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Full-Text Articles in Business

Financial Literacy And Financial Decision-Making At Older Ages, Joelle H. Fong, Seng Kee Benedict Koh, Olivia S. Mitchell, Susann Rohwedder Feb 2021

Financial Literacy And Financial Decision-Making At Older Ages, Joelle H. Fong, Seng Kee Benedict Koh, Olivia S. Mitchell, Susann Rohwedder

Research Collection Lee Kong Chian School Of Business

How well older households manage their wealth holdings is an important determinant of their financial security during retirement, yet little is known about their financial decision-making and how this relates to their financial literacy. Our paper fills this gap by measuring financial literacy among older persons in the Singapore Life Panel and examining its association with timely credit card debt repayment, stock market participation, and age-based investment risk diversification. Most older respondents understand interest compounding and inflation, but fewer than half know about risk diversification. Almost all older credit card holders pay off their balances in a timely manner, but …


Do Innovative Firms Communicate More? Evidence From The Relation Between Patenting And Management Guidance, Sterling Huang, Jeffrey Ng, Tharindra Ranashinghe, Mingyue Zhang Feb 2021

Do Innovative Firms Communicate More? Evidence From The Relation Between Patenting And Management Guidance, Sterling Huang, Jeffrey Ng, Tharindra Ranashinghe, Mingyue Zhang

Research Collection School Of Accountancy

Successful innovations could induce more disclosure if the information asymmetry between the firm and its investors about post-innovation outcomes leads investors to demand more information. However, such innovations also likely entail greater proprietary cost concerns, which deter disclosure. This paper uses patent grants to examine the effect of innovation success on management guidance behavior. We find that more management guidance follows patent grants, suggesting that despite disclosure cost concerns, firms with successful innovations do respond to information demand. This association is stronger after enactment of Regulation Fair Disclosure and for firms with greater institutional investor ownership, further highlighting the role …


Mitigating Financial Fraud Risk With Data Analytics, Clarence Goh, Gary Pan Feb 2021

Mitigating Financial Fraud Risk With Data Analytics, Clarence Goh, Gary Pan

Research Collection School Of Accountancy

The risks associated with financial fraud that modern CFOs face today is particularly high. The same report examined Accounting and Auditing Enforcement Releases (AAERs) issued by the Securities and Exchange Commission (SEC) in the US from 2014 to 2019 and found that while the SEC frequently charged the person directly responsible for perpetuating the financial fraud, the CFO was among the most commonly charged employees. Data analytics techniques can play an important role in mitigating the risk of financial fraud for CFOs.


Learning By Supplying And Competition Threat, Yi-Fan Chen, Alireza Naghavi, Shin-Kun Peng Feb 2021

Learning By Supplying And Competition Threat, Yi-Fan Chen, Alireza Naghavi, Shin-Kun Peng

Research Collection School Of Economics

This study proposes a model of learning by supplying in an international outsourcing framework, where the supplier of a relationship-specific input can reverse engineer and become a competitor to its partner in the final goods market. Transmitting knowledge to a more capable supplier therefore creates competitive threat despite the benefits it brings within an outsourcing relationship. In particular, in markets with less differentiated products and for standard inputs that require less knowledge to be shared, choosing an intermediate capability level supplier prompts a strategic expansion of output to deter supplier entry in the final goods market, resulting in higher profits …


Moral Hazard And The Market-Based Method: Does Using Renewable Energy Attributes In Emissions Reporting Affect Corporate Emissions Performance?, Francisco Ascui, Matthew Brander, Theodor Florian Cojoianu, Qian (Jan) Li Feb 2021

Moral Hazard And The Market-Based Method: Does Using Renewable Energy Attributes In Emissions Reporting Affect Corporate Emissions Performance?, Francisco Ascui, Matthew Brander, Theodor Florian Cojoianu, Qian (Jan) Li

Research Collection College of Integrative Studies

An increasingly widespread accounting practice for electricity (scope 2) emissions, known as the ‘market-based method’, is problematic as it allows companies to use purchased renewable energy attributes (REAs) to report lower emissions, which therefore no longer reflect the actual location-based electricity generation emissions resulting from the company's electricity consumption. Using REAs therefore may create a moral hazard, as companies using these arrangements are insulated from the consequences of their actions and may thus have less incentive to genuinely reduce their emissions. We construct a year-on-year matched sample of firms using/not using REAs (2,716 firms with 12,700 firm-year observations from 2006 …


Global Shift Towards Stakeholder-Oriented Corporate Governance? Evidence From The Scholarly Literature And Future Research Opportunities, Toru Yoshikawa, Michael Nippa, Gavin Chua Feb 2021

