Business Commons^™

Text Sophistication And Sophisticated Investors, Juha Joenvaara, Jari Karppinen, Song Wee Melvyn Teo, Cristian Ioan Tiu

Research Collection Lee Kong Chian School Of Business

We show that two novel measures of text sophistication, applied to hedge fund strategy descriptions, encapsulate incremental information about funds. Consistent with the linguistics literature, hedge funds with lexically diverse strategy descriptions outperform, eschew tail risk, and encounter fewer regulatory problems. In line with the literature, hedge funds with syntactically complex strategy descriptions report more regulatory violations and trigger more severe infractions. Fund investors recognize the dichotomy and direct flows accordingly, but not enough to erode away the alphas of lexically diverse funds. Our findings suggest that text sophistication measures provide texture on the cognitive ability and trustworthiness of sophisticated …

Swaption Portfolio Risk Management: Optimal Model Selection In Different Interest Rate Regimes, Poh Ling Neo, Chyng Wen Tee

Research Collection Lee Kong Chian School Of Business

We formulate a risk-based swaption portfolio management framework for profit-and-loss (P&L) explanation. We analyze the implication of using the right volatility backbone in the pricing model from a hedging perspective, and demonstrate the importance of incorporating stability and robustness measure as part of the calibration process for optimal model selection. We also derive a displaced-diffusion stochastic volatility (DDSV) model with a closed-form analytical expression to handle negative interest rates. Finally, we show that our framework is able to identify the optimal pricing model, which leads to superior P&L explanation and hedging performance.

Envy In Response To Help: A Helping As Status Relations Model, Kenneth Tai, Katrina Lin, Catherine K. Lam

Research Collection Lee Kong Chian School Of Business

Social exchange theory suggests that after receiving help, peopleexperience gratitude and they reciprocate by helping the original help giver.However, it remains unclear whether people experience other emotions that drive positive reciprocation after receiving help.Building on helping as status relations framework, we suggest that when higherperformers provide task-related help to lower performers, help recipients perceivethat help givers have higher status, and respond to the help with envy. Torebalance the status relation, help recipients are motivated to reciprocate byhelping the help giver. Results from three studies progressively support our predictionsthat help recipients respond with envy when they receive task-related help, butonly toward …

The Information Content Of Sudden Insider Silence, Claire Yurong Hong, Frank Weikai Li

Research Collection Lee Kong Chian School Of Business

We present evidence of investors underreacting to the absence of events in financialmarkets. Routine-based insiders strategically choose to be silent when they possessprivate information not yet reflected in stock prices. Consistent with our hypothesis,insider silence following routine sell (buy) predict positive (negative) future return aswell as fundamentals. The return predictability of insider silence is stronger amongfirms with poor information environment and facing higher arbitrage costs, and alarge fraction of abnormal returns concentrates on future earnings announcements. Along-short strategy that exploits insiders’ strategic silence behavior generates abnormalreturns of 6% to 10% annually

Correlation-Sensitive Next-Basket Recommendation, Duc Trong Le, Hady Wirawan Lauw, Yuan Fang

Research Collection School Of Computing and Information Systems

Items adopted by a user over time are indicative ofthe underlying preferences. We are concerned withlearning such preferences from observed sequencesof adoptions for recommendation. As multipleitems are commonly adopted concurrently, e.g., abasket of grocery items or a sitting of media consumption, we deal with a sequence of baskets asinput, and seek to recommend the next basket. Intuitively, a basket tends to contain groups of relateditems that support particular needs. Instead of recommending items independently for the next basket, we hypothesize that incorporating informationon pairwise correlations among items would help toarrive at more coherent basket recommendations.Towards this objective, we develop a …

Industry 4.0: Challenges And Opportunities In Different Countries, Keng Siau, Yingrui Xi, Cui Zou

Research Collection School Of Computing and Information Systems

Along with the rapid development of artificial intelligence (AI), cyber-physical systems (CPSs), big data analytics, and cloud computing, Industry 4.0 — a subset of the fourth Industrial Revolution — has started to emerge and take root in many countries. Many expect that Industry 4.0 will be transformative and revolutionary for multiple industries and countries. Its impact will be much more significant than those of Industry 1.0, 2.0, and 3.0. Most studies and papers on Industry 4.0 have examined its impact on various industries, jobs, and organizations. In this article, we investigate the impact of Industry 4.0 on countries and groups …

善用数据分析提升企业决策质量 [Using Data Analysis To Improve On Quality Of Business Solutions], Benjamin Huan Zhou Lee

Research Collection School Of Accountancy

No abstract provided.

