Business Commons^™

A Black-Scholes User's Guide To The Bachelier Model, Jaehyuk Choi, Minsuk Kwak, Chyng Wen Tee, Yumeng Wang

Research Collection Lee Kong Chian School Of Business

To cope with the negative oil futures price caused by the COVID-19 recession, global commodity futures exchanges switched the option model from Black-Scholes to Bachelier in April 2020. This study reviews the literature on Bachelier's pioneering option pricing model and summarizes the practical results on volatility conversion, risk management, stochastic volatility, and barrier options pricing to facilitate the model transition. In particular, using the displaced Black-Scholes model as a model family with the Black-Scholes and Bachelier models as special cases, we not only connect the two models but also present a continuous spectrum of model choices.

Shareholder Wealth Implications Of Software Firms' Transition To Cloud Computing: A Marketing Perspective, Mehdi Nezami, Kapil R. Tuli, Shantanu Dutta

Research Collection Lee Kong Chian School Of Business

Moving into cloud computing represents a major marketing shift because it replaces on-premises offerings requiring large, up-front payments with hosted computing resources made available on-demand on a pay-per-use pricing scheme. However, little is known about the effect of this shift on cloud vendors' financial performance. This study draws on a longitudinal data set of 435 publicly listed business-to-business (B2B) firms within the computer software and services industries to investigate, from the vendors' perspective, the shareholder wealth effect of transitioning to the cloud. Using a value relevance model, we find that an unanticipated increase in the cloud ratio (i.e., the share …

Employer And Internal Branding Research: A Bibliometric Analysis Of 25 Years, Gordhan K. Saini, Filip Lievens, Mukta Srivastava

Research Collection Lee Kong Chian School Of Business

Purpose: In the past 25 years, employer and internal branding have grown significantly. Prior reviews tended to focus on either one of these domains. This study aims to map the intellectual structure of research on both employer branding and internal branding, thereby identifying impactful authors and journals, current and evolving themes and avenues for future research. Design/methodology/approach: Using VOSviewer and Biblioshiny software packages, a bibliometric analysis of 739 articles was conducted using various methods such as citation analysis, bibliographic coupling, cluster analysis, keyword analysis and three-field plot. The Scopus results were further validated using 297 articles produced by the Web …

Market Manipulation Around Seasoned Equity Offerings: Evidence Prior To The Global Financial Crisis Of 2007-2009, Charlie Charoenwong, Kuan Yong David Ding, Ping Wang

Research Collection Lee Kong Chian School Of Business

Since the adoption of the SEC’s Rule 10b-21 in 1988, many researchers have been concerned over the effectiveness of short sales constraints in preventing manipulative trading in the derivatives market. We analyze whether options can be used as synthetic short sale instruments to manipulate stock prices before a seasoned equity offer. Due to the existence of strict short sales constraints in the equity market and market makers’ anticipation of manipulative trading, it would be very costly for a manipulator to drive stock prices down artificially either by short selling in the equity market or by using synthetic short sales in …

Seachi 2022 Symposium: Bringing Equality, Justice, And Access To Hci And Ux Agenda In Southeast Asia Region, Eunice Sari, Masitah Ghazali, Adi B. Tedjasaputra, Yohannes Kurniawan, Thippaya Chintakovid, Siranee Nuchitprasitchai, Ellya Zulaikha, Noris Binti Mohd Norowi, Tamas Makany

Research Collection Lee Kong Chian School Of Business

Southeast Asia that consists of eleven countries, has been proud of its way of life and rich culture and is generally happy to maintain its long comforting tradition. However, the region cannot deny that its diverse population and strategic location have become a center of attention for global players to invest in the region. With the emergence of Industry 4.0, digital transformation has become mandatory for any organizations or nations in Southeast Asia to consider. Through SEACHI (Southeast Asian CHI) Symposium, we aim to grow awareness in HCI and UX to improve the design and development of technology for a …

Revisiting The Internationalization-Performance Relationship: A Twenty-Year Meta-Analysis Of Emerging Market Multinationals, Sihong Wu, Di Fan, Liang Chen

Research Collection Lee Kong Chian School Of Business

With the rapid growth of emerging market multinational enterprises (EMNEs), increasing interest has been focused on exploring the internationalization-performance (I-P) relationship of EMNEs. Yet findings on the relationship remain contradictory. Although researchers emphasize the home-country-bounded nature of EMNEs, less is known about how home-government features and the EMNEs' political mindset affect their internationalization and performance. This study integrates and extends the literature on the I-P relationship of EMNEs using a meta-analysis covering a dataset of 218 effect sizes from 186 retrieved studies published between 1998 and 2021. Findings show that the I-P relationship is overall positive, yet it varies across …

Meta And The Metaverse, Damian Kim

Perspectives@SMU

Meta are working on proof-of-concept initiatives as mobile internet evolves into Web3.0

The Creative Response And The Entrepreneur, Martin Jes Iversen

Perspectives@SMU

Schumpeter’s 1947 essay still holds valuable lessons in the 21st century

Hop Lion: Successful Succession Planning, Singapore Management University

Perspectives@SMU

Chen Koon-Yaw wants to spare his son the troubles he endured through a messy handover when his father died. At 61, did he do it too early?

