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Certis: Digital Transformation Of A Physical Security Company, Singapore Management University

Perspectives@SMU

How a company synonymous with auxiliary police injected sensors and artificial intelligence into its 21st century operations

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Squawking About Persistently Higher Inflation?, Thomas Lam

Sim Kee Boon Institute for Financial Economics

All signs point to an uncertain path for inflation in the future. While inflation is set to stay prospectively higher in the US in the near-term, it's unlikely to remain so.

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Just Because You're Powerless Doesn't Mean They Aren't Out To Get You: Low Power, Paranoia, And Aggression, Michael Schaerer, Trevor Foulk, Christilene Du Plessis, Min Hsuan Tu, Satish Krishnan

Research Collection Lee Kong Chian School Of Business

Due to its pervasive negative consequences, failing to understand the origins of paranoia can be costly for organizations. Prior research suggests that powerful employees are particularly likely to experience paranoia as others want to exploit the resources they control, implying that employees low in power should feel less paranoid. In contrast, we build on Conservation of Resources Theory and sociocultural perspectives of power to argue that the inherent vulnerability associated with being low power also evokes paranoia as a protection mechanism. Because paranoia causes employees to form malevolent attributions towards others, we predict that paranoia, in turn, leads to aggressive …

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Ambivalent Bosses: An Examination Of Supervisor Expressed Emotional Ambivalence On Subordinate Task Engagement, Jia Hui Lim, Kenneth Tai, Maryam Kouchaki

Research Collection Lee Kong Chian School Of Business

Supervisors often have to manage conflicting and contradictory demands in increasingly dynamic work environments. In the process of doing so, they may express emotional ambivalence observed by subordinates. Drawing on emotions as social information (EASI) theory and research on unpredictability and stress, we examine when and why supervisor expressed emotional ambivalence influence subordinate outcomes. In two studies, we find that supervisor expressed emotional ambivalence is indirectly related to subordinate task engagement via supervisor unpredictability (Studies 1 and 2). In addition, supervisor unpredictability and anticipated stress serially mediate the effect of supervisor expressed emotional ambivalence on task engagement (Studies 3 and …

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The Impact Of Concession Patterns On Negotiations: When And Why Decreasing Concessions Lead To A Distributive Disadvantage, Kian Siong Tey, Michael Schaerer, Nikhil Madan, Roderick I. Swaab

Research Collection Lee Kong Chian School Of Business

We propose that making a series of decreasing concessions (e.g., $1,500–1,210–1,180–1,170) signals that negotiators are reaching their limit and that this results in a negotiation disadvantage for offer recipients. Although we find that most negotiators do not use this strategy naturally, seven studies (N = 2,311) demonstrate that decreasing concessions causes recipients to make less ambitious counteroffers (Studies 1–5) and reach worse deals (Study 2) in distributive negotiations. We find that this disadvantage occurs because decreasing concessions shape recipients’ expectations of the subsequent offers that will be made, which results in inflated perceptions of the counterparts’ reservation price relative …

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Competition And Cheating: Investigating The Role Of Moral Awareness, Moral Identity, And Moral Elevation, Abhijeet K. Vadera, Chandra Shekhar Pathki

Research Collection Lee Kong Chian School Of Business

Competition can lead individuals to cheat; yet our knowledge of why competition affects cheating and how to mitigate these effects is limited. To address this limitation, we first contrast two theories: arousal theories of competition (via desire to win) and social cognitive theory (via impaired moral awareness). Our results were consistent with social cognitive theory in that competition impairs moral awareness and that this impairment explains why people cheat. We therefore build on social cognitive theory and show that two factors, moral identity and moral elevation, which are likely to make morality salient, moderated the effects of competition on cheating …

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The Old Boys Club In New Zealand Listed Companies, Chen Chen, David K. Ding, William R. Wilson

