Business Commons^™

Sinwattana: Capital Crowdfunding For Thai Smes, Singapore Management University

Perspectives@SMU

A Singaporean entrepreneur falls in love with Thailand, and creates the country’s first online equity crowdfunding platform

The Unknown Benefits Of Black Markets, Singapore Management University

Perspectives@SMU

Research on the license plate market in China’s capital finds that black markets can potentially serve as an auction mechanism to redistribute limited resources to those in need

The Impact Of Digitalization On International Expansion: A Study On Market Entry Strategy Based On The Integration-Responsiveness Framework, Thian Kiang Tan

Dissertations and Theses Collection (Open Access)

Digitalization has accelerated the growth and creation of new business models. There are more unicorn companies (a non-public company valued at more than US$1B) in the last 10 years than the decades before it. The use of digital technologies presents new opportunities for digitally active firms to capture growth in a new market. This paper studies how digitalization influences the internationalization process of the firm and its mode of entry into a foreign market. Drawing on existing literature on digitalization, this paper creates a novel approach to study the effect of digitalization by classifying firms based on their market business …

Analysis Of Factors Influencing The Bailout Of Distressed Enterprises By Local Asset Management Companies, Houwen Li

Dissertations and Theses Collection (Open Access)

In recent years, the number of distressed enterprises in China has gradually increased due to radical enterprise strategies, excessive expansion, poor management, and a trend of accelerating growth. Unable to adapt to fierce market competition, a large number of “zombie enterprises” disrupt the market order, reduce the use efficiency of social resources, and aggravate market risks. However, some enterprises are
temporarily caught in financial distress due to a deterioration of their financial situation caused by factors such as debt structure or capital liquidity. If such enterprises can be bailed out in time, they can escape their distress, which not only …

What Makes Employees Feel Empowered To Speak Up?, Shilpa Madan, Kevin Nanakdewa, Krishna Savani, Hazel Rose Markus

Research Collection Lee Kong Chian School Of Business

Most managers understand that empowering employees to voice their opinions can help companies innovate and uncover their own shortcomings. However, this understanding does not seem to translate into action. Research shows that over 85% of employees remain silent on crucial matters because they worry about being viewed negatively. How can managers encourage employees to speak their minds at work? The authors’ new research identified a novel method to encourage employees to exercise their voice: creating a company culture that emphasizes the idea of choice. They found that employees were more likely to share their ideas and opinions at a company …

Non-Gaap Earnings And Stock Price Crash Risk, Charles Hsu, Rencheng Wang, Benjamin C. Whipple

Research Collection School Of Accountancy

We investigate whether non-GAAP earnings disclosures increase stock price crash risk. Consistent with non-GAAP disclosures allowing managers to inflate investors’ perceptions about firm performance, our results indicate that income increasing non-GAAP reporting increases crash risk. We also find that managers can use non-GAAP reporting as a substitute for earnings management to withhold bad news from investors (the traditional explanation for crashes). Finally, we find a positive association between non-GAAP reporting and the likelihood of subsequent events that can trigger a crash. Overall, our evidence is consistent with some non-GAAP disclosures exposing investors to risks of large and sudden price declines.

Local Political Corruption And M&As, Chun Liu, Yang Chen, Shanmin Li, Liang Sun, Mengjie Yang

Research Collection School Of Accountancy

We examine the relation between local political corruption and firms' cross-province M&As using provincial-level data on corruption in China. The results show that firms in more corrupt regions are less likely to engage in cross-province M&As. Further analyses reveal that the effects of local corruption on the probability of cross-province M&As are stronger when corrupt officers have greater impeding benefits or lower impeding costs. Meanwhile, Both ex-ante intervention and ex post punishment are important channels through which corrupt officers hinder firms' cross province M&As. Moreover, informal institutions, such as social capital and informal networks can help to alleviate the negative …

Innovating In Traditional Real Estate Business Development Based On Value Co-Creation, Ya Zhang

Dissertations and Theses Collection (Open Access)

The real estate industry is an important aspect of China's social development and plays a pivotal role in economic growth. With the development of urbanization in my country, the supply relationship in the real estate industry has changed, consumer demand has become more rational, and the real estate industry’s financial and investment attributes have been superimposed on the influence of the real estate industry. The competition among small and medium real estate companies with relatively weak resource endowments has become increasingly fierce. Some land expansion models can no longer adapt to the development of the new situation. How to survive …

A Study On Constructing The Fourth Financial Statement For The Performance Prediction And Value Assessment Of Internet Enterprises In The Food Industry, Jianxin Zhang

Dissertations and Theses Collection (Open Access)

