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Singapore Management University

2017

Research Collection Lee Kong Chian School Of Business

Articles 1 - 30 of 59

Full-Text Articles in Social and Behavioral Sciences

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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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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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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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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The Relentless Pursuit Of University Rankings Is Creating A Two-Track System, Eng Fong Pang, Linda Lim Oct 2017

The Relentless Pursuit Of University Rankings Is Creating A Two-Track System, Eng Fong Pang, Linda Lim

Research Collection Lee Kong Chian School Of Business

Global university rankings constructed mainly by Western commercial media outlets,like this week’s Quacquarelli Symonds (QS) Asia University Rankings, seem to be a perennial sourceof interest in Singapore.Yet, rankings have well-known limitations.The Ministry of Education (MOE) and university leaders frequently deny that they motivate policy orare a basis for institutional evaluation. But they do provide a convenient way to ascertain ifuniversities meet our aspirations for world-class status.At the same time, because rankings tend to emphasise research publications of global significance,there is some skepticism among academics and the general public everywhere of their value to localcommunities.

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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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A Resilient Society For A Global Singapore, Arnoud Cyriel Leo De Meyer Oct 2017

A Resilient Society For A Global Singapore, Arnoud Cyriel Leo De Meyer

Research Collection Lee Kong Chian School Of Business

I was intrigued by the theme of this conference about the social futures of Singapore. I believe that Singapore is at a tipping point of thinking about its future. This is not because it was Singapore’s 50 years of independence last year and we are now looking at the next 50 years. It is simply because Singapore has become a very mature and rich society. It probably has to start thinking in a very different way about its future. I had, at other occasions, mentioned my belief that Singapore’s resilience will be one of the key requirements for it to …

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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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Twin Momentum: Fundamental Trends Matter, Dashan Huang, Huacheng Zhang, Guofu Zhou Aug 2017

Twin Momentum: Fundamental Trends Matter, Dashan Huang, Huacheng Zhang, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

Using both the levels and the time-series trends of a collection of firms' major fundamentals, we find that fundamentals matter after all: they can also generate strong return momentum. A fundamental momentum strategy that goes long stocks with fundamental in the top quintile and short stocks with fundamental in the bottom quintile earns a monthly average return of 88 bps, and is comparable with the popular price momentum but has little correlation. Combining price momentum and fundamental momentum yields a twin momentum, which has an average return more than the sum of both price momentum and fundamental momentum. Twin momentum …

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Forecasting Stock Returns In Good And Bad Times: The Role Of Market States, Dashan Huang, Fuwei Jiang, Jun Tu, Guofu Zhou Jul 2017

Forecasting Stock Returns In Good And Bad Times: The Role Of Market States, Dashan Huang, Fuwei Jiang, Jun Tu, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

This paper proposes a two-state predictive regression model and shows that stock market 12-month return (TMR), the time-series momentum predictor of Moskowitz, Ooi, and Pedersen (2012), forecasts the aggregate stock market negatively in good times and positively in bad times. The out-of-sample R-squares are 0.96% and 1.72% in good and bad times, or 1.28% and 1.41% in NBER economic expansions and recessions, respectively. The TMR predictability pattern holds in the cross-section of U.S. stocks and the international markets. Our study shows that the absence of return predictability in good times, an important finding of recent studies, is largely driven by …

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Peer Effects Of Corporate Social Responsibility, Hao Liang, Hao Liang, Xintong Zhan Jul 2017

Peer Effects Of Corporate Social Responsibility, Hao Liang, Hao Liang, Xintong Zhan

Research Collection Lee Kong Chian School Of Business

We investigate how firms react to their peers' adoption of corporate social responsibility (CSR) by using a regression discontinuity design that relies on "locally" exogenous variations of CSR generated by shareholder proposals that pass or fail by a small margin of votes. Specifically, we find that peers of a voting firm who passed a close-call CSR proposal experience lower announcement returns and higher following-year CSR scores compared to those of a voting firm that marginally failed a CSR proposal. Such effects are stronger in peer firms with higher competitive pressure, better CSR performance relative to the voting firm, and a …

