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What's Ahead For 2007? Knowledge@Wharton Network Surveys The Globe, Knowledge@Smu Dec 2006

What's Ahead For 2007? Knowledge@Wharton Network Surveys The Globe, Knowledge@Smu

Knowledge@SMU

On the financial front, 2006 has been a pretty good year all around. Stock markets in many countries have rallied, energy prices have fallen, inflation is relatively low and growth in GDP ranges from respectable to robust. But the economies of most countries also face a number of threats -- some predictable, some not -- that could derail recent gains in our increasingly connected global markets. What's ahead for 2007 in the U.S., India, Europe, Latin America, China and other parts of the world? We offer a roundup of reports from the Knowledge@Wharton Network, including India Knowledge@Wharton, Universia Knowledge@Wharton and …


Reputation Stretching In Online Auctions, Jianqing Chen, Mei Lin, Andrew B. Whinston Dec 2006

Reputation Stretching In Online Auctions, Jianqing Chen, Mei Lin, Andrew B. Whinston

Research Collection School Of Computing and Information Systems

Reputation systems are ubiquitously employed in the online marketplaces to provide information on users’ abilities and trustworthiness. We focus particularly on the problem of reputation stretching, the extension of an established reputation into a new market. By examining various factors—market size, the expected performance in the expanding market, and the risk of performance in the expanding market—we characterize conditions that affect bidder’s stretching decision in the expanding market. Moreover, we analyze both the short-term and the long-term expanding cases, and obtain contrasting results in the two settings.


Managing News In A Managed Media: Mediating The Message In Malaysiakini.Com, Augustine Pang Dec 2006

Managing News In A Managed Media: Mediating The Message In Malaysiakini.Com, Augustine Pang

Research Collection Lee Kong Chian School Of Business

Widely regarded as an anomaly in the neo-authoritarian system in Malaysia, Malaysiakini.com is proving that managing an independent media in a government-managed media landscape is more than a Sisyphean struggle. Employing participant observation and interviews, supplemented by artifacts and media accounts, this study seeks to understand the media management of Malaysiakini.com through news management, using Shoemaker and Reese’s (1996) hierarchy of influence model, which posits a framework of internal and external forces that affect news management. The study found determined attempts to minimize ideological influences through media socialization by accentuating on the direct influences, such as the journalists’ role in …


Supply Chain Information Sharing In A Macro Prediction Market, Zhiling Guo, Fang Fang, Andrew B. Whinston Dec 2006

Supply Chain Information Sharing In A Macro Prediction Market, Zhiling Guo, Fang Fang, Andrew B. Whinston

Research Collection School Of Computing and Information Systems

This paper aims to address supply chain partners' incentives for information sharing from an information systems design perspective. Specifically, we consider a supply chain characterized by N geographically distributed retailers who order a homogeneous product from one manufacturer. Each retailer's demand risk consists of two parts: a systematic risk part that affects all retailers and an idiosyncratic risk part that only has a local effect. We propose a macro prediction market to effectively elicit and aggregate useful information about systematic demand risk. We show that such information can be used to achieve accurate demand forecast sharing and better channel coordination …


Insider Trading And Voluntary Disclosures, Qiang Cheng, Kin Lo Dec 2006

Insider Trading And Voluntary Disclosures, Qiang Cheng, Kin Lo

Research Collection School Of Accountancy

We hypothesize that insiders strategically choose disclosure policies and the timing of their equity trades to maximize trading profits, subject to the litigation costs associated with disclosure and insider trading. Accounting for endogeneity between disclosures and trading, we find that when managers plan to purchase shares, they increase the number of bad news forecasts to reduce the purchase price. In addition, this relation is stronger for trades initiated by chief executive officers than for those initiated by other executives. Confirming this strategic behavior, we find that managers successfully time their trades around bad news forecasts, buying fewer shares beforehand and …


Implication Of Comprehensive Income Disclosure For Future Earnings And Analysts' Forecasts, Jong-Hag Choi, Yoonseok Zang Dec 2006

