Joe Hong Zou is a professor of finance at University of Hong Kong. He graduated in Statistics from Fudan University, completed a Master degree in insurance & accounting with distinction (sponsored by UK insurer Aviva) and received a PhD in Finance from University of Wales (UK). He had six-year industry experience (four years in a local government and two years in an investment bank) and qualified the CPA and investment analyst exam. He previously taught at Cardiff University (UK) and City University of Hong Kong, and received the Faculty of Business and Economics (FBE) 2017/2018 IMBA teaching award, the 2019/2020 HKU-PKU EMBA Teaching Award, and the 2020/2021 & 2021/2022 & 2022/2023 FBE Faculty UG Teaching Reward in the University of Hong Kong. He was ranked as one of the HKU Scholars in the world’s Top 1% based on Thomson Clarivate Analytics’ Essential Science Indicators in the 10-year period (2008-2018) (2008-2018 湯森路透科睿唯安世界排名前1%的學者) (http://hub.hku.hk/local/top1pc/top1pc.jsp?year=2018). He is consistently ranked in the top 10% of Authors on SSRN by all-time downloads.
His research interests include corporate finance, corporate governance, risk management, financial services, and the Chinese financial market. He published 41 peer-reviewed journal articles in English and his research works appear in top finance journals (Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Financial and Quantitative Analysis, Management Science), top accounting journals (e.g., Journal of Accounting and Economics), top international business journals (e.g., Journal of International and Business Studies), top insurance journals (e.g., Journal of Risk and Insurance), and economics journals (e.g., Journal of Law and Economics). He won 8 international research awards (including the 2002 & 2003 Shin Insurance Research Awards at New York-based International Insurance Society (IIS), the 2012 Patrick Brockett and Arnold Shapiro research award given by the American Risk and Insurance Association (ARIA), the 2012 China International Conference in Finance (CICF) best paper award), the semifinalist for the best paper award at the 2017 FMA Annual Meeting in Boston, and the 2022 China International Conference on Insurance and Risk Management (CICIRM) hosted by Tsinghua University. He also published 17 journal articles in Chinese (e.g., Economic Research). His research works are featured in the Handbook of Insurance, the CFA Digest, the Harvard Law School Forum on Corporate Governance and Financial Regulation, the Columbia Law School’s blog on corporations and capital markets (Blue Sky), the NBER Working Paper series, the European Corporate Governance Institute – Finance Working Paper series, and two finance textbooks. He also coauthored FinTech cases Ping An OneConnect Virtual Bank (平安一賬通虛擬銀行 Data driven banking business) and Micro Connect (滴灌通 Solution to Micro and Small Business financing).
He once gave a lecture in the Lloyd’s of London, and received media interviews (e.g., Reactions, Forbes, Wall Street Journal, Bloomberg, the Financial Management magazine of AICPA-CIMA). He was a finance paper examiner of the professional qualification exams at the Hong Kong Institute of Bankers (HKIB) and Hong Kong Institute of Chartered Secretaries (HKICS). He is a research fellow at the Center of China Insurance and Social Security Research, and is an associate editor for British Accounting Review – a flagship journal of the British Accounting and Finance Association (2021 CiteScore 7.3), an associate editor for China Financial Review International, and a former associated editor of Journal of Insurance Issues – the official journal of Western Risk and Insurance Association in the U.S., and was on the editorial board of China Journal of Accounting Studies, and Frontiers of Business Research in China (published by Springer) between 2010 and 2016. He was a former independent director of the cross-listed Chong Qing Bank.
- Corporate governance, novel investor protection, boards, directors’ and officers’ liabilities, litigation risk
- Corporate risk management, hedging, and interactions with other corporate financial policies; emerging risk (e.g., ESG risk; cyber risk)
- Loan contracts, cost of debt and equity, IPO
- M&As, innovation
- Financial institutions (including insurance companies)
- Household finance
- Financial reporting, disclosure, tax avoidance
- FinTech
- Chinese financial markets
(For a full list of publications, please refer to http://www.hkubs.hku.hk/~hongzou/)
- Quid pro quo in IPO auctions (with He, Jingbin, Liu, Bo). 2024. Journal of Business Ethics, Accepted.
- Director liability protection and the quality of independent directors (with Masulis, Ronald, Shen, Sichen). 2024. Management Science, Forthcoming.
- Governance by one-lot shares (with Cao, Feng, Yuhai Xuan, Rongli Yuan). 2023. Journal of Financial and Quantitative Analysis, Forthcoming.
- Liquidity effects of litigation risk: Evidence from a legal shock (with Oliviero, Tommaso, Park, Min). 2023. Journal of Law and Economics, Forthcoming.
