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Walking The Talk Of Wall Street, Knowledge@Smu Mar 2012

Walking The Talk Of Wall Street, Knowledge@Smu

Knowledge@SMU

Years after he theorised that a blindfolded monkey throwing darts at stock listings can select a portfolio that would perform as well as one chosen by experts, Princeton economist Burton Malkiel is sticking by it. In the tenth edition of his investment classic, A Random Walk Down Wall Street, Malkiel explains why the experts are overrated, and why sticking with a buy-and-hold strategy using a broad stock market index fund will outperform the professionally managed ones.


Us Government Efforts To Repair Its Image After The 2008 Financial Crisis, Andrea A. Chua, Augustine Pang Mar 2012

Us Government Efforts To Repair Its Image After The 2008 Financial Crisis, Andrea A. Chua, Augustine Pang

Research Collection Lee Kong Chian School Of Business

Globalization has intensified the interaction and interdependency among countries. The need to maintain good reputation and establish good relationships should dominate public diplomacy efforts (Hiebert, 2005). Using the US financial crisis 2008 as a case study, this study examines how the world's only superpower repaired its image when it was accused of triggering the financial meltdown that impacted the world economy. Few studies have examined repair strategies by nations. The need to undertake more empirical research to understand how the image-rebuilding rhetoric can aid diplomatic efforts remains relevant today.


Spillover Effects Of Ingredient Branded Strategies On Brand Choice: A Field Study, Swaminathan Vanitha, Srinivas K. Reddy, Sara Loughran Dommer Mar 2012

Spillover Effects Of Ingredient Branded Strategies On Brand Choice: A Field Study, Swaminathan Vanitha, Srinivas K. Reddy, Sara Loughran Dommer

Research Collection Lee Kong Chian School Of Business

Ingredient branding, or the use of two or more brand names on a single product, is widely seen as providing significant benefits in terms of increased product differentiation and greater market share. The association between two brand names can both enhance and dilute the brand equity of the host brand name and the ingredient brand name. This research examines the behavioral spillover effects associated with cobranded strategies across segments of consumers that vary in their prior brand commitment or loyalty. Different from previous research, this paper uses A.C. Nielsen scanner panel data to investigate the behavioral spillover effects of ingredient …


Spin-Offs And Operating Performance, Gary L. Caton, Jeremy C. Goh, Frank Kerins Mar 2012

Spin-Offs And Operating Performance, Gary L. Caton, Jeremy C. Goh, Frank Kerins

Research Collection Lee Kong Chian School Of Business

This study examines the relation between changes in industry-adjusted operating performance associated with corporate spin-offs and the market’s assessment of the spin-off as either a value increasing or value decreasing activity. I find that the average change in industry-adjusted operating performance associated with my sample of spin-offs is not significantly different from zero. However, I also present evidence suggesting that this average result is misleading because some spin-offs appear to be value increasing while others are value decreasing. I establish that a positive and significant relation exists between parent company revaluation and a) the change in industry-adjusted operating performance of …


Client Strategies In Vendor Transition: A Threat Balancing Perspective, Cecil Eng Huang Chua, Wee-Kiat Lim, Christina Soh, Siew Kien Sia Mar 2012

Client Strategies In Vendor Transition: A Threat Balancing Perspective, Cecil Eng Huang Chua, Wee-Kiat Lim, Christina Soh, Siew Kien Sia

CCX Research

Many outsourcing contracts are expiring, and vendor transition is an increasing concern. This paper attempts to develop guidelines for vendor transition by applying balance of threat theory, which suggests a client organization should pursue either a “soft” or “hard” balancing strategy, depending on the outgoing vendor’s capability and aggressive intent to disrupt client operations. Balance of threat theory is explored across two contrasting case sites. In addition to demonstrating the relevance of balance of threat theory, the cases identify specific tactics associated with hard and soft balancing, as well as key areas of conflict in vendor transition.


