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Singapore Management University

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2016

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Articles 31 - 60 of 285

Full-Text Articles in Business

Bargaining Zone Distortion In Negotiations: The Elusive Power Of Multiple Alternatives, Michael Schaerer, David D. Loschelder, Roderick I. Swaab Nov 2016

Bargaining Zone Distortion In Negotiations: The Elusive Power Of Multiple Alternatives, Michael Schaerer, David D. Loschelder, Roderick I. Swaab

Research Collection Lee Kong Chian School Of Business

We challenge the assumption that having multiple alternatives is always better than a single alternative by showing that negotiators who have additional alternatives ironically exhibit downward-biased perceptions of their own and their opponent’s reservation price, make lower demands, and achieve worse outcomes in distributive negotiations. Five studies demonstrate that the apparent benefits of multiple alternatives are elusive because multiple alternatives led to less ambitious first offers (Studies 1–2) and less profitable agreements (Study 3). This distributive disadvantage emerged because negotiators’ perception of the bargaining zone was more distorted when they had additional (less attractive) alternatives than when they only had …

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Interpersonal Dynamics In Assessment Center Exercises: Effects Of Role Player Portrayed Disposition, Tom Oliver, Peter Hausdorf, Filip Lievens, Peter Conlon Nov 2016

Interpersonal Dynamics In Assessment Center Exercises: Effects Of Role Player Portrayed Disposition, Tom Oliver, Peter Hausdorf, Filip Lievens, Peter Conlon

Research Collection Lee Kong Chian School Of Business

Although interpersonal interactions are the mainstay of many assessment center exercises, little is known about how these interactions unfold and affect participant behavior and performance. More specifically, participants interact with role players who have been instructed to demonstrate behavior reflecting specific dispositions as part of the exercise. This study focuses on role player portrayed disposition as a potentially important social demand relevant to participant behavior and performance in interpersonal simulations. We integrate interpersonal theory and trait activation theory to formulate hypotheses about the effects of role player portrayed disposition on participant behavior and performance in 184 interpersonal simulations. A significant …

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Knowledge Will Set You Free: Financial Awareness And Inclusion In The Bottom Of The Pyramid, Aurobindo Ghosh Nov 2016

Knowledge Will Set You Free: Financial Awareness And Inclusion In The Bottom Of The Pyramid, Aurobindo Ghosh

Research Collection Lee Kong Chian School Of Business

In this project, we explored whether financial literacy and economic awareness alleviates financial exclusion for the general population, particularly the financially underserved sections of the population in Ho Chi Minh City (HCMC) in Vietnam. We overcame the problem of identifying the financially excluded by looking at multiple measures of financial inclusion including frequency of bank use, access to borrowing for business, having a regular savings plan and having some insurance for possible future unfavorable outcomes. Using an innovative principal component (PCA) based method we identified a single score factor that can be construed as an overall measure of the degree …

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Informal Institutions And The Geography Of Innovation: An Integrative Perspective, Xuesong Geng, Kenneth G. Huang Nov 2016

Informal Institutions And The Geography Of Innovation: An Integrative Perspective, Xuesong Geng, Kenneth G. Huang

Research Collection Lee Kong Chian School Of Business

Integrating the insights from both institutional theory and economic geography, we develop a new conceptual framework to explain how formal and informal institutions in developing countries influence knowledge exchanges within and across geographical locations, thus affecting entrepreneurs’ and firms’ innovative behaviors and outputs. We suggest that the prevalence of informal institutions in developing countries increases the importance of geographic proximity for knowledge exchanges. At the same time, informal institutions provide alternative channels for maintaining non-local social interactions that facilitate knowledge exchanges among geographically distant firms. Using China as the context, we provide theoretical propositions that illustrate these mechanisms in terms …

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Valuation Uncertainty, Market Sentiment And The Informativeness Of Institutional Trades, Lisa Yang, Jeremy Goh, Chiraphol N. Chiyachantana Nov 2016

Valuation Uncertainty, Market Sentiment And The Informativeness Of Institutional Trades, Lisa Yang, Jeremy Goh, Chiraphol N. Chiyachantana

Research Collection Lee Kong Chian School Of Business

Prior studies indicate that institutional investors are informed, in the sense that their trades predict price changes. In this study we show that return predictive ability of institutions arises (after controlling for size, book-to-market, and momentum) mainly from institutional sales of hard-to-value stocks during periods of positive market sentiment. These results support the notion that these stocks tend to be overvalued during periods of bullish market sentiment, and institutions contribute to market efficiency by identifying and trading on these overpriced stocks.