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Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik Jul 2017

Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik

Research Collection Lee Kong Chian School Of Business

The desire of risk-averse households to hedge rent risk is thought to increase home ownership and prices. While evidence for the ownership implication is compelling, support for the price effect is mixed. We show that an important reason is search frictions. Rent risk reduces outside options, leading to less-picky buyers and worse home/buyer matches. This attenuates the rise in the price-to-rent ratio that would otherwise occur without frictions. Consistent with our model, a house remains on the market for fewer days when rent risk is higher. Accounting for frictions significantly increases the effect of rent risk on home prices.

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Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik Jul 2017

Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik

Research Collection Lee Kong Chian School Of Business

The desire of risk-averse households to hedge rent risk is thought to increase home ownership and prices. While evidence for the ownership implication is compelling, support for the price effect is mixed. We show that an important reason is search frictions. Rent risk reduces outside options, leading to less-picky buyers and worse home/buyer matches. This attenuates the rise in the price-to-rent ratio that would otherwise occur without frictions. Consistent with our model, a house remains on the market for fewer days when rent risk is higher. Accounting for frictions significantly increases the effect of rent risk on home prices.

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Toward A Theoretical Framework To Studying Climate Change Policies: Insights From Case Study Of Singapore, Ai Sian Ng, May O. Lwin, Augustine Pang Jul 2017

Toward A Theoretical Framework To Studying Climate Change Policies: Insights From Case Study Of Singapore, Ai Sian Ng, May O. Lwin, Augustine Pang

Research Collection Lee Kong Chian School Of Business

The world decided in December 2015 to take actions to reduce global warming. To contribute toward this goal, this research examines possible policy levers for inclusion in the climate change ratification plan. A case study of the measures taken by the Republic of Singapore, a low-lying 719.2 km2 island without natural resources in Asia, is conducted. Being vulnerable to climate change impact and yet having to balance her people’s needs and economic progress with limited resources, the measures taken by this small country could offer policy insights for small states and states without access to alternative energy sources. This research …

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Analyzing The Impact Of Public Transit Usage On Obesity, Zhaowei She, Douglas M. King, Jacobson Sheldon Sheldon Jun 2017

Analyzing The Impact Of Public Transit Usage On Obesity, Zhaowei She, Douglas M. King, Jacobson Sheldon Sheldon

Research Collection Lee Kong Chian School Of Business

The objective of this paper is to estimate the impact of county-level public transit usage on obesity prevalence in the United States and assess the potential for public transit usage as an intervention for obesity. This study adopts an instrumental regression approach to implicitly control for potential selection bias due to possible differences in commuting preferences among obese and non-obese populations. United States health data from the 2009 Behavioral Risk Factor Surveillance System and transportation data from the 2009 National Household Travel Survey are aggregated and matched at the county level. County-level public transit accessibility and vehicle ownership rates are …

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Africa: The Management Education Challenge, Howard Thomas, Michelle P. Lee, Lynne Thomas, Alexander Wilson Jun 2017

Africa: The Management Education Challenge, Howard Thomas, Michelle P. Lee, Lynne Thomas, Alexander Wilson

Research Collection Lee Kong Chian School Of Business

The research evidence for this second volume of Africa: The Management Education Challenge is based primarily on around 40 in-depth, face-to-face, semi-structured interviews lasting about two to three hours. The interviewees were drawn from academia, business, media and government with expertise in management education.

