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Articles 31 - 57 of 57
Full-Text Articles in Business
Soa Maturity Influence On Digital Banking Transformation, Alan Megargel, Venky Shankararaman, Terence P. C. Fan
Soa Maturity Influence On Digital Banking Transformation, Alan Megargel, Venky Shankararaman, Terence P. C. Fan
Research Collection School Of Computing and Information Systems
Digital Banking is an evolution of online banking, where the banks attempt to further enhance customer experience by integrating digital technologies such as mobile technology, social media and analytics. Traditional banks have the highest barriers to entry into the digital banking market due to the presence of legacy core banking systems. These legacy systems while still high performing and reliable, are inflexible to change and are not easily integrated to the modern application systems needed for delivering digital banking services across multiple online banking channels. One solution that is widely adopted in the industry to overcome this obstacle is the …
The Real Effects Of Exchange Traded Funds, Frank Weikai Li, Xuewen Liu, Chengzhu Sun
The Real Effects Of Exchange Traded Funds, Frank Weikai Li, Xuewen Liu, Chengzhu Sun
Research Collection Lee Kong Chian School Of Business
This paper investigates the effects of exchange-traded funds (ETFs) on the real efficiency of the underlying securities. We document strong evidence that being held by ETFs increases the sensitivity of a firm's investment to its own stock price. This is consistent with the model prediction on the managerial learning channel. Higher ownership by ETFs increases the firm's stock price informativeness about systematic shocks but may decrease the informativeness about firm-specific shocks; however, the firm manager cares most and wants to learn from the stock price mainly about systematic shocks in making investment decisions as he already has precise private information …
Is Sell-Side Research More Valuable In Bad Times?, Roger Loh, René M. Stulz
Is Sell-Side Research More Valuable In Bad Times?, Roger Loh, René M. Stulz
Research Collection Lee Kong Chian School Of Business
Because uncertainty is high in bad times, investors find it harder to assess firm prospects and, hence, should value analyst output more. However, higher uncertainty makes analysts’ tasks harder so it is unclear if analyst output is more valuable in bad times. We find that, in bad times, analyst revisions have a larger stock-price impact, earnings forecast errors per unit of uncertainty fall, reports are more frequent and longer, and the impact of analyst output increases more for harder-to-value firms. These results are consistent with analysts working harder and investors relying more on analysts in bad times.
The Wider Impact Of A National Cryptocurrency, Dennis Ng, Paul Griffin
The Wider Impact Of A National Cryptocurrency, Dennis Ng, Paul Griffin
Research Collection Lee Kong Chian School Of Business
This study looks at the impact of a national cryptocurrency on the payment landscape in the midst of the rise of globalpublic cryptocurrencies and interest from central banks in a possible national cryptocurrency. The impacts are analysed for consumers, merchants, banks,payment providers, international money transfer operators and central banks.The study analyses the pros and cons for each player with an overall impactranking. There is a particular emphasis on central banks as they hold key regulatory oversight for economic and financial matters affecting a country.Whilst finding that there is an overall benefit, there are also significant risks. A sandbox approach is …
Benefits Of Relationship Banking: Evidence From Consumer Credit Markets, Sumit Agarwal, Souphala Chomsisengphet, Chunlin Liu, Changcheng Song, Nicholas S. Souleles
Benefits Of Relationship Banking: Evidence From Consumer Credit Markets, Sumit Agarwal, Souphala Chomsisengphet, Chunlin Liu, Changcheng Song, Nicholas S. Souleles
Research Collection Lee Kong Chian School Of Business
Using a unique panel dataset that contains comprehensive information about the relationships between a large bank and its credit card customers, we show that relationship accounts exhibit lower probabilities of default and attrition, and have higher utilization rates, than non-relationship accounts. Dynamic information about changes in the behavior of a customer's other accounts at the same bank helps predict the behavior of the credit card account over time. These results imply that relationship banking offers significant potential benefits to banks: information the lender has at its disposal can be used to mitigate credit risk on the credit card account.
