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Full-Text Articles in Business

Platform-Dependent Entrepreneurs: Participants In An Expanding Universe Of Platforms?, F. Ted Tschang Nov 2021

Platform-Dependent Entrepreneurs: Participants In An Expanding Universe Of Platforms?, F. Ted Tschang

Research Collection Lee Kong Chian School Of Business

The article Platform-dependent entrepreneurs: Power asymmetries, risks, and strategies in the platform economy drew on the intermediary business model to review the damaging actions that platform firms may employ with entrepreneurs. This exchange argues that platform firms may treat entrepreneurs differently on other platform types-particularly ones where complex relationships may cause participants and platforms to become mutually dependent, or where the platform's position depends less on extracting revenue directly from participants. I suggest that particular business models might facilitate the use of alternative strategic actions that are more benign toward entrepreneurs. These situations can determine additional boundary conditions for this …


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 …


Accounting And Finance Lessons In The Time Of Covid-19: Views From The Pacific Basin: Part 2, Kuan Yong David Ding, Julie Harrison, Martien Lubberink, Chris Van Staden Nov 2021

Accounting And Finance Lessons In The Time Of Covid-19: Views From The Pacific Basin: Part 2, Kuan Yong David Ding, Julie Harrison, Martien Lubberink, Chris Van Staden

Research Collection Lee Kong Chian School Of Business

The global COVID-19 pandemic is now in its second year, and we are fast approaching the third. The year 2021 has brought some hope that vaccination will lead to the end of the pandemic. But it has also brought a more infectious variant of COVID-19 and multiple waves of surging cases that show no immediate sign of disappearing. As the pandemic continues to impact global societies and economies, it is imperative that we study its impact to try and understand how it will affect us in both the short-term and long-term. While the longer-term impacts are still unknown, there is …


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.


Stock Return Prediction Using Financial News: A Unified Sequence Model Based On Hierarchical Attention And Long-Short Term Memory Networks, Haoling Chen, Peng Liu Nov 2021

Stock Return Prediction Using Financial News: A Unified Sequence Model Based On Hierarchical Attention And Long-Short Term Memory Networks, Haoling Chen, Peng Liu

Research Collection Lee Kong Chian School Of Business

Stock return prediction has been a hot topic in both research and industry given its potential for large financial gain. The return signal, apart from its inherent volatility and complexity, is often accompanied by a multitude of noises, such as other stocks’ performance, macroeconomic factors and financial news, etc. To better characterize these factors, we propose a new model that consists of two levels of sequence: an NLP-based module to capture the sequential nature of words and sentences in the financial news, and a time-series-based module to exploit the sequential nature of adjacent observations in the stock price. In this …


Cashing In On Disruptions From Covid-19, Dennis Ng Nov 2021

Cashing In On Disruptions From Covid-19, Dennis Ng

Asian Management Insights

Promoting cashless payments at Singapore’s hawker centres


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 …


Data Analytics And Audit Quality, Ru Gao, Sterling Huang, Rencheng Wang Nov 2021

Data Analytics And Audit Quality, Ru Gao, Sterling Huang, Rencheng Wang

Research Collection School Of Accountancy

We examine the impact of data analytics on audit quality. Using hand-collected information on data analytics skills of employees of audit firms, we find that human capital investment in data analytics improves audit quality. The analytics capability of both frontline and back-office employees contributes to audit quality. The effect is more pronounced for audit clients with complex business operations, for clients with complicated accounting estimates, and for clients that are more digitalized. Taken together, our findings suggest that an audit office’s analytics capability represents an important office attribute that can affect audit quality.


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 …


China Meets Digital Currency: E-Cny And Its Implications For Businesses, Heng Wang Nov 2021

China Meets Digital Currency: E-Cny And Its Implications For Businesses, Heng Wang

Research Collection Yong Pung How School Of Law

China is likely to be the first major economy to issue central bank digital currency (CBDC). China’s CBDC, e-CNY, may lead to a new ecosystem that would profoundly affect business, product offerings and business practice. E-CNY is likely to affect both local and international businesses, particularly those with a presence in China or those who commonly transact with Chinese actors. There is also the possibility of e-CNY use outside of China. If China’s CBDC practice and standards affect international practice (such as through standard making), e-CNY has the potential to affect the broader businesses community. This article discusses the following …


Technology Lends A Hand To Green E-Commerce, Hao Liang, Sin Mei Cheah Nov 2021

Technology Lends A Hand To Green E-Commerce, Hao Liang, Sin Mei Cheah

Research Collection Lee Kong Chian School Of Business

The world has witnessed an e-commerce boom in the past 2 decades, and Asia-Pacific is now driving the latest wave of growth. The Covid-19 pandemic has further accelerated consumers' growing preference for online consumption, with the Asia-Pacific region raking US$230 billion in online retail sales in 2020. This article is adapted from the authors' teaching case study - Alibaba Cainiao's Smart Green Logistics Strategy: Good for the Earth, Good for the Business.


