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Research Collection Lee Kong Chian School Of Business

2017

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Articles 1 - 30 of 135

Full-Text Articles in Business

Are Disagreements Agreeable? Evidence From Information Aggregation, Dashan Huang, Jiangyuan Li, Liyao Wang Dec 2017

Are Disagreements Agreeable? Evidence From Information Aggregation, Dashan Huang, Jiangyuan Li, Liyao Wang

Research Collection Lee Kong Chian School Of Business

Most studies on disagreement focus on cross-sectional asset returns and well-recognized disagreement measures generally cannot predict the stock market with a horizon less than 12 months. This paper proposes three aggregate disagreement indexes by aggregating information across 20 disagreement measures. We show that disagreement measures collectively have a common component that has significant power in predicting the stock market both in- and out-of-sample. Consistent with the theory developed by Atmaz and Basak (2017), the indexes asymmetrically forecast the market with greater power in high sentiment periods. Moreover, the indexes negatively predict economic activities, and positively predict market volatility, illiquidity, and …

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What Happens Online Stays Online? Segment-Specific Online And Offline Effects Of Banner Advertisements, Lara Lobschat, Ernst C. Osinga, Werner J. Reinartz Dec 2017

What Happens Online Stays Online? Segment-Specific Online And Offline Effects Of Banner Advertisements, Lara Lobschat, Ernst C. Osinga, Werner J. Reinartz

Research Collection Lee Kong Chian School Of Business

Many firms allocate increasing parts of their advertising budgets to banner advertising. Yet, for firms that predominantly sell offline, existing research provides little guidance on online advertising decisions. In this study, the authors analyze the impact of banner advertising on consumers' online and offline behavior across multiple distinct campaigns for one focal firm, which predominantly sells through the offline channel. Results suggest that banner and TV advertising increase website visit incidence for consumers who had not visited the focal firm's website in the previous four weeks (non-recent online consumers). For these consumers, banner and TV advertisements indirectly increase offline sales …

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Volume Information In Nikkei And Topix Futures Transactions, Chyng Wen Tee, Christopher Ting Dec 2017

Volume Information In Nikkei And Topix Futures Transactions, Chyng Wen Tee, Christopher Ting

Research Collection Lee Kong Chian School Of Business

According to the Kyle (1985) model of informed trading, information in trade size is likely to effect a permanent price impact. However, two prominent structural models in the literature do not include trade size in their framework. In this paper, we present a nesting relationship of major structural models and formulate a generalized model that includes all trade variables. A new measure to quantify the amount of information in the order flow is proposed. Our empirical analysis shows that it is indeed the "surprise" in trade size that contributes significantly in reflecting the price change of Nikkei and TOPIX futures.

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Technical Note—On The Relation Between Several Discrete Choice Models, Guiyun Feng, Xiaobo Li, Zizhuo Wang Dec 2017

Technical Note—On The Relation Between Several Discrete Choice Models, Guiyun Feng, Xiaobo Li, Zizhuo Wang

Research Collection Lee Kong Chian School Of Business

In this paper, we study the relationship between several well known classes of discrete choice models, i.e., the random utility model (RUM), the representative agent model (RAM), and the semiparametric choice model (SCM). Using a welfare-based model as an intermediate, we show that the RAM and the SCM are equivalent. Furthermore, we show that both models as well as the welfare-based model strictly subsume the RUM when there are three or more alternatives, while the four are equivalent when there are only two alternatives. Thus, this paper presents a complete picture of the relationship between these choice models.