For a long time, industry, financial institutions, PE investment funds, and capital market investors have determined the business performance and market value of a company, usually based on the data of the three audited financial tables provided by the company, and further comprehensive analysis will be carried out the evaluation. Due to the limitations of accounting standards, the three financial tables cannot truly reflect all the business conditions of the enterprise. At the same time, the economic stage with traditional manufacturing as the main body and the economic stage with the digital economy as the main body are concerned with …

Exploring The Impact Of Industry 4.0 On The Business Models Of Small And Medium-Sized Manufacturing Enterprises In Singapore, Surianarayanan Gopalakrishnan

Dissertations and Theses Collection (Open Access)

Triggered by the ongoing transformation of Singapore's manufacturing industries towards 'smart(er)' manufacturing with a focus on digitising and automating production processes and more competitive business models, this study contributes to the limited Asian management literature about the readiness and impact of 'Industry 4.0' (I4.0) on the business models of Singapore's Small and Medium-sized manufacturing Enterprises (SMEs). I4.0 encompasses adopting opportunities from end-to-end digitalisation with connected computers and increasingly autonomous automation systems equipped with intelligent machine learning algorithms that control robotics with minimal human input. As the traditional manufacturing model is increasingly replaced by advanced, high-value manufacturing technologies such as the …

Effect Of Gamification Narrative Quality On Users’ Value Co-Creation Behavior In Context Of B2c Sharing Economy, Ziwen Wang

Dissertations and Theses Collection (Open Access)

B2C sharing economy is now a major part of the economic system in China and the essence of it is the value co-creation of the users and platforms. However, the means to effectively stimulate users into value co-creation in B2C sharing economy are not well-understood. While gamification marketing is a low cost means to enhance user participation, empirical research of high granularity is lacking. This dissertation seeks to fill the gap by exploring how gamification narrative quality affects users’ value co-creation behavior in the B2C sharing economy model and the underlying mechanism.

Using the bike sharing industry in China as …

Using Role Play To Develop An Empathetic Mindset In Executive Education, Siu Loon Hoe, Tamsin Greulich-Smith

Research Collection School Of Computing and Information Systems

The purpose of this article is to discuss the importance of a role play activity as part of an experiential instructional strategy to develop an empathetic mindset among professionals, managers, and executives (PMEs) attending an executive education program in change management. This article provides an approach and process for management educators and facilitators of executive education programs to introduce and teach role play for the busy executives to learn about empathy. Role play is a useful teaching method that helps adult learners understand the importance of seeing things from another person’s point of view especially within a short period of …

Too Many Peas In A Pod? How Overlaps In Directors’ Local And Global Status Characteristics Influence Board Turnover In Newly Public Firms, Abhijith G. Acharya, Timothy G. Pollock

Research Collection Lee Kong Chian School Of Business

Drawing on status characteristics theory, we explore how boards’ social structures influence board turnover. We theorize that (1) understanding directors’ relative standing and spheres of influence in the local status hierarchy creates deference structures that reduce conflict and enhance stability, thereby reducing board turnover; and (2) shared performance expectations and attraction based on homophily in the global status hierarchy can also reduce conflict and enhance stability, and thus serve as another means of reducing board turnover. Using data on the five years following the initial public offerings (IPOs) of 218 firms that went public between 2001 and 2005, we find …

Board Composition, Board Diversity And Stock Performance, Chiyachantana N. Chiraphol, Siripen Pattanawihok, Pattarawan Prrasarnphanich

Research Collection Lee Kong Chian School Of Business

The study investigates the relationship between six board compositions and stock returns. The results indicate a significant association between various board compositions and stock returns. Specifically, board size and executive directors have a negative impact, whereas independent directors enhance stock returns. Busy directors positively impact the abnormal stock returns for the companies in the non-financial industry, which implies that busy directors who serve on more boards tend to be well connected. More importantly, the results indicate a significant positive relationship between board tenure and stock returns. Board service time is perceived as the board quality of knowledge and experience from …

Close Friendships At Work Are Lifelines That Have Frayed During The Pandemic, Kenneth Tai

Research Collection Lee Kong Chian School Of Business

We have gone from having lunch with colleagues and meeting after work to eating hurriedly at our desks at home. The change in relationships at work also affects our productivity, argues SMU’s Kenneth Tai.