Research Collection Lee Kong Chian School Of Business

The board of directors plays an important role in implementing corporate governance in the firm, as directors have a fiduciary duty to the firm’s shareholders. The effectiveness of directors is a key determinant of corporate value and they need to bring a range of skills and experience to the boardroom. This skill and experience cannot be developed solely within the firm, and most boards incorporate non-executive directors who are or have been directors of other firms. Current research on the benefits of interlocking directorships is mixed between the claim that they bring outside feedback to the table and open decision …

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The Role Of Law In Chinese Value Chains, Henry Gao, Gregory Shaffer

Research Collection Yong Pung How School Of Law

Since starting its economic reform four decades ago, China has been highly successful in integrating its economy into regional and global value chains (GVCs). This started with simple assembly and processing, then expanded to low-end labor-intensive manufacturing, and gradually moved up to technology-intensive and capital-intensive industries. This article analyzes the development of Chinese law, legal institutions, and international and transnational legal initiatives to support the development of GVCs, which we divide into five phases. The article does not idealize law in terms of ‘commitment’ or ‘rule of law,’ but rather, in the legal realist tradition, views law as an important, …

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Terrorist Attacks, Managerial Sentiment, And Corporate Disclosures, Wen Chen, Haibin Wu, Liandong Zhang

Research Collection School Of Accountancy

This study investigates the effect of managerial sentiment on corporate disclosure decisions. Using terrorist attacks in the United States as adverse shocks to managerial sentiment, we find that firms located in the metropolitan areas attacked issue more negatively biased earnings forecasts. The effect is stronger for firms with higher operating uncertainty and firms with younger, inexperienced, or less confident executives and it is weaker for firms located in states with increasing violent crime rates. A potential alternative explanation is that managers could strategically bias earnings forecasts downward and attribute the poor performance to terrorist attacks. To address this issue, we …

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Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae B. Kim

Research Collection School Of Accountancy

Given the adverse effect on their welfare, managers are reluctant to disclose bad news in a timely fashion. We examine the effect of managers' pay duration on firms' voluntary disclosures of bad news. Pay duration refers to the average period that it takes for managers' annual compensation to vest. We hypothesize and find that pay durations can incentivize managers to provide more bad news earnings forecasts. This result holds after controlling for the endogeneity of pay duration. In addition, we find that the effect of pay duration is more pronounced for firms with weaker governance and with poorer information environments, …

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Preparing Accountants Of The Future: A Programme In Accounting Data And Analytics, Poh Sun Seow, Clarence Goh, Gary Pan

Research Collection School Of Accountancy

The accounting profession is rapidly evolving due to technological innovations. Technologies such as the Internet of things, smart sensors, cloud computing, robotics, and artificial intelligence are combining to disrupt the way that businesses operate. It is predicted that, over the next decade, information technology (IT) will significantly transform the accounting profession.

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Embracing Digital Transformation In Accounting And Finance, Poh Sun Seow, Clarence Goh, Gary Pan, Melvin Yong, Joanna Chek

Research Collection School Of Accountancy

Digital transformation involves the integration of digital technologies and business processes. Recent developments in digital technologies have provided organisations with the tools to embark on digital transformation encompassing a wide range of business processes and activities. Organisations that can leverage on technology to digitally transform themselves stand to put themselves at a significant competitive advantage relative to their competitors.

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Future-Ready Accountant: Upskilling And Life-Long Learning In The Age Of Digital Transformation, Yuanto Kusnadi, Gary Pan

Research Collection School Of Accountancy

Upskilling and life-long learning are two key phrases that Education Minister Lawrence Wong highlighted in his speech at the Straits Times Education Forum 2021. The rapid emergence of digital technologies has disrupted many industries, including accountancy sector. While accounting jobs will continue to exist and grow, the way that accounting work is carried out is no longer the same. Accounting functions are increasingly relying on digital technologies to enable their work. For instance, data analytics is deployed in audit and forensics to detect irregular patterns in accounting transaction. Machine learning algorithms are used to sharpen forecasting models to predict sales …

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Hedonic Price Of Housing Space, Sumit Agarwal, Yanying Chen, Li Jing, Yi Jin Tan