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Inventory Management Based On Target-Oriented Robust Optimization, Yun Fong Lim, Chen Wang Dec 2017

Inventory Management Based On Target-Oriented Robust Optimization, Yun Fong Lim, Chen Wang

Research Collection Lee Kong Chian School Of Business

We propose a target-oriented robust optimization approach to solve a multi-product, multi-period inventory management problem subject to ordering capacity constraints. We assume the demand for each product in each period is characterized by an uncertainty set, which depends only on a reference value and the bounds of the demand. Our goal is to find an ordering policy that maximizes the sizes of all the uncertainty sets such that all demand realizations from the sets will result in a total cost lower than a pre-specified cost target. We prove that a static decision rule is optimal for an approximate formulation of …

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Base Faith, Stefano Harney, Fred Moten Dec 2017

Base Faith, Stefano Harney, Fred Moten

Research Collection Lee Kong Chian School Of Business

The earth moves against the world. And today the response of the world is clear. The world answers in fire and flood. The more the earth churns the more vicious the world’s response. But the earth still moves. Tonika Sealy Thompson might call it a procession. The earth’s procession is not on the world’s calendar. It is not a parade on a parade ground. It is not in the world’s teleology. Nor is the procession exactly a carnival played to mock or overturn this parade, to take over its grounds. A procession moves unmoved by the world. The earth’s procession …

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Sell Side Benchmarks, Ohad Kadan, Leonardo Madureira, Rong Wang, Tzachi Zach Dec 2017

Sell Side Benchmarks, Ohad Kadan, Leonardo Madureira, Rong Wang, Tzachi Zach

Research Collection Lee Kong Chian School Of Business

Sell-side analysts employ different benchmarks when defining their stock recommendations. For example, a ‘buy’ for some brokers means the stock is expected to outperform its peers in the same sector (“sector benchmarkers”), while for other brokers it means the stock is expected to outperform the market (“market benchmarkers”), or just some absolute return (“total benchmarkers”). We explore the validity and implications of the adoption of these different benchmarks. Analysis of the relation between analysts’ recommendations and their long-term growth and earnings forecasts suggests that analysts indeed abide by their benchmarks: Sector benchmarkers rely less on across-industry information, and focus more …

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The Interaction Between Operational Flexibility And Financial Flexibility, Onur Boyabatli, Tiecheng Leng Dec 2017

The Interaction Between Operational Flexibility And Financial Flexibility, Onur Boyabatli, Tiecheng Leng

Research Collection Lee Kong Chian School Of Business

This paper examines the interaction between operational flexibility and financial flexibility in a multi-product business unit that makes operational decisions based on financial resources provided by its parent company (or headquarters). We capture operational flexibility through investment in flexible technology and financial flexibility through higher availability of financial resources. We consider the flexible-versus-dedicated technology choice and capacity investment decisions of a two-product business unit under demand uncertainty in the presence of budget constraints. The unit operates under a capital budget for financing the capacity investment, and an operating budget, which is uncertain in the capacity investment stage, for financing the …

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Hedge Fund Franchises, William Fung, David Hsieh, Narayan Y. Naik, Melvyn Teo Dec 2017

Hedge Fund Franchises, William Fung, David Hsieh, Narayan Y. Naik, Melvyn Teo

Research Collection Lee Kong Chian School Of Business

Duplicate, see https://ink.library.smu.edu.sg/lkcsb_research/5964/. We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. Motivated by the aforementioned spillover effects, first funds outperform follow-on funds, after adjusting for risk. The multiple-product growth strategy hurts investors while benefiting hedge fund firms; multiple-product firms underperform single-product firms but harvest greater fee revenues. Investors respond to this growth strategy by redeeming from first funds of firms with follow-on funds that do poorly. Moreover, skilled investors allocate …

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Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim Dec 2017

Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim

Research Collection Lee Kong Chian School Of Business

Post-crisis policy interventions significantly increased the demand for mortgage refinancing, but could this surge in refinancing applications have crowded out the supply of credit to home buyers? In this paper, we examine two frictions that hamper financial intermediation and result in banks' substitution of home purchase loans for refinance loans: The risk capacity channel through which banks with limited risk appetites prefer safer loans over riskier loans, and the operating capacity channel through which banks with limited operating capacities prefer applications that require less screening time. We find that following the recent financial crisis, banks facing these capacity constraints indeed …

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Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim Dec 2017

Clogged Intermediation: Were Home Buyers Crowded Out?, Hyunsoo Choi, Hyun-Soo Choi, Jung-Eun Kim

