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Singapore Management University

Research Collection Lee Kong Chian School Of Business

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Full-Text Articles in Social and Behavioral Sciences

On-Site Sensory Experience Boosts Acceptance Of Cultivated Chicken, Mark Chong, Angela K. Y. Leung, Tricia Marjorie Fernandez Jun 2024

On-Site Sensory Experience Boosts Acceptance Of Cultivated Chicken, Mark Chong, Angela K. Y. Leung, Tricia Marjorie Fernandez

Research Collection Lee Kong Chian School Of Business

This study set out to assess if presenting cultivated chicken in the context of a familiar meal, in a familiar dining setting, would motivate repeat consumption and recommendation. A survey of 107 diners was conducted at Huber's Butchery and Bistro in Singapore – the world's first butchery to serve cultivated meat – from April to June 2023. The findings showed that eating cultivated chicken significantly boosted post-consumption acceptance levels. In addition, cultivated chicken's tastiness may be a more important factor than its integration into a familiar meal or dish in fostering repeat consumption. Implications for the cultivated meat industry, limitations, …


Untangling Influence: The Effect Of Follower-Followee Comparison On Social Media Engagement, Yi Peng, Liling Lu May 2024

Untangling Influence: The Effect Of Follower-Followee Comparison On Social Media Engagement, Yi Peng, Liling Lu

Research Collection Lee Kong Chian School Of Business

Social media platforms and marketers are keen on identifying truly influential creators. Number of followers (i.e., those who follow creators) and number of followees (i.e., those who are followed by creators) serve as cues to infer creators' influence. However, a cue of creators' actual influence is under-addressed and its effect on social media engagement remains to be explored. This research fills the gap in the literature by investigating how the cue of creators' actual influence (i.e., follower-followee comparison) may affect followers' engagement behavior. The study further examines the moderation effects of media-, topic-, and creator-related factors. The present work leverages …


The Influence Of Societal Nationalist Sentiment On Trade Flows, Douglas Dow, Ilya Cuypers Mar 2024

The Influence Of Societal Nationalist Sentiment On Trade Flows, Douglas Dow, Ilya Cuypers

Research Collection Lee Kong Chian School Of Business

In recent years, the world has witnessed a backlash against globalization and a rise in populist and nationalist movements around the world. However, there appears to be little empirical research concerning how these movements, and especially nationalist sentiment, actually influence trade. Therefore, we explore how and when nationalist sentiment within a country influences trade. Our results indicate that the effect of nationalist sentiment on imports is mediated by lower participation in free trade agreements (FTAs) but not via tariffs. Furthermore, we are unable to confirm support for a direct effect of nationalist sentiment on imports, as predicted by the consumer …


My Manager Endorsed My Coworkers’ Voice: Understanding Observers’ Positive And Negative Reactions To Managerial Endorsement Of Coworker Voice., Emily Poulton, Szu-Han Joanna Lin, Shereen Fatimah, Cony Ho, Lance Ferris, Russell Johnson Mar 2024

My Manager Endorsed My Coworkers’ Voice: Understanding Observers’ Positive And Negative Reactions To Managerial Endorsement Of Coworker Voice., Emily Poulton, Szu-Han Joanna Lin, Shereen Fatimah, Cony Ho, Lance Ferris, Russell Johnson

Research Collection Lee Kong Chian School Of Business

Research on managerial voice endorsement has primarily focused on the processes and conditions through which voicers receive their managers’ endorsement. We shift this focus away from the voicers, focusing instead on the dual reactions that endorsement generates for observing employees. Drawing from an approach-avoidance framework, we propose that managerial endorsement of coworker voice could be perceived as a positive and negative stimulus for observers, prompting them to approach opportunities and avoid threats, respectively. Results from a pre-registered experiment and a multi-wave, multi-source field study revealed that managerial endorsement of coworker voice was positively related to observers’ voice instrumentality, thus prompting …


Envy Influences Interpersonal Dynamics And Team Performance: Roles Of Gender Congruence And Collective Team Identification, Kenneth Tai, Sejin Keem, Ki Young Lee, Eugene Kim Feb 2024

Envy Influences Interpersonal Dynamics And Team Performance: Roles Of Gender Congruence And Collective Team Identification, Kenneth Tai, Sejin Keem, Ki Young Lee, Eugene Kim

