project title:
Chinese Investors in Vietnam and Cambodia and their Impact on Industrial Relations Systems and Labour Standards
Abstract:
Nil
Funding sources:
Research Grant Council/ General Research Fund (2020-21), Hong Kong SAR Government, HK $994,823 (US$127,541)
Status:
Ongoing
CSDS Fellow:
Kaxton Siu
Project title:
Urbanization, Migration and Welfare in China: A Comparative Study of Migrant Families, Social Service Provisions and Welfare Policies in Greater Bay Area and Yangtze River Delta
Researchers:
Co-PI: Daniel W. Lai
Abstract:
Nil
Funding sources:
Key Research Partnership Scheme (2021-22), Hong Kong Baptist University, HK$1,000,000 (US$128,206)
Status:
Ongoing
CSDS Fellow:
Kaxton Siu
Project title:
Industrial Trainees from China and Vietnam in Japan: An Entry Point into the Key Issues of International Labour Migration and Skill Transfer
Collaborator:
Principal Investigator: Kaxton Siu
Abstract:
Nil
Funding sources:
Research Grant Council/ General Research Fund (2017-18), Hong Kong SAR Government, HK$660,203 (US$84,575)
Status:
Completed
CSDS Fellow:
Kaxton Siu
Project title:
Temporary labor migration and skill transfer in Japan: Migration experiences and outcomes of technical intern trainees from Vietnam and China
Collaborator:
Anita Koo
Abstract:
We interviewed Vietnamese and Chinese technical intern trainees who went to Japan under Japan's Technical Intern Training Program (TITP). We showed how Vietnam's and China's temporary labor-export institutional arrangements differed, and contributed to the two countries’ intern trainees having varied migration experiences and outcomes. We also explored the reasons TITP failed to achieve its stated objective—international skill transfer. Guided by human capital theory, we attempt to make sense of the different migration expectations and experiences of Vietnamese and Chinese trainees under different institutional arrangements and contribute to the debate of temporary labor migration and international skill transfer. We argue that the government of a temporary migrant labor-sending country must exercise sufficiently good socio-technical infrastructural governance to steward labor-export policy and industrial policy to match national development goals in order to make international skill transfer possible.
Funding sources:
Hong Kong Polytechnic University Research Funding
Status:
On-going
CSDS Fellow:
WAN Shui-ki
Project title:
Constructing online CPI in the COVID-19 post-pandemic period
Collaborators:
Ronald Hung
Abstract:
Using big e-commerce data, we construct a novel indicator, Online Consumer Price Index (OCPI), to trace the price movement at daily frequency. Our OCPI can act as a complementary index of the official CPI because of its higher frequency, non-overlapping set of products and its ability to update the weights. It can provide households, businesspeople, government officials in a timely manner how the preferences of consumers change, and when the price adjustment takes place. It also alleviates biases in the official CPI because of the availability of actual transaction data including price, quantity sold and transaction costs.
Status:
Ongoing
CSDS Fellow:
WONG Kin-ming
Project title:
Migration and Political Institution: Other Side of the Hill
Abstract:
The present paper examines the effect of migrant population on political institutions in their host societies using data from the local elections in Hong Kong. The share of the population that has migrated from mainland China is found to have a positive effect on the pro-government votes in local elections. This effect continues to exist after demographic characteristics are controlled. Further investigation suggests that the effect of migrant population on voting patterns varies across periods of migration to Hong Kong. These findings contribute to the published literature in two ways. First, they provide evidence that the effects of migration on political development are two-way. Migration not only influences the political institutions in migrants’ home countries, but also shapes the political institutions in their host regions. Second, they also pave the way for future research on why and how periods of migration influence migrant populations’ voting patterns in their host regions.
Status:
Completed
CSDS Fellow:
CAO Kanghua
Project title:
Cannibalization effects of renewable energy in the US electricity markets
Collaborators:
C.K. Woo (EdUHK), C.H. Tsai (MISO), J. Zarnikau (UT Austin), , H.S. Qi (SZU), R. Li (U. Canberra)
Abstract:
Large-scale development of renewable and carbon-free resources (e.g., solar and wind) plays a critical role in the US path to deep decarbonization. In this project, we use a large sample of 15-minute data for the 6-year period of 2016-2021 to estimate the cannibalization effects of solar and wind generations, i.e. how large-scale development of solar and wind reduces electricity market prices. Our policy simulation suggests that future cannibalization effects are projected to be offset by revenue increases caused by rising natural gas price, growing demand, and nuclear plant retirement. Hence, market forces may suffice to sustain the large-scale development of renewable energy.