Accounting Restatements And External Financing Choices, Qiang Cheng, Xia Chen, Alvis Lo Mar 2012

Accounting Restatements And External Financing Choices, Qiang Cheng, Xia Chen, Alvis Lo

Research Collection School Of Accountancy

There is little research on how accounting information quality affects a firm’s external financing choices. In this paper, we use the occurrence of accounting restatements as a proxy for the reduced credibility of accounting information and investigate how restatements affect a firm’s external financing choices. We find that for firms that obtain external financing after restatements, they rely more on debt financing, especially private debt financing, and less on equity financing. The increase in debt financing is more pronounced for firms with more severe information problems and less pronounced for firms with prompt CEO/CFO turnover and auditor dismissal. Our evidence …


Hedge Funds And Analyst Conflict Of Interest, Sung Gon Chung, Melvyn Teo Mar 2012

Hedge Funds And Analyst Conflict Of Interest, Sung Gon Chung, Melvyn Teo

Research Collection School Of Accountancy

Are sell-side analysts reluctant to go against the investment views of their hedge fund clients? We show that analysts tend to upgrade stocks recently bought and downgrade stocks recently sold by hedge funds. Relative to other buy and strong buy recommendations, similar recommendations on stocks predominantly held by hedge funds parlay into poorer three-month and six-month stock returns. Hedge funds concurrently offload their stock holdings when analysts issue flattering reports. In line with an agency based explanation, our results are more pronounced for important brokerage clients such as high dollar turnover hedge funds and hedge funds who are prime brokerage …


On-Market Share Buy-Backs: Asx Disclsoure, Jason David Mitchell, Holub M. Mar 2012

On-Market Share Buy-Backs: Asx Disclsoure, Jason David Mitchell, Holub M.

Research Collection School Of Accountancy

Our paper investigates the compliance of Australian listed firms with the ASX disclosure rules for on‐market share buy‐backs. We find that firm compliance is reasonable for initial buy‐back announcements, but poor for final buy‐back notices. In the latter instance, the disclosure in the appropriate ASX notice is provided in only 53% of cases. Of significant concern is the even lower degree of final notice compliance (42%) for buy‐backs tagged as having ‘unlimited’ duration. Across our total sample of 807 buy‐backs, an alternative form of disclosure of buy‐back completion is provided in 25% of cases, and no proper notification of either …


The Effects Of Culture And Structure On Strategic Flexibility During Business Model Innovation, Adam J. Bock, Tore Opsahl, Gerard George, David M. Gann Mar 2012

The Effects Of Culture And Structure On Strategic Flexibility During Business Model Innovation, Adam J. Bock, Tore Opsahl, Gerard George, David M. Gann

Research Collection Lee Kong Chian School Of Business

This study uses responses from 107 multinational firms to reveal CEO perceptions of the drivers of strategic flexibility during business model innovation. While the positive effect of creative culture is confirmed, partner reliance reduces strategic flexibility during business model innovation. Further, structural change is disaggregated into efforts that either focus managerial attention on core activities or reconfigure existing activities. CEOs perceive that structural flexibility requires structural simplification while retaining control of non-core functions. We find that the relative magnitude of business model innovation effort moderates the effect of reconfiguration on strategic flexibility. The implications for theories of organizational design and …


Simulations, Filip Lievens, Britt De Coete Mar 2012

Simulations, Filip Lievens, Britt De Coete

Research Collection Lee Kong Chian School Of Business

Simulations represent more or less exact replicas of tasks, knowledge, skills, and abilities required in actual work behavior. This chapter reviews research on the more traditional high-fidelity simulations (i.e., assessment centers and work samples) and contrasts it with the growing body of research on low-fidelity simulations (i.e., situational judgment tests). Both types of simulations are compared in terms of the following five statements: “The use of simulations enables organizations to make predictions about a broader array of KSAOs,” “We don't know what simulations exactly measure,” “When organizations use simulations, the adverse impact of their selection system will be reduced,” “Simulations …


Hoare-Style Verification Of Graph Programs, Christopher M. Poskitt, Detlef Plump Mar 2012