Implication Of Comprehensive Income Disclosure For Future Earnings And Analysts' Forecasts, Jong-Hag Choi, Yoonseok Zang

Research Collection School Of Accountancy

This paper examines the association of comprehensive income with subsequent period net income as well as analysts’ earnings forecasts. Our results support the notion that comprehensive income is incrementally useful in predicting subsequent period changes in net income. We also document that comprehensive income is associated with analysts’ earnings forecast revisions and forecast errors. The evidence is consistent with analysts’ failure to fully utilize the information disclosed in comprehensive income. The result suggests that analysts revise their year t+1’s forecast downward when comprehensive income is smaller than net income but they do not revise the forecast upward when comprehensive income …


Escalation And De-Escalation Of Commitment To Information Systems Projects: Insights From An Approach-Avoidance Process Model, Gary Pan, Shan Ling Pan Dec 2006

Escalation And De-Escalation Of Commitment To Information Systems Projects: Insights From An Approach-Avoidance Process Model, Gary Pan, Shan Ling Pan

Research Collection School Of Accountancy

We view escalation and de-escalation of commitment as processes involving recurring instances of approach-avoidance conflict. This paper outlines an approach-avoidance process model for describing and analyzing escalation and de-escalation of commitment in information systems projects. In the model, the sequential mapping of project events is integrated with a model of approach-avoidance conflict that identifies periods of gradual evolution at two separate levels of social analysis (project and work) that are punctuated by sudden, revolutionary periods of rapid change. By conceiving the processes of commitment escalation and de-escalation as sequences of events involving approach-avoidance conflicts, researchers may develop a deeper understanding …


Creativity Needed In Non-Profits?, Wee Liang Tan Dec 2006

Creativity Needed In Non-Profits?, Wee Liang Tan

Research Collection Lee Kong Chian School Of Business

Creativity is something that one might not associate with the social service sector. In fact, one might consider creativity something quite distant from the non-profit sector. "We in the social service sector have more important things to do - we serve our clients and beneficiaries; we don't have the time to fool around with fancy new ideas or projects." Yet such sentiments could be no further from the truth.


Singapore's Regionalization Blueprint: A Case For Transnational State Enterprise Networks?, Caroline Yeoh, Victor Sim, Louisa Zhang Dec 2006

Singapore's Regionalization Blueprint: A Case For Transnational State Enterprise Networks?, Caroline Yeoh, Victor Sim, Louisa Zhang

Research Collection Lee Kong Chian School Of Business

No abstract provided.


Online Advertising By The Comparison Challenge Approach, Jae Wong Lee, Jae Kyu Lee Dec 2006

Online Advertising By The Comparison Challenge Approach, Jae Wong Lee, Jae Kyu Lee

Research Collection School Of Computing and Information Systems

To enhance the effectiveness of online comparisons from a manufacturer's point of view, we develop a framework for the comparison challenge approach. To develop the comparison challenge framework, we analyze 12 factors that determine the characteristics of comparison and propose models of valuable comparison challenges using the CompareMe and CompareThem strategies. We demonstrate the approaches with the example of PC selection. To help plan the comparison challenges, we formulate a mathematical programming model that maximizes the total value of comparison under the constraints of comparison opportunity and budgetary limitation. The model is applied to eight comparison scenarios, and its performance …


Certainty As A Moderator Of Feedback Reactions? A Test Of The Strength Of The Self-Verification Motive, Frederik Anseel, Filip Lievens Dec 2006

Certainty As A Moderator Of Feedback Reactions? A Test Of The Strength Of The Self-Verification Motive, Frederik Anseel, Filip Lievens

Research Collection Lee Kong Chian School Of Business

The present study investigated whether employees are merely interested in hearing good news about themselves, as predicted by self-enhancement theory, or are more interested in feedback that confirms their self-concept, as predicted by self-verification theory. We examined in a field study whether self-view certainty serves as a moderator and strengthens the effect of congruence between individuals' self-views and the performance feedback they receive about these self-views on feedback reactions. Polynomial regression results revealed that people mainly reacted favourably to positive feedback. Prior self-views did not play a key role in explaining feedback reactions. As feedback scores were the main determinant …