Resource Capacity Requirement For Multi-Terminal Cooperation In Container Ports, Byung Kwon Lee, Mei Wan Low

Research Collection Lee Kong Chian School Of Business

Capacity sharing among neighboring terminals offer a means to meet increasing or unexpected demand for cargo-handling without additional capital investment. This study proposes a model for capacity requirement planning of major resources, such as quay cranes (QCs), storage space, and gate, in multiterminal port operations where demand is time dependent. A resource profile simulation is run to generate random events across the terminals and estimate the capacity requirement in the form of workload distributions on port resources over time-shifts. The effects on workload requirement, arising from multiterminal cooperation, are subsequently evaluated in consideration of different container flows among terminals. Experimental …

Esg And The Market Return, Ran Chang, Liya Chu, Jun Tu, Bohui Zhang, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

We propose an environmental, social, and governance (ESG) index. We find that it has significant power in predicting the stock market risk premium, both in- and out-of-sample, and delivers sizable economic gains for mean-variance investors in asset allocation. Although the index is extracted by using the PLS method, its predictability is robust to using alternative machine learning tools. We find further that the aggregate of environmental variables captures short-term forecasting power, while that of social or governance captures long-term. The predictive power of the ESG index stems from both cash flow and discount rate channels.

Resource Allocation With Sigmoidal Demands: Mobile Healthcare Units And Service Adoption, Andres Alban, Philippe Blaettchen, Harwin De Vries, Luk Van Wassenhove

Research Collection Lee Kong Chian School Of Business

Problem definition: Achieving broad access to health services (a target within the sustainable development goals) requires reaching rural populations. Mobile healthcare units (MHUs) visit remote sites to offer health services to these populations. However, limited exposure, health literacy, and trust can lead to sigmoidal (S-shaped) adoption dynamics, presenting a difficult obstacle in allocating limited MHU resources. It is tempting to allocate resources in line with current demand, as seen in practice. However, to maximize access in the long term, this may be far from optimal, and insights into allocation decisions are limited. Academic/practical relevance: We present a formal model of …

Adopting A Risk-Intelligent Approach To Digital Transformation: Four Traits Of Digitally Mature Organisations, Clarence Goh, Gary Pan, Poh Sun Seow, Yuanto Kusnadi, Seah Gek Choo, Cheryl Lim

Research Collection School Of Accountancy

Our objective is to understand how digitally mature organisations are managing the GRC aspects of their digital transformation programmes, and identify any traits or behaviours that could inform the development of best practices.

What Are The Four Traits Of Digitally Mature Organizations?, Clarence Goh, Gary Pan, Poh Sun Seow, Yuanto Kusnadi, Gek Choo Shirlena Tan

Research Collection School Of Accountancy

A study conducted by Deloitte Southeast Asia and the Singapore Management University said there are four traits that could identify digitally mature organisations based on how they manage the governance, risk, and compliance aspects of digital transformation.

What’S The Best Way To Give Ground In A Negotiation?, Kian Siong Tey, Michael Schaerer, Nikhil Madan, Roderick Swaab

Research Collection Lee Kong Chian School Of Business

How much should you change your offer at each round of a negotiation? The stakes can be high: Give away too much and you devalue your offer; give away too little and you risk getting stuck in an impasse. The authors’ recent research shows that a rare approach to concessions — reducing the amount by which you reduce your offer each round — can yield the most value because it sends a clear signal about your final offer.

Corporate Board Leadership And Earnings Informativeness, Chiyachantana N. Chiraphol, Siripen Pattanawihok, Pattarawan Prasarnphanich

Research Collection Lee Kong Chian School Of Business

This study examines the relationship between six board compositions and the informativeness of earnings. The results show that smaller board sizes are more informativeness of earnings. Longer board service time is viewed as the experience and expertise to manage the firms and increases informativeness of earnings. The average board tenure is positively significant with the informativeness of earnings. The accounting earnings generated from the firms with more independent directors and female directors are highly valued by the investors. Consequently, the accounting earnings generated from these firms are highly valuable to the investors.

The Profitability Of Warrant Issuers: An Empirical Investigation Of Single Stock And Index Warrants, Ichaya Wongnapakarn, Arnat Leemakdej, Chiyachantana N. Chiraphol, Pattarawan Prasarnphanich, Eakapat Manitkajornkit

Research Collection Lee Kong Chian School Of Business

This study examines the derivative warrant's profit of issuers compensated with the risk from issuing call and put derivative warrants because they have commitments in risk management and managing risk by hedging the underlying exposure. The average profit of issuers is a cumulative profit from the first trading day until the last trading day. Consistent with the imperfect competition for issuing put derivative warrants on single stock from different securities borrowing and lending advantages, the profit margin of a put warrant is higher than the call warrant. However, the profit margin from a put warrant is not necessarily higher than …

Distressing For People’S Lives When Lights Go Off During Facebook Outage, Ramaswami, S.