Research Collection School Of Economics

This article estimates hedonic prices for different levels of housing space, by exploiting a unique space‐adding project in Singapore that added a uniform amount of space to each existing housing unit regardless of the original size. This space adding program was carried out if sufficient residents vote in favor of space adding. Using a difference‐in‐differences (DiD) strategy after restricting our sample to narrow margins around the voting cutoff, we find that the additional space increased the resale price of a housing unit by 7% on average, and the extent of price appreciation varied significantly across the original size of the …

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Government Support For Smes In Response To Covid-19: Theoretical Model Using Wang Transform, Shaun Shuxun Wang, Jing Rong Goh, Didier Sornette, He Wang, Esther Yang

Research Collection School Of Economics

Purpose: Many governments are taking measures in support of small and medium-sized enterprises (SMEs) to mitigate the economic impact of the COVID-19 outbreak. This paper presents a theoretical model for evaluating various government measures, including insurance for bank loans, interest rate subsidy, bridge loans and relief of tax burdens. Design/methodology/approach: This paper distinguishes a firm's intrinsic value and book value, where a firm can lose its intrinsic value when it encounters cash-flow crunch. Wang transform is applied to (1) calculating the appropriate level of interest rate subsidy payable to incentivize banks to issue more loans to SMEs and to extend …

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Addressing The ‘Unseens’: Digital Wellbeing In The Remote Workplace, Holtjona Galanxhi, Fiona Fui-Hoon Nah

Research Collection School Of Computing and Information Systems

The ubiquity of sophisticated devices, along with uninterrupted access to the Internet and organizational computerized systems, allows for the “anyplace” workplace to be established. Technology has the potential to deliberately or inadvertently impact psychological wellbeing. Specific psychological demands are inadvertently imposed on remote employees whose permanent online presence is required. Hence, it is important to understand factors affecting digital wellbeing and steps that can be taken to maximize the wellbeing of remote employees. This paper provides suggestions for future research on studying the digital wellbeing of (fully or partially) remote employees. A research framework is proposed to demonstrate the different …

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Online Review Solicitations Reduce Extremity Bias In Online Review Distributions And Increase Their Representativeness, Hülya Karaman

Research Collection Lee Kong Chian School Of Business

Representative online customer reviews are critical to the effective functioning of the Internet economy. In this study, I investigate the representativeness of online review distributions to examine how extremity bias and conformity impact it, and explore whether online review solicitations alter representativeness. Past research on extreme distribution of online ratings commonly relied solely on observed public online ratings. One strength of the current paper is that I observe the private satisfaction ratings of customers regardless of whether they choose to write an online review or not. I show that both extremity bias and conformity exist in unsolicited online word-of-mouth (WOM) …

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Are Disagreements Agreeable? Evidence From Information Aggregation, Dashan Huang, Jiangyuan Li, Liyao Wang

Research Collection Lee Kong Chian School Of Business

Disagreement measures are known to predict cross-sectional stock returns but fail to predict market returns. This paper proposes a partial least squares disagreement index by aggregating information across individual disagreement measures and shows that this index significantly predicts market returns both in- and out-of-sample. Consistent with the theory in Atmaz and Basak (2018), the disagreement index asymmetrically predicts market returns with greater power in high-sentiment periods, is positively associated with investor expectations of market returns, predicts market returns through a cash flow channel, and can explain the positive volume-volatility relationship.

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Experience Base, Strategy-By-Doing And New Product Performance, Liang Chen, Mengmeng Wang, Lin Cui, Sali Li

Research Collection Lee Kong Chian School Of Business

Research Summary Strategy research views firms' diverse experience base as critical to new product success. It also champions strategy-by-doing in entrepreneurial settings. This study juxtaposes and bridges these two perspectives to better understand product development. We propose that while a firm's product portfolio diversity contributes to new product success only to a certain degree, design iteration-a postlaunch strategy-by-doing approach-is positively associated with new product performance. Our core contribution points to a complementary relationship: strategy-by-doing helps mitigate the capacity constraints problem that prevents firms from successfully adapting product development capabilities to a dynamic market. Our analysis of a sample of 2,182 …

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Donor-Advised Funds Can Make A Meaningful Impact In Asia, Hang Wu Tang

Research Collection Yong Pung How School Of Law

Such funds give donors more say in the philanthropic process, and can lead to donors being tipped off about underfunded causes. These funds also make it possible for non-millionaires to do their bit.

