Open Access. Powered by Scholars. Published by Universities.®

Business Commons™

Open Access. Powered by Scholars. Published by Universities.®

Singapore Management University

Series

2021

Discipline
Keyword
Publication

Articles 1 - 30 of 300

Full-Text Articles in Business

Lee Kong Chian School Of Business Year In Review 2020-2021, Singapore Management University Dec 2021

Lee Kong Chian School Of Business Year In Review 2020-2021, Singapore Management University

SMU Corporate Reports

The last 12 months have been a roller coaster for Singapore and the world. Vaccines initially offered what seemed to be a clear way out of the Covid-19 pandemic but the more transmissible Delta variant has complicated matters considerably. However, despite the many challenges that the school has faced, I am happy to report that we have had a very good year overall. First of all, after a thorough and grueling process, the school received its EQUIS re-accreditation that will be valid for five years. The school has also received re-accreditation from AACSB International this year as well. The re-accreditation …

Go to article

Harnessing Digitalization For Sustainable Economic Development: Insights For Asia, John Beirne, David Fernandez Dec 2021

Harnessing Digitalization For Sustainable Economic Development: Insights For Asia, John Beirne, David Fernandez

Research Collection Lee Kong Chian School Of Business

Digitalization has helped to transform economies by enhancing competitiveness and productivity across a wide range of sectors. The use of big data and the rise of online platforms have accelerated this process over the past decade. In addition, the adoption of digital solutions in the face of social distancing and lockdown measures introduced due to the coronavirus disease 2019 (COVID-19) pandemic has been integral to the economic recovery process. The shift to a digitalized economy has also reduced barriers to market entry for firms, lowered inequality, and led to a promotion of social and economic inclusion. Advances in digital technology …

Go to article

Functional Signatures: New Definition And Constructions, Qingwen Guo, Qiong Huang, Sha Ma, Meiyan Xiao, Guomin Yang, Willy Susilo Dec 2021

Functional Signatures: New Definition And Constructions, Qingwen Guo, Qiong Huang, Sha Ma, Meiyan Xiao, Guomin Yang, Willy Susilo

Research Collection School Of Computing and Information Systems

Functional signatures (FS) enable a master authority to delegate its signing privilege to an assistant. Concretely, the master authority uses its secret key sk(F) to issue a signing key sk(f) for a designated function f is an element of F-FS and sends both f and sk(f) to the assistant E, which is then able to compute a signature sigma(f) with respect to pk(F) for a message y in the range of f. In this paper, we modify the syntax of FS slightly to support the application scenario where a certificate of authorization is necessary. Compared with the original FS, our …

Go to article

Spurring Digital Transformation In Singapore's Legal Industry, Xin Juan Chua, Steven M. Miller Dec 2021

Spurring Digital Transformation In Singapore's Legal Industry, Xin Juan Chua, Steven M. Miller

Research Collection School Of Computing and Information Systems

COVID-19 has transformed the way we live and work. It has caused the processes and operations of businesses and organisations to be restructured, as well as transformed business models. A 2020 McKinsey Global survey reported that companies all over the world claim they have accelerated the digitalisation of their customer and supply-chain interactions, as well as their internal operations, by three to four years. They also said they thought the share of digital or digitally enabled products in their portfolios has advanced by seven years. While technology transformation is not new to the legal profession, COVID-19 has cemented the importance …

Go to article

Vat Treatment Of The Financial Services: Implications For The Real Economy, Ismail Baydur, Fatih Yilmaz Dec 2021

Vat Treatment Of The Financial Services: Implications For The Real Economy, Ismail Baydur, Fatih Yilmaz

Research Collection School Of Economics

Financial institutions are exempt from the value-added tax (VAT) in most countries. We develop a general equilibrium model with endogenous firm entry and a banking sector to accommodate three key distortions related to exempt treatment: (i) self-supply bias in the banking sector, (ii) under-taxation of payment services, and (iii) input distortions in the business sector and tax cascading. We calibrate our model to the average of Germany, France, and the UK data. Our results show that repealing exempt treatment always increases tax revenues. However, welfare gains occur only at low VAT rates due to the hump-shaped VAT Laffer curve.