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 …


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 …


Towards A Calibrated Trust-Based Approach To The Use Of Facial Recognition Technology, Gary Kok Yew Chan Nov 2021

Towards A Calibrated Trust-Based Approach To The Use Of Facial Recognition Technology, Gary Kok Yew Chan

Research Collection Yong Pung How School Of Law

The use of facial recognition technology has given rise to much debate relating to issues concerning privacy infringements, bias and inaccuracies of data and outputs, possibilities of covert use, the lack of data security and the problem of function creep. Certain states and jurisdictions have called for bans and moratoria on the use of facial recognition technology. This paper argues that a blanket ban on facial recognition technology would be overly precautionary without fully considering the wide range of uses and benefits of the innovation. To promote its acceptance, trust in facial recognition technology should be developed in a calibrated …


Volatility Timing Under Low-Volatility Strategy, Poh Ling Neo, Chyng Wen Tee Nov 2021

Volatility Timing Under Low-Volatility Strategy, Poh Ling Neo, Chyng Wen Tee

Research Collection Lee Kong Chian School Of Business

The authors show that the slope of the volatility decile portfolio’s return profile contains valuable information that can be used to time volatility under different market conditions in the United States. During good (bad) market conditions, the high- (low-) volatility portfolio produces the highest return. The authors proceed to devise a volatility timing strategy based on statistical tests on the slope of the volatility decile portfolio’s return profile. Volatility timing is achieved by being aggressive during strong growth periods and conservative during market downturns. Superior performance is obtained, with an additional return of 4.1% observed in the volatility timing strategy, …


A Queueing Model For Customer Rescheduling And No-Shows In Service Systems, Yue Tang, Houyuan Jiang, Jingui Xie, Zhichao Zheng Nov 2021

A Queueing Model For Customer Rescheduling And No-Shows In Service Systems, Yue Tang, Houyuan Jiang, Jingui Xie, Zhichao Zheng

Research Collection Lee Kong Chian School Of Business

We study an M/M/1/K queue where customers can reschedule their appointments. Rescheduled customers show up with higher probabilities, incurring lower no-show costs, but rescheduling also frees up slots that may not be filled later, leading to wasted service capacity and lower throughput. The system manager aims to minimize the long-run average cost by controlling rescheduling policies. We derive conditions under which rescheduling should be allowed for different scenarios depending on whether customers can reschedule only once or multiple times.


Corporate Sustainability Has Failed: Digitizing Regeneration May Still Save Us, Simon J.D. Schillebeeckx Nov 2021

Corporate Sustainability Has Failed: Digitizing Regeneration May Still Save Us, Simon J.D. Schillebeeckx

Research Collection Lee Kong Chian School Of Business

The author proposes a focus on regeneration as a way for small carbon footprint firms (e.g., consulting, financial services firms) to make a positive sustainability impact. He highlights that service industry firms can proactively contribute to the regeneration of common pool resources, such as forests and lakes, which often become neglected or overused. What makes regeneration different compared to more traditional donations to a conservation nonprofit is the use of digital technology that enables an organization to lay claim to the eco­system benefits it generates through its support. The digitization of benefits claims provides a transparent accounting system for environmental …


How Do The Ceo Political Leanings Affect Reit Business Decisions?, Xiaoying Deng, Paul M. Anglin, Yanmin Gao, Hua Sun Nov 2021

How Do The Ceo Political Leanings Affect Reit Business Decisions?, Xiaoying Deng, Paul M. Anglin, Yanmin Gao, Hua Sun

Research Collection Lee Kong Chian School Of Business

Business decisions made by the real estate industry have a profound effect on the well-being of people who live, work, or shop in these buildings. While these decisions may be informed by evidence, the available evidence is often incomplete or imperfect. Therefore, the personal opinions or judgments of senior executives can have an effect. In this paper, we study these effects in two parts: risk-taking and environmental, social, and governance (ESG) activities. Since a person’s political learning is a relatively stable measure, and is associated with preferences for risk and ESG activities, we examine how the political leanings of the …


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.


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.


Socially Responsible Corporate Customers, Rui Dai, Hao Liang, Lilian Ng Nov 2021

Socially Responsible Corporate Customers, Rui Dai, Hao Liang, Lilian Ng

Research Collection Lee Kong Chian School Of Business

Corporate customers are an important stakeholder in global supply chains. We employ several unique international databases to test whether socially responsible corporate customers can infuse similar socially responsible business behavior in suppliers. Our findings suggest a unilateral effect on corporate social responsibility (CSR) only from customers to suppliers, an evidence further supported by exogenous variation in customers’ close-call CSR proposals and by product scandals. Customers exert influence on suppliers’ CSR through positive assortative matching and their decision-making process. Enhanced collaborative CSR efforts help improve operational efficiency and firm valuation of both customers and suppliers but increase only the customers’ future …


Artificial Intelligence As Augmenting Automation: Implications For Employment, F. Ted Tschang, Esteve Almirall Nov 2021

Artificial Intelligence As Augmenting Automation: Implications For Employment, F. Ted Tschang, Esteve Almirall