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Digital Innovation: A Catalyst And Enabler Of Achieving Business Sustainability, Clarence Goh, Gary Pan, Poh Sun Seow, Shankararaman, Venky

Research Collection School Of Accountancy

Today, many companies are actively incorporating sustainability principles into their business strategies. This movement is likely to have resulted from an ongoing shift in the demands and behaviours of customers, employees, partners, governments, investors and other stakeholders that expect companies to act with integrity and in a way that benefits wider society. The emphasis on achieving sustainability goals has led to increasing adoption of “triple bottom line”, which suggests that companies ought to pay attention to more than just the bottom-line, but also measure their environmental and societal impacts that may help to achieve long-term business growth. Typically, companies with …

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Repatriation Taxes, Internal Agency Conflicts, And Subsidiary-Level Investment Efficiency, Harald J. Amberger, Kevin S. Markle, David M. P. Samuel

Research Collection School Of Accountancy

Using a global sample of multinational corporations (MNCs) and their foreign subsidiaries, we find that repatriation taxes impair subsidiary-level investment efficiency. Consistent with internal agency conflicts between the central management of the MNC and the manager of the foreign subsidiary being the driver, we show that this effect is concentrated in subsidiaries with high information asymmetry and in subsidiaries that are weakly monitored. Quasi-natural experiments in the U.K. and Japan establish a causal relationship for our findings and suggest that a repeal of repatriation taxes increases subsidiary-level investment efficiency while reducing the level of investment. Our paper provides timely empirical …

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Information Avoidance And Medical Screening: A Field Experiment In China, Yufeng Li, Juanjuan Meng, Changcheng Song, Kai Zheng

Research Collection Lee Kong Chian School Of Business

Will individuals, especially high-risk individuals, avoid a disease test because of information avoidance? We conduct a field experiment to investigate this issue. We vary the price of a diabetes test (price experiment) and offer both a diabetes test and a cancer test (disease experiment) after eliciting participants’ subjective beliefs about their disease risk. We find evidence that, first, some people avoid the test even when there is neither a monetary nor a transaction cost, and second, both low- and high-risk individuals select out of the test as the price increases. We explain our findings using three classes of models of …

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Building Digital-Ready Culture, Richard Raymond Smith

Research Collection Lee Kong Chian School Of Business

The rapid change to digital and remote working in organizations around the world has been a great test of human spirit and resilience. Yet, over the weeks and months of meeting and engaging people through cameras and microphones, many have noted that “Things are not quite the same.” While we have replaced the formal physical meetings, the paper-intensive processes, and the auditorium town-hall meetings, many are missing the informal interactions, the social connections, the spontaneous discussions in the day-to-day digital work life. The traditional business handshake has all but disappeared from the planet and many are wondering if it will …

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A Unified Market Model For Swaptions And Constant Maturity Swaps, Chyng Wen Tee, Jeroen Kerkhof

Research Collection Lee Kong Chian School Of Business

Internal-rate-of-return (IRR) settled swaptions are the main interest rate volatility instruments in the European interest rate markets. Industry practice is to use an approximation formula to price IRR swaptions based on Black model, which is not arbitrage-free. We formulate a unified market model to incorporate both swaptions and constant maturity swaps (CMS) pricing under a single, self-consistent framework. We demonstrate that the model is able to calibrate to market quotes well, and is also able to efficiently price both IRR-settled and swap-settled swaptions, along with CMS products. We use the model to illustrate the difference in implied volatilities for IRR-settled …

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Limousine Service Management: Capacity Planning With Predictive Analytics And Optimization, Peng Liu, Ying Chen, Chung-Piaw Teo