Research Collection Lee Kong Chian School Of Business

Post-crisis policy interventions significantly increased the demand for mortgage refinancing, but could this surge in refinancing applications have crowded out the supply of credit to home buyers? In this paper, we examine two frictions that hamper financial intermediation and result in banks' substitution of home purchase loans for refinance loans: The risk capacity channel through which banks with limited risk appetites prefer safer loans over riskier loans, and the operating capacity channel through which banks with limited operating capacities prefer applications that require less screening time. We find that following the recent financial crisis, banks facing these capacity constraints indeed …

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An Assessment Of When, Where And Under What Conditions In-Store Sampling Is Most Effective, Sandeep R. Chandukala, Jeffrey P. Dotson, Qing Liu Dec 2017

An Assessment Of When, Where And Under What Conditions In-Store Sampling Is Most Effective, Sandeep R. Chandukala, Jeffrey P. Dotson, Qing Liu

Research Collection Lee Kong Chian School Of Business

In-store product sampling is a commonly used promotional technique designed to give prospective consumers an opportunity to experience a product prior to purchase. While prior research has documented a positive relationship between short-term sales and perceptual measures of the customer shopping experience, little is known about the long-term impact of sampling or factors that moderate its success. In this paper, we develop an empirical approach that allows us to study the short-term and long-term effects of in-store sampling on both own and competitive products. We apply our approach to six store-level scanner data sets across four different product categories and …

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Capacity Management In Agricultural Commodity Processing And Application In The Palm Industry, Onur Boyabatli, Jason Quang Dang Nguyen, Tong Wang Dec 2017

Capacity Management In Agricultural Commodity Processing And Application In The Palm Industry, Onur Boyabatli, Jason Quang Dang Nguyen, Tong Wang

Research Collection Lee Kong Chian School Of Business

This paper examines the capacity investment decisions of a processor that uses a commodity input to produce both a commodity output and a byproduct in the context of agricultural industries. We employ a multi-period model to study the optimal one-time processing and (output) storage capacity investment decisions---in addition to the periodic processing and inventory decisions---when both input and output spot prices as well as production yield are uncertain. We characterize the optimal decisions and perform sensitivity analysis to investigate how spot price uncertainty affects the processor's optimal capacity and profitability. Using a calibration based on the palm industry, we study …

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Workplace Trust As A Mechanism Of Employee (Dis)Advantage: The Case Of Employee Socioeconomic Status, Marko Pitesa, Stefan Thau, Madan M. Pillutla Nov 2017

Workplace Trust As A Mechanism Of Employee (Dis)Advantage: The Case Of Employee Socioeconomic Status, Marko Pitesa, Stefan Thau, Madan M. Pillutla

Research Collection Lee Kong Chian School Of Business

Early work on trust in social science highlighted how the lack of trust between individuals can cause social division, contribute to social stratification, and reduce economic opportunities for people from all social groups. We integrate this work with organizational research on antecedents of trust to generate predictions explaining when and why low employee socioeconomic status (SES) can be a barrier to trust. We discuss how this process can impair the success of both organizations as well as their lower-SES employees. We present a model, and data, suggesting that lower-SES employees will be both more distrusted as well as more distrustful …

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Dissecting Arbitrage Costs, F. Y. Eric Lam, Chishen Wei, K. C John Wei Nov 2017

Dissecting Arbitrage Costs, F. Y. Eric Lam, Chishen Wei, K. C John Wei

Research Collection Lee Kong Chian School Of Business

This paper systematically examines the impact of nine popular arbitrage costs measures on cross-sectional mispricing based on ten well-known and robust anomalies. We show that binding arbitrage barriers slowly change over time. In early years with few publications documenting return anomalies, arbitrage costs have tiny impact even though mispricing is present. As anomalies become more widely known, arbitrage costs impact mispricing substantially. Arbitrage risk, ambiguity of fundamental value, round-trip broker’s commission plus bid-ask spreads, and stock loan supply are binding on arbitrageurs. Only arbitrage risk is binding if larger cap stocks are emphasized. In recent years when market quality improves …

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The Flow Of Funds In Asean, Philip C. Zerrillo Nov 2017

The Flow Of Funds In Asean, Philip C. Zerrillo

Research Collection Lee Kong Chian School Of Business

In his novel, Memoirs of a Geisha, Arthur Golden wrote, “Water can carve its way even through stone. And when trapped, water makes a new path.” Something similar seems to be happening with the flow of funds in ASEAN.