Hoare-Style Verification Of Graph Programs, Christopher M. Poskitt, Detlef Plump

Research Collection School Of Computing and Information Systems

GP (for Graph Programs) is an experimental nondeterministic programming language for solving problems on graphs and graph-like structures. The language is based on graph transformation rules, allowing visual programming at a high level of abstraction. In particular, GP frees programmers from dealing with low-level data structures. In this paper, we present a Hoare-style proof system for verifying the partial correctness of (a subset of) graph programs. The pre- and postconditions of the calculus are nested graph conditions with expressions, a formalism for specifying both structural graph properties and properties of labels. We show that our proof system is sound with …


Hierarchical Fuzzy Logic System For Implementing Maintenance Schedules Of Offshore Power Systems, C. S. Chang, Zhaoxia Wang, Fan Yang, W. W. Tan Mar 2012

Hierarchical Fuzzy Logic System For Implementing Maintenance Schedules Of Offshore Power Systems, C. S. Chang, Zhaoxia Wang, Fan Yang, W. W. Tan

Research Collection School Of Computing and Information Systems

Smart grid provides the technology for modernizing electricity delivery systems by using distributed and computer-based remote sensing, control and automation, and two-way communications. Potential benefits of the technology are that the smart grid's central control will now be able to control and operate many remote power plant, optimize the overall asset utilization and operational efficiently. In this paper, we propose an innovative approach for the smart grid to handle uncertainties arising from condition monitoring and maintenance of power plant. The approach uses an adaptive maintenance advisor and a system-maintenance optimizer for designing/implementing optimized condition-based maintenance activities, and collectively handles operational …


Boosting Web Video Categorization With Contextual Information From Social Web, Xiao Wu, Chong-Wah Ngo, Yi-Ming Zhu, Qiang Peng Mar 2012

Boosting Web Video Categorization With Contextual Information From Social Web, Xiao Wu, Chong-Wah Ngo, Yi-Ming Zhu, Qiang Peng

Research Collection School Of Computing and Information Systems

Web video categorization is a fundamental task for web video search. In this paper, we explore web video categorization from a new perspective, by integrating the model-based and data-driven approaches to boost the performance. The boosting comes from two aspects: one is the performance improvement for text classifiers through query expansion from related videos and user videos. The model-based classifiers are built based on the text features extracted from title and tags. Related videos and user videos act as external resources for compensating the shortcoming of the limited and noisy text features. Query expansion is adopted to reinforce the classification …


Policy Positioning In The European Parliament, Kenneth Benoit, Kenneth Benoit Mar 2012

Policy Positioning In The European Parliament, Kenneth Benoit, Kenneth Benoit

Research Collection School of Social Sciences

Party politics in the European Parliament (EP) consists of competition between transnational party groups, each consisting of multiple national member parties from the 27 member states of the European Union (EU). Identifying the policy space that these parties inhabit and their ideological positions is both practically and conceptually challenging. In this article we characterize this policy competition by tracking EP political groups from three separate, original expert surveys taken in 2004, 2007 and 2010. We look at the relative positioning of the groups on multiple dimensions of policy, as well as changes in party group policy since 2004. Additionally, we …


A Comparison Of Cardinal Tournaments And Piece Rate Contracts With Liquidity Constrained Agents, Kosmas Marinakis, Theofanis Tsoulouhas Mar 2012

A Comparison Of Cardinal Tournaments And Piece Rate Contracts With Liquidity Constrained Agents, Kosmas Marinakis, Theofanis Tsoulouhas

Research Collection School Of Economics

Acelebrated result in the theory of tournaments is that relative performance evaluation (tournaments) is a superior compensation method to absolute performance evaluation (piece rate contracts) when the agents are risk-averse, the principal is risk-neutral or less risk-averse than the agents and production is subject to common shocks that are large relative to the idiosyncratic shocks. This is because tournaments get closer to the first best by filtering common uncertainty. This paper shows that, surprisingly, tournaments are superior even when agents are liquidity constrained so that transfers to them cannot fall short of a predetermined level. The rationale is that, by …


Improved Duplicate Bug Report Identification, Yuan Tian, Chengnian Sun, David Lo Mar 2012