Go to article

Subway, Collaborative Matching, And Innovation, Yumi Koh, Li Jing, Jianhuan Xu Dec 2021

Subway, Collaborative Matching, And Innovation, Yumi Koh, Li Jing, Jianhuan Xu

Research Collection School Of Economics

Expansion of subway networks helps to enhance connectivity and matches of people by facilitating their mobility. Using rapid expansion of the Beijing subway from 2000 to 2018, we analyze its impact on collaborative matches in innovations. We find that an hour reduction in travel time between a pair of locations in Beijing brought a 15% to 38% increase in collaborated patents. Far-apart location pairs were more affected, and the local average treatment effect is approximately 35% to 82%. Such effect is mainly driven by increased matches among highly productive inventors due to complementarity between inventors’ productivity and travel time. At …

Go to article

The Impact Of The Ifrs 9 Expected Loss Approach On Accounting Conservatism, Clarence Goh, Chu Yeong Lim, Kevin Ow Yong Dec 2021

The Impact Of The Ifrs 9 Expected Loss Approach On Accounting Conservatism, Clarence Goh, Chu Yeong Lim, Kevin Ow Yong

Research Collection School Of Accountancy

Using an experimental setting, this paper examines the impact of the International Financial Reporting Standard (IFRS 9) expected credit loss (ECL) approach on accounting conservatism. The ECL approach enables banks to incorporate loan loss provisions (LLP) on a timelier basis and help bank regulators anticipate weaknesses in banks’ loan portfolios. Conversely, the ECL model could be more susceptible to managerial discretion. More conservative bank managers might make excessivecredit provisions. Our findings show that high conservatism is positively associated with higher levels of LLP. In addition, the effect of accounting conservatism is contingent upon the type of loan loss model. We …

Go to article

Beyond Shareholder Value? Why Firms Voluntarily Disclose Support For Black Lives Matter, A. J. Chen, Patricia M. Dechow, Samuel T. Tan Dec 2021

Beyond Shareholder Value? Why Firms Voluntarily Disclose Support For Black Lives Matter, A. J. Chen, Patricia M. Dechow, Samuel T. Tan

Research Collection School Of Accountancy

We investigate why firms voluntarily disclose support for the Black Lives Matter movement (BLM firms) even though these disclosures have little impact on shareholder value. We examine two competing explanations: that managers are acting in the interests of a broad set of stakeholders, or that they are engaging in “woke-washing.” Our evidence supports the stakeholder perspective since we find that BLM firms have more inclusive cultures on multiple dimensions – from their board members, to employees, to the rights of shareholders, and to the compensation structure of top executives. Furthermore, BLM firms face less risk in speaking out since they …

Go to article

Leveraging Reward-Based Crowdfunding During Covid-19, Hannah H. Chang, Erin Jasmine Guillermo, Colin Chai Dec 2021

Leveraging Reward-Based Crowdfunding During Covid-19, Hannah H. Chang, Erin Jasmine Guillermo, Colin Chai

Research Collection Lee Kong Chian School Of Business

Over the last year, Singapore firms have faced unforeseen market disruptions created by the Covid-19 pandemic. Worldwide country lockdowns, supply chain disruptions, and restrictions on business operations due to public health and safety measures posed non-trivial challenges. Many companies scampered to find alternative sources of revenue and ramp up their efforts at digitalisation - or risk the possibility of business closure.

Go to article

Executive Tweets, Richard M.Crowley, Wenli Huang, Hai Lu Dec 2021

Executive Tweets, Richard M.Crowley, Wenli Huang, Hai Lu

Research Collection School Of Accountancy

We explore the tweeting behavior of S&P 1500 firms’ executives (CEOs and CFOs) and its market consequences during the period of 2011 to 2018. We document that executives tweet financial information related to their firms and time these tweets to firms’ major events, and that investors respond to executive tweets in addition to firm tweets. Using the latest machine learning techniques, we develop an innovative construct measuring the content similarity between executive tweets and firm tweets. We use this measure to disentangle whether the market reaction comes from new information or trust. We show evidence consistent with the view that …

Go to article

Cross-Cryptocurrency Return Predictability, Li Guo, Bo Sang, Jun Tu, Yu Wang Dec 2021

Cross-Cryptocurrency Return Predictability, Li Guo, Bo Sang, Jun Tu, Yu Wang

Research Collection Lee Kong Chian School Of Business

Using the minute-frequency data on Binance, we find strong evidence of cross-cryptocurrency return predictability. The lagged returns of other cryptocurrencies serve as significant predictors of focal cryptocurrencies up to ten minutes, in line with slow information diffusion. The results are robust across various methods, including the adaptive LASSO and principal component analysis. Furthermore, a long-short portfolio formed on the past returns of cryptocurrencies can generate a daily return of 2.16% out-of-sample after accounting for transaction costs, indicating sizable economic value of cross-cryptocurrency return predictability.