The Competitive Landscape Of High-Frequency Trading Firms, Ekkehart Boehmer, Dan Li, Gideon Saar
The Competitive Landscape Of High-Frequency Trading Firms, Ekkehart Boehmer, Dan Li, Gideon Saar
Research Collection Lee Kong Chian School Of Business
We examine product differentiation in the high-frequency trading (HFT) industry, where the “products” are secretive proprietary trading strategies. We demonstrate how principal component analysis can be used to detect underlying strategies that are common to multiple HFT firms, and show that there are three product categories with distinct attributes. We study how HFT competition in each product category impacts the market environment, presenting evidence that indicates how it influences the short-horizon volatility of stocks as well as the viability of trading venues.
Acquiring Organizational Capital, Peixin Li, Frank Weikai Li, Baolian Wang, Zilong Zhang
Acquiring Organizational Capital, Peixin Li, Frank Weikai Li, Baolian Wang, Zilong Zhang
Research Collection Lee Kong Chian School Of Business
Organizational capital is the accumulation and use of private information to enhance economic efficiency for a firm. Theory has argued that organizational capital is typically embodied in employees and the organizational structure, and is hard to transfer across organizations. In this paper, we study whether organizational capital is transferable across firms via mergers. The evidence shows that acquirers gain more from acquiring firms with higher organizational capital and acquirers are also willing to pay a higher premium for higher organizational capital targets. The evidence suggests that acquiring higher organizational capital targets creates synergies which are shared between acquirers and targets.
A Proposal For A Decentralized Liquidity Savings Mechanism With Side Payments, Adam Fugal, Rodney Garratt, Zhiling Guo, Dave Hudson
A Proposal For A Decentralized Liquidity Savings Mechanism With Side Payments, Adam Fugal, Rodney Garratt, Zhiling Guo, Dave Hudson
Research Collection School Of Computing and Information Systems
In most countries, the central bank provides the medium to physically settle the smallest payments (cash) and the means to electronically settle the largest payments, which typically are wholesale payments between banks. For the latter purpose the central bank usually operates a system through which banks can settle payments in central bank money. Historically, interbank payments were settled via (end of day) netting systems, but as volumes and values increased central banks became worried about the risks inherent in deferred net settlement systems, so most central banks opted for the implementation of a Real Time Gross Settlement (RTGS) system. With …
On The Fintech Revolution: Interpreting The Forces Of Innovation, Disruption And Transformation In Financial Services, Peter Gomber, Robert J. Kauffman, Chris Parker, Bruce W. Weber
On The Fintech Revolution: Interpreting The Forces Of Innovation, Disruption And Transformation In Financial Services, Peter Gomber, Robert J. Kauffman, Chris Parker, Bruce W. Weber
Research Collection School Of Computing and Information Systems
Firms in the financial services industry have been faced with the dramatic and relatively recentemergence of new technology innovations, and process disruptions. The industry as a whole, and many newfintech start-ups are looking for new pathways to successful business models, the creation of enhanced customerexperience, and new approaches that result in services transformation. Industry and academic observers believethis to be more of a revolution than a set of less impactful changes, with financial services as a whole due formajor improvements in efficiency, in customer centricity and informedness. The long-standing dominance ofleading firms that are not able to figure out how …
Debt Heterogeneity And Covenants, Yun Lou, Clemens A. Otto
Debt Heterogeneity And Covenants, Yun Lou, Clemens A. Otto
Research Collection School Of Accountancy
Coordination failure among owners of heterogeneous debt types increases distress costs. Covenants reduce expected distress costs by lowering the probability of liquidity shortages, increasing liquidation values, and incentivizing creditor monitoring. We predict and find that new debt contracts include more covenants when borrowers' existing debt structures are more heterogeneous. Our findings suggest that covenants are not only used to address creditor-shareholder conflicts but also to reduce the expected costs of coordination failure among creditors. Further, our results indicate a dynamic component missing from static debt structure models: Debt heterogeneity entails additional covenants (i.e., constraints) when raising future debt.
Option Listing And Information Asymmetry, Jianfeng Hu
Option Listing And Information Asymmetry, Jianfeng Hu
Research Collection Lee Kong Chian School Of Business
Option listing increases informed and uninformed trading by 12.4% and 23.9%, respectively, in the US between 2001 and 2010, hence reducing relative information risk. We establish the causal effects using control stocks with similar propensities of listing and a quasi-natural experiment using option listing standards. The benefits are more prominent for stocks with active options trading and opaque stocks. The reduction of information risk is larger for good news than bad news, and the stock price response to earnings surprise weakens after listing. The results suggest that options improve the overall market information environment beyond substitutional effects to stock trading.