Research Collection Lee Kong Chian School Of Business

The rise of the super app has changed our lives – and livelihoods – as many of us depend on these social media sites to make a living. Are there alternatives or are we always going to be held hostage? SMU’s Seshan Ramaswami gives his take.

Resource Capacity Requirement For Multi-Terminal Cooperation In Container Ports, Byung Kwon Lee, Mei Wan Low

Research Collection Lee Kong Chian School Of Business

Capacity sharing among neighboring terminals offer a means to meet increasing or unexpected demand for cargo-handling without additional capital investment. This study proposes a model for capacity requirement planning of major resources, such as quay cranes (QCs), storage space, and gate, in multiterminal port operations where demand is time dependent. A resource profile simulation is run to generate random events across the terminals and estimate the capacity requirement in the form of workload distributions on port resources over time-shifts. The effects on workload requirement, arising from multiterminal cooperation, are subsequently evaluated in consideration of different container flows among terminals. Experimental …

An Initial Examination Of State And Longitudinal Effects Of Loving-Kindness Practice On Affective And Motivational States At Work, Theodore Charles Masters-Waage, Jochen Reb, William Tov

Research Collection Lee Kong Chian School Of Business

Objectives: Drawing on practices and concepts from Buddhist ethics, we developed a loving-kindness training. We investigated the state and longitudinal effects of this training on employees’ affective and motivational states at work in two studies. Methods: Study 1 tested this training program in a randomized controlled trial, comparing the effects of loving-kindness practice on employee affect and motivation with an active (mindfulness) and a passive (waitlist) control condition. Analyses focused on both longitudinal effects (increases in affect and motivation over the training period) and state effects (effects of practice on daily affect and motivation). Study 2 conducted a 1-week study …

Impact Of Different Types Of In-Store Displays On Consumer Purchase Behavior, Yoonju Han, Sandeep R. Chandukala, Shibo Li

Research Collection Lee Kong Chian School Of Business

Research on consumer in-store shopping behavior does not account for the existence of different types of display locations (e.g. storefront, store rear, secondary, front end cap, rear end cap, and shelf displays). This article focuses on accounting for and understanding the impact of various displays on consumer purchase behavior based on the Stimulus-Organism-Response (SOR) theory. Specifically, we study how displays closer to and farther from the main location of the focal category influence consumer purchase behavior. Furthermore, within the different types of displays we investigate the impact of specific types of displays on consumer's category purchase and brand choice and …

Dynamic Crop Allocation In The Presence Of Two-Season Crop Rotation Benefits, Onur Boyabatli, Javad Nasiry, Yangfang Zhou

Research Collection Lee Kong Chian School Of Business

The objective of this chapter is twofold. First, to study how a farmer should dynamically allocate farmland between two crops when the crops have rotation benefits across growing seasons, i.e., when it is more profitable to grow a crop on rotated farmland (where the other crop was grown) than on non-rotated farmland (where the same crop was grown). Second, to develop a practically implementable heuristic allocation policy and examine its performance in comparison with other heuristic policies commonly suggested in the literature. While the chapter is based on our companion paper (Boyabatlı et al (Management Sci 65(5):2060–2076, 2019)), we characterize …

Tracking Retail Investor Activity, Ekkehart Boehmer, Charles M. Jones, Xiaoyan Zhang, Xinran Zhang

Research Collection Lee Kong Chian School Of Business

We provide an easy method to identify marketable retail purchases and sales using recent, publicly available U.S. equity transactions data. Individual stocks with net buying by retail investors outperform stocks with negative imbalances by approximately 10 bps over the following week. Less than half of the predictive power of marketable retail order imbalance is attributable to order flow persistence, while the rest cannot be explained by contrarian trading (proxy for liquidity provision) or public news sentiment. There is suggestive, but only suggestive, evidence that retail marketable orders might contain firm-level information that is not yet incorporated into prices.

Air Pollution, Behavioral Bias, And The Disposition Effect In China, Jennifer (Jie) Li, Massimo Massa, Hong Zhang, Jian Zhang

Research Collection Lee Kong Chian School Of Business

Inspired by the recent health science findings that air pollution affects mental health and cognition, we examine whether air pollution can intensify the cognitive bias observed in the financial markets. Based on a proprietary data set obtained from a large Chinese mutual fund family consisting of complete trading information for more than 773,198 ac-counts in 247 cities, we find that air pollution significantly increases investors' disposition effects. Analysis based on two plausible exogenous variations in air quality (the vast dissi-pation of air pollution caused by strong winds and the Huai River policy) supports a causal interpretation. Mood regulation provides a …