Go to article

Bundled Earnings Guidance And Analysts' Forecast Revisions, Charles Hsu, Rencheng Wang Dec 2021

Bundled Earnings Guidance And Analysts' Forecast Revisions, Charles Hsu, Rencheng Wang

Research Collection School Of Accountancy

Bundling managerial earnings guidance with quarterly earnings announcements (EAs) has become an increasingly common practice. This study investigates the impact of bundled guidance on analysts' forecast revisions. Our findings indicate that analysts respond more to bundled guidance than non-bundled guidance. This effect increases with analysts' time pressure and cognitive constraints around the EA. Analysts' revisions also incorporate more of the bundled management guidance when accompanied by additional information, such as conference calls. We further find that analysts revise their forecasts more quickly following bundled guidance than non-bundled guidance. Together, these findings are consistent with the notion that analysts place more …

Go to article

China And E-Commerce: The Long And Winding Road, Henry S. Gao Dec 2021

China And E-Commerce: The Long And Winding Road, Henry S. Gao

Research Collection Yong Pung How School Of Law

Although it joined the World Trade Organization in 2001, China has largely kept silent on the e-commerce discussion and only made its first submission in this regard in 2016.

Go to article

Toward A Model Of Hardiness Development: The Effect Of Hope On Hardiness, Chin Heng Low, Paul Heng Leong Lim, Kevin Koh Dec 2021

Toward A Model Of Hardiness Development: The Effect Of Hope On Hardiness, Chin Heng Low, Paul Heng Leong Lim, Kevin Koh

Research Collection Lee Kong Chian School Of Business

Hardiness has been proven to help with the management of psychological stress. It is an important state-like personality dimension that individuals can develop to cope with stressors. However, there is currently insufficient understanding on why hardiness develops in people. Through an exploratory study based on 55 undergraduate university students who worked on an international consulting project in return for grades, this research examines the relationship between individuals’ hardiness components of commitment, control and challenge and hope components of willpower and waypower. It is found that individuals’ hope components may be positively related to specific hardiness components. This bears considerable theoretical …

Go to article

Follow The Smoke: The Pollution Haven Effect On Global Sourcing, Heather Berry, Aseem Kaul, Narae Lee Dec 2021

Follow The Smoke: The Pollution Haven Effect On Global Sourcing, Heather Berry, Aseem Kaul, Narae Lee

Research Collection Lee Kong Chian School Of Business

Research abstract: We examine whether and how foreign environmental standards influence global sourcing decisions. Taking a question-driven approach, we find a negative association between the stringency of a country's environmental standards and its share in US imports for 82 manufacturing industries across 77 countries between 2006 and 2016. This pollution haven effect holds not only for sourcing from owned foreign operations (offshore integration), but also for sourcing from unrelated third parties abroad (offshore outsourcing), and is stronger in industries with high toxic emissions and low technological intensity. These results are robust across alternative measures of environmental stringency and to using …

Go to article

The Curse Of The Original: How And When Heritage Branding Reduces Consumer Evaluations Of Enhanced Products, Minju Han, George E. Newman, Rosanna K. Smith, Ravi Dhar Dec 2021

The Curse Of The Original: How And When Heritage Branding Reduces Consumer Evaluations Of Enhanced Products, Minju Han, George E. Newman, Rosanna K. Smith, Ravi Dhar

Research Collection Lee Kong Chian School Of Business

Heritage branding is a common marketing strategy that has been shown to increase product appeal. Here, we find that certain forms of heritage branding can also have potentially negative consequences by leading consumers to react negatively to changes made to the brand’s original, flagship product—even if those changes objectively improve it. We demonstrate that when firms engage in heritage branding that emphasizes a brand’s longevity, consumers evaluate enhanced products less favorably than the original versions of those same products due to decreased perceptions of continuity authenticity. We demonstrate this effect across a variety of product domains (e.g., cosmetics, cookware, and …

Go to article

Popular: Still Singapore’S Favourite Bookstore, Singapore Management University Nov 2021

Popular: Still Singapore’S Favourite Bookstore, Singapore Management University

Perspectives@SMU

Popular is evolving into an omni-channel retailer to improve its customer experience