The Effect Of The Options Backdating Scandal On The Stock-Price Performance Of 110 Accused Companies, Gennaro Bernile, Gregg A. Jarrell, Howard Mulcahey Dec 2006

The Effect Of The Options Backdating Scandal On The Stock-Price Performance Of 110 Accused Companies, Gennaro Bernile, Gregg A. Jarrell, Howard Mulcahey

Research Collection Lee Kong Chian School Of Business

Since academic scholars and the Wall Street Journal reported widespread evidence indicating that option grants to executives were backdated, an avalanche of news stories followed documenting this ever-widening corporate scandal. In this study we ask: "How do disclosures of backdating affect shareholder value?" We closely examine 110 companies listed in the Wall Street Journal's Perfect Payday webpage, collecting all news stories related to options backdating. We find that shareholders of these 110 companies suffer on average significant stock-price declines, ranging between 20% and 50%. Moreover, these losses do not seem to be due to temporary overreactions (at least so far). …


A Within-Person Perspective On Feedback Seeking About Task Performance, Frederik Anseel, Filip Rene O Lievens Dec 2006

A Within-Person Perspective On Feedback Seeking About Task Performance, Frederik Anseel, Filip Rene O Lievens

Research Collection Lee Kong Chian School Of Business

In organisations, feedback about multiple performance dimensions is often available. Consequently, employees have to decide on which performance dimensions they will be seeking feedback. In a lab experiment 126 students indicated on which performance dimensions they wanted to receive feedback after completing a computerized in-basket task. Results showed that participants especially sought feedback about their best and most important performance dimensions. Individuals with a high learning goal orientation sought more feedback about their least important performance dimensions as compared to individuals with a low learning goal orientation. In general, results indicated that previous findings obtained in between-person studies of feedback …


Economics Of Competition': A Study Of Low-Cost Manufacturing Enclaves In Batam Island, Indonesia, Caroline Yeoh, Feng Hao Chua, Sylvie Tan Dec 2006

Economics Of Competition': A Study Of Low-Cost Manufacturing Enclaves In Batam Island, Indonesia, Caroline Yeoh, Feng Hao Chua, Sylvie Tan

Research Collection Lee Kong Chian School Of Business

Singapore’s transborder industrialization projects in China and India have received much attention. This regionalization initiative was intended to set in place a strategic configuration for the city-state to restructure its domestic industries and, pari passu, retain important linkages with contiguous, low-cost environments. Our study reports on Singapore’s pioneering, albeit lesser-known, project - Batamindo Industrial Park – in neighboring Batam Island, Indonesia, and finds that the strategic intent of this policy gambit remains stymied by non-economic, socio-political complexities in the host environment, and the economics of competition from other industrial estates in the vicinity of this prototype, remains to be addressed.


The Singapore 'Advantage' In Suzhou, China: Premium Or Perception?, Caroline Yeoh, Di Kun Goh, Victor Sim, Norhanna Yumi Dec 2006

The Singapore 'Advantage' In Suzhou, China: Premium Or Perception?, Caroline Yeoh, Di Kun Goh, Victor Sim, Norhanna Yumi

Research Collection Lee Kong Chian School Of Business

This paper revisits Singapore’s industrial development in Suzhou, China, which has been in operation for more than a decade. We aim to glean insights from this experiment and more importantly, to verify recent claims of it generating political gain and economic capital for Singapore. The flagship project took on an identical framework as the other Singaporean transborder industrialization ventures in the region by adopting Singapore’s expertise and reputation for an efficient and stable government and investment environment. These measures were coupled with the combination of local-specific advantages in the region, such as availability of cheaper labour and market access. Singapore’s …


Nation Equity: Incidental Emotions In Country-Of-Origin Effects, Durairaj Maheswaran, Cathy Yi Chen Dec 2006

Nation Equity: Incidental Emotions In Country-Of-Origin Effects, Durairaj Maheswaran, Cathy Yi Chen