Research Collection Lee Kong Chian School Of Business

Our research extends past envy research by considering how envy and gender congruence shape interpersonal dynamics at the dyadic level and their bottom-up effects for team performance. Integrating social comparison theory and social identity theory, we examine when and how dyadic level envy influences team performance. Using time-lagged data from 428 dyads of 161 employees in 51 teams, our results show that envious employees are likely to engage in interpersonal deviance directed toward envied team members and that envied employees are likely to seek advice from envious team members. Gender congruence further influences these relationships, with different patterns for males …


An Integrative Review Of Management Research On Caste: Broadening Our Horizons, Hari Bapuji, Snehanjali Chrispal, Pardeep Singh Attri, Gokhan Ertug, Vivek Soundararajan Feb 2024

An Integrative Review Of Management Research On Caste: Broadening Our Horizons, Hari Bapuji, Snehanjali Chrispal, Pardeep Singh Attri, Gokhan Ertug, Vivek Soundararajan

Research Collection Lee Kong Chian School Of Business

Even though management research on caste is growing, it is not yet on a clear trajectory to realize its vast potential due to varying terminology and framing of caste, the limited incorporation of directly relevant work from proximate disciplines, and the narrow and selective usage of the attributes of caste. To remove these obstacles, we review 259 scholarly works on caste (216 articles and 43 books and research reports) and develop an integrative framework to i) clarify the contemporary manifestations of caste as being a graded hierarchy, an inherited membership, and a set of socially enforced practices, and ii) summarize …


Geographic Links And Predictable Returns, Zuben Jin, Frank Weikai Li Jan 2024

Geographic Links And Predictable Returns, Zuben Jin, Frank Weikai Li

Research Collection Lee Kong Chian School Of Business

Using establishment-level data of U.S. public firms, we construct a novel measure of geographic linkage between firms. We show that the returns of geography-linked firms have strong predictive power for focal firm returns and fundamentals. This effect is distinct from other cross-firm return predictability and is not easily attributable to risk-based explanations. It is more pronounced for focal firms that receive lower investor attention, are more costly to arbitrage, and during high sentiment periods. The cross-firm information spillovers and return predictability are also stronger for geographic peers with economic linkages and with positive information. Our results are broadly consistent with …


Language-Related Misunderstanding At Work: What It Is, Why It Occurs And What Organizations Can Do About It, John Fiset, Devasheesh P. Bhave Jan 2024

Language-Related Misunderstanding At Work: What It Is, Why It Occurs And What Organizations Can Do About It, John Fiset, Devasheesh P. Bhave

Research Collection Lee Kong Chian School Of Business

Language is the foundation of human interaction. It plays a central role in facilitating effective communication by allowing people to express their thoughts, share essential information and establish connections with one another.


Personality Dynamics Turn Positive And Negative Mood Into Creativity, Ronald Bledow, Jana Kuhnel, Julius Kuhl Jan 2024

Personality Dynamics Turn Positive And Negative Mood Into Creativity, Ronald Bledow, Jana Kuhnel, Julius Kuhl

Research Collection Lee Kong Chian School Of Business

Introduction: Research on the link between affect and creativity rests on the assumption that creativity unfolds as a stimulus-driven response to affective states. We challenge this assumption and examine whether personality dynamics moderate the relationship of positive and negative mood with creativity.Theoretical Model: According to our model, personality dynamics that generate and maintain positive affect and down-regulate negative affect energize creativity. Based on this model, we expect high creativity in response to negative mood if people engage in self-motivation and achieve a reduction in negative mood. We further derive that individual differences in action versus state orientation moderate the within-person …


Shadow Bank, Risk-Taking, And Real Estate Financing: Evidence From The Online Loan Market, Xiaoying Deng, Chong Liu, Eng Seow Ong Jan 2024

Shadow Bank, Risk-Taking, And Real Estate Financing: Evidence From The Online Loan Market, Xiaoying Deng, Chong Liu, Eng Seow Ong

Research Collection Lee Kong Chian School Of Business

This paper examines whether and how individual risk-taking behavior affects real estate financing through shadow banks. Using the loan data from an online platform in China, we show that riskier households tend to employ online loans to meet the increasing down-payment in their home purchase. Individual investors are likely to fund riskier real estate loans with higher expected returns. Real estate loans experience higher ex-post default rates than other types of loans. The effect is more pronounced during the period of credit constraints.