Go to article

Pivot Or Perish: The Retail Reality, Anne Lepissier, Ryan Vaughan, Shantanu Bhattacharya Nov 2021

Pivot Or Perish: The Retail Reality, Anne Lepissier, Ryan Vaughan, Shantanu Bhattacharya

Perspectives@SMU

Brick-and-mortar retailers are adapting to meet the challenges posed by accelerating e-commerce adoption. Some are doing better than others, but supply chain obstacles could prove decisive

Go to article

Entrepreneurship And The Great Chinese Urban Migration, Singapore Management University Nov 2021

Entrepreneurship And The Great Chinese Urban Migration, Singapore Management University

Perspectives@SMU

A recent research study finds that rural migrants in China are likely to establish bigger companies and universities in big cities can serve as talent importers

Go to article

Sustainably Feeding The World In The 21st Century, Ren Hua Ho, Husodo Angkosubroto, Oi Hian Lee Nov 2021

Sustainably Feeding The World In The 21st Century, Ren Hua Ho, Husodo Angkosubroto, Oi Hian Lee

Perspectives@SMU

Managing investor expectation, exploiting low-hanging fruit, and farmer education will be key

Go to article

Why Facebook's Meta-Morphosis Won't Fix Ethics Headache, Rob Nicholls Nov 2021

Why Facebook's Meta-Morphosis Won't Fix Ethics Headache, Rob Nicholls

Perspectives@SMU

Facebook is under fire (again) for its questionable business ethics – what exactly did it do wrong and what will happen as a result?

Go to article

Transforming Businesses With E-Commerce Intelligence, Yuanto Kusnadi, Gary Pan Nov 2021

Transforming Businesses With E-Commerce Intelligence, Yuanto Kusnadi, Gary Pan

Research Collection School Of Accountancy

2020 had been an extraordinary year as the Covid-19 pandemic struck almost all countries in the world and created an extraordinary impact on businesses worldwide. Singapore and many other Southeast Asian countries were not spared and had to implement lockdowns swiftly. To cope with physical store closures and the increased volume of online transactions, most businesses tried to revamp their business models and set up online stores to capitalise on the rise of the e-commerce wave. With the growing trend of online transactions, it has become imperative for companies operating in the Fast Moving Consumer Goods (FMCG) industry to track …

Go to article

When Your Authority Fluctuates Throughout The Day, Eric M. Anicich, Michael Schaerer, Jake Gale, Trevor A. Foulk Nov 2021

When Your Authority Fluctuates Throughout The Day, Eric M. Anicich, Michael Schaerer, Jake Gale, Trevor A. Foulk

Research Collection Lee Kong Chian School Of Business

For many of us, the power we feel at work — how much, when it occurs, and around whom — can fluctuate. This can result in a surprising increase in stress and a decrease in well-being. To address this, consider these strategies for making power imbalances more manageable. First, be deliberate in scheduling your tasks to cluster activities with similar levels of power together. Second, give your work a routine and consider “theming” together days with similar activities. Third, create a role-transcendent identity in order to embrace your different levels of power. And finally, work to actively manage your well-being.

Go to article

Joint News, Attention Spillover, And Market Returns Predictability, Li Guo, Lin Peng, Yubo Tao, Jun Tu Nov 2021

Joint News, Attention Spillover, And Market Returns Predictability, Li Guo, Lin Peng, Yubo Tao, Jun Tu

Research Collection Lee Kong Chian School Of Business

We analyze over 2.6 million news articles and propose a novel measure of joint news coverage of firms. The measure strongly and negatively predicts market returns, with a monthly R-squared of 3.93% in sample and 6.52% out of sample. The relation is causal, robust to existing predictors, and is especially strong when market uncertainty is high or when market frictions are large. At the firm level, joint news coverage is associated with a 20.3% increase in EDGAR downloads by new IPs from the investor bases of the other covered firms. Our evidence suggests that joint news triggers investor attention spillover …

Go to article

Algorithmic Transparency, Jian Sun Nov 2021

Algorithmic Transparency, Jian Sun

Research Collection Lee Kong Chian School Of Business

I study the optimal algorithmic disclosure in a lending market where lenders use a predictive algorithm to mitigate adverse selection. The predictive algorithm is unobservable to borrowers and uses a manipulable borrower feature as input. A regulator maximizes market efficiency by disclosing information about the statistical properties of variables embedded in the predictive algorithm to borrowers. Under the optimal disclosure policy, the posterior belief consists of two disjoint regions in which the borrower feature is more relevant and less relevant in predicting borrower quality, respectively. The optimal disclosure policy differentiates posterior lending market equilibria by the equilibrium data manipulation levels. …