Twitter Demonstrates Why Poison Pills Are Bad For Shareholders, Mark Humphery-Jenner

Perspectives@SMU

Twitter’s poison pill appears to be an attempt to entrench the board rather than delivering shareholder value, writes UNSW Business School's Mark Humphery-Jenner

When Experts Become Liabilities, Singapore Management University

Perspectives@SMU

Criticism can easily hit the confidence of experts and undermine the accuracy of their predictions, new research shows

Essays On Status Dynamics In Collectivistic Institutions, Eugene Yi Cheong Tung

Dissertations and Theses Collection (Open Access)

The essays reflect on the relationship between status hierarchies and institutional changes. In the course of accumulating social resources, high status actors lead and become the change in the institution; the relationship between the leaders and their communities is especially fascinating. A theory is proposed to explain the general patterns of status dynamics and an empirical test is conducted to partially test the theorized social relationships. This study highlights the strength of social governance in ensuring collective well-being in the course of never-ending changes in the institution.

Trust Building Within And Across Cultures: A Study Of Guinea, Xiushun Sun

Dissertations and Theses Collection (Open Access)

With the development of African economy and the increasing Chinese MNCs operating in Africa, there is a need to have a better understanding of the trust relationships between Chinese expatriates and African HCNs in the organizational environment. We adopt both qualitative and quantitative approaches to understand the trust relationships between Chinese supervisors, Guinea supervisors and Guinea subordinates in a Chinese MNC’s subsidiary in Guinea, compare the difference within culture and across culture, and examine how the interpersonal trust and the trust in the organization affect employees’ job performance. In study 1, semi-structured interviews were conducted with 19 Chinese supervisors, 20 …

The Politics Of Bank Opacity, Heng Yue, Liandong Zhang, Qinlin Zhong

Research Collection School Of Accountancy

The distribution of power in the political system shapes the financial reporting opacity of banks. Specifically, banks located in states with senators on the Senate Banking Committee (BC senators) have greater abnormal loan loss provisions than banks in other states. The result is stronger for larger banks and banks with higher risk. In addition, BC senators have a negative effect on the likelihood of banks in their home states receiving enforcement actions, and, more importantly, this effect is stronger for more opaque banks. These findings suggest that politicians, regulators, and banks use opaque financial reporting to facilitate regulatory forbearance. Moreover, …

Joint Capacity Allocation And Job Assignment Under Uncertainty, Peng Wang, Yun Fong Lim, Gar Goei Loke

Research Collection Lee Kong Chian School Of Business

In this paper, we consider the multi-period joint capacity allocation and job assignment problem. The goal of the planner is to simultaneously decide on allocating resources across the J different supply nodes, and assigning of jobs of I different demand origins to these J nodes, so as to maximize the reward for matching or minimize the cost of failure to match. We furthermore consider three features: (i) supply is replenishable after random time, (ii) demand is random; and (iii) demand can wait and need not be fully fulfilled immediately. Such problems emerge in many service management settings such as ride-sharing …

Why Commonality Persists?, Chyng Wen Tee, Raja Velu, Zhaoque Zhou

Research Collection Lee Kong Chian School Of Business

We show that order flows do not exhibit predictive power on asset returns, and their relationships have been static over time. We use a reduced-rank regression formulation to model both returns and the order flows as endogenous variables, and use investors' sentiment and attention as exogenous factors. We provide empiricalevidence to demonstrate that cross-sectional commonality in attention (sentiment) is linearly (nonlinearly) associated with both returns and order flows at the intraday level, while the sentiment and attentionmeasures themselves exhibit a nonlinear mutual relationship, thus revealing the multi-dimensional aspect of the commonality relationship.