How Fintech Startups Succeed In Financial Inclusion To Bank The Unbanked, Miguel Soriano
How Fintech Startups Succeed In Financial Inclusion To Bank The Unbanked, Miguel Soriano
Asian Management Insights
In the drive to bank the unbanked, digital technology may succeed where others could only dream.
Capm-Based Company (Mis)Valuations, Olivier Dessaint, Jacques Olivier, Clemens A. Otto, David Thesmar
Capm-Based Company (Mis)Valuations, Olivier Dessaint, Jacques Olivier, Clemens A. Otto, David Thesmar
Research Collection Lee Kong Chian School Of Business
There is a discrepancy between CAPM-implied and realized returns. Using the CAPM in capital budgeting -- as recommended in finance textbooks -- should thus have valuation effects. For instance, low beta projects should be valued more by CAPM-using managers than by the market. This paper empirically tests this hypothesis using publicly announced M&A decisions and shows that takeovers of lower beta targets are accompanied by lower cumulative abnormal returns for the bidders. Specifically, our estimates imply an average net loss to bidders corresponding to 12% of the average deal value and exceeding USD 10 billion per year in aggregate.
Competing On Speed, Emiliano Sebastian Pagnotta, Thomas Philippon
Competing On Speed, Emiliano Sebastian Pagnotta, Thomas Philippon
Research Collection Lee Kong Chian School Of Business
We analyze trading speed and fragmentation in asset markets. In our model, trading venues make technological investments and compete for investors who choose where and how much to trade. Faster venues charge higher fees and attract speed-sensitive investors. Competition among venues increases investor participation, trading volume, and allocative efficiency, but entry and fragmentation can be excessive, and speeds are generically inefficient. Regulations that protect transaction prices (e.g., Securities and Exchange Commission trade-through rule) lead to greater fragmentation. Our model sheds light on the experience of European and U.S. markets since the implementation of Markets in Financial Instruments Directive and Regulation …
Are Bond Ratings Informative? Evidence From Regulatory Regime Changes, Louis H. Ederington, Jeremy Goh, Yen Teik Lee, Lisa Yang
Are Bond Ratings Informative? Evidence From Regulatory Regime Changes, Louis H. Ederington, Jeremy Goh, Yen Teik Lee, Lisa Yang
Research Collection Lee Kong Chian School Of Business
The recent Dodd-Frank Act (Section 939B) enacted in 2010 repeals credit rating agencies’ (CRAs) exemption from Regulation Fair Disclosure. We test whether CRAs continue to provide new information to the market after the repeal. We find that the significant pre-repeal stock price responses to rating changes disappear after the regime change. Bond price reactions however remain significant. These results are even more significant at the investment-speculative boundary. Our evidence suggests that CRAs serve as a conduit for transmitting private information before the repeal. It also shows that regulatory constraint is a channel by which credit ratings affect cost of financing.
Short Covering Trades, Ekkehart Boehmer, Truong X. Duong, Zsuzsa R. Huszar
Short Covering Trades, Ekkehart Boehmer, Truong X. Duong, Zsuzsa R. Huszar
Research Collection Lee Kong Chian School Of Business
Short sellers are known to have private information about security prices. Empirical evidence of short selling, however, is based on only half of short sellers’ trading activity; specifically, the opening of the position. Using disclosed large short position data from the Japanese stock market, we provide the first detailed evidence of covering trades and find a positive reaction to short covering that only partially reverses. While these results are consistent with substantial transaction costs for closing large short positions, they also reveal that some short sellers are privately informed about positive future events and have timing ability in covering positions.
Inflation Expectations In Singapore: A Behavioural Approach, Alexander Clark, Aurobindo Ghosh, Samuel Hanes
Inflation Expectations In Singapore: A Behavioural Approach, Alexander Clark, Aurobindo Ghosh, Samuel Hanes
Research Collection Lee Kong Chian School Of Business
The expectations of economic agents have significant impact on their decisions and are key determinants of macroeconomic outcomes such as inflation, economic growth and unemployment. For example, if a worker believes that consumer prices will rise sharply next year, she would demand a wage increase. Similarly, a homeowner with a fixed interest mortgage might make an early repayment if she expects price levels to fall, knowing that the real value of her mortgage debt will increase. In these cases, expectations about inflation could lead to changes in behaviour and in the aggregate, influence prices and become self-fulfilling.