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Audit Committees And Financial Reporting Quality In Singapore, Yuanto Kusnadi, Kwong Sin Leong, Themin Suwardy, Jiwei Wang Nov 2016

Audit Committees And Financial Reporting Quality In Singapore, Yuanto Kusnadi, Kwong Sin Leong, Themin Suwardy, Jiwei Wang

Research Collection School Of Accountancy

We examine three characteristics (independence, expertise, and overlapping membership) of audit committees and their impact on the financial reporting quality for Singapore-listed companies. The main finding is that financial reporting quality will be higher if audit committees have mixed expertise in accounting, finance, and/or supervisory. In addition, we do not find evidence that incremental independence of audit committees enhances financial reporting quality because audit committees already consist of a majority of independent directors. Finally, we fail to find any impact of overlapping membership on audit and remuneration committees on financial reporting quality. Overall, the results have policy implications on improving …

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The Effect Of Corporate Tax Avoidance On The Cost Of Equity, Beng Wee Goh, Jimmy Lee, Chee Yeow Lim, Terry J. Shevlin Nov 2016

The Effect Of Corporate Tax Avoidance On The Cost Of Equity, Beng Wee Goh, Jimmy Lee, Chee Yeow Lim, Terry J. Shevlin

Research Collection School Of Accountancy

Based on Lambert, Leuz, and Verrecchia (2007)'s derivation of the cost of equity capital in terms of expected cash flows, we generate a testable hypothesis that relates tax avoidance to a firm's cost of equity capital. Using three broad measures of tax avoidance-book-tax differences, permanent book-tax differences, and long-run cash effective tax rates-to test our hypothesis, we find that the cost of equity is lower for tax-avoiding firms. This effect is stronger for firms with better outside monitoring, firms that likely realize higher marginal benefits from tax savings, and firms with higher information quality. Overall, our results suggest that equity …

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Relation Between Auditor Quality And Corporate Tax Aggressiveness: Implications Of Cross-Country Institutional Differences, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo Nov 2016

Relation Between Auditor Quality And Corporate Tax Aggressiveness: Implications Of Cross-Country Institutional Differences, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of firms from 31 countries, we study the relation between auditor quality and corporate tax aggressiveness. Employing an indicator variable for tax aggressiveness when the firm's corporate tax avoidance measure is within the top quintile of each country-industry combination, we find strong evidence that auditor quality is negatively associated with the likelihood of tax aggressiveness, even after controlling for other institutional determinants such as home-country tax system characteristics. We also find that the negative relation between auditor quality and the likelihood of tax aggressiveness is more pronounced in countries where investor protection is stronger, auditor litigation …

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Major Government Customers And Loan Contract Terms, Daniel Cohen, Bin Li, Ningzhong Li, Yun Lou Nov 2016

Major Government Customers And Loan Contract Terms, Daniel Cohen, Bin Li, Ningzhong Li, Yun Lou

Research Collection School Of Accountancy

This study examines how a firm’s business relationship with the U.S. government, in particular, sales to the government, impacts its loan contract terms and how the effect is different from that of major corporate customers. We find that firms with major government customers have a lower number of covenants and are less likely to have performance pricing provisions in their loan contracts than other firms, whereas major corporate customers do not have such impacts. We do not find evidence that major government customers affect the supplier firm’s loan spread, security, or maturity. We conjecture that lenders benefit from the strict …

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I Just Got Fired!, Nirmalya Kumar Nov 2016

I Just Got Fired!, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

Prof Kumar takes about his experience of suddenly losing his position in the Tata Group, due to stepping down of the Chairman Cyrus Mistry.