Legal Risk And Insider Trading, Marcin Kacperczyk, Emiliano Sebastian Pagnotta Dec 2023

Legal Risk And Insider Trading, Marcin Kacperczyk, Emiliano Sebastian Pagnotta

Research Collection Lee Kong Chian School Of Business

Do illegal insiders internalize legal risk? We address this question with hand-collected data from 530 SEC (the U.S. Securities and Exchange Commission) investigations. Using two plausibly exogenous shocks to expected penalties, we show that insiders trade less aggressively and earlier and concentrate on tips of greater value when facing a higher risk. The results match the predictions of a model where an insider internalizes the impact of trades on prices and the likelihood of prosecution and anticipates penalties in proportion to trade profits. Our findings lend support to the effectiveness of U.S. regulations' deterrence and the long-standing hypothesis that insider …


Are Bond Returns Predictable With Real-Time Macro Data?, Dashan Huang, Fuwei Jiang, Kunpeng Li, Guoshi Tong, Guofu Zhou Dec 2023

Are Bond Returns Predictable With Real-Time Macro Data?, Dashan Huang, Fuwei Jiang, Kunpeng Li, Guoshi Tong, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

We investigate the predictability of bond returns using real-time macro variables and consider the possibility of a nonlinear predictive relationship and the presence of weak factors. To address these issues, we propose a scaled sufficient forecasting (sSUFF) method and analyze its asymptotic properties. Using both the existing and the new method, we find empirically that real-time macro variables have significant forecasting power both in-sample and out-of-sample. Moreover, they generate sizable economic values, and their predictability is not spanned by the yield curve. We also observe that the forecasted bond returns are countercyclical, and the magnitude of predictability is stronger during …


Effect Of The Announcement Of Human-To-Human Transmission On Teleconsultation Services In China During Covid-19, Mairehaba Maimaitiming, Jingui Xie, Zhichao Zheng, Yongjian Zhu Dec 2023

Effect Of The Announcement Of Human-To-Human Transmission On Teleconsultation Services In China During Covid-19, Mairehaba Maimaitiming, Jingui Xie, Zhichao Zheng, Yongjian Zhu

Research Collection Lee Kong Chian School Of Business

Objectives: Telemedicine enables patients to communicate with physicians effectively, especially during the coronavirus disease (COVID-19) pandemic. However, few studies have explored the use of online health care platforms for a comprehensive range of specialties during the COVID-19 pandemic. This study aimed to investigate how telemedicine services were affected by the announcement of human-to-human transmission in China. Methods: Telemedicine data from haodf.com in China were collected. A difference-in-differences analysis compared the number of telemedicine use and the number of active online physicians for different specialties in 2020 with the numbers in 2019, before and after the announcement of human-to-human transmission. Results: …


Reproducibility In Management Science, MiloˇS Fišar, Ben Greiner, Christoph Huber, Elena Katok, Ali I. Ozkes, Hannah H. Chang Dec 2023

Reproducibility In Management Science, MiloˇS Fišar, Ben Greiner, Christoph Huber, Elena Katok, Ali I. Ozkes, Hannah H. Chang

Research Collection Lee Kong Chian School Of Business

With the help of more than 700 reviewers, we assess the reproducibility of nearly 500 articles published in the journal Management Science before and after the introduction of a new Data and Code Disclosure policy in 2019. When considering only articles for which data accessibility and hardware and software requirements were not an obstacle for reviewers, the results of more than 95% of articles under the new disclosure policy could be fully or largely computationally reproduced. However, for 29% of articles, at least part of the data set was not accessible to the reviewer. Considering all articles in our sample …


In Search Of Cryptocurrency Failure, Donglian Ma, Jun Tu, Zhaobo Zhu Dec 2023

In Search Of Cryptocurrency Failure, Donglian Ma, Jun Tu, Zhaobo Zhu

Research Collection Lee Kong Chian School Of Business

This paper explores the determinants of cryptocurrency failure and the pricing of crypto failure risk. We document different significant market- and characteristic-based predictors for coin and token failures. The introduction of Bitcoin futures and the outbreak of COVID19 affect the importance of many predictors. Investors require extra return for bearing high failure risk of crypto assets. The return difference across high and low failure risk crypto assets is not explained by the market, size and momentum factors in the cryptocurrency market. Finally, investors benefit from diversifying into high failure risk crypto assets that is little correlated with the stock market.