Improved Duplicate Bug Report Identification, Yuan Tian, Chengnian Sun, David Lo

Research Collection School Of Computing and Information Systems

Bugs are prevalent in software systems. To improve the reliability of software systems, developers often allow end users to provide feedback on bugs that they encounter. Users could perform this by sending a bug report in a bug report management system like Bugzilla. This process however is uncoordinated and distributed, which means that many users could submit bug reports reporting the same problem. These are referred to as duplicate bug reports. The existence of many duplicate bug reports may cause much unnecessary manual efforts as often a triager would need to manually tag bug reports as being duplicates. Recently, there …


Is Specialization Desirable In Committee Decision Making?, Ruth Ben-Yashar, Winston T. H. Koh, Shmuel Nitzan Mar 2012

Is Specialization Desirable In Committee Decision Making?, Ruth Ben-Yashar, Winston T. H. Koh, Shmuel Nitzan

Research Collection School Of Economics

Committee decision making is examined in this study focusing on the role assigned to the committee members. In particular, we are concerned about the comparison between committee performance under specialization and non-specialization of the decision makers. Specialization (in the context of project or public policy selection) means that the decision of each committee member is based on a narrow area, which typically results in the acquirement and use of relatively high expertise in that area. When the committee members’ expertise is already determined, specialization only means that the decision of each committee member is based solely on his/her relatively high …


Product Suitability, Due Diligence And Management Responsibility: The New Regime Of Regulation 18b Of The Financial Advisers Regulations, Kee Yang Low Mar 2012

Product Suitability, Due Diligence And Management Responsibility: The New Regime Of Regulation 18b Of The Financial Advisers Regulations, Kee Yang Low

Research Collection Yong Pung How School Of Law

In response to the structured products crisis of 2008, many changes were made to the Singapore regulatory landscape over the past three years. More recently, in July 2011, the Financial Advisers Regulations (Cap 110, Rg 2, 2004 Rev Ed) was amended and an important new provision – reg 18B – was added. Regulation 18B requires a financial adviser and its senior management to conduct a comprehensive due diligence exercise before selling a new product. This comment considers reg 18B’s overall scheme, its interpretational difficulties, the demands of the diligence requirements, its interrelation with s 27 of the Financial Advisers Act …


Utility-Based Bandwidth Adaptation In Mission-Oriented Wireless Sensor Networks, Sharanya Eswaran, Archan Misra, Flavio Bergamaschi, Thomas La Porta Mar 2012

Utility-Based Bandwidth Adaptation In Mission-Oriented Wireless Sensor Networks, Sharanya Eswaran, Archan Misra, Flavio Bergamaschi, Thomas La Porta

Research Collection School Of Computing and Information Systems

This paper develops a utility-based optimization framework for resource sharing by multiple competing missions in a mission-oriented wireless sensor network (WSN) environment. Prior work on network utility maximization (NUM) based optimization has focused on unicast flows with sender-based utilities in either wireline or wireless networks. In this work, we develop a generalized NUM model to consider three key new features observed in mission-centric WSN environments: i) the definition of the utility of an individual mission (receiver) as a joint function of data from multiple sensor sources ii) the consumption of each senders (sensor) data by multiple missions and iii) the …


Human: Creating Memorable Fingerprints Of Mobile Users, Gupta Payas, Kiat Wee Tan, Narayanasamy Ramasubbu, David Lo, Debin Gao, Rajesh Krishna Balan Mar 2012

Human: Creating Memorable Fingerprints Of Mobile Users, Gupta Payas, Kiat Wee Tan, Narayanasamy Ramasubbu, David Lo, Debin Gao, Rajesh Krishna Balan

Research Collection School Of Computing and Information Systems

In this paper, we present a new way of generating behavioral (not biometric) fingerprints from the cellphone usage data. In particular, we explore if the generated behavioral fingerprints are memorable enough to be remembered by end users. We built a system, called HuMan, that generates fingerprints from cellphone data. To test HuMan, we conducted an extensive user study that involved collecting about one month of continuous usage data (including calls, SMSes, application usage patterns etc.) from 44 Symbian and Android smartphone users. We evaluated the memorable fingerprints generated from this rich multi-context data by asking each user to answer various …