Research Collection Lee Kong Chian School Of Business

There has been great concern in recent years that artificial intelligence (AI) may cause widespread unemployment, but proponents say that AI augments existing jobs. Both of these positions have substance, but there is a need is to articulate the mechanisms by which AI may actually do both, and in the process, transform work and business organizations alike. We use economic studies showing past transformations automation wrought on the structure of employment and skills (such as the favouring of nonroutine skills) to articulate a ground for discussion. We then use case evidence of AI and automation to show how AI is …


Going Far Together By Being Here Now: Mindfulness Increases Cooperation In Negotiations, Theodore Charles Masters-Waage, Jared Nai, Jochen Reb, Samantha Sim, Jayanth Narayanan, Noriko Tan Nov 2021

Going Far Together By Being Here Now: Mindfulness Increases Cooperation In Negotiations, Theodore Charles Masters-Waage, Jared Nai, Jochen Reb, Samantha Sim, Jayanth Narayanan, Noriko Tan

Research Collection Lee Kong Chian School Of Business

Integrating theorizing across the mindfulness and negotiation literatures, we hypothesize that mindfulness increases cooperation in negotiations. We further propose that processes of self-transcendence, self-regulation, and self-awareness mediate this effect. We test these hypotheses in five studies across different forms of cooperation, in both distributive and integrative negotiation contexts, and for both measured and experimentally induced mindfulness. In Study 1a, individuals higher on measured state mindfulness displayed greater cooperative orientation measured as preference for pareto-optimal agreements. In Study 1b, experimentally induced mindfulness led to greater cooperative orientation measured as the recall of cooperative heuristics. In Study 2, a distributive (fixed-sum) negotiation, …


Unlocking The Creativity Potential Of Dialectical Thinking: Field Investigations Of The Comparative Effects Of Transformational And Transactional Leadership Styles, Roy Y. J. Chua, Jia Hui Lim, Wannwiruch (Fon) Wiruchnipawan Nov 2021

Unlocking The Creativity Potential Of Dialectical Thinking: Field Investigations Of The Comparative Effects Of Transformational And Transactional Leadership Styles, Roy Y. J. Chua, Jia Hui Lim, Wannwiruch (Fon) Wiruchnipawan

Research Collection Lee Kong Chian School Of Business

In a digital economy characterized by high volumes of information and ideas, many of which could be contradictory to one another, employees high in dialectical thinking should be well poised to connect disparate ideas to generate creative solutions for business problems. Yet, it is unclear whether dialectical thinking as a creativity-relevant skill can be realized in naturalistic workplace settings, given past mixed findings and the lack of field studies. We propose that supervisors’ leadership styles are important moderators that can unlock employees’ creativity potential in dialectical thinking. Additionally, we compare the activating effect of transformational leadership and the inhibiting effect …


Carlos Ghosn: The Rise And Fall Of An Automobile Legend, Jochen Reb, Abhijeet K. Vadera, Sin Mei Cheah Nov 2021

Carlos Ghosn: The Rise And Fall Of An Automobile Legend, Jochen Reb, Abhijeet K. Vadera, Sin Mei Cheah

Research Collection Lee Kong Chian School Of Business

Was it politics, greed, or hubris that led to Carlos Ghosn's downfall? On December 29, 2019, disgraced auto titan Carlos Ghosn (rhymes with ‘tone’) made an audacious escape from house arrest in Tokyo, where he had been detained on financial impropriety charges. Of all the places imaginable, Ghosn hid in a huge case for musical instruments, which was then loaded onto an aeroplane as cargo. Dubbed as “one of the most brazen and well-orchestrated escape acts in recent history, involving a dizzying array of hotel meet-ups, bullet train travel, fake personas, and the chartering of a private jet”, it was …


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. …


Looking At Candidates' Facebook Profiles As A Recruiter: Think Twice!, Filip Lievens, Smu Office Of Research Oct 2021

Looking At Candidates' Facebook Profiles As A Recruiter: Think Twice!, Filip Lievens, Smu Office Of Research

Research@SMU Infographics

In a research paper recently published in the prestigious Journal of Applied Pyschology, SMU Professor Filip Lievens and a team of researchers from the top universities in the United States and Australia revealed that it is not a good idea for recruiters to conduct social media checks on candidates.


Entrepreneurial Lessons, Singapore Management University Oct 2021

Entrepreneurial Lessons, Singapore Management University

Perspectives@SMU

Growth keeps a company interesting and helps retain talent. There are many issues to grapple with, from manpower to asking your clients, “How much would you pay for that?”


Investing For The Future, Saker Nusseibeh Oct 2021

Investing For The Future, Saker Nusseibeh

Perspectives@SMU

Even if you don’t believe in climate change, shifting consumer and governmental attitudes make businesses that prioritise sustainability more profitable


Sustainable Investment Across Generations, Darren Teo, Elaine Teo, Jansen Phee, Mitch Reznick, Reshma Lalvani Sujan, Ronil Sujan Oct 2021

Sustainable Investment Across Generations, Darren Teo, Elaine Teo, Jansen Phee, Mitch Reznick, Reshma Lalvani Sujan, Ronil Sujan

Perspectives@SMU

Children that follow in a successful company’s founder's footsteps are paying more attention to sustainability