Go to article

Investigating The Effects Of Dimension-Specific Sentiments On Product Sales: The Perspective Of Sentiment Preferences, Cuiqing Jiang, Jianfei Wang, Qian Tang, Xiaozhong Lyu Nov 2021

Investigating The Effects Of Dimension-Specific Sentiments On Product Sales: The Perspective Of Sentiment Preferences, Cuiqing Jiang, Jianfei Wang, Qian Tang, Xiaozhong Lyu

Research Collection School Of Computing and Information Systems

While literature has reached a consensus on the awareness effect of online word-of-mouth (eWOM), this paper studies its persuasive effect, specifically, the dimension-specific sentiment effects on product sales. We allow the sentiment information in eWOM along different product dimensions to have different persuasive effects on consumers’ purchase decisions. This occurs because of consumers’ sentiment preference, which is defined as the relative importance consumers place on various dimension-specific sentiments. We use an aspect-level sentiment analysis to derive the dimension-specific sentiments and PVAR (panel vector auto-regression) models to estimate their effects on product sales using a movie panel dataset. The findings show …

Go to article

Burnout Isn’T Just Exhaustion: Workers Can Also Feel Cynical Or Inadequate, Tina Li Yi Ng, Andree Hartanto Nov 2021

Burnout Isn’T Just Exhaustion: Workers Can Also Feel Cynical Or Inadequate, Tina Li Yi Ng, Andree Hartanto

Research Collection School of Social Sciences

Employers, take note: There’s more to burnout which corporate wellness initiatives alone cannot solve, say SMU researchers. The huge wave of resignations spurred by the pandemic has forced companies to confront burnout, implementing “burnout breaks” to curb the loss of productivity that comes with working too much. Though initiatives like “mental health weeks” are widely appreciated, they merely scratch the surface and do not solve the issue. To truly put out the flames of burnout, a precise diagnosis of the problem is critical. This is especially true in Singapore, the world’s most fatigued country where one in two workers feels …

Go to article

Making Money From Cryptocurrency? The Taxman May Call On You, Hern Kuan Liu, Vincent Ooi Nov 2021

Making Money From Cryptocurrency? The Taxman May Call On You, Hern Kuan Liu, Vincent Ooi

Research Collection Yong Pung How School Of Law

Miners, forgers, hobbyists, traders – different rules apply. Just don’t assume crypto investment is somehow immune to taxation.

Go to article

Do Firms Respond To Peer Disclosures? Evidence From Clinical Trial Disclosures, Vedran Capkun, Yun Lou, Clemens A. Otto, Yin Wang Nov 2021

Do Firms Respond To Peer Disclosures? Evidence From Clinical Trial Disclosures, Vedran Capkun, Yun Lou, Clemens A. Otto, Yin Wang

Research Collection School Of Accountancy

We examine whether a firm’s decision to disclose non-financial proprietary information depends on peer disclosures of similar information. Using a sample of 5,035 unique clinical trials by U.S. pharmaceutical firms over the 2007-2014 period, we find that the firm is less likely to disclose its own clinical trial results if peers have published clinical trial results pertaining to the same medical condition. Conditional on disclosing clinical trial results, the firm is also less likely to disclose the trial results on time when peers have disclosed their clinical trial results. Our cross-sectional tests suggest that proprietary costs of disclosure play an …

Go to article

Accounting For A Hopeful World, Themin Suwardy Nov 2021

Accounting For A Hopeful World, Themin Suwardy

Research Collection School Of Accountancy

In a commentary, SMU Associate Provost for Postgraduate Professional Education and Associate Professor of Accounting (Practice) Themin Suwardy noted that environmental reporting has become more common in the last 10 years and that companies are embracing sustainability reporting despite the challenging myriad of seemingly different models, frameworks and regulations. He opined that the IFRS Sustainability Disclosure Standards to be issued by the International Sustainability Standards Board (ISSB) will enable companies to provide comprehensive sustainability information for the global financial markets. He urged accounting professionals to embrace the development wholeheartedly and to help organisations do and report good.

Go to article

Next Last