On April 7, Luojia Economics & Management Innovation Forum Session 147 — Accounting Forum held at the School. Professor Wang Zheng from Hong Kong City University Accounting Department delivered academic report titled "Compensation Transparency and Risk Preference: Empirical Evidence Based on Mortgage Loan Decisions." Accounting and Finance Department faculty and students participated.

Professor Wang Zheng focused on economic impacts of US state-level Pay Transparency Law (PTL) implementation through banking mortgage loan business, deeply analyzing compensation transparency's effects on employee behaviorand business performance mechanisms.

Key Findings:

1. Pay Transparency Law allows employees to openly discuss salaries in workplace

2. Banking mortgage loan specialists belong to lower-income groups; law implementation significantly enhances this group's awareness of relative compensation disadvantage

3. Compensation-disadvantaged mortgage loan specialists adopt more aggressive strategies in loan issuance, resulting in higher loan default rates, directly lowering loan quality

4. Compensation transparency increases bank mortgage loan employees' risk preference

5. This effect more pronounced in regions with greater internal banking income disparities and stronger risk preference culture

Professor Wang Zheng's presentation was logically clear and accessible. Participants discussed hypothesisformation, empirical research aspects, creating strong academic atmosphere.

Wang Zheng: Hong Kong City University Accounting Department Professor. Published multiple papers in The Accounting Review, Contemporary Accounting Research, Journal of Financial and Quantitative Analysis, Organization Science, Production and Operations Managementon accounting information disclosure, regulation and accounting, financial behavior. Associate Editor of The International Journal of Accounting, Asia-Pacific Journal of Accounting and Economics, editorial board member of Journal of Accounting, Auditing & Finance, Production and Operations Management.

Correspondent: Shi Jianni

Reviewer: Luo Zhi