The Perception Of Variety, Singapore Management University

Perspectives@SMU

CUHK research shows that superficial features such as readability can influence variety perceptions

Crazy Rich Asians: Bringing Americans To Singapore, Singapore Management University

Perspectives@SMU

The Singapore Tourism Board hit jackpot with the film, but is Hollywood's depiction of the island accurate?

Location, Location, Location? Not Any More, Singapore Management University

Perspectives@SMU

The retail industry faces a future where convenience and value-added services will be the deciding factors

Forecasting In Blockchain-Based Local Energy Markets, Michael Kostmann, Wolfgang Karl Hardle

Sim Kee Boon Institute for Financial Economics

Increasingly volatile and distributed energy production challenges traditional mechanisms to manage grid loads and price energy. Local energy markets (LEMs) may be a response to those challenges as they can balance energy production and consumption locally and may lower energy costs for consumers. Blockchain-based LEMs provide a decentralized market to local energy consumer and prosumers. They implement a market mechanism in the form of a smart contract without the need for a central authority coordinating the market. Recently proposed blockchain-based LEMs use auction designs to match future demand and supply. Thus, such blockchain-based LEMs rely on accurate short-term forecasts of …

Overcome Fomo: Five Easy Steps, One Social Media Platform At A Time, Nurin Nazifa Binte Mohd Yusoff

Social Space

I recently came across a CNN article1 that discussed social media’s impact on mental health. It highlightedthe findings of a UK-based study conducted by the RoyalSociety for Public Health, and involved around 1,500 young people aged between 14 to 24 years. Entitled#StatusofMind, it reported that out of many popular social media platforms, Instagram demonstrated the most negative effects on users’ mental health, evoking in them feelings of inadequacy, anxiety, depression, loneliness, worthlessness and body image issues. Snapchat came closely behind, followed by Facebook and Twitter. YouTube, on the other hand, was found to have a positive effect on mental health.

Corporate Governance Of Innovation In Singapore Chinese Family Business, Geok Chwee Ong

Dissertations and Theses Collection (Open Access)

Despite the large number of research publications on innovation management matters, there is still a gap in the understanding of effective innovation governance at corporate levels. The mechanisms that drive effective governance at firm level to ensure the “alignment of goals, allocation of resources and assignment of decision-making authority for innovation across the company, and with external parties” (Deschamps, 2013) remain unclear. Given the importance of family firms in Asia (and beyond), there is an urgent need to examine those family factors that influence the effectiveness of corporate governance of innovation in Asian enterprise. Against this background, this study attempts …

Innovating Today To Build A Sustainable Tomorrow, Daryl Ng

Asian Management Insights

Daryl Ng, Deputy Chairman of Hong Kong-based real estate property developer Sino Group, speaks about his ideas and ideals on the built environment, sustainability, and how business and innovation can be a force for good.

Grooming The Next Generation Of Accounting Professionals For The Age Of Artificial Intelligence., Gary Pan, Poh Sun Seow, Clarence Goh, Benjamin Huan Zhou Lee

Research Collection School Of Accountancy

The chapter examines how we can equip the future generations of accountants with skills that will allow them to thrive in the AI world of the future.

New Perspectives On M&A Research, Zhefei Li

Dissertations and Theses Collection (Open Access)

Corporate acquisition is among the most important strategic tools wielded by managers to achieve competitive advantage. Acquisition may create strategic values for the acquirer by gaining market power through industry consolidation, diversifying into rapidly growing industries, entering into emerging markets, and most importantly by combining unique valuable resources from acquirer and target. Despite the many appealing aspects of the motive for acquisition, however, meta-analytical studies suggest that though highly beneficial for the target firm’s shareholders, acquisition on average destroys acquirer shareholder values. to understand the determinants of acquisition performance success, it becomes imperative to study the antecedents as well as …

Family As A Source Of Inequality Reproduction In Organizations: The Role Of Family Impact On Work In Explaining The Class Ceiling, Pooja Mishra

Dissertations and Theses Collection (Open Access)