Quality And Leniency In Online Collaborative Rating Systems, Hady W. Lauw, Ee Peng Lim, Ke Wang Mar 2012

Quality And Leniency In Online Collaborative Rating Systems, Hady W. Lauw, Ee Peng Lim, Ke Wang

Research Collection School Of Computing and Information Systems

The emerging trend of social information processing has resulted in Web users’ increased reliance on user-generated content contributed by others for information searching and decision making. Rating scores, a form of user-generated content contributed by reviewers in online rating systems, allow users to leverage others’ opinions in the evaluation of objects. In this article, we focus on the problem of summarizing the rating scores given to an object into an overall score that reflects the object’s quality. We observe that the existing approaches for summarizing scores largely ignores the effect of reviewers exercising different standards in assigning scores. Instead of …


Decision-Making Models, Decision Support And Problem Solving, Mark R. Lehto, Fiona Fui-Hoon Nah, Ji Soo Yi Mar 2012

Decision-Making Models, Decision Support And Problem Solving, Mark R. Lehto, Fiona Fui-Hoon Nah, Ji Soo Yi

Research Collection School Of Computing and Information Systems

This chapter focuses on the broad topic of human decision making. Decision making is often viewed as a stage of human information processing because people must gather, organize, and combine information from various sources to make decisions. However, as decisions grow more complex, information processing actually becomes part of decision making, and methods of decision sup-port that help decision makers process information become of growing importance. Decision making also overlaps with problem solving. The point where decision making becomes problem solving is fuzzy, but many decisions require problem solving, and the opposite is true as well. Cognitive models of problem …


Dynamic Lookahead Mechanism For Conserving Power In Multi-Player Mobile Games, Karthik Thirugnanam, Bhojan Anand, Jeena Sebastian, Pravein Kannan, Akhihebbal L. Ananda, Rajesh Krishna Balan, Mun Choon Chan Mar 2012

Dynamic Lookahead Mechanism For Conserving Power In Multi-Player Mobile Games, Karthik Thirugnanam, Bhojan Anand, Jeena Sebastian, Pravein Kannan, Akhihebbal L. Ananda, Rajesh Krishna Balan, Mun Choon Chan

Research Collection School Of Computing and Information Systems

As the current generation of mobile smartphones become more powerful, they are being used to perform more resource intensive tasks making battery lifetime a major bottleneck. In this paper, we present a technique called dynamic AoV lookahead for reducing wireless interface power consumption up to 50% while playing a popular, yet resource intensive, mobile multiplayer games.


The Role Of Faculty Members' Cross-Cultural Competencies In Their Perceived Teaching Quality: Evidence From Culturally-Diverse Classes In Four European Countries, Alain De Beuckelaer, Filip Lievens, Joost Bucker Mar 2012

The Role Of Faculty Members' Cross-Cultural Competencies In Their Perceived Teaching Quality: Evidence From Culturally-Diverse Classes In Four European Countries, Alain De Beuckelaer, Filip Lievens, Joost Bucker

Research Collection Lee Kong Chian School Of Business

In the field of higher education, it has often been claimed that in culturally-diverse classes high levels of cross-cultural competence will result in better teaching performance among faculty. Unfortunately, to date this relationship has not been tested empirically. In this study, we examine the nature of this relationship using course-related survey data from faculty members (N = 46) teaching management-related courses to master's students (N = 1,219) in four EU countries (Belgium, France, Germany, and The Netherlands). Results demonstrate that cross-cultural competence (in particular showing a high degree of cultural empathy and being open-minded) is an important asset for faculty …


The Validity Of Interpersonal Skills Assessment Via Situational Judgment Tests For Predicting Academic Success And Job Performance, Filip Lievens, Paul R. Sackett Mar 2012

The Validity Of Interpersonal Skills Assessment Via Situational Judgment Tests For Predicting Academic Success And Job Performance, Filip Lievens, Paul R. Sackett