Research Collection Lee Kong Chian School Of Business

The limousine service in luxury hotels is an integral component of the whole customer journey in the hospitality industry. One of the largest hotels in Singapore manages a fleet of both in-house and outsourced vehicles around the clock, serving 9,000 trips per month on average. The need for vehicles may scale up rapidly, especially during special events and festive periods in the country. The excess demand is met by having additional outsourced vehicles on standby, incurring millions of dollars of additional expenses per year for the hotel. Determining the required number of limousines by hour of the day is a …

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The Impacts Of Ethical Philosophy On The Corporate Hypocrisy Perception And Communication Intentions Toward Csr, Kyujin Shim, Jeong-Nam Kim

Research Collection Lee Kong Chian School Of Business

This study investigates how perceptions of corporate hypocrisy from the Corporate Social Responsibility (CSR) activities connect the public’s ethical philosophy to subsequent positive/negative opinion-sharing intention. With special attention to deontology and consequentialism in normative ethics of philosophy, the current study empirically tests a theoretical model of perceived corporate hypocrisy with two causal antecedents (i.e., individual moral philosophy of deontology and consequentialism), and the mediating role of corporate hypocrisy between such antecedents and the publics’ subsequent communication intention (i.e., positive and negative opinion-sharing intentions) toward a firm. Results indicate significant mediation effects of corporate hypocrisy between personal ethical orientations and the …

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The Salience Of Choice Fuels Independence: Implications For Self-Perception, Cognition, And Behavior, Kevin Nanakdewa, Shilpa Madan, Krishna Savani, Hazel Rose Markus

Research Collection Lee Kong Chian School Of Business

More than ever before, people across the world are exposed to ideas of choice and have opportunities to make choices. What are the consequences of this rapidly expanding exposure to the ideas and practice of choice? The current research investigated an unexamined and potentially powerful consequence of this salience of choice: an awareness and experience of independence. Four studies (n = 1,288) across three cultural contexts known to differ in both the salience of choice and the cultural emphasis on independence (the United States, Singapore, and India) provided converging evidence of a link between the salience of choice and independence. …

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The Evolving Chinese Luxury Consumer, Rane Xue, Xiaolei Gu

Perspectives@SMU

Chinese who travel frequently or have lived abroad will shape the perception and understanding of luxury consumption going forward

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Gucci: Steering Into The Post-Covid Era, Singapore Management University

Perspectives@SMU

Marco Bizzarri and Alessandro Michele proved there is life after Tom Ford. COVID-19 could yet make Gucci’s revival a short-lived one

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Full-Text Articles in Business

Certis: Digital Transformation Of A Physical Security Company, Singapore Management University

Perspectives@SMU

Squawking About Persistently Higher Inflation?, Thomas Lam

Sim Kee Boon Institute for Financial Economics

Just Because You're Powerless Doesn't Mean They Aren't Out To Get You: Low Power, Paranoia, And Aggression, Michael Schaerer, Trevor Foulk, Christilene Du Plessis, Min Hsuan Tu, Satish Krishnan

Research Collection Lee Kong Chian School Of Business

Ambivalent Bosses: An Examination Of Supervisor Expressed Emotional Ambivalence On Subordinate Task Engagement, Jia Hui Lim, Kenneth Tai, Maryam Kouchaki

Research Collection Lee Kong Chian School Of Business

The Impact Of Concession Patterns On Negotiations: When And Why Decreasing Concessions Lead To A Distributive Disadvantage, Kian Siong Tey, Michael Schaerer, Nikhil Madan, Roderick I. Swaab

Research Collection Lee Kong Chian School Of Business

Competition And Cheating: Investigating The Role Of Moral Awareness, Moral Identity, And Moral Elevation, Abhijeet K. Vadera, Chandra Shekhar Pathki

Research Collection Lee Kong Chian School Of Business

The Old Boys Club In New Zealand Listed Companies, Chen Chen, David K. Ding, William R. Wilson

