Faculty of Business Administration


  Hosted by The Business Research and Training Center


Dark Side of Product Market Competition and Institutional Quality: International Evidence

Lewis Hon Keung TAM

Associate Professor in Finance

University of Macau


Date:               28 October 2020 (Wednesday)

Time:               15:00

Venue:             E22-4020


Registration:   https://bit.ly/3dl421h



In this study, we find that product market competition gives rise to a higher stock crash risk for a large sample of international firms. However, country-level institutional quality, measured with a set of governance indices and the world-wide board reforms, weakens the positive relationship between product market competition and stock crash risk. With accruals quality and accounting conservatism as information hoarding proxies, we find that stock crash risk in competitive industries can be attributed to managerial incentive in withholding information (especially the bad news) and that institutional quality mitigates such incentive.



Lewis H.K. Tam is an Associate Professor of Finance in the Department of Finance and Business Economics, Faculty of Business Administration, University of Macau (UM). He is also Principal Contact Person for the CFA University Recognition Program at UM.

Lewis has a diversified portfolio of research outputs. His research interests include corporate finance, mergers & acquisitions, empirical asset pricing, Chinese stock market, corporate social responsibilities, and corporate political activities. His research outputs appear on internationally refereed journals such as Journal of Corporate Finance, Journal of Banking & Finance, Journal of Business Finance & Accounting, etc. He obtained both his BBA and PhD in Finance at the Hong Kong University of Science and Technology (HKUST).