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Permanent Price Impact Asymmetry Of Trades With Institutional Constraints, Chiraphol N. Chiyachantana, Pankaj Jain, Christine Jiang, Vivek Sharma Nov 2017

Permanent Price Impact Asymmetry Of Trades With Institutional Constraints, Chiraphol N. Chiyachantana, Pankaj Jain, Christine Jiang, Vivek Sharma

Research Collection Lee Kong Chian School Of Business

Dynamic institutional trading constraints related to capital, diversification, and short-selling asymmetrically affect the incorporation of new information as reflected in the permanent price impact of their trades. The sign of the permanent price impact asymmetry between institutional buys versus sells is positive at the initial stage of a price run-up and reverses due to changing constraints with a prolonged price run-up in a stock. Idiosyncratic volatility, analyst forecast dispersion, trading intensity, price dispersion, and bullish market conditions further sharpen the initial asymmetry, as well as its reversal after a price run-up.

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Does Ethical Orientation Matter? Determinants Of Public Reaction To Csr Communication, Kyujin Shim, Myojung Chung, Young Kim Nov 2017

Does Ethical Orientation Matter? Determinants Of Public Reaction To Csr Communication, Kyujin Shim, Myojung Chung, Young Kim

Research Collection Lee Kong Chian School Of Business

Employing an experiment study (N = 256), this study examines how individuals ethical orientation (deontology vs. consequentialism) and CSR message frame (normative vs. strategic) influence corporate hypocrisy perception and negative communication intentions toward a given company. Findings demonstrate that deontological ethical orientation and strategic CSR frame induce stronger corporate hypocrisy perception and negative communication intention than do consequential ethical orientation and normative CSR frame. In addition, deontological ethical orientation moderated the effects of CSR frames on negative communication intention toward the company. Implications for both public relations scholarship and practices are discussed.

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Creating A Great Workplace For All Singapore: First Steps For Business Leaders, Richard R. Smith, Benjamin Ho Nov 2017

Creating A Great Workplace For All Singapore: First Steps For Business Leaders, Richard R. Smith, Benjamin Ho

Research Collection Lee Kong Chian School Of Business

In a highly competitive business world, the pressure for bottom-line results can be intense – sometimes at the expense of a positive workplace environment. Yet, it seems there are organizations that not only do well, but also have people who trust their leaders, possess deep pride in their work and organizations, and take genuine pleasure in working with their colleagues.

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Corporate Crisis Advertising: A Framework Examining The Use And Effects Of Corporate Advertising Before And After Crises, Benjamin Ho, Wonsun Shin, Augustine Pang Nov 2017

Corporate Crisis Advertising: A Framework Examining The Use And Effects Of Corporate Advertising Before And After Crises, Benjamin Ho, Wonsun Shin, Augustine Pang

Research Collection Lee Kong Chian School Of Business

While corporate advertising has been widely studied as a promotional tool, few studies have examined how it can be used in a corporate crisis situation. In 2013, Kim proposed a conceptual framework for examining stakeholders’ evaluation of pre-crisis corporate advertising, using the inoculation and reactance theory. The framework, published in Journal of Marketing Communications, suggested that pre-crisis advertising can increase audience resistance towards negative news of an organization and decrease audience resistance towards future corporate advertisements from the organization. The present study expands on Kim’s work to develop the corporate crisis advertising (CCA) framework. In addition to the inoculation and …

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Transshipment Hub Selection From A Shipper’S And Freight Forwarder’S Perspective, Gang Chen, Waiman Cheung, Sung-Chi Chu, Liang Xu Oct 2017

Transshipment Hub Selection From A Shipper’S And Freight Forwarder’S Perspective, Gang Chen, Waiman Cheung, Sung-Chi Chu, Liang Xu