How Commonality Persists? (Through Investors' Sentiment And Attention), Chyng Wen Tee, Raja Velu, Zhaoque Zhou Dec 2023

How Commonality Persists? (Through Investors' Sentiment And Attention), Chyng Wen Tee, Raja Velu, Zhaoque Zhou

Research Collection Lee Kong Chian School Of Business

Studies on commonality generally attribute the variation in asset returns to the variation in order flows. In this research study, we show that order flows do not predict asset returns, rather their relationship have been static over time. Thus we model both returns and the order flows as endogenous variables, and use investors' sentiment and attention as exogenous factors via a reduced-rank regression. We provide empirical evidence to demonstrate that cross-sectional commonality in attention (sentiment) is linearly (nonlinearly) associated with both returns and order flows at the intraday level, while the sentiment and attention measures themselvesexhibit a nonlinear mutual relationship, …


Going Beyond The Call Of Duty Under Conditions Of Economic Threat: Integrating Life History And Temporal Dilemma Perspectives, Nina Sirola Nov 2023

Going Beyond The Call Of Duty Under Conditions Of Economic Threat: Integrating Life History And Temporal Dilemma Perspectives, Nina Sirola

Research Collection Lee Kong Chian School Of Business

Under conditions of economic threat, such as during economic downturns, organizations can benefit from employees’ willingness to go beyond the call of duty and engage in organization-directed citizenship behavior (OCBO). Yet, such behavior is discretionary and competes for time with employees’ other interests and priorities. I integrate life history theory with the temporal dilemma perspective on organizational citizenship behavior to propose that childhood environments sensitize individuals to prioritize different goals in response to economic threat later in life. Consistent with strategies for responding to threat that are functional in their childhood environments, employees from wealthier backgrounds respond to economic threat …


On The Trajectory Of Discrimination: A Meta-Analysis And Forecasting Survey Capturing 44 Years Of Field Experiments On Gender And Hiring Decisions, Michael Schaerer, Christilene Du Plessis, My Hoang Nguyen, Robbie C. M. Van Aert, Leo Tiokkin, Daniel Lakens, Elena G. Clemente, Thomas Pfeiffer, Anna Dreber, Magnus Johannesson, Cory J. Clark Nov 2023

On The Trajectory Of Discrimination: A Meta-Analysis And Forecasting Survey Capturing 44 Years Of Field Experiments On Gender And Hiring Decisions, Michael Schaerer, Christilene Du Plessis, My Hoang Nguyen, Robbie C. M. Van Aert, Leo Tiokkin, Daniel Lakens, Elena G. Clemente, Thomas Pfeiffer, Anna Dreber, Magnus Johannesson, Cory J. Clark

Research Collection Lee Kong Chian School Of Business

A preregistered meta-analysis, including 244 effect sizes from 85 field audits and 361,645 individual job applications, tested for gender bias in hiring practices in female-stereotypical and gender-balanced as well as male-stereotypical jobs from 1976 to 2020. A “red team” of independent experts was recruited to increase the rigor and robustness of our meta-analytic approach. A forecasting survey further examined whether laypeople (n = 499 nationally representative adults) and scientists (n = 312) could predict the results. Forecasters correctly anticipated reductions in discrimination against female candidates over time. However, both scientists and laypeople overestimated the continuation of bias against female candidates. …


Money Changers Have Their Own Fintech Disruption To Grapple With, Aurobindo Ghosh Nov 2023

Money Changers Have Their Own Fintech Disruption To Grapple With, Aurobindo Ghosh

Research Collection Lee Kong Chian School Of Business

In a commentary, SMU Assistant Professor of Finance (Education) and Director of the Citi Foundation-SMU Financial Literacy Programme for Young Adults Aurobindo Ghosh discussed the outlook for money changers in a world of multi-currency apps. He however noted money changers still have a role to play, and shared his views on how money changers can respond to technological disruption.


Time To Regulate Influencers Who Tell You Where To Put Your Money, Patricia Lui Nov 2023

Time To Regulate Influencers Who Tell You Where To Put Your Money, Patricia Lui

Research Collection Lee Kong Chian School Of Business

Financial scandals elsewhere have shown that ‘finfluencers’ do not always act in good faith and can mislead their followers.