Research Collection Lee Kong Chian School Of Business

The Role Of Law In Chinese Value Chains, Henry Gao, Gregory Shaffer

Research Collection Yong Pung How School Of Law

Terrorist Attacks, Managerial Sentiment, And Corporate Disclosures, Wen Chen, Haibin Wu, Liandong Zhang

Research Collection School Of Accountancy

Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae B. Kim

Research Collection School Of Accountancy

Preparing Accountants Of The Future: A Programme In Accounting Data And Analytics, Poh Sun Seow, Clarence Goh, Gary Pan

Research Collection School Of Accountancy

Embracing Digital Transformation In Accounting And Finance, Poh Sun Seow, Clarence Goh, Gary Pan, Melvin Yong, Joanna Chek

Research Collection School Of Accountancy

Future-Ready Accountant: Upskilling And Life-Long Learning In The Age Of Digital Transformation, Yuanto Kusnadi, Gary Pan

Research Collection School Of Accountancy

Hedonic Price Of Housing Space, Sumit Agarwal, Yanying Chen, Li Jing, Yi Jin Tan

Research Collection School Of Economics

Government Support For Smes In Response To Covid-19: Theoretical Model Using Wang Transform, Shaun Shuxun Wang, Jing Rong Goh, Didier Sornette, He Wang, Esther Yang

Research Collection School Of Economics

Addressing The ‘Unseens’: Digital Wellbeing In The Remote Workplace, Holtjona Galanxhi, Fiona Fui-Hoon Nah

Research Collection School Of Computing and Information Systems

Online Review Solicitations Reduce Extremity Bias In Online Review Distributions And Increase Their Representativeness, Hülya Karaman

Research Collection Lee Kong Chian School Of Business

Are Disagreements Agreeable? Evidence From Information Aggregation, Dashan Huang, Jiangyuan Li, Liyao Wang

Research Collection Lee Kong Chian School Of Business

Experience Base, Strategy-By-Doing And New Product Performance, Liang Chen, Mengmeng Wang, Lin Cui, Sali Li

Research Collection Lee Kong Chian School Of Business

Donor-Advised Funds Can Make A Meaningful Impact In Asia, Hang Wu Tang

Research Collection Yong Pung How School Of Law

Digital Innovation: A Catalyst And Enabler Of Achieving Business Sustainability, Clarence Goh, Gary Pan, Poh Sun Seow, Shankararaman, Venky

Research Collection School Of Accountancy

Repatriation Taxes, Internal Agency Conflicts, And Subsidiary-Level Investment Efficiency, Harald J. Amberger, Kevin S. Markle, David M. P. Samuel

Research Collection School Of Accountancy

Information Avoidance And Medical Screening: A Field Experiment In China, Yufeng Li, Juanjuan Meng, Changcheng Song, Kai Zheng

Research Collection Lee Kong Chian School Of Business

Building Digital-Ready Culture, Richard Raymond Smith

Research Collection Lee Kong Chian School Of Business

A Unified Market Model For Swaptions And Constant Maturity Swaps, Chyng Wen Tee, Jeroen Kerkhof

Research Collection Lee Kong Chian School Of Business

Limousine Service Management: Capacity Planning With Predictive Analytics And Optimization, Peng Liu, Ying Chen, Chung-Piaw Teo

Research Collection Lee Kong Chian School Of Business

The Impacts Of Ethical Philosophy On The Corporate Hypocrisy Perception And Communication Intentions Toward Csr, Kyujin Shim, Jeong-Nam Kim

Research Collection Lee Kong Chian School Of Business

The Salience Of Choice Fuels Independence: Implications For Self-Perception, Cognition, And Behavior, Kevin Nanakdewa, Shilpa Madan, Krishna Savani, Hazel Rose Markus

Research Collection Lee Kong Chian School Of Business

The Evolving Chinese Luxury Consumer, Rane Xue, Xiaolei Gu

Perspectives@SMU

Gucci: Steering Into The Post-Covid Era, Singapore Management University

Perspectives@SMU