Culture And Firms, Zhihui Gu, Hao Liang, Hanyu Zhang

Research Collection Lee Kong Chian School Of Business

We study how societal culture shapes business activities and corporate behavior by leveraging data on the locations of Confucian schools in Ancient China. The number of historic Confucian schools surrounding a current firm’s location proxies for the firm’s exposure to Confucianism, the dominant culture in China over the last two thou- sand years, and is immune to the subjectivity and selection problems of most culture measures. We find systematic differences in corporate behavior across regions based on their varying exposure to Confucianism. Listed companies more exposed Confucianism make greater social contributions, provide greater employee protection, and have higher entertainment expenses, …

Collaboration Scope And Product Innovation In B2b Markets: Are There Too Many Cooks Or Is It The Customer Who Spoils The Broth?, Erik Mooi, Ernst C. Osinga, Carlos D. Santos

Research Collection Lee Kong Chian School Of Business

Purpose: Product innovations are often the result of combinations of internal and external knowledge. A significant amount of Open Innovation literature has argued that working with external partners can be beneficial, in particular when this is complemented by internal R&D yet a wholesale shift to Open Innovation has not occurred. Our work demonstrates two new limits of openness, grounded in attention-based theory, that help explain why such a shift has not occurred. We argue that specific combinations of identities a firm collaborates with, i.e., whether a partner is classified as a customer, supplier, competitor, or university and/or technological center predictably …

Safety Regulation Enforcement And Production Safety: The Role Of Penalties And Voluntary Safety Management Systems, Di Fan, Andy C.L. Yeung, Daphne W. Yiu, Chris K.Y. Lo

Research Collection Lee Kong Chian School Of Business

Scholars, government, and the public expect that legal enforcement should be an effective means to prevent a firm's future safety violation behavior in daily productions. However, the literature provides limited insights into whether safety regulation enforcement is effective in helping firms reduce future safety violations. Therefore, this study examines the relationship between occupational health and safety enforcement and a firm's future violation behavior. We carried out a regression analysis based on a panel sample of 2965 listed United States manufacturers with 4474 violation records issued by the Occupational Safety and Health Administration. We find limited effectiveness of enforcement. Our results …

Housing Wealth Shocks, Home Equity Withdrawal, And The Claiming Of Social Security Retirement Benefits, Naqun Huang, Li Jing, Amanda Ross

Research Collection School Of Economics

This paper examines the impact of changes in house prices on when eligible individuals start receiving Social Security benefits. If house prices increase, financially constrained households may draw upon the additional home equity to finance expenses and delay receipt of Social Security in order to have increased lifetime monthly benefits. To address concerns that house price changes are correlated with unobserved local demand shocks, we use a control function approach and employ two different instrumental variables. We find that individuals delay Social Security claiming when house prices increase during the housing boom. The probability of claiming within two years after …

Regulatory Interventions In Response To Noncompliance With Mandatory Derivatives Disclosure Rules, Neil Bhattacharya, Hye Sun Chang, Raluca Chiorean

Research Collection School Of Accountancy

We investigate regulatory actions in response to violations of mandatory derivatives disclosure rules (SFAS 161) and the outcomes of these regulatory interventions using a hand-collected sample of derivatives disclosures. Derivatives are used by nearly two-thirds of U.S. nonfinancial firms, and they are one of the most complex types of financial contracts. Consequently, inadequate derivatives disclosures could pose significant challenges to financial statement users in assessing the risk and financial health of enterprises. First, we document that firms with high proprietary and agency costs are less likely to comply with SFAS 161. Next, by examining derivatives-related SEC comment letters, we further …

Ampsum: Adaptive Multiple-Product Summarization Towards Improving Recommendation Captions, Quoc Tuan Truong, Hady Wirawan Lauw, Changhe Yuan, Jin Li, Jim Chan, Soo-Min Pantel, Hady W. Lauw

Research Collection School Of Computing and Information Systems

In e-commerce websites, multiple related product recommendations are usually organized into “widgets”, each given a name, as a recommendation caption, to describe the products within. These recommendation captions are usually manually crafted and generic in nature, making it difficult to attach meaningful and informative names at scale. As a result, the captions are inadequate in helping customers to better understand the connection between the multiple recommendations and make faster product discovery.We propose an Adaptive Multiple-Product Summarization framework (AmpSum) that automatically and adaptively generates widget captions based on different recommended products. The multiplicity of products to be summarized in a widget …

Essays On Information Diffusion And Stock Market Efficiency & Analyst Style, Zuben Jin

Dissertations and Theses Collection (Open Access)

The dissertation consists of three chapters on information diffusion and stock market efficiency and analyst style. The first chapter examines the asset pricing implications of investors’ inattention to non-obvious firm relatedness hidden in earnings calls. This chapter documents that the overlap in attention allocation over various business aspects serves as a time-sensitive proxy for firm relatedness. By employing the unsupervised topic modelling methodology, I characterize the attention allocation of earnings conference call participants (executives, investors and analysts) over topics discussed. I construct a novel cross-firm topic similarity measure that captures difficultto-observe and time-varying firm relatedness compared with existing peer-firm classification …

Organizational Factors That Facilitate Collective Social Entrepreneurship: An Exploratory Study, Kesarwani Nimisha

Dissertations and Theses Collection (Open Access)

This research aims to contribute to the literature on collective social entrepreneurship (CSE) by exploring and examining the organizational factors that facilitate and motivate participation in CSE. Data were collected through an interview with the founder of a cooperative, and a survey, wherein respondents presented their expectations of a collective, their motivation to join, and the resources they deem important.