Are Overconfident Ceos Better Leaders? Evidence From Stakeholder Commitments, Kenny Phua, T. Mandy Tham, Chi Shen Wei
Are Overconfident Ceos Better Leaders? Evidence From Stakeholder Commitments, Kenny Phua, T. Mandy Tham, Chi Shen Wei
Research Collection Lee Kong Chian School Of Business
We find evidence that the leadership of overconfident chief executive officers (CEOs) induces stakeholders to take actions that contribute to the leader's vision. By being intentionally overexposed to the idiosyncratic risk of their firms, overconfident CEOs exhibit a strong belief in their firms’ prospects. This belief attracts suppliers beyond the firm's observable expansionary corporate activities. Overconfident CEOs induce more supplier commitments including greater relationship-specific investment and longer relationship duration. Overconfident CEOs also induce stronger labor commitments as employees exhibit lower turnover rates and greater ownership of company stock in benefit plans.
Cryptocurrency: A New Investment Opportunity?, David Kuo Chuen Lee, Li Guo, Yu Wang
Cryptocurrency: A New Investment Opportunity?, David Kuo Chuen Lee, Li Guo, Yu Wang
Research Collection Lee Kong Chian School Of Business
Bitcoin was the first cryptocurrency to use blockchain and has been the market leader since the first bitcoin was mined in 2009. After the birth of Bitcoin with the genesis block, more than 1,000 altcoins and crypto-tokens have been created, with at least 919 trading actively on unregulated or registered exchanges. This entire class of cryptocurrencies and tokens has been classified by some tax authorities as having the same status as commodities. If cryptocurrency is viewed in the same class as commodities, how different is it in terms of its risk and return structure? This article sets out to help …
Do Alpha Males Deliver Alpha? Facial Structure And Hedge Funds, Yan Lu, Melvyn Teo
Do Alpha Males Deliver Alpha? Facial Structure And Hedge Funds, Yan Lu, Melvyn Teo
Research Collection Lee Kong Chian School Of Business
Facial structure as encapsulated by facial width-to-height ratio (fWHR) maps onto masculine behaviors in males and may positively relate to testosterone. We find that high-fWHR hedge fund managers underperform low-fWHR hedge fund managers by 5.83% per year after adjusting for risk. Moreover, funds operated by high-fWHR managers exhibit higher operational risk, suffer from a greater asset-liability mismatch, and are more likely to fail. We trace the underperformance to high-fWHR managers’ preference for lottery-like stocks and reluctance to sell loser stocks. The results are robust to adjustments for sample selection, marital status, sensation seeking, and manager race, and suggest that investors …
Do Underwriters Compete In Ipo Pricing?, Evgeny Lyandres, Fangjian Fu, Erica X. N. Li
Do Underwriters Compete In Ipo Pricing?, Evgeny Lyandres, Fangjian Fu, Erica X. N. Li
Research Collection Lee Kong Chian School Of Business
We propose and implement a direct test of the hypothesis of oligopolistic competition in the U.S. underwriting market against the alternative of implicit collusion among underwriters. We construct a simple model of interaction between heterogenous underwriters and heterogenous firms and solve it under two alternative assumptions: oligopolistic competition among underwriters and implicit collusion among them. The two solutions lead to different equilibrium relations between the compensation of underwriters of different quality on one hand and the time-varying demand for public incorporation on the other hand. Our empirical results, obtained using 39 years of IPO data, are generally consistent with the …
Singapore As An Asean Asset Management Hub, Francis Koh, Boris Liedtke
Singapore As An Asean Asset Management Hub, Francis Koh, Boris Liedtke
Research Collection Lee Kong Chian School Of Business
Singapore like other ASEAN countries is also confronted with the universal challenge of retirement funding. Nonetheless, the authors argue that Singapore can address such headwind through a number of policy changes and that Singapore is uniquely placed to be the premier Asset Management Hub for the ASEAN region.