Research Collection Lee Kong Chian School Of Business

Transshipment hub selection becomes increasingly important to the global logistics community. From the perspectives of shippers and freight forwarders, a selection must align with cost control strategy and sustain service reliability across cooperative service providers. This paper assesses the selection with the options of both sea and air transports, and from the influence of country of origin of the company. Critical factors of transshipment hub selection, both qualitative and quantitative, are identified through focus group discussions. Relative importance of these factors is determined based on collective views of logistics stakeholders. The competitiveness of transshipment hubs is then assessed using an …

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Do Security Analysts Learn From Their Colleagues?, Kenny Phua, T. Mandy Tham, Chi Shen Wei Oct 2017

Do Security Analysts Learn From Their Colleagues?, Kenny Phua, T. Mandy Tham, Chi Shen Wei

Research Collection Lee Kong Chian School Of Business

We examine how learning from colleagues affects security analyst forecast outcomes. We represent the brokerage house as an information network of analysts connected through industry overlaps in their coverage portfolios. Analysts who are more centrally connected in their brokerage network produce more accurate forecast estimates and generate more influential forecast revisions. Consistent with learning, more central analysts tend to unwind their colleagues’ recent forecast errors in their forecast revisions. Learning appears to benefit all colleagues, as working at more interconnected brokerages (i.e., denser networks) improves forecast accuracy for all analysts.

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Performance Of Cellular Bucket Brigades With Hand-Off Times, Yun Fong Lim Oct 2017

Performance Of Cellular Bucket Brigades With Hand-Off Times, Yun Fong Lim

Research Collection Lee Kong Chian School Of Business

A cellular bucket brigade is a way to coordinate workers along an aisle with work content on both sides. Each worker in a cellular bucket brigade works on one side of the aisle when he proceeds in one direction, and he works on the other side when he proceeds in the reverse direction. Although the cellular bucket brigade eliminates the unproductive walk-back, it requires more hand-offs to assemble a product than a traditional (serial) bucket brigade. These hand-offs may waste significant production capacity as each of them requires an exchange of work, which can be complicated and time-consuming in practice. …

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When Feeling Good Feels "Wrong": Avoiding Hedonic Consumption When It Reflects Immoral Character, Stephanie C. Lin, Taly Reich, Tamar A. Kreps Oct 2017

When Feeling Good Feels "Wrong": Avoiding Hedonic Consumption When It Reflects Immoral Character, Stephanie C. Lin, Taly Reich, Tamar A. Kreps

Research Collection Lee Kong Chian School Of Business

In contrast to traditional mood repair motivations, we find that people desire to experience negative emotions in response to moral violations. Therefore, people avoid hedonic consumption after negatively valenced moral content, and feel uncomfortable when negatively valenced moral content is followed by hedonic frivolous content in social media contexts

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Vungle Inc. Improves Monetization Using Big-Data Analytics, Bert De Reyck, Ioannis Fragkos, Yael Gruksha-Cockayne, Casey Lichtendahl, Hammond Guerin, Andre Kritzer Oct 2017

Vungle Inc. Improves Monetization Using Big-Data Analytics, Bert De Reyck, Ioannis Fragkos, Yael Gruksha-Cockayne, Casey Lichtendahl, Hammond Guerin, Andre Kritzer

Research Collection Lee Kong Chian School Of Business

The advent of big data has created opportunities for firms to customize their products and services to unprecedented levels of granularity. Using big data to personalize an offering in real time, however, remains a major challenge. In the mobile advertising industry, once a customer enters the network, an ad-serving decision must be made in a matter of milliseconds. In this work, we describe the design and implementation of an ad-serving algorithm that incorporates machine-learning methods to make personalized ad-serving decisions within milliseconds. We developed this algorithm for Vungle Inc., one of the largest global mobile ad networks. Our approach also …

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Male Immorality: An Evolutionary Account Of Sex Differences In Unethical Negotiation Behavior, Margaret Lee, Marko Pitesa, Madan Pillutla, Stefan Thau Oct 2017