Global Shift Towards Stakeholder-Oriented Corporate Governance? Evidence From The Scholarly Literature And Future Research Opportunities, Toru Yoshikawa, Michael Nippa, Gavin Chua

Research Collection Lee Kong Chian School Of Business

Purpose: By reviewing prior scholarly corporate governance (CG) literature and a review of more recent stakeholder studies, this paper aims to examine the extent to which stakeholders and their interests have gained in importance in recent years compared to the shareholder approach, which is dominant in many national economies and suggest future research opportunities. Design/methodology/approach: This study conducts a literature review to examine major findings in prior studies. Findings: The reviews and analyses provide support for a formal and informal convergence of CG systems towards more stakeholder-oriented elements globally. In general, at the institutional and firm levels, there are remarkable …


The Economics Of Hedge Fund Startups: Theory And Empirical Evidence, Charles Cao, Grant Farnsworth, Hong Zhang Feb 2021

The Economics Of Hedge Fund Startups: Theory And Empirical Evidence, Charles Cao, Grant Farnsworth, Hong Zhang

Research Collection Lee Kong Chian School Of Business

This paper examines how market frictions influence the managerial incentives and organizational structure of new hedge funds. We develop a stylized model in which new managers search for accredited investors and have stronger incentives to acquire managerial skill when encountering low investor demand. Fund families endogenously arise to mitigate frictions and weaken the performance incentives of affiliated new funds. Empirically, based on a TASS-HFR-BarclayHedge merged database, we find that ex ante identified cold inceptions facing low investor demand outperform existing hedge funds and hot inceptions facing high demand and that cold stand-alone inceptions outperform all types of family-affiliated inceptions.


Cryptocurrency Framework, Pearl Hock-Neo Tan, Tracey Chunqi Zhang Feb 2021

Cryptocurrency Framework, Pearl Hock-Neo Tan, Tracey Chunqi Zhang

Research Collection School Of Accountancy

An interesting puzzle exists with respect to the accounting treatment of cryptocurrencies. The announcement in October 2020 that PayPal was launching its own cryptocurrency service suggests growing acceptability. However, there is no standard that deals with them specifically. We review the classification appropriateness for cryptocurrencies under IAS 2, IAS 7, IFRS 9, and IAS 38. There is a lack of a consensus on the accounting classification and measurement of cryptocurrencies. A framework is needed to classify cryptocurrencies by underlying attributes and to require the appropriate accounting treatment for each classification.


Examining The Phenomenon Of Rounding In Analysts’ Eps Forecasts: Evidence From Singapore, Clarence Goh Feb 2021

Examining The Phenomenon Of Rounding In Analysts’ Eps Forecasts: Evidence From Singapore, Clarence Goh

Research Collection School Of Accountancy

Prior studies have documented the phenomenon of rounding of analysts' earnings per share (EPS) forecasts in the USA. From the outset, it is unclear if analysts following Singapore firms also similarly engage in the rounding of their EPS forecasts. This study aims to investigate the extent to which analysts engage in rounding of EPS forecasts of firms listed on the Singapore Exchange.


Transaction Cost Theory: Past Progress, Current Challenges, And Suggestions For The Future, Ilya Cuypers, Jean-Francois Hennart, Brian S. Silverman, Gokhan Ertug Feb 2021

Transaction Cost Theory: Past Progress, Current Challenges, And Suggestions For The Future, Ilya Cuypers, Jean-Francois Hennart, Brian S. Silverman, Gokhan Ertug

Research Collection Lee Kong Chian School Of Business

Transaction cost theory (TCT) has been fruitfully applied to a wide range of organizational phenomena, as reflected in a vast and evolving body of research. However, in part due to the theory’s broad success, important advances in some fields do not diffuse to other fields. In this essay, we lay out a path toward a pluralistic view of TCT that incorporates insights from multiple fields, primarily strategy and international business. In so doing, we critically assess the assumptions, key constructs, and evolving theoretical logic of TCT. We then propose an agenda for future research, highlighting opportunities for scholars to (1) …


Trust And Retirement Preparedness: Evidence From Singapore, Benedict S. K. Koh, Olivia S. Mitchell, Joelle H. Fong Feb 2021

Trust And Retirement Preparedness: Evidence From Singapore, Benedict S. K. Koh, Olivia S. Mitchell, Joelle H. Fong

Research Collection Lee Kong Chian School Of Business

Trust is an essential component of any financial system, and distrust can undermine savings and economic growth. Our study draws on the Singapore Life Panel to assess how trust ties to older respondents’ (1) pension plan participation and withdrawals; (2) life, health, and long-term care insurance holdings; and (3) stock market engagement. We show that the widely-used ‘trust in people’ question is uncorrelated with household behaviours related to retirement preparedness. Instead, trust in private and public financial representatives is positively associated with pension savings, investments, and insurance holdings. Financial literacy also plays an important and consistent role in retirement decision-making.