Rule Violation And Time-To-Enforcement In Weak Institutional Environments: A Good Faith Perspective, Jun Xia, Yusi Jiang, Heli Wang, Yuan Li Nov 2023

Rule Violation And Time-To-Enforcement In Weak Institutional Environments: A Good Faith Perspective, Jun Xia, Yusi Jiang, Heli Wang, Yuan Li

Research Collection Lee Kong Chian School Of Business

Previous studies on corporate misconduct have focused mainly on preventing misconduct or remedying it after detection, but it remains unclear how misconduct can be effectively detected in the first place once it occurs. We apply the good faith perspective in the context of China, which represents a weak institutional environment, and argue that the ability of culpable leaders to conceal information may delay misconduct disclosure because such ability helps maintain the good faith of regulators. Moreover, we argue that because the regulators have faith in professionals (external auditors, institutional investors, and securities analysts) whose skills are in fact often underdeveloped …


Effects Of Framing, Nomenclature, And Aversion To Tampering With Nature On Consumer Acceptance Of Cultivated Meat In Singapore, Mark Chong, Angela K. Y. Leung, Tricia M. Fernandez, Shu Tian Ng Nov 2023

Effects Of Framing, Nomenclature, And Aversion To Tampering With Nature On Consumer Acceptance Of Cultivated Meat In Singapore, Mark Chong, Angela K. Y. Leung, Tricia M. Fernandez, Shu Tian Ng

Research Collection Lee Kong Chian School Of Business

This paper comprises a qualitative (Study 1) and a quantitative phase (Study 2). Study 1 aimed to find out what frames and nomenclature would appeal most to meat eaters – including consumers who have eaten cultivated chicken – in Singapore. It also aimed to discover whether perceptions of cultivated meat's naturalness varied across different age groups. Study 2 assessed which message frame and nomenclature were most effective in fostering consumer acceptance of cultivated meat. In addition, it investigated if age was related to the perception of cultivated meat's naturalness and acceptance, and whether aversion to tampering with nature was negatively …


Digital Wealth Management And Consumption: Micro Evidence From Individual Investments, Qian Gong, Mingyuan Ban, Yunjun Yu, Luying Wang, Yan Yuan Oct 2023

Digital Wealth Management And Consumption: Micro Evidence From Individual Investments, Qian Gong, Mingyuan Ban, Yunjun Yu, Luying Wang, Yan Yuan

Research Collection Lee Kong Chian School Of Business

With the rapid advancement of digital finance in China, accessing wealth management services through digital platforms has become considerably convenient. However, the potential impact of digital platform investments on residents' consumption remains a relatively unexplored question. This study addresses this gap by leveraging a unique dataset obtained from one of China's largest fintech companies, encompassing individual-level data on consumption and investment. Our findings indicate that engaging in digital platform investments can indeed stimulate residents' consumption. Importantly, participation in digital platform investment has an inclusive effect, with a more pronounced marginal impact on consumption among low-income residents and in-dividuals residing in …


Third-Party Employer Branding, Mukta G. Saini, Filip Lievens Oct 2023

Third-Party Employer Branding, Mukta G. Saini, Filip Lievens

Research Collection Lee Kong Chian School Of Business

There has been a growing interest in third-party employment branding (TPEB) because prospective and current employees perceive it more credible than the company-controlled employer branding. The academic research on TPEB has also been rapidly growing. This chapter reviews the TPEB research using a bibliometric analysis of 734 articles published between 1996 and 2021. The analysis shows that 'employer branding,' 'recruitment,' 'Glassdoor,' and 'word-of-mouth' are the major keywords in this domain. TPEB research can be grouped into three themes – (i) ‘best employer status and its outcomes’, (ii) ‘antecedents and consequences of third-party employment branding’, and (iii) ‘word-of-mouth and recruitment’. We …


Commentary: Black Or White? Wrong Or Right? Don't Rush To Take Sides On Complex Issues Such As Israel-Hamas Conflict, Siow-Heng Ong, Benjamin Joshua Ong Oct 2023

Commentary: Black Or White? Wrong Or Right? Don't Rush To Take Sides On Complex Issues Such As Israel-Hamas Conflict, Siow-Heng Ong, Benjamin Joshua Ong

Research Collection Lee Kong Chian School Of Business

While responses to the Israel-Hamas conflict have been bitterly divided, they showcase a common phenomenon of people viewing complex situations in black-and-white terms. But how did we get here?