Male Immorality: An Evolutionary Account Of Sex Differences In Unethical Negotiation Behavior, Margaret Lee, Marko Pitesa, Madan Pillutla, Stefan Thau

Research Collection Lee Kong Chian School Of Business

Past research finds that men negotiate more unethically than women, others report comparable rates of unethical negotiation behaviors. Based on evolutionary psychology, we predict conditions under which sex differences in unethical negotiation behavior are more versus less pronounced. We theorize that greater levels of unethical behavior among men occur as a consequence of greater male intrasexual competition for mates. This suggests that more male unethical negotiation behavior should primarily emerge in situations associated with intrasexual competition. Using a two-wave survey design, Study 1 found a positive relationship between mating motivation and unethical negotiation behavior for male, but not female employees. …

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The Essence Of Luxury: An Asian Perspective: Lvmh-Smu Luxury Research Conference 2016, Srinivas K. Reddy, Jin K. Han Oct 2017

The Essence Of Luxury: An Asian Perspective: Lvmh-Smu Luxury Research Conference 2016, Srinivas K. Reddy, Jin K. Han

Research Collection Lee Kong Chian School Of Business

A number of developments in the luxury market have been attributed to the arrival of luxury products in Asian markets. The modernisation of Japan some decades back paved the way for a growing trend towards imbibing western lifestyles in Asia. Japan’s economic success after the Second World War was a key factor responsible for the introduction of luxury marketing in Asia. In the 1970’s, Japanese tourist-shoppers became a noticeable phenomenon in Europe. The European luxury houses were quick to recognise the opportunity and began setting up branches and luxury outlets in Japan. The Japanese were not only the driving force …

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The Four Horsemen Of Negotiator Power, Michael Schaerer, Adam D. Galinsky, Joe Magee Sep 2017

The Four Horsemen Of Negotiator Power, Michael Schaerer, Adam D. Galinsky, Joe Magee

Research Collection Lee Kong Chian School Of Business

Scholarly research generally finds that democratic governments are more likely to respect human rights than other types of regimes. Different human rights practices among long-standing and affluent democracies therefore present a puzzle. Drawing from democratic theory and comparative institutional studies, we argue more inclusive or "popular" democracies should enforce human rights better than more exclusive or "elite" democracies, even in the face of security threats from armed conflict. Instead of relying on the Freedom House or Polity indexes to distinguish levels of democracy, we adopt a more focused approach to measuring structures of inclusion, the Institutional Democracy Index (IDI), which …

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Firm-Specific Knowledge Assets And Employment Arrangements: Evidence From Ceo Compensation Design And Ceo Dismissal, Heli Wang, Shan Zhao, Guoli Chen Sep 2017

Firm-Specific Knowledge Assets And Employment Arrangements: Evidence From Ceo Compensation Design And Ceo Dismissal, Heli Wang, Shan Zhao, Guoli Chen

Research Collection Lee Kong Chian School Of Business

Research Summary: We argue that firms with greater specificity in knowledge structure need to both encourage their CEOs to stay so that they make investments with a long-term perspective, and provide job securities to the CEOs so that they are less concerned about the risk of being dismissed. Accordingly, we found empirical evidence that specificity in firm knowledge assets is positively associated with the use of restricted stocks in CEO compensation design (indicating the effort of CEO retention) and negatively associated with CEO dismissal (indicating the job securities the firm committed to CEOs). Furthermore, firm diversification was found to mitigate …

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Assessing Personality-Situation Interplay In Personnel Selection: Toward More Integration Into Personality Research, Filip Lievens Sep 2017

Assessing Personality-Situation Interplay In Personnel Selection: Toward More Integration Into Personality Research, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Over the years, the personnel selection field has developed methods to assess trait expression in particular situations, but these approaches have evolved mostly outside the field of personality psychology. In this article, I review available personnel selection evidence regarding two such approaches: (i) situational judgement tests that present short scenarios and ask job candidates how they would handle the situations and (ii) assessment centre exercises requiring candidates to display behaviour in specified interactive situations. I describe these approaches and discuss their relations with personality research. I posit that adapting these approaches to personality research creates methodological diversity to address key …

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