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Blame The Shepherd Not The Sheep: Imitating Higher-Ranking Transgressors Mitigates Punishment For Unethical Behavior, Christopher W. Bauman, Leigh Plunkett Tost, Ong, Madeline Nov 2016

Blame The Shepherd Not The Sheep: Imitating Higher-Ranking Transgressors Mitigates Punishment For Unethical Behavior, Christopher W. Bauman, Leigh Plunkett Tost, Ong, Madeline

Research Collection Lee Kong Chian School Of Business

Do bad role models exonerate others’ unethical behavior? Based on social learning theory and psychologicaltheories of blame, we predicted that unethical behavior by higher-ranking individuals changes howpeople respond to lower-ranking individuals who subsequently commit the same transgression. Fivestudies explored when and why this rank-dependent imitation effect occurs. Across all five studies, wefound that people were less punitive when low-ranking transgressors imitated high-ranking membersof their organization. However, imitation only reduced punishment when the two transgressors werefrom the same organization (Study 2), when the transgressions were highly similar (Study 3), and whenit was unclear whether the initial transgressor was punished (Study 5). …

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Least Squares Approximation To The Distribution Of Project Completion Times With Gaussian Uncertainty, Zhichao Zheng, Karthik Natarajan, Chung-Piaw Teo Nov 2016

Least Squares Approximation To The Distribution Of Project Completion Times With Gaussian Uncertainty, Zhichao Zheng, Karthik Natarajan, Chung-Piaw Teo

Research Collection Lee Kong Chian School Of Business

This paper is motivated by the following question: How to construct good approximation for the distribution of the solution value to linear optimization problem when the random objective coefficients follow a multivariate normal distribution? Using Stein’s Identity, we show that the least squares normal approximation of the random optimal value can be computed by estimating the persistency values of the corresponding optimization problem. We further extend our method to construct a least squares quadratic estimator to improve the accuracy of the approximation; in particular, to capture the skewness of the objective. Computational studies show that the new approach provides more …

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A Bankable Future, Jonathan Henry Chang Nov 2016

A Bankable Future, Jonathan Henry Chang

Asian Management Insights

Efforts to promote financialinclusion in Cambodia arepaying dividends economically,and unlocking opportunity.

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Customer Satisfaction Index Of Singapore 2016: Q3 Results, Institute Of Service Excellence, Smu Nov 2016

Customer Satisfaction Index Of Singapore 2016: Q3 Results, Institute Of Service Excellence, Smu

Research Collection Institute of Service Excellence (2007-2024)

The Customer Satisfaction Index of Singapore (CSISG) computes customer satisfaction scores at the national, sector, sub-sector, and company levels. The CSISG serves as a quantitative benchmark of the quality of goods and services produced by the Singapore economy over time and across countries. This is the CSISG’s tenth year of measurement.

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Ueber-Brands: How To Make Your Brand Priceless?, J. P. Kuehlwein, Wolf Schaefer Nov 2016

Ueber-Brands: How To Make Your Brand Priceless?, J. P. Kuehlwein, Wolf Schaefer

Asian Management Insights

Ueber-Brands—brands that are valued beyond their price and esteemed beyond their size. These brands are unique in that they have captured not just the wallet but also the hearts of a huge, loyal and growing customer base.

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Days To Cover And Stock Returns, Harrison G. Hong, Frank Weikai Li, Sophie X. Ni, Jose A. Scheinkman, Philip Yan Nov 2016

Days To Cover And Stock Returns, Harrison G. Hong, Frank Weikai Li, Sophie X. Ni, Jose A. Scheinkman, Philip Yan

Research Collection Lee Kong Chian School Of Business

A crowded trade emerges when speculators' positions are large relative to the asset's liquidity, making exit difficult. We study this problem of recent regulatory concern by focusing on short-selling. We show that days to cover (DTC), the ratio of short interest to trading volume, measures the costliness of exiting crowded trades. Crowding is an important concern as short-sellers avoid illiquid stocks, which we establish using an instrumental-variables strategy involving staggered stock market decimalization reforms. Arbitrageurs require a premium to enter into such trades as a strategy shorting high DTC stocks and buying low DTC stocks generates a 1.2% monthly return. …

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Can Asians Be Creative?, Chua, Roy Y. J., Jerry Zremski Nov 2016

Can Asians Be Creative?, Chua, Roy Y. J., Jerry Zremski

Research Collection Lee Kong Chian School Of Business

A crotchety American named Henry Ford invented a modern, fast and efficient way to manufacture automobiles and a Japanese man named Eiji Toyoda refined and perfected it. A series of innovators across the western world developed the television - and the tech specialists at Sony, Toshiba and a host of other Asian companies found ways to make TVs better, cheaper, faster. And an idiosyncratic Californian named Steve Jobs invented a company that made a smart phone for the masses - and then outsourced the manufacturing to China. If you detect a pattern here, you are not alone. Asia may be …

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Designing And Evaluating Business Process Models: An Experimental Approach, Yuecheng Martin Yu, Alexander Pelaez, Karl R. Lang Nov 2016