Being born into a poorer family is associated with lower socioeconomic attainment even when people are provided with identical educational and job opportunities, a pattern known as the “class ceiling.” The class ceiling is generated within organizations, but specific reasons causing this effect are not well understood. I propose that one important explanation why employees from poorer families do not fare as well as their more fortunate co-workers concerns differences in families themselves. I integrate research from sociology and psychology explaining challenges faced by families with scarce resources with organizational research on specific pathways through which families can interfere with …

Role Of Financial, Human And Social Capital In Survival Of Start-Ups, Tiong Kiat Wong

Dissertations and Theses Collection (Open Access)

In new business ventures, growth in itself is often not the main intention in the beginning, but rather a mean to ensure survivability first, follow by sustainability and secure profitability. Not all small businesses survived over time and are always confronted with the liability of newness and contending externalities such as fierce competition and internal limitations like resources to survive. Only about half of newly founded start-ups survived after 5 years.

The presence or absence of resources and the critical role it plays on the effect of venture’s survival, provides substantive advancement in understanding of organisational theory and management practice …

Socioeconomic Mobility And Talent Utilization Of Workers From Poorer Backgrounds: The Overlooked Importance Of Within-Organization Dynamics, Marko Pitesa, Madan M. Pillutla

Research Collection Lee Kong Chian School Of Business

Socioeconomic mobility, or the ability of individuals to improve their socioeconomicstanding through merit-based contributions, is a fundamental ideal of modern societies.The key focus of societal efforts to ensure socioeconomic mobility has been on the provision of educational opportunities. We review evidence that even with the same education and job opportunities, being born into a poorer family undermines socioeconomicmobility because of processes occurring within organizations. The burden of poorerbackground might, ceteris paribus, be economically comparable to the gender gap. Weargue that in the societal and scientific effort to promote socioeconomic mobility, the keycontext in which mobility is supposed to happen—organizations—and the …

Modeling Newsvendor Behavior: A Prospect Theory Approach, Bhavani Shanker Uppari, Sameer Hasija

Research Collection Lee Kong Chian School Of Business

Problem definition: Studies have shown that the behavior of subjects in newsvendor experiments is not consistent with expected profit maximization - an assumption that is often made in operations management literature. Although prospect theory has been established as a popular model of behavioral decision making under uncertainty, it was considered to be inconsistent with observed newsvendor behavior (in particular, the pull-to-center effect) until a recent study proposed a prospect theory model that is consistent with the pull-to-center effect; however, this model's ability in representing newsvendor behavior compared to other plausible prospect theory models is unexplored in the literature. This paper …

Organizations And Societal Economic Inequality: A Review And Way Forward, Hari Bapuji, Gokhan Ertug, Jason D. Shaw

Research Collection Lee Kong Chian School Of Business

We review research on the organizational causes (how do organizations contribute?) and consequences (how are organizations affected?) of economic inequality. Our review of 151 conceptual and empirical articles indicates that organizational research on economic inequality encompasses a wide range of topics at multiple levels of analysis, but also that this broad-scope literature exhibits conceptual ambiguities and lacks overarching organizing frameworks. To address these two issues, we develop an organizational perspective on economic inequality and clarify it as uneven distribution in the endowment and/or access to resources in a society, which manifests in differential abilities and opportunities to engage in value …

Altering The Environment To Improve Appointment System Performance, Tugba Cayirli, Kum Khiong Yang

Research Collection Lee Kong Chian School Of Business

Current research on clinicperformance is focused primarily on appointment scheduling rather than shapingthe clinical environments. The goal of this study is to investigate the impactof environmental factors on the total cost performance of a clinic, measured asa weighted sum of patients’ wait times and physician’s idle time and overtime.The environmental factors investigated include the variability of servicetimes, the probabilities of no-shows and walk-ins, the number of appointmentsper session and the cost ratio of physician’s time to patients’ time. The effectsof these factors are evaluated using a near-optimal rule that already adjuststhe patients’ appointment times to minimize the negative effects of …

Crowdfunding: Sharing The Entrepreneurial Journey, Anirban Mukherjee, Hannah H. Chang, Amitava Chattopadhyay

Research Collection Lee Kong Chian School Of Business

No abstract provided.