Examining Business School Leadership, Julie Davies, Ewan Ferlie, Heather Mclaughlin, Howard Thomas Feb 2021

Examining Business School Leadership, Julie Davies, Ewan Ferlie, Heather Mclaughlin, Howard Thomas

Research Collection Lee Kong Chian School Of Business

Business school leaders are ‘squeezed’ by a range of internal metrics. These metrics focus on a micro-managed narrow range of key performance indicators (KPIs) to raise revenues, research, and rankings. This style of financial centralised control has, in many cases, distracted deans and their teams from seriously addressing long-standing crises that the current global pandemic has brought to the fore. This article captures discussions from EFMD’s webinar on business school leadership which is part of “the future of the business school” seminar series.


Emergence Of Private Markets And Exchanges As An Alternative Source Of Financing For Small- And Medium-Sized Enterprises (Sme) In Singapore, Ser Keng Ang Feb 2021

Emergence Of Private Markets And Exchanges As An Alternative Source Of Financing For Small- And Medium-Sized Enterprises (Sme) In Singapore, Ser Keng Ang

Research Collection Lee Kong Chian School Of Business

Small- and Medium-sized Enterprises (SMEs) are the engine for growth for any economy, whether big or small and developed or emerging. In the US, small firms with less than 500 employee represent 99% of all employers, provide over 80% of net new jobs and account for about one-half of the national workforce. Singapore is no exception. Hence, the well-being of the SME sector in Singapore bears huge importance in the growth and development of its economy.In practice, financing of private companies, particularly small companies, is a challenge. In general, their small size makes private firms more susceptible to exogenous shocks. …


Contingency Theory Of Strategic Conflict Management: Explicating A “Grand” Theory Of Public Relations, Pang, A., Yan Jin, Glen T. Cameron Feb 2021

Contingency Theory Of Strategic Conflict Management: Explicating A “Grand” Theory Of Public Relations, Pang, A., Yan Jin, Glen T. Cameron

Research Collection Lee Kong Chian School Of Business

Since the 1990s, the contingency theory of strategic conflict management has evolved into its own, and emerged as an empirically tested perspective. Coombs (2010) has described the contingency theory as a “grand theory of public relations” (p.41). A “grand theory” is one which “seeks to explain how public relations as a whole operates”; grand theories seek to explain an entire discipline and “can be adapted to specific areas of the discipline” (Coombs 2010: 41). Today, it is one of the top six theories applied in crisis communication research (An and Cheng 2010). The purpose of this chapter is threefold: First, …


Seasoned Equity Offerings And Corporate Financial Management, Michael J. Barclay, Fangjian Fu, Clifford W. Smith Feb 2021

Seasoned Equity Offerings And Corporate Financial Management, Michael J. Barclay, Fangjian Fu, Clifford W. Smith

Research Collection Lee Kong Chian School Of Business

We assume executives managing corporate financial policy consider the firm's current and target leverage, investment plans, anticipated cash flows, and consequences of alternative sequences of financing transactions, operating within efficient markets. Our analysis yields time-series and cross-sectional predictions for management of investment spending and leverage; use of maturity, priority, and convertibility covenants; and management of dividends, share repurchases, cash balances, and credit lines. Our evidence from 8608 SEOs covering 1970–2015 is consistent with implications of our theory, helps to resolve an array of issues in corporate finance, and offers a step toward a more unified analysis of rational corporate financial …


A Capability-Based View Of Boards: A New Conceptual Framework For Board Governance, Patricia Klarner, Toru Yoshikawa, Michael Hiit Feb 2021

A Capability-Based View Of Boards: A New Conceptual Framework For Board Governance, Patricia Klarner, Toru Yoshikawa, Michael Hiit

Research Collection Lee Kong Chian School Of Business

A key role of board directors is to govern corporate strategy. Whereas prior research has provided insights into board roles and activities regarding board governance, the underlying capabilities required to govern effectively remain understudied. This article explores and explicates a capability-based view of board actions in which the specific capabilities that enable boards to govern strategic activities are identified. We specifically examine the conceptual foundations and different types of board capabilities, drawing on illustrative cases as well as information from interviews with board directors in the United States, Asia, and Europe. We then discuss several future research directions that can …