Research Collection Lee Kong Chian School Of Business

Different from past research on country-of-origin effects that has focused on cognitive factors, this article examines the impact of incidental emotions and cognitive appraisals associated with these emotions on country-of-origin effects. Experiment 1 compared anger and sadness and demonstrated that country of origin influenced evaluations only in the angry (vs. sad) condition where human (vs. situation) control was high. Experiment 2 further identified the effects of agency control using a different emotion, frustration. Based on these observations, this article suggests that, like brands, countries also have equity associated with them, termed nation equity, that has both performance and emotional components. …


Choice Of Currency By East Asia Bond Issuers, David Fernandez, Simon Klassen Nov 2006

Choice Of Currency By East Asia Bond Issuers, David Fernandez, Simon Klassen

Research Collection Lee Kong Chian School Of Business

In discussing bond markets in Asia, academics and policymakers typically begin by noting that the Asian crisis of 1997-98 in part resulted from the underdevelopment of the region’s domestic bond markets and the resultant currency and duration mismatches. When assessing the progress made in developing these markets in the post-crisis years, academics and policymakers usually observe that, while several domestic currency government bond markets have moved ahead, corporate bond markets have lagged (Asian Development Bank (2002), Reserve Bank of Australia (2003)). The policy conclusion is therefore often drawn: to prevent another Asian crisis, Asian bond markets must be further developed.


Linking Brand Equity To Customer Equity, Robert P. Leone, Vithala R. Rao, Kevin Lane Keller, Anita Man Luo, Leigh Mcalister, Rajendra Kumar Srivastava Nov 2006

Linking Brand Equity To Customer Equity, Robert P. Leone, Vithala R. Rao, Kevin Lane Keller, Anita Man Luo, Leigh Mcalister, Rajendra Kumar Srivastava

Research Collection Lee Kong Chian School Of Business

Customer equity and brand equity are two of the most important topics to academic researchers and practitioners. As part of the 2005 Thought Leaders Conference held at the University of Connecticut, the authors were asked to review what was known and not known about the relationship between brand equity and customer equity. During their discussions, it became clear that whereas two distinct research streams have emerged and there are distinct differences, the concepts are also highly related. It also became clear that whereas the focus of both brand equity and customer equity research has been on the end consumer, there …


Performance Differences Across Strategic Groups: An Examination Of Financial Market-Based Performance Measures, J. Rajendran Pandian, Howard Thomas, Olivier Furrer, William C. Bogner Nov 2006

Performance Differences Across Strategic Groups: An Examination Of Financial Market-Based Performance Measures, J. Rajendran Pandian, Howard Thomas, Olivier Furrer, William C. Bogner

Research Collection Lee Kong Chian School Of Business

One of the more interesting issues in the strategic management field is the question of whether intra-industry performance differences exist, particularly across strategic groups. Most of the existing studies have used accounting measures of performance despite the documented weaknesses of such measures. This paper examines whether financial market-based measures of performance are superior to accounting-based measures in identifying performance differences across strategic groups. Hypotheses are tested on data from an existing sample of firms in the US pharmaceutical industry. The empirical results indicate that performance differences are more likely to exist across strategic groups when financial market performance measures are …


Management And Self-Activity: Accounting For The Crisis In Profit-Taking, Stefano Harney Nov 2006

Management And Self-Activity: Accounting For The Crisis In Profit-Taking, Stefano Harney

Research Collection Lee Kong Chian School Of Business

The crisis in measurement identified by those working in the tradition of Italian autonomia has consequences for the critique of accounting and management. If both capitalist work and the commodity are today communicative and overtly political, a critique that merely points to these characteristics will have no transformative effect. This paper uses the Trinidadian Marxist theorist C.L.R. James’s notion of self-activity to suggest that the crisis in measurement is a symptom of the separation of work and value. The institution of forms of self-management and what might be called wars of command begin to replace the governmentality of the wage …