Toward A Typology Of Organizational Creativity, Gilbert Tan

Research Collection Lee Kong Chian School Of Business

Both researchers and practitioners realize the importance of organizational creativity as a source of competitive advantage and long-term organizational success. Although, research on organizational creativity abounds, many researchers and practitioners view organizational creativity as a unidimensional construct. This narrow view of creativity limit our understanding on how organizations generate creative ideas to compete in the market. This paper examines organizational creativity using a two-by-two matrix along 2 dimensions: Thinking Approach (Analytical versus Intuitive) and Problem Type (Bounded versus Unbounded). According to the framework, there are four types of organizational creativity: (1) Imaginative Creativity (application of intuitive approach to unbounded problem); …

Charting The Future Of Accountancy With Ai, Clarence Goh, Gary Pan, Poh Sun Seow, Benjamin Huan Zhou Lee, Melvin Yong

Research Collection School Of Accountancy

No abstract provided.

Retail Format Selection In On-The-Go Shopping Situations, Sabine Benoit, Heiner Evanschitzky, Christoph Teller

Research Collection Lee Kong Chian School Of Business

Consumers patronize different store formats to purchase products. Prior literature describes store and format choices for big, multi-item shopping baskets, but limited insights determine consumers' unique shopping routines when they seek to buy just one or a few items while on the go. Such shopping situations might affect consumers' format selections for both search and experience goods. This study uses multi-attribute utility theory to develop a framework, tested with a scenario-based experiment. For search goods, a format's economic utility (price level, speed) is more important; its functional utility (quality, variety) and psychological utility (atmosphere, service) become less important considerations. Furthermore, …

Momentum And Reversal: The Role Of Short Selling, Zhaobo Zhu, Xinrui Duan, Licheng Sun, Jun Tu

Research Collection Lee Kong Chian School Of Business

This paper investigates the relation between short selling and momentum. We document that a consistent momentum strategy that buys lightly shorted winners and sells heavily shorted losers exhibits strong short-term momentum and no long-term reversal. In contrast, an inconsistent momentum strategy that buys heavily shorted winners and sells lightly shorted losers experiences weak short-term momentum and persistent long-term reversal. Our results are robust after controlling for firm characteristics, proxy for short-sale constraints, and investor sentiment, as well as an exogenous shock (the Taxpayer Relief Act of 1997). These findings present a new challenge to existing theories of momentum that rely …

Rejoinder To “Confronting The Crisis Of Confidence In Management Studies: Why Senior Scholars Need To Stop Setting A Bad Example” From The Asian Perspective, Toru Yoshikawa

Research Collection Lee Kong Chian School Of Business

Critical issues that Bill Harley discusses such as the lack of value in management research output can possibly be amplified by the diffusion of the same research practices, goals, and norms around the world and in Asia. Although the issues raised by Bill Harley touch on three levels - university, business school, and the management field - this rejoinder focus on research at Asian business schools in general and also specifically research in the management field to share an Asian perspective.

How Do Board Ties Affect The Adoption Of New Practices? The Effects Of Managerial Interest And Hierarchical Power, Toru Yoshikawa, Jung Wook Shim, Chang Hyun Kim, Anja Tuschke

Research Collection Lee Kong Chian School Of Business

Research Question/Issues: Most extant literature implicitly equates obtaining information through board interlocks to acting on the information. We investigate triggers that help to translate the information into action. In addition to exposure to the information by board interlocks, we suggest that the self-interest of the individuals who create these ties and hierarchical power of interlinked firms determines the likelihood of taking actions of adopting new practices. Research Findings/Insights: Using the action of adopting two distinctive governance practices, stock option pays or board reform, we find that sent ties and received ties affect the adoption decisions differently. Whereas sent ties reflect …

Mocked And Shamed: Satirical News And Its Effects On Organizational Reputation, Lisbeth Lim, Juliana Chia, Augustine Pang

Research Collection Lee Kong Chian School Of Business

With fake news the rage (Tavernise, 2016), this study examines one form of fake news, satire news (Reilly, 2010). This study examines factors that lead satire news to be created, how they are used to criticize organizations and the impact on reputations. News on five satire news sites – The Onion (US), New Nation (Singapore), The Shovel (Australia), NewsThump (UK), and Der Postillon (Germany) – were analyzed using social media monitoring tools. Findings suggested that crises or paracrises (Coombs & Holladay, 2012) were likely to be exacerbated. While its effects are not immediate, satire news may have impact on organizations’ …