Singapore Approach To Develop And Regulate Fintech, Sai Fan Pei
Singapore Approach To Develop And Regulate Fintech, Sai Fan Pei
Research Collection Lee Kong Chian School Of Business
This paper starts with a brief introduction of the recent organizational support established by The Monetary Authority of Singapore (MAS) to promote the fast developing FinTech (financial technology) sector. Basing on its existing “balanced” approach in promoting financial development and ensuring a safe and sound financial sector, and in sync with its objective to harness technology to improve the efficiency of the financial markets, the paper elaborates on the insights of MAS' policy intent in regulating the FinTech sector. The paper then focuses on MAS' proposed “Regulatory Sandbox” – an innovative regulatory framework which helps to strike a good balance …
Utilization Of Csr To Build Organizations’ Corporate Image In Asia: Need For An Integrative Approach, Augustine Pang, May O. Lwin, Chrystal Shu-Min Ng, Ying-Kai Ong, Shannon Rose Wing-Ching Chau, Kristle Poh-Sim Yeow
Utilization Of Csr To Build Organizations’ Corporate Image In Asia: Need For An Integrative Approach, Augustine Pang, May O. Lwin, Chrystal Shu-Min Ng, Ying-Kai Ong, Shannon Rose Wing-Ching Chau, Kristle Poh-Sim Yeow
Research Collection Lee Kong Chian School Of Business
Corporate social responsibility (CSR) has been found to be a strong predictor of a favorable corporate image [Gray, 1986. Managing the corporate image: The key to public trust. London: Quorum Books]. Websites have become an essential communication platform [Dawkins, 2004. Corporate responsibility: The communication challenge. Journal of Communication Management, 9(2), 108–119]. This study aims to investigate how CSR can be used in enhancing organizational corporate image. Content analyses of 150 corporate websites of organizations in Asia headquartered in Singapore were conducted, followed by in-depth interviews with public relations (PR) practitioners to examine the motivations behind their CSR engagement. Findings showed …
The Impact Of Advertising Share Of Voice On The Idiosyncratic Risk Of The Firm, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
The Impact Of Advertising Share Of Voice On The Idiosyncratic Risk Of The Firm, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
Research Collection Lee Kong Chian School Of Business
Integrating literature in marketing, finance and accounting, this study examines the impact ofa firms’ advertising share of voice (ASOV) on investors’ uncertainty about its future financialperformance, i.e., firms’ idiosyncratic risk. Drawing on signaling theory, authors propose that ASOV serves as a signal for investors such that higher ASOV reduces idiosyncratic risk. Consistent with this argument, analysis of 2,777 publicly listed firms over a two-decade period (1995-2014) shows that ASOV has a significant negative effect on idiosyncratic risk.In addition, consistent with the argument that ASOV is a more credible signal when firmshave higher cash flows; authors find that the negative impact …
Scarcity In The Twenty-First Century: How The Resource Nexus Affects Management, Simon J. D. Schillebeeckx, Mark Workman, Charles Dean
Scarcity In The Twenty-First Century: How The Resource Nexus Affects Management, Simon J. D. Schillebeeckx, Mark Workman, Charles Dean
Research Collection Lee Kong Chian School Of Business
Since theadvent of the 21st century and especially since the food andfinancial crisis in 2008, concerns about natural resource availability haveresurfaced. While scarcity concerns date back hundreds of years and arefoundational to economics, how scarcity is interpreted or framed has evolved significantlyin the last two centuries. In this chapter, we recount the evolving scarcity discourseand specifically address the most recent iteration that centres on the idea ofa resource nexus. While significant attention to the nexus has been paid bypolicy-makers and scholars interested in especially water, management scholarshave so far remained absent from these debates. Given recent calls to address grand …
Real-Time Inbound Marketing: A Use Case For Digital Banking, Alan Megargel, Venky Shankararaman, Srinivas K. Reddy
Real-Time Inbound Marketing: A Use Case For Digital Banking, Alan Megargel, Venky Shankararaman, Srinivas K. Reddy
Research Collection School Of Computing and Information Systems
Over the years banks have been strategically using digital technologies to help transform various aspects of their business. In recent times, this strategy has evolved into one of digital augmentation of the bank’s processes, products and channels. This allows for reaching out to customers and partners through digital platforms, for example; the addition of mobile apps for customers to access and perform service transactions. Marketing continues to play a major role in supporting the expansion of business and increasing revenue for the bank. Marketing has evolved from mass direct targeting to more personalised, face-to-face and real-time targeting. In the digital …