Designing And Evaluating Business Process Models: An Experimental Approach, Yuecheng Martin Yu, Alexander Pelaez, Karl R. Lang

Research Collection School Of Computing and Information Systems

This paper presents an experimental approach to compare the performance of alternative business process designs. We use an example case of an electronic group buying setting to demonstrate how our approach can be applied in practice. More specifically, we chose a standard business process, the sales process as implemented on a group buying platform, to illustrate how a business process may be redesigned in order to better meet the needs of customers. For that purpose, we introduce a social technology feature to support cooperation among buyers in the sales process and then analyze the performance impact of the proposed business …

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Building Asian Business Schools: Hindsight, Insight & Foresight, Dipak C. Jain Nov 2016

Building Asian Business Schools: Hindsight, Insight & Foresight, Dipak C. Jain

Asian Management Insights

Management education for the 21st century.

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Invitation Strategy For Cutting Edge Industries Through Mncs And Global Talents: The Case Of Singapore, Kim Song Tan Nov 2016

Invitation Strategy For Cutting Edge Industries Through Mncs And Global Talents: The Case Of Singapore, Kim Song Tan

Research Collection School Of Economics

Singapore presents an interesting case of how a country achieves dynamic economic development and innovation through the "invitation" strategy of a business hub. Despite being a small city-state with limited domestic market size and no meaningful hinterland or natural resources to speak of, Singapore has managed to transform its economy dramatically over the past 50 years by leveraging the strengths of other economies. Specifically, it has been able to attract (or "invite") various types of productive resources, including foreign capital, foreign technology and foreign workers (both skilled and unskilled) to make up for what it lacks. This has helped Singapore …

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State Ownership And Corporate Innovation Efficiency, Jerry X. Cao, Douglas J. Cumming, Sili Zhou, Lu Zhou Nov 2016

State Ownership And Corporate Innovation Efficiency, Jerry X. Cao, Douglas J. Cumming, Sili Zhou, Lu Zhou

Research Collection Lee Kong Chian School Of Business

The conventional wisdom is that state ownership may hinder patenting through reduced incentives and pronounced agency problems associated with state-owned enterprises (SOEs). Empirical evidence from a variety of contexts, including the U.S., Europe, and China, is consistent with this view, including evidence that shows that reductions in state ownership are associated with an increase in patent counts. In this paper, we investigate the innovative efficiency of Chinese SOEs. Innovative efficiency refers to patents/R&D expenditure, and not patent counts. The data indicate that SOEs, and especially central government SOEs, are substantially more innovatively efficient than non-SOEs. The relative innovative efficiency of …

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An Entrepreneur's Journey In The Food Services Industry, Singapore Management University Oct 2016

An Entrepreneur's Journey In The Food Services Industry, Singapore Management University

Perspectives@SMU

Desmond Lee grew a three-man startup into a S$20 million operation by adapting to market trends

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Leader Of The Pack: What Makes The Alibaba Group So Successful, Singapore Management University Oct 2016

Leader Of The Pack: What Makes The Alibaba Group So Successful, Singapore Management University

Perspectives@SMU

The 'people's platform' sells more than eBay and Amazon combined

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Banking And The Third Industrial Revolution, Singapore Management University Oct 2016

Banking And The Third Industrial Revolution, Singapore Management University

Perspectives@SMU

Banks should leverage on the computer’s power to create value

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Political Turnovers, Ownership, And Corporate Investment In China, Jerry X. Cao, Julio Brandon, Tiecheng Leng, Sili Zhou Oct 2016

Political Turnovers, Ownership, And Corporate Investment In China, Jerry X. Cao, Julio Brandon, Tiecheng Leng, Sili Zhou

Research Collection Lee Kong Chian School Of Business

We examine the impact of political influence and ownership on corporate investment by exploiting the unique way provincial leaders are promoted in China. The tournament-style promotion system creates incentives for new governors to exert influence over investment in the early years of their term. We find a divergence in investment rates between state owned enterprises (SOEs) and private firms following political turnover. SOEs increase investment by 6.0% following the turnover while investment rates for private firms decline, suggesting that the political influence exerted over SOEs may crowd out private investment.