- Featured in Columbia Law School Blue Sky Blog on corporations and capital markets.
- Do financial regulations shape the functioning of financial institutions’ risk management in ABS investment? 2020. Review of Financial Studies (with Chen, X.J., Higgins, E., and Xia, H.), 33(6), 2506-2553.
- Is Skin in the game a game changer? Evidence from mandatory changes to D&O insurance policies. 2019. Journal of Accounting and Economics, 68(1), 101225 (with Lin, C., Officer, M., Schmid, T.)
- Covenants, creditors’ simultaneous equity holdings, and firm investment policies. 2019. Journal of Financial and Quantitative Analysis 54(2), 481-512. (with Chava, S., Wang, R.)
- Directors’ and officers’ liability insurance and the cost of equity. 2016. Journal of Accounting and Economics, 61(1), 100-120. (with Chen, Z., Li, Z.)
- Directors’ and officers’ liability insurance and loan spreads. 2013. Journal of Financial Economics 110(1), 37-60. (with Lin, C., Officer, M., Wang, R.)
- The real and financial implications of corporate hedging. 2011. Journal of Finance 66(5), 1615-1647. (NBER 16622 Working Paper) (with Campello, M., Lin, C., Ma, Y.)
- Summarized by Keith Black of CFA Institute in CFA Digest 42(1), 2012, DOI: http://dx.doi.org/10.2469/dig.v42.n1.38)
- Referenced in FINANCE FOR EXECUTIVES: A practical guide for managers. By Nuno Fernandes, 2014, NPV Publishing; ISBN-10: 9899885401; ISBN-13: 978-9899885400
- Cited in INTERNATIONAL FINANCIAL MANAGEMENT, by Bekaert, Geert, and Robert Hodrick. Cambridge University Press, 2017.
- Chief executive officer incentives, monitoring, and corporate risk management: Evidence from insurance use. 2011. Journal of Risk and Insurance 78(3), 551-582. (with Adams, M.B., Lin, C.)
- Referenced in Dionne, G. (Ed.). (2013). Handbook of Insurance. Boston: Kluwer Academic Publishers.
- Directors’ and officers’ liability insurance and acquisition outcomes. 2011. Journal of Financial Economics 102(3), 507-525. (with Lin, C., Officer, M.)
- Friend or foe? The role of state and mutual fund ownership in the split share structure reform in China. 2010. Journal of Financial and Quantitative Analysis 45(3), 685-706. (with Firth, M., Lin, C.).
- The effectiveness of using a basis hedging strategy to mitigate the financial consequences of weather-related risks. 2010. North American Actuarial Journal 14(2), 157-175. (with Golden, L.L., Yang, C.)
- 2012 American Risk and Insurance Association (ARIA) Patrick Brockett and Arnold Shapiro best paper award.
- Corporate ownership and equity risks and returns in China. 2008. Journal of International Business Studies 39(7), 1149-1168. (with Adams, M.)
- Best paper award, Chinese Economic Association (UK) Conference, London, 2002
- Debt capacity, cost of debt and corporate insurance. 2008. Journal of Financial and Quantitative Analysis 43(2), 433-466. (with Adams, M.B.)
- Referenced in Dionne, G. (Ed.). (2013). Handbook of Insurance. Boston: Kluwer Academic Publishers.
- Corporate purchase of property insurance: Chinese evidence. 2006. Journal of Financial Intermediation 15(2), 165-196. (with Adams, M.B.) (lead article)
- Corporate risk and property insurance: Evidence from China. 2003. Journal of Risk and Insurance 70(2), 289-314. (with Adams, M.B., Buckle, M.J.)
- 2002 Shin Research Award (US$3,000) at the International Insurance Society (New York-based) annual conference
Selected Revise & Resubmits
Review of Financial Studies, Management Science, Journal of Financial and Quantitative Analysis, Review of Corporate Finance Studies, Journal of Risk and Insurance (x2), Journal of Corporate Finance, Journal of Banking and Finance, Journal of Business, Finance and Accounting, Accounting Horizons (x2)
Selected Publications in Chinese
- Wei, G., Xiao, Z., Travlos, N., and Zou, H. 2007. Independent directors’ background and corporate performance in China, Economic Research (经济研究), 52(3), 92-105.
- Xiao, Z. and Zou, H. 2008. Capital sturucture determinants and equity issuance preference of Chinese listed companies, Economic Research (经济研究), 53(6), 119-144.
3JulAs distributing cash dividends has been a growing trend in A-share market, related regulations and taxation have also become issues of concern for investors. In recent years, the China Securities Regulatory Commission has implemented a series of measures to enhance the regulation of distributing cash dividends by listed companies, and encourage the increase of dividend pay-out ratios, which reflects the regulator's commitment to protecting the interests of individual investors.