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Motivated Cognition And Fairness: Insights, Integration, And Creating A Path Forward, Laurie J. Barclay, Michael R. Bashshur, Marion Fortin Jun 2017

Motivated Cognition And Fairness: Insights, Integration, And Creating A Path Forward, Laurie J. Barclay, Michael R. Bashshur, Marion Fortin

Research Collection Lee Kong Chian School Of Business

How do individuals form fairness perceptions? This question has been central to the fairness literature sinceits inception, sparking a plethora of theories and a burgeoning volume of research. To date, the answer to thisquestion has been predicated on the assumption that fairness perceptions are subjective (i.e., “in the eye of thebeholder”). This assumption is shared with motivated cognition approaches, which highlight the subjectivenature of perceptions and the importance of viewing individuals arriving at those perceptions as active andmotivated processors of information. Further, the motivated cognition literature has other key insights thathave been less explicitly paralleled in the fairness literature, including …

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Is Electricity Storage Green? A Study On Commercial Buildings, Yangfang (Helen) Zhou Jun 2017

Is Electricity Storage Green? A Study On Commercial Buildings, Yangfang (Helen) Zhou

Research Collection Lee Kong Chian School Of Business

Electricity storage facilities, such as industrial batteries, are considered the “holy grail” in decarbonizing the electrical grid. They are being widely installed in commercial buildings, e.g., hospitals and shopping centers. We model the problem of managing electricity storage in a commercial building as a Markov Decision Process. Our numerical results, based on models calibrated to the electricity load profiles of 100 commercial buildings in the U.S., show that for every electricity load profile, storage operation may increase carbon emissions.

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The Retransmission Of Rumor And Rumor Correction Messages On Twitter, Alton Y. K. Chua, Cheng-Ying Tee, Augustine Pang, Ee-Peng Lim Jun 2017

The Retransmission Of Rumor And Rumor Correction Messages On Twitter, Alton Y. K. Chua, Cheng-Ying Tee, Augustine Pang, Ee-Peng Lim

Research Collection Lee Kong Chian School Of Business

This article seeks to examine the relationships among source credibility, message plausibility, message type (rumor or rumor correction) and retransmission of tweets in a rumoring situation. From a total of 5,885 tweets related to the rumored death of the founding father of Singapore Lee Kuan Yew, 357 original tweets without an “RT” prefix were selected and analyzed using negative binomial regression analysis. The results show that source credibility and message plausibility are correlated with retransmission. Also, rumor correction tweets are retweeted more than rumor tweets. Moreover, message type moderates the relationship between source credibility and retransmission as well as that …

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The Association Of Hospital Governance With Innovation In Taiwan, Chen-Wei Yang, Yu-Hua Yan, Shih-Chieh Fang, Noorein S. Inamdar, Hsiencheng Lin Jun 2017

The Association Of Hospital Governance With Innovation In Taiwan, Chen-Wei Yang, Yu-Hua Yan, Shih-Chieh Fang, Noorein S. Inamdar, Hsiencheng Lin

Research Collection Lee Kong Chian School Of Business

Hospitals in Taiwan are facing major changes and innovation is increasingly becoming a critical factor for remaining competitive. One determinant that can have a significant impact on innovation is hospital governance. However, there is limited prior research on the relationship between hospital governance and innovation. The purpose of this study is to propose a conceptual framework to hypothesize the relationship between governance mechanisms and innovation and to empirically test the hypotheses in hospital organizations. We examine the relationship between governance mechanisms and innovation using data on 102 hospitals in Taiwan from the Taiwan Joint Commission on Hospital Accreditation and Quality …

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Industry Integration And Stock Price Synchronicity, Hao Cheng, Kian Guan Lim, Tien Foo Sing, Long Wang Jun 2017

Industry Integration And Stock Price Synchronicity, Hao Cheng, Kian Guan Lim, Tien Foo Sing, Long Wang

Research Collection Lee Kong Chian School Of Business

This paper provides an alternative explanation of the negative relationship between price synchronicity and proprietary right protection that are uncorrelated to the information hypothesis. Using empirical data for 40 countries, we show that stock market volatility and firm size have significant impact on stock price synchronicity. We find significant correlations of international R2 disparity with industry structure integrations. The derived industry integration indices that capture industry correlations significantly explain cross-sectional and temporal variations in price synchronicity. The results imply that tighter industry integration leads to higher R2, and also explain away the property rights factor found in the information hypothesis.