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Customer Acquisition And Retention Spending: An Analytical Model And Empirical Investigation In Wireless Telecommunications Markets, Sungwook Min, Xubing Zhang, Namwoon Kim, Rajendra K. Srivastava Oct 2016

Customer Acquisition And Retention Spending: An Analytical Model And Empirical Investigation In Wireless Telecommunications Markets, Sungwook Min, Xubing Zhang, Namwoon Kim, Rajendra K. Srivastava

Research Collection Lee Kong Chian School Of Business

Strategic resource allocation in growth markets is always a challenging task. This is especially true when it comes to determining the level of investments and expenditures for customer acquisition and retention in competitive and dynamic market environments. This study develops an analytical model to examine firms' investments in customer acquisition and retention for a new service; it develops hypotheses drawing on analytical findings and tests them with firm-level operating data of wireless telecommunications markets from 41 countries during 1999-2007. The empirical investigation shows that a firm's acquisition cost per customer is more sensitive to market position and competition than retention …

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The Too-Much Precision Effect: When And Why Precise Anchors Backfire With Experts, David D. Loschelder, Malte Friese, Michael Schaerer, Adam D. Galinsky Oct 2016

The Too-Much Precision Effect: When And Why Precise Anchors Backfire With Experts, David D. Loschelder, Malte Friese, Michael Schaerer, Adam D. Galinsky

Research Collection Lee Kong Chian School Of Business

Past research has suggested a fundamental principle of price precision: The more precise an opening price, the more it anchors counteroffers. The present research challenges this principle by demonstrating a too-much-precision effect. Five experiments (involving 1,320 experts and amateurs in real-estate, jewelry, car, and human-resources negotiations) showed that increasing the precision of an opening offer had positive linear effects for amateurs but inverted-U-shaped effects for experts. Anchor precision backfired because experts saw too much precision as reflecting a lack of competence. This negative effect held unless first movers gave rationales that boosted experts’ perception of their competence. Statistical mediation and …

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Data From A Pre-Publication Independent Replication Initiative Examining Ten Moral Judgement Effects, Warren Thierny, Martin Schweinsberg, Jennifer Jordan, Michael Schaerer Oct 2016

Data From A Pre-Publication Independent Replication Initiative Examining Ten Moral Judgement Effects, Warren Thierny, Martin Schweinsberg, Jennifer Jordan, Michael Schaerer

Research Collection Lee Kong Chian School Of Business

We present the data from a crowdsourced project seeking to replicate findings in independent laboratories before (rather than after) they are published. In this Pre-Publication Independent Replication (PPIR) initiative, 25 research groups attempted to replicate 10 moral judgment effects from a single laboratory’s research pipeline of unpublished findings. The 10 effects were investigated using online/lab surveys containing psychological manipulations (vignettes) followed by questionnaires. Results revealed a mix of reliable, unreliable, and culturally moderated findings. Unlike any previous replication project, this dataset includes the data from not only the replications but also from the original studies, creating a unique corpus that …

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Is Cash-Return Relation Risk Induced?, Chenxi Liu Oct 2016

Is Cash-Return Relation Risk Induced?, Chenxi Liu

Research Collection Lee Kong Chian School Of Business

Corporate cash holding is found to be able to predict stock return. Some scholars attribute this to the association of cash with systematic risk with respect to growth options. Others find that the relation is a mispricing effect. In this paper, I try to test whether the relation between cash and return is driven by systematic risk that captured by cash. The empirical results do not support the risk explanation of cash-return relation. First, the risk loading on CASH factor cannot predict returns, which is not consistent with rational frictionless asset pricing models. Second, CASH factor cannot reflect future GDP …

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An Approach-Avoidance Framework Of Workplace Aggression, D. Lance Ferris, Ming Yan, Vivien K. G. Lim, Yuanyi Chen, Shereen Fatimah Oct 2016

An Approach-Avoidance Framework Of Workplace Aggression, D. Lance Ferris, Ming Yan, Vivien K. G. Lim, Yuanyi Chen, Shereen Fatimah

Research Collection Lee Kong Chian School Of Business

The number of constructs developed to assess workplace aggression has flourished in recent years, leading to confusion over what meaningful differences exist (if any) between the constructs. We argue that one way to frame the field of workplace aggression is via approach–avoidance principles, with various workplace aggression constructs(e.g., abusive supervision, supervisor undermining, and workplace ostracism) differentially predicting specific approach or avoidance emotions and behaviors. Using two multi-wave field samples of employees, we demonstrate the utility of approach–avoidance principles in conceptualizing workplace aggression constructs, as well as the processes and boundary conditions through which they uniquely influence outcomes. Implications for the …

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