3 Jul 2024
Faculty
3JulAs distributing cash dividends has been a growing trend in A-share market, related regulations and taxation have also become issues of concern for investors. In recent years, the China Securities Regulatory Commission has implemented a series of measures to enhance the regulation of distributing cash dividends by listed companies, and encourage the increase of dividend pay-out ratios, which reflects the regulator's commitment to protecting the interests of individual investors.
3 Jul 2024
Faculty
1JulWe examine whether Enterprise Resource Planning system (ERP) usage affects the stock price crash risk of Chinese firms, and whether the effect differs between state-owned enterprises (SOEs) and non-SOEs. We find that ERP usage is associated with lower stock price crash risk, but this pattern is largely concentrated in non-SOEs, consistent with our arguments that more acute shareholder-manager agency problem and more organizational rigidity can inhibit the successful assimilation of ERP. The results are further confirmed by a difference-in-differences analysis exploiting the privatization of SOEs as a negative shock to their shareholder-manager agency problem and organizational rigidity. Three channels help explain why ERP usage helps lower stock price crash risk: it improves the quality of internal control, reduces the chance of financial restatements, and mitigates information asymmetry, and all effects are concentrated in non-SOEs. Our study is among the first to examine how ERP usage affects stock price crash risk – an overall outcome measure of a firm's information environment. Using SOEs vs. non-SOEs as a powerful measure of the shareholder-manager agency problem and organizational rigidity, it also represents the first test of the moderating effect of agency problem and organizational rigidity on the effectiveness of ERP usage.
1 Jul 2024
European Accounting Review
26JunIn mature stock markets, many listed companies distribute cash dividends to provide investors with recurrent income and boost their confidence in the companies. Last year, a total of 3,859 A-share listed companies proposed to pay out cash dividends, increased by 565 companies compared to two years before. The total cash dividends amounted to 2.24 trillion yuan, an increase of 5.16% from the previous year. This trend can be attributed to the policy guidance of the China Securities Regulatory Commission.
26 Jun 2024
Faculty
26JunIn mature stock markets, many listed companies distribute cash dividends to provide investors with recurrent income and boost their confidence in the companies. Last year, a total of 3,859 A-share listed companies proposed to pay out cash dividends, increased by 565 companies compared to two years before. The total cash dividends amounted to 2.24 trillion yuan, an increase of 5.16% from the previous year. This trend can be attributed to the policy guidance of the China Securities Regulatory Commission.
26 Jun 2024
Faculty
1FebTheory offers two diverging views on the effects of ex ante litigation risk on corporate liquidity proxied by cash holdings. Ex ante litigation risk, however, is difficult to measure. We test the liquidity effects of ex ante litigation risk by exploiting the phase-by-phase introduction of securities class actions (SCAs) in Korea. Following the increase in litigation risk, firms significantly increase their internal liquidity, especially those without directors’ and officers’ liability insurance and those that are financially constrained. The results hold robustly in difference-in-differences and regression discontinuity designs. We also find that the increase in ex ante SCA risk improves firms’ stock market liquidity and valuation, especially for firms that do not carry liability insurance. Taken together, the results are consistent with the arguments that SCAs increase firms’ liability risk and lower investors’ risk.
1 Feb 2024
Journal of Law and Economics
31May繼筆者上周在本欄撰寫的〈內地股票發行制度改革躍登新台階〉，本文將聚焦於全面實行股票發行註冊制（以下簡稱註冊制）之後，對內地A股市場和香港股票市場的潛在影響扼要分析如下。
31 May 2023
Faculty
31May繼筆者上周在本欄撰寫的〈內地股票發行制度改革躍登新台階〉，本文將聚焦於全面實行股票發行註冊制（以下簡稱註冊制）之後，對內地A股市場和香港股票市場的潛在影響扼要分析如下。
31 May 2023
Faculty
24May註冊制是市場化程度更高的股票發行制度，為美國、英國、香港、新加坡等市場所採用，此次全面落實制度之舉，體現內地證券市場與國際證券市場進一步接軌。本文對註冊制的推展歷程作一扼要回顧，並分析新舊制度的不同特色。
24 May 2023
Faculty
24May註冊制是市場化程度更高的股票發行制度，為美國、英國、香港、新加坡等市場所採用，此次全面落實制度之舉，體現內地證券市場與國際證券市場進一步接軌。本文對註冊制的推展歷程作一扼要回顧，並分析新舊制度的不同特色。
24 May 2023
Finance