It was found that organizational factors, initialled as RRSI (relevance, resources, likelihood of success and innovativeness) which if met, have a reasonable chance of attracting participation in organizations pursuing CSE. These organizational factors had different appeal to stakeholders, based on …

Information Acquisition And Market Friction, Bo Sang

Dissertations and Theses Collection (Open Access)

My dissertation consists of three papers related to information diversity, acquisition, and asymmetry. One part of the dissertation explores the implications of interactions among different market participants and subsequent price efficiency in the stock market. The empirical findings indicate the information diversity between individuals and institutional investors, as well as an important channel for retail investors to obtain useful information – through insider filings. The remaining part investigates the information asymmetry between issuers and naive investors in the cryptocurrency market. In Chapter 2, I aggregate trading signals from hedge funds and retail investors, in order to examine their information diversity …

Geographical Diversification Revisited: Examining Context To Date And Moderating Effects Of Crisis, Deepika Aniruddha Deshpande

Dissertations and Theses Collection (Open Access)

This study seeks to revalidate existing research insights on the relationship between internationalization and firm performance and to examine the role of the Global Financial Crisis (GFC) as a potential moderator to this relationship. The research uses a longitudinal database of US-listed manufacturing companies over the period 2000-19. It employs a foreign market penetration-based construct as well as a foreign production-based construct of internationalization and uses a fixed effects linear regression model for the analysis.

The study suggests that the relationship between foreign market penetration-based internationalization and firm performance shows a declining trend over the past two decades. This may …

Tipping Point From A Holistic View: An Integrated Theory Of Innovation Management And Evolution In Ai-Based Robots Companies, Weifeng Zheng

Dissertations and Theses Collection (Open Access)

The AI-based robot industry is a product of AI technology combined with traditional robotics. From the literature review on innovation management and AI-based robots, few scholars have studied the development path and internal mechanism of the AI-based robot industry. Focusing on the current specific micro-enterprises, meso-phenomena, and macro-systems, this paper studies the innovation management paths of enterprises in detail using research methods including literature review, case analysis, and questionnaire interview.

This paper focuses on the TO C/B application product enterprises in the downstream of the industry chain, and the following conclusions are drawn:1) The first principle of innovation management of …

Innovation Strategies In Chinese Smes: An Examination Of The Role Of Family Ownership, And The Social Identity And Regulatory Focus Of Ceos, Tiejiong Fan

Dissertations and Theses Collection (Open Access)

Since the reform and opening up, China’s family enterprises have developed rapidly and some family enterprises have entered the period of intergenerational inheritance which may experience some organizational turbulence and face great uncertainty. Meanwhile, more and more CEOs of Chinese enterprises realize that innovation has become the driving force for the transformation and upgrading of SMEs. So, during the intergenerational inheritance and afterwards, whether CEOs of family enterprises make the same decision on innovation strategy as CEOs of non-family enterprises? Whether the second generation CEOs of family enterprises make the same decision on innovation strategy as the founders of family …

Developing Social Entrepreneurial Intention: An Intervention Study In Thailand, Kanyaporn Skutalakul

Dissertations and Theses Collection (Open Access)

Social entrepreneurs are key players that could potentially create new initiatives and long-term solutions for our world to sustain the predicted forthcoming crises of overconsumption. Our world needs both kinds of entrepreneurship, both social and business, to collaboratively stimulate growth in a more balanced manner; however, the creation of social entrepreneurs at a higher rate of success and diffusion remains a challenge. This research proposed a number of new antecedents of social entrepreneurial intention (SEI) that were suggested by an exploratory study. The research was conducted in the context of Thailand and was designed to investigate the effects of different …

Key Factors Impacting Success Of Omnichannel Retailing: A Managerial Perspective, Anuradha Narasimhan

Dissertations and Theses Collection (Open Access)

Omnichannel retailing has revolutionized consumer behaviour with consumers seamlessly flitting between offline and online channels as they explore, shop, buy, receive, and exchange or return products and services. The COVID-19 pandemic has accelerated digital and omnichannel adoption by consumers as retailers and brand owners create strategies and deployment to stay ahead. Omnichannel retailing is about seamless channels from the consumers’ perspective and about integrated channels from the firms’ side. This firm-focussed study examines the key factors driving success of omnichannel retailing using a mixed-methods approach – we conducted twenty-five depth interviews and received 146 responses to the quantitative survey from …