A Typology Of Plants In Global Manufacturing Networks, Ann Vereecke, Roland Van Dierdonck, Arnoud De Meyer Nov 2006

A Typology Of Plants In Global Manufacturing Networks, Ann Vereecke, Roland Van Dierdonck, Arnoud De Meyer

Research Collection Lee Kong Chian School Of Business

The purpose of this paper is to propose a new, empirically derived typology of plants in the international manufacturing network of multinational companies. This typology is based on the knowledge flows between the plants. In our research, network analysis has been used as a methodology for understanding the position of plants in international manufacturing networks. The focus has been primarily on the intangible knowledge network, and secondarily on the physical, logistic network. Our analysis leads to four types of plants with different network roles: the isolated plants, the receivers, the hosting network players, and the active network players. Our analysis …


Corporate Crisis Planning: Tensions, Issues, And Contradictions, A. Pang, Fritz Cropp, Glen T. Cameron Oct 2006

Corporate Crisis Planning: Tensions, Issues, And Contradictions, A. Pang, Fritz Cropp, Glen T. Cameron

Research Collection Lee Kong Chian School Of Business

Purpose – Crisis planning, which symbolizes an organization's crisis preparedness and often conceptualized at the corporate headquarters, is increasingly decentralized to regional centers of global companies. These centers, in turn, synchronize their crisis master plans with its national units for expeditious management of localized crises. The purpose of this paper is to capture the decision-making processes that practitioners at a regional center faced as they nurtured their master plan from conception to implementation. Design/methodology/approach – The qualitative method is used. This is a case study of a Fortune 500 company with plants in every continent. The company has four regional …


Service Pattern Discovery Of Web Service Mining In Web Service Registry-Repository, Qianhui Althea Liang, Jen-Yao Chung, Steven M. Miller, Yang Ouyang Oct 2006

Service Pattern Discovery Of Web Service Mining In Web Service Registry-Repository, Qianhui Althea Liang, Jen-Yao Chung, Steven M. Miller, Yang Ouyang

Research Collection School Of Computing and Information Systems

This paper presents and elaborates the concept of Web service usage patterns and pattern discovery through service mining. We define three different levels of service usage data: i) user request level, ii) template level and iii) instance level. At each level, we investigate patterns of service usage data and the discovery of these patterns. An algorithm for service pattern discovery at the template level is presented. We show the system architecture of a service-mining enabled service registry repository. Web service patterns, pattern discovery and pattern mining supports the discovery and composition of complex services, which in turn supports the application …


Two-Instant Reallocation In Two-Echelon Spare Parts Inventory Systems, Huawei Song, Hoong Chuin Lau Oct 2006

Two-Instant Reallocation In Two-Echelon Spare Parts Inventory Systems, Huawei Song, Hoong Chuin Lau

Research Collection School Of Computing and Information Systems

In this paper, we study the problem of deciding when and how to perform reallocation of existing spare parts in a multi-echelon reparable item inventory system. We present a mathematical model that solves the problem when there are two reallocation instants, in response to the open challenge post by Cao and Silver(2005) to consider two or more possible reallocations within a replenishment cycle.


The Boundary Spanner’S Role In Organisational Learning: Unleashing Untapped Potential, Siu Loon Hoe Sep 2006

The Boundary Spanner’S Role In Organisational Learning: Unleashing Untapped Potential, Siu Loon Hoe

Research Collection School Of Computing and Information Systems

PurposeThe organizational behavior and management literature has devoted a lot attention on processes and technology in organizational learning. There has been little work to examine the role of boundary spanners in organizational learning. The purpose of this paper is to highlight the importance of boundary spanners in enhancing organizational learning.Design/methodology/approachThe existing boundary spanning literature was reviewed and the salient points on their role in organizational learning discussed.Practical implicationsThe paper offers a view on tapping the hidden potential of boundary spanners in organizations in order to enhance the organization's learning capacity form the external environment. Practicing manager would then be able …


Escalation And De-Escalation Of Commitment To Information Systems Projects: Insights From A Project Evaluation Model, Shan Ling Pan, Gary S. C. Pan, Michael Newman, Donal Flynn Sep 2006