Status:
Ongoing
CSDS Fellow:
CHEN, Ting
Project title:
The Impact of the Three Gorges Dam: Differentiated Adaptations of Rural Households to Local Climate Change
Collaborators:
Chong Liu (PKU) and Sen Ma (IESR, JINAN)
Abstract:
Using the 2003 initial impoundment of the world's largest hydroelectric dam—China’s Three Gorge Dam—as a natural experiment, we assess how rural households with varying endowments adapted to the dam-induced water scarcity in the affected area. We first identify a persistent 12% reduction in rice yields in the downstream area where the water scarcity hits most. More importantly, the reduction of yield persists over 10 years after the initial shock suggesting the lack of median-long term adaptation of farmers. In response to the persistent shock on yield, local residents who were wealthier (measured by the size of farmland) compensated by migrating out for non-agricultural activities (31% more likely); while disadvantaged residents increased their acreage of rice cultivation by 22%. Our study confirms one main obstacle to farmers' adaptation to the major climate-environmental shock—the wealth constraint for out-migration.
Funding sources:
N.A.
Status:
On-going
CSDS Fellow:
CHENG Yuk-shing
Project title:
China’s Economic System and Development Finance
Funding sources:
Chung Man-kit, Tsang Kam-pui
Funding sources:
Ford Foundation (Beijing Office)
Status:
Ongoing
CSDS Fellow:
CHENG Yuk-shing
Project title:
Trade policy and energy decarbonization - assessing the impact of the EU’s trade defense measures against Chinese Solar panels
Collaborators:
Tsang Kam-pui
Abstract:
The deployment of renewable energy is crucial to the achieving of global climate goals outlined in the Paris Agreement. Many countries have adopted industrial policies designed to promote the growth of new industries for manufacturing renewable energy equipment. However, such policies may contradict national and global energy transition goals. This project studies the nexus between solar energy adoption and trade policy in OECD countries for the period 2011 to 2018. We treat the anti-dumping and anti-subsidy (ADAS) duties on Chinese manufactured solar PV panels imposed by the European Union in 2013 as a quasi-natural experiment for testing the impact of trade defense policy on energy transition.
Status:
Ongoing
CSDS Fellow:
Benson Tsz Kin LEUNG (HKBU Econ)
Project title:
The role of financial centres in mobilizing climate finance
Collaborators:
Keith Chan (HKUST Envr)
Abstract:
Green finance market becomes increasingly important to facilitate the mobilisation of capital towards climate change mitigation and adaptation. In this project, we try to understand how different entities in the market, including Governments, Investors and Green investment product issuers interact with each other. With our understanding, we can propose regulations of the green finance market that improve its efficiency and boost effort in curbing climate change.
Funding Sources:
Nil
Status:
On-going
CSDS Fellow:
LIU Jing
Project title:
Single use plastics reduction in Hong Kong Promoting environmentally sustainable behaviors through public engagement campaigns
Collaborators:
Marko M. Skoric, Nan Zhang, Juma Kasadha, Chun Hong Tse
Funding sources:
Environment and Conservation Fund
Status:
Completed
CSDS Fellow:
Emilie TRAN
Project title:
The Climate Collage and Hong Kong's Contribution to Mitigate Climate Change
Collaborators:
Dr Emilie Tran (PI). Dr Martial Jaume. Dr Anaelle Barthelon
Funding sources:
RGC Research Matching Grant Scheme
Status:
Ongoing
CSDS Fellow:
Danny T. WANG
Project title:
Assessing Positive and Negative Spillovers of Non-local Direct Investments in Chinese Cities: An Institutional-Based Model
Abstract:
The study uses 287 Chinese cities to examine a broad range of spillovers from foreign direct investment (FDI), including conventional ones such as economic growth, labor productivity, and beyond, such as innovation, pollution, and income inequality. In addition to assessing the positive and negative spillovers, we pay particular attention to the understanding of the institutional mechanism through which host economies absorb and exploit FDI. We argue that local institutions in terms of private property protection, legal and regulatory enforcement, product and intermediary market development, can moderate the various impacts of FDI on the local economy. A more developed institutional setting motivates both foreign and local firms to compete for output rationalization and curtails the negative impacts while a poorly managed institutional setting weakens the positive impacts of FDI and strengthens its negative ones. The study also differentiates two types of FDI, those that are ethnic-linked and those that are not, depending on the origin of investment. We examine their differential impacts across different institutional settings. The study responses to some long debated questions in international business: is FDI always good for the host economy; why do some regions benefit from FDI more than others; and how can government policies make the impacts of FDI more favorable.