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Not Just How Much You Know: Interactional Effect Of Cultural Knowledge And Metacognition On Creativity In A Global Context, Chua, Roy Y. J., Kok Yee Ng Jun 2017

Not Just How Much You Know: Interactional Effect Of Cultural Knowledge And Metacognition On Creativity In A Global Context, Chua, Roy Y. J., Kok Yee Ng

Research Collection Lee Kong Chian School Of Business

The ability to think and solve problems creatively in a multicultural environment is critical for success in the 21st century. Integrating research on creative cognition and cultural intelligence, we examine the interactional effects of two cognitive capabilities – cultural knowledge and cultural metacognition – on individuals’ creativity in multicultural teams. We propose that although cultural knowledge is useful for creativity,too much knowledge can be detrimental because of cognitive overload and entrenchment.This inverted U-shaped relationship however, is moderated by cultural metacognition.Results of our study support our hypothesis of an inverted U-shape relationship between cultural knowledge and creativity. As expected, we found …

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Future Directions In Personality, Occupational And Medical Selection: Myths, Misunderstandings, Measurement, And Suggestions, Eamonn Ferguson, Filip Lievens May 2017

Future Directions In Personality, Occupational And Medical Selection: Myths, Misunderstandings, Measurement, And Suggestions, Eamonn Ferguson, Filip Lievens

Research Collection Lee Kong Chian School Of Business

This paper has two objectives: (1) presenting recent advances in personality theory whereby personality traits are conceptualized within a framework that focuses on the dynamic interactions of behaviour, biology, context, and states, and (2) discussing the implications of these developments for measurement and medical selection. We start by presenting evidence that traits are no longer regarded as stable deterministic predictors of behaviour. Instead, traits are found to change across generations, the life span, and in response to environmental contingencies. Thus, there is an urgent need to explore how traits change as function of medical education. Second, drawing on recent theory …

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Stefano Harney: In Conversation With The Co-Author Of The Undercommons’ With Michael Schapira And Jesse Montgomery, Michael Schapira, Jesse Montgomery Montgomery, Stephen Matthias Harney May 2017

Stefano Harney: In Conversation With The Co-Author Of The Undercommons’ With Michael Schapira And Jesse Montgomery, Michael Schapira, Jesse Montgomery Montgomery, Stephen Matthias Harney

Research Collection Lee Kong Chian School Of Business

‘In Conversation with the Co-author of The Undercommons’ with Michael Schapira and Jesse Montgomery, Full-Stop Quarterly, May 2017 http://www.full-stop.net/quarterly/

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The Four Horsemen Of Power At The Bargaining Table, Adam D. Galinsky, Michael Schaerer, Joe C. Magee May 2017

The Four Horsemen Of Power At The Bargaining Table, Adam D. Galinsky, Michael Schaerer, Joe C. Magee

Research Collection Lee Kong Chian School Of Business

This paper aims to identify and discuss four major sources of power in negotiations. Findings: The four sources of power are alternatives, information, status and social capital. Each of these sources of power can enhance a negotiator’s likelihood of obtaining their ideal outcome because power allows negotiators to be more confident and proactive, and it shields them from the bargaining tactics of their opponents. Practical implications: The paper discusses how negotiators can utilize each source of power to improve their negotiation outcomes. Originality/value: The paper provides a parsimonious definition of power in negotiations, identifies the four major sources of negotiator …

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Construct-Driven Sjts: Toward An Agenda For Future Research, Filip Lievens May 2017

Construct-Driven Sjts: Toward An Agenda For Future Research, Filip Lievens

Research Collection Lee Kong Chian School Of Business

A common theme running through recent research on Situational Judgment Tests (SJTs) and this special issue is the aim to improve the measurement of constructs via SJTs. Construct-driven SJTs differ from traditional SJTs in that they present a trait activating situation to test-takers and a more unidimensional set of response options that depict different trait levels. In this commentary, I frame the different papers of this special issue into a research agenda related to construct-driven SJTs. Specifically, I posit that future research should examine whether construct-driven SJTs lead to more unidimensionality at the item level, cleaner measurement of the constructs, …

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