Hedge Fund Franchises, William Fung, David Hsieh, Narayan Naik, Melvyn Teo Feb 2021

Hedge Fund Franchises, William Fung, David Hsieh, Narayan Naik, Melvyn Teo

Research Collection Lee Kong Chian School Of Business

We investigate the growth strategies of hedge fund firms. We find that firms with successful first funds are able to launch follow-on funds that charge higher performance fees, set more onerous redemption terms, and attract greater inflows. Motivated by the aforementioned spillover effects, first funds outperform follow-on funds, after adjusting for risk. Consistent with the agency view, greater incentive alignment moderates the performance differential between first and follow-on funds. Moreover, multiple-product firms underperform single-product firms but harvest greater fee revenues, thereby hurting investors while benefitting firm partners. Investors respond to this growth strategy by redeeming from first funds of firms …


Mind Your Language: The Effects Of Linguistic Ostracism On Interpersonal Work Behaviors, John Fiset, Devasheesh P. Bhave Feb 2021

Mind Your Language: The Effects Of Linguistic Ostracism On Interpersonal Work Behaviors, John Fiset, Devasheesh P. Bhave

Research Collection Lee Kong Chian School Of Business

Business and demographic trends are conflating to bring language issues at work to the forefront. Although language has an inherent capacity for creating interpersonal bonds, it can also serve as a means of exclusion. The construct of linguistic ostracism encapsulates this phenomenon. Drawing on ethnolinguistic identity theory, we identify how linguistic ostracism influences two interpersonal work behaviors: interpersonal citizenship and interpersonal deviance. We conduct a set of studies that uses multisource data, data across time, and data from three countries. Our results reveal that linguistic ostracism was associated with the enactment of lower interpersonal citizenship behaviors and higher interpersonal deviance …


Transparency And Control In Email Communication: The More The Supervisor Is Put In Cc The Less Trust Is Felt, Tessa Haesevoets, David De Cremer, Leander De Schutter, Jack Mcguire, Yu Yang, Xie Jian, Alain Van Hiel Feb 2021

Transparency And Control In Email Communication: The More The Supervisor Is Put In Cc The Less Trust Is Felt, Tessa Haesevoets, David De Cremer, Leander De Schutter, Jack Mcguire, Yu Yang, Xie Jian, Alain Van Hiel

Research Collection Lee Kong Chian School Of Business

The issue of trust has increasingly attracted attention in the business ethics literature. Our aim is to contribute further to this literature by examining how the use of the carbon copy (cc) function in email communication influences felt trust. We develop the argument that the use of cc enhances transparency—representing an important characteristic of workplace ethics—and hence promotes trust. We further argue that a downside of the cc option may be that it can also be experienced as a control mechanism, which may therefore negatively affect trust. The results of our first study showed that the use of cc indeed …


Building Growth Enterprises In Singapore: Public-Private Partnership, Annie Koh, Esther Kong Feb 2021

Building Growth Enterprises In Singapore: Public-Private Partnership, Annie Koh, Esther Kong

Research Collection Lee Kong Chian School Of Business

This chapter traces the growth and development of Small Medium Enterprises (SMEs) from post-independent Singapore in 1965 to its current day digital transformation age. Singapore’s SME landscape has evolved from one of low wage, low productivity entrepot trade, to supporting multi-national corporations, and transforming into the innovative, digital and agile enterprises of today. The four main challenges faced by SMEs are in human capital, internationalisation, innovation and financing, and dependency on government policies are highlighted. Moving ahead, digitalisation, and building TIEs that bind leveraging on Trust, Innovation and Internationalisation, and Entrepreneurship, will be key to propel the nation and family …


Revman: Revenue-Aware Multi-Task Online Insurance Recommendation, Yu Li, Yi Zhang, Lu Gan, Gengwei Hong, Zimu Zhou, Qiang Li Feb 2021

Revman: Revenue-Aware Multi-Task Online Insurance Recommendation, Yu Li, Yi Zhang, Lu Gan, Gengwei Hong, Zimu Zhou, Qiang Li

Research Collection School Of Computing and Information Systems

Online insurance is a new type of e-commerce with exponential growth. An effective recommendation model that maximizes the total revenue of insurance products listed in multiple customized sales scenarios is crucial for the success of online insurance business. Prior recommendation models are ineffective because they fail to characterize the complex relatedness of insurance products in multiple sales scenarios and maximize the overall conversion rate rather than the total revenue. Even worse, it is impractical to collect training data online for total revenue maximization due to the business logic of online insurance. We propose RevMan, a Revenue-aware Multi-task Network for online …