In Customer Service, When Is A Full Refund Justified?, Hannah H. Chang Oct 2023

In Customer Service, When Is A Full Refund Justified?, Hannah H. Chang

Research Collection Lee Kong Chian School Of Business

In a commentary, SMU Associate Professor of Marketing Hannah Chang discussed the challenges in achieving balance between making genuine amends for the specific incident and strategic reputation management when customers complain. She also noted the challenges in balancing between offering genuine redress and not setting precedents that encourage unreasonable demands. Assoc Prof Chang also shared how companies can take preventive measures by setting clear policies for refunds or compensation, and monitoring online sentiment to stay ahead of brewing issues, thus allowing businesses to address concerns in real time.


Revisiting The Design Of Selection Systems In Light Of New Findings Regarding The Validity Of Widely Used Predictors, Paul R. Sackett, Charlene Zhang, Christopher M. Berry, Filip Lievens Sep 2023

Revisiting The Design Of Selection Systems In Light Of New Findings Regarding The Validity Of Widely Used Predictors, Paul R. Sackett, Charlene Zhang, Christopher M. Berry, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Sackett et al. (2022) identified previously unnoticed flaws in the way range restriction corrections have been applied in prior meta-analyses of personnel selection tools. They offered revised estimates of operational validity, which are often quite different from the prior estimates. The present paper attempts to draw out the applied implications of that work. We aim to a) present a conceptual overview of the critique of prior approaches to correction, b) outline the implications of this new perspective for the relative validity of different predictors and for the tradeoff between validity and diversity in selection system design, c) highlight the need …


Constrained By Localized Attention Focus: The Negative Effect Of Firm-Specific Knowledge On Exploratory Firm Innovation, Bilian Ni Sullivan, Kaixian Mao, Heli Wang Sep 2023

Constrained By Localized Attention Focus: The Negative Effect Of Firm-Specific Knowledge On Exploratory Firm Innovation, Bilian Ni Sullivan, Kaixian Mao, Heli Wang

Research Collection Lee Kong Chian School Of Business

Integrating the resource-based view (RBV) and attention-based view (ABV), this study explores the impact of firm-specific knowledge (FSK) on a firm's exploratory innovation and the role of government support in this process. We argue that firms with a high degree of specificity in their knowledge assets tend to have a more localized attention focus, leading to those firms with less exposure to distant and diverse information and knowledge. Consequently, such firms are likely to have reduced exploratory innovative outputs. However, government resource support could expand a firm's attention focus beyond local searches, mitigating its negative effects. Based on a unique …


What Drives The Value Of Financial Analysts’ Advice? The Role Of Earnings And Growth Forecasts, Ohad Kadan, Leonardo Madureira, Rong Wang, Tzachi Zach Sep 2023

What Drives The Value Of Financial Analysts’ Advice? The Role Of Earnings And Growth Forecasts, Ohad Kadan, Leonardo Madureira, Rong Wang, Tzachi Zach

Research Collection Lee Kong Chian School Of Business

We offer a parsimonious index at the individual analyst level to measure the extent to which an analyst relies on earnings and long-term growth forecasts in producing her advice. Using this index, we evaluate the contribution of earnings and growth forecasts to the investment value of analysts’ stock recommendations. We find that the fraction of analysts’ advice attributed to forecasts varies considerably across analysts and sectors. The investment value of recommendations is higher for analysts who rely less on their forecasts and more on other sources of information when forming investment advice. Investors recognize the superiority of recommendations from analysts …


Geographic Distance And State's Grip: Information Asymmetry, State Inattention, And Firm Implementation Of State Policy, Xiyi Yang, Heli Wang, Xiaoyu Zhou Sep 2023

Geographic Distance And State's Grip: Information Asymmetry, State Inattention, And Firm Implementation Of State Policy, Xiyi Yang, Heli Wang, Xiaoyu Zhou

Research Collection Lee Kong Chian School Of Business

In this study, we develop the argument that geographic distance between the state and local governments undermines the state's capacity to influence the implementation of state policies by local organizations. Drawing from information economics and the attention-based view, we propose that physical distance reduces the state's monitoring effectiveness through two interrelated mechanisms: information asymmetry and state leaders' inattention to distant issues. Using data of Chinese public firms' implementation of environmental activities between 2008 and 2016, we find that firms conduct fewer environmental activities required by the state when they are regulated by local governments that are more geographically distant to …