Research Collection Lee Kong Chian School Of Business

This study provides conceptual and empirical arguments why an assessment of applicants' procedural knowledge about interpersonal behavior via a video-based situational judgment test might be valid for academic and postacademic success criteria. Four cohorts of medical students (N = 723) were followed from admission to employment. Procedural knowledge about interpersonal behavior at the time of admission was valid for both internship performance (7 years later) and job performance (9 years later) and showed incremental validity over cognitive factors. Mediation analyses supported the conceptual link between procedural knowledge about interpersonal behavior, translating that knowledge into actual interpersonal behavior in internships, and …


Becoming Aware Of The Unknown: Decision Making During The Implementation Of A Strategic Initiative, Ronald Klingebiel, Arnoud De Meyer Mar 2012

Becoming Aware Of The Unknown: Decision Making During The Implementation Of A Strategic Initiative, Ronald Klingebiel, Arnoud De Meyer

Research Collection Lee Kong Chian School Of Business

This qualitative study analyzes the decision-making process involved in adapting preconceived courses of action during the implementation of a strategic initiative. We observe that the type of decision-making process hinges on the nature of managers’ emerging awareness of future events. When managers become aware of new uncertainty, the process involves selectiveness, deliberateness, and diligence. By contrast, when managers become aware of new certainty, the process conforms to the problem-solving adhocracy and decision-making messiness emphasized in prior literature. We summarize our findings in a framework, proposing that decision-level differences in awareness and uncertainty can explain the observed variation in strategic decision-making …


A Theory Of Strategic Mergers, Gennaro Bernile, Evgeny Lyandres, Alexei Zhdanov Mar 2012

A Theory Of Strategic Mergers, Gennaro Bernile, Evgeny Lyandres, Alexei Zhdanov

Research Collection Lee Kong Chian School Of Business

We examine firms’ strategic incentives to engage in horizontal mergers. In a real options framework, we show that strategic considerations may explain abnormally high takeover activity during periods of positive and negative demand shocks. Importantly, this pattern emerges solely as a result of firms’ strategic interaction in output markets. We show that the U-shaped relation between the state of demand and the propensity of firms to merge, documented in past studies, is driven by horizontal mergers in industries that are: (1) relatively more concentrated, (2) characterized by relatively strong competitive interaction among firms, and (3) characterized by relatively low merger-related …


Secds: A Secure Epc Discovery Services System In Epcglobal Network, Jie Shi, Darren Sim, Yingjiu Li, Robert H. Deng Feb 2012

Secds: A Secure Epc Discovery Services System In Epcglobal Network, Jie Shi, Darren Sim, Yingjiu Li, Robert H. Deng

Research Collection School Of Computing and Information Systems

In recent years, the Internet of Things (IOT) has drawn considerable attention from the industrial and research communities. Due to the vast amount of data generated through IOT devices and users, there is an urgent need for an effective search engine to help us make sense of this massive amount of data. With this motivation, we begin our initial works on developing a secure and efficient search engine (SecDS) based on EPC Discovery Services (EPCDS) for EPCglobal network, an integral part of IOT. SecDS is designed to provide a bridge between different partners of supply chains to share information while …


Large Mutual Fund Families: Bigger May Not Always Be Better, Singapore Management University Feb 2012

Large Mutual Fund Families: Bigger May Not Always Be Better, Singapore Management University

Perspectives@SMU

Size is not everything but it may be intuitive for the novice investor to place his money in a mutual fund from large fund families thinking that it will outperform the smaller ones.


Large Mutual Fund Families: Bigger May Not Always Be Better, Knowledge@Smu Feb 2012

Large Mutual Fund Families: Bigger May Not Always Be Better, Knowledge@Smu

Knowledge@SMU

Investments are vital to one’s financial freedom. But investment strategy is an art which not everybody can master. Those who are new to investing may see mutual funds as an easy tool to make money. It has been traditionally thought that larger mutual fund families tend to perform better than their smaller counterparts. Do they really?