Portfolio Diversification Using Shape-Based Clustering, Tristan Lim, Chin Sin Ong Feb 2021

Portfolio Diversification Using Shape-Based Clustering, Tristan Lim, Chin Sin Ong

Research Collection School Of Computing and Information Systems

Portfolio diversification involves lowering the correlation between portfolio assets to achieve improved risk–return exposure. It is reasonable to infer from the classic Anscombe quartet that relying on descriptive statistics, and specifically, correlation, to achieve portfolio diversification may not derive the most optimal multiperiod portfolio risk-adjusted return because stocks in a portfolio can exhibit different price trends over time, even with the same computed pairwise correlation. This research applied a shape-based time-series clustering technique of agglomerative hierarchical clustering using dynamic time-series warping as a distance measure to aggregate stocks into like-trending clusters across time as a portfolio diversification tool. Results support …


The Business Of Sustainability, Singapore Management University Jan 2021

The Business Of Sustainability, Singapore Management University

Perspectives@SMU

Price points, fundraising, and scaling are the unavoidable and necessary parts that turn sustainability dreams into reality. It helps to have investors that believe in both the mission and business


For Him It Rains, For Her It Pours: How Weather And Gender Impact Consumption, Singapore Management University Jan 2021

For Him It Rains, For Her It Pours: How Weather And Gender Impact Consumption, Singapore Management University

Perspectives@SMU

Marketers and business managers benefit from knowing why weather may be associated with increased consumption, and how this process may differ across men and women, according to UNSW Business School research


Creating Value In Sustainability, Singapore Management University Jan 2021

Creating Value In Sustainability, Singapore Management University

Perspectives@SMU

You can create value when you deliver what the market demands or if you can identify and remove costs from the system. But it does not take away ‘Oh sh*t!’ moments


Lee Kong Chian School Of Business Year In Review 2019-2020, Singapore Management University Jan 2021

Lee Kong Chian School Of Business Year In Review 2019-2020, Singapore Management University

SMU Corporate Reports

We all knew that 2020 would be an extraordinary year for the Lee Kong Chian School of Business. It marks our 20th anniversary of our first entering cohort of undergraduates! What no one imagined was that this year would also be extraordinary because of the global pandemic. Despite it being a challenging year, it is safe to say that we have come through the first wave of the Covid-19 pandemic in reasonably good shape.


Rise Of The Machines? Intraday High-Frequency Trading Patterns Of Cryptocurrencies, Alla A Petukhina, Raphael C. G. Reule, Wolfgang Karl Hardle Jan 2021

Rise Of The Machines? Intraday High-Frequency Trading Patterns Of Cryptocurrencies, Alla A Petukhina, Raphael C. G. Reule, Wolfgang Karl Hardle

Sim Kee Boon Institute for Financial Economics

This research analyses high-frequency data of the cryptocurrency market in regards to intraday trading patterns related to algorithmic trading and its impact on the European cryptocurrency market. We study trading quantitatives such as returns, traded volumes, volatility periodicity, and provide summary statistics of return correlations to CRIX (CRyptocurrency IndeX), as well as respective overall high-frequency based market statistics with respect to temporal aspects. Our results provide mandatory insight into a market, where the grand scale employment of automated trading algorithms and the extremely rapid execution of trades might seem to be a standard based on media reports. Our findings on …


Lokotopia: Expansion To China Doesn’T Have To Be A Gamble, Yiqing Pin Cai Jan 2021

Lokotopia: Expansion To China Doesn’T Have To Be A Gamble, Yiqing Pin Cai

MSc in Innovation Capstone Projects

Addressed the problem of Southeast Asian brands to enter the China market, reviewed existing market solutions, presented their solution which was tested through global Chinese consumers. Introduced LOKOTOPIA services, with some cases for market validation.


Bubox: Smart Textile Platform, Jiameng (Sissy) Yan, Kuanfu (River) Lee Jan 2021

Bubox: Smart Textile Platform, Jiameng (Sissy) Yan, Kuanfu (River) Lee

MSc in Innovation Capstone Projects

Analyzed the global textile market, apparel market and trends. Found that textile sourcing was a pain point. They proposed a solution called BUBOX which would provide a customized monthly swatch box to offer smarter strategies that would be in line with buyer requirements and leveraging data technology.


Homie: Home Services Company, Kean Loong (Josh) Teo Jan 2021

Homie: Home Services Company, Kean Loong (Josh) Teo

MSc in Innovation Capstone Projects

Analysis of the market for home services, value proposition, differentiator, market attractiveness, and business model. Included marketing campaign and social media posts.