Funding sources:
GRF
Status:
Completed
CSDS Fellow:
ZHOU Gaoguang
Project title:
Good for managers, bad for shareholders? The effects of lone-insider boards on excessive corporate social responsibility
Abstract:
The lone-insider board, in which the chief executive officer (CEO) is the only inside director, is now a prevalent board structure in the U.S. This study assesses the effect of this board structure on excessive corporate social responsibility (CSR). Using a sample of U.S. public firms during the period from 1996 to 2018, this study shows that lone-insider boards are significantly associated with excessive CSR, which suggests that such boards might not be able to effectively monitor CEOs’ CSR decisions. Further analyses show that this effect is more pronounced (1) when CEOs hold fewer shares in the firm and are about to retire, and (2) when the board size is large. The study also finds that firms with lone-insider boards have lower CSR valuations. Taken together, these findings show that lone-insider boards allow CEOs to over-engage in CSR for their own benefit at the expense of shareholders’ interests.
Funding sources:
Nil
Status:
Completed
CSDS Fellow:
ZHOU Gaoguang
Project title:
Paying for Greenness: How Credit Stakeholders Respond to CSR-contingent Executive Compensation
Collaborators:
Luther Bu, Byron Song, Yi Tang, G. Zhou
Abstract:
With the advent of the novel governance practice of CSR-contingent executive compensation, the field of strategic management has keenly discussed its implications on firms. Nevertheless, the response of stakeholders to such a relatively recent practice has received little attention. This study focuses on an important but often less considered group of stakeholders, credit stakeholders, and examines their response to the adoption of pay-for-CSR scheme in firms. Using an international sample of publicly listed firms between 2002 and 2019, we find that bank loans to firms adopting CSR-contingent executive compensation practices tend to incur a higher interest rate and to be syndicated more concentratedly, largely because lenders perceive a higher default risk. We also find that these effects become weaker when the firm has corporate governance structures that can curb agency problems, when the firm is in an industry that is subject to stricter scrutiny of CSR, when the firm is from a country or region that emphasizes CSR, and when the lender has a strong preference for CSR. The implications for executive compensation and CSR research are discussed.
Funding sources:
Nil
Status:
Completed
CSDS Fellow:
ZHOU Gaoguang
Project title:
Tournament incentives and corporate social responsibility performance
Collaborators:
X Zhao, G Zhou, Z Rezaee
Abstract:
Management incentives for engaging and excelling in corporate social responsibility (CSR) performance is an important theme as business sustainability gains momentum. We examine the role of tournament incentives, which are created by competition among non-CEO (chief executive officer) senior executives (vice presidents [VPs]) for promotion to the CEO position, in firms’ CSR performance. Using a sample of U.S. Standard & Poor (S&P) 1500 firms from 1993 to 2014, we find that tournament incentives proxied by pay gaps between CEOs and VPs are negatively associated with CSR performance, suggesting that competition for promotion could be detrimental for CSR performance. We further show that such association is more pronounced when the perceived probability of promotion increases prior to CEO turnover. This article provides policy, practical, and education implications and contribute to the literature …
Funding sources:
Nil
Status:
Completed
CSDS Fellow:
ZHOU Gaoguang
Project title:
Corporate Social Irresponsibility and the Occurrence of Data breaches: A Stakeholder Management Perspective
Collaborators:
Luther, BU, Z Rezaee, G. Zhou
Abstract:
An ever-increasing incident of cyberattacks is devastating to firms' operations and financial sustainability. We examine determinants and consequences of cyberattack incidents by investigating the association between corporate social irresponsibility (CSIR) and data breach incidents, stock market reactions to the affected firms, and how firms react to data breach by reducing CSIR. Using a sample of 24,456 observations in the period of 2005-2018, we find a significantly positive association between CSIR and the occurrence of data breaches. Further analyses show that, CSIR regarding employee, community, or corporate governance issues are more likely to result in internal attacks, and environmental concerns can trigger external attacks, while product concerns lead to both. Consistent with our prediction, the negative stock market reaction to data breach is more pronounced in CSIR firms. Finally, we show that firms do respond to data breach by reducing CSIR and this phenomenon is more common in firms with CSR committee. Taken together, our result highlights the role of stakeholders in data breach and shows how firms manage stakeholders in response to data breach. This study therefore provides important and timely policy, practice, and research implications because the significantly negative impact of data breach on firm operation has attacked increasing attention and scrutiny from various practitioners.
Funding Sources:
Nil
Status:
Completed