Escalation And De-Escalation Of Commitment To Information Systems Projects: Insights From A Project Evaluation Model, Shan Ling Pan, Gary S. C. Pan, Michael Newman, Donal Flynn

Research Collection School Of Accountancy

This paper outlines a project evaluation model for examining escalation and de-escalation of commitment to information systems projects. We view escalation and de-escalation of commitment as processes involving recurring instances of approach-avoidance conflict. In the model, the sequential mapping of project events is integrated with a model of approach-avoidance conflict that identifies periods of gradual evolution at two separate levels of social analysis (project and work) that are punctuated by sudden, revolutionary periods of rapid change. By conceiving the processes of commitment escalation and de-escalation as sequences of events involving approach-avoidance conflicts, researchers may develop a deeper understanding of how …


Performance, Growth And Earnings Management, Chi Wen Jevons Lee, Laura Yue Li, Heng Yue Sep 2006

Performance, Growth And Earnings Management, Chi Wen Jevons Lee, Laura Yue Li, Heng Yue

Research Collection School Of Accountancy

We study the relationship between the amount of managed earnings and firms' earnings performance and expected growth in a reporting model, where managers manipulate earnings to influence the valuation of firms' equity while bearing a cost that is increasing and convex in the amount of managed earnings. In the unique revealing equilibrium to the model, firms with higher performance and growth over-report earnings by a larger amount because price responsiveness increases with earnings performance and growth. And earnings quality, defined as the proportion of true economic earnings in total reported earnings, increases with earnings performance but decreases with earnings growth. …


Verbal And Nonverbal Impression Management Tactics In Behavior Description And Situational Interviews, Helga Peeters, Filip Lievens Sep 2006

Verbal And Nonverbal Impression Management Tactics In Behavior Description And Situational Interviews, Helga Peeters, Filip Lievens

Research Collection Lee Kong Chian School Of Business

This study investigated how structured interview formats, instructions to convey favorable impressions, and applicants' individual differences influenced the use and effectiveness of verbal and nonverbal impression management (IM). Results from 190 people who were screened for a training program demonstrated that interview format affected the kind of tactics used, which in turn positively influenced interviewer evaluations. Behavior description interviews triggered self-focused (and defensive) tactics, whereas situational interviews triggered other-focused tactics. Instructions to convey a desirable impression also enhanced the use of specific tactics (self-focused and other-focused verbal IM tactics) and moderated the effects of individual differences on IM use. IM …


Which Daily Price Is Less Noisy?, Christopher Ting Sep 2006

Which Daily Price Is Less Noisy?, Christopher Ting

Research Collection Lee Kong Chian School Of Business

The daily efficient price is the price that would prevail if the market were frictionless. I show that volume-weighted average price (VWAP) provides a less noisy estimate for the unobservable efficient price as compared to the closing price. The variance of daily returns computed with VWAPs is smaller than that computed with closing prices. The difference between these two realized variances is economically significant. The volatility of log closing price change tends to understate the beta risk and Sharpe ratio. A higher noise level in the closing price leads to derivative prices that favor option and volatility-related swap writers.


Video-Based Versus Written Situational Judgment Tests: A Comparison In Terms Of Predictive Validity, Filip Lievens, Paul R. Sackett Sep 2006

Video-Based Versus Written Situational Judgment Tests: A Comparison In Terms Of Predictive Validity, Filip Lievens, Paul R. Sackett

Research Collection Lee Kong Chian School Of Business

In this study, the authors examined whether video-based situational judgment tests (SJTs) have higher predictive validity than written SJTs (keeping verbal content constant). The samples consisted of 1, 159 students who completed a video-based version of an SIT and 1,750 students who completed the same SIT in a written format. The study was conducted in a high stakes testing context. The video-based version of an interpersonally oriented SJT had a lower correlation with cognitive ability than did the written version. It also had higher predictive and incremental validity for predicting interpersonally oriented criteria than did the written version. In this …