Business Commons^™

The Moderating Role Of Digital Multi-Sided Platform On The Firm Value Of Traditional Value-Chain Firms, Chee Pheng Lim

Dissertations and Theses Collection (Open Access)

This dissertation examines the strategic value and performance implications for traditional value-chain firms (TVCFs) that adopt digital multi-sided platforms (DMSPs) to augment their existing businesses. DMSPs facilitate interactions among multiple user groups through digital intermediaries, generating self-reinforcing network effects that enhance value creation, reduce operational and transaction costs, and enable collective innovation. Despite the prevalence of platform-based firms, 60% of global unicorns and 7 of the world’s 10 most valuable companies operate digital platforms, empirical research on the value-creation mechanisms of DMSPs remains limited. Anchored in the resource-based view and platform theory, this study investigates how DMSP moderates the relationship …

Speculative Bubbles In The Recent Ai Boom: Nasdaq And The Magnificent Seven, Rerotlhe B. Basele, Peter C. B. Phillips, Shuping Shi

Research Collection School Of Economics

The recent artificial intelligence (AI) boom covers a period of rapid innovation and wide adoption of AI intelligence technologies across diverse industries. These developments have fueled an unprecedented frenzy in the Nasdaq, with AI-focused companies experiencing soaring stock prices that raise concerns about speculative bubbles and real-economy consequences. Against this background, this study investigates the formation of speculative bubbles in the Nasdaq stock market with a specific focus on the so-called Magnificent Seven (Mag-7) individual stocks during the AI boom, spanning the period from January 2017 to January 2025. We apply the real-time PSY bubble detection methodology of Phillips et …

Converting Counterfeiters In Emerging Markets To Authorized Suppliers: A New Anti-Counterfeiting Measure, Liling Lu, Xin Fang, Sarah Yini Gao, Burak Kazaz

Research Collection Lee Kong Chian School Of Business

With more products being infringed by counterfeits, anti-counterfeiting measures, such as law enforcement and consumer education, have commonly been adopted in emerging markets. In recent years, “super fakes,” i.e., counterfeits of high quality, have become popular. Super fake manufacturers’ capability to produce high-quality products inspires a new anti-counterfeiting measure: converting counterfeiters to authorized suppliers. To study the effectiveness of this anticounterfeiting measure, our paper employs a game-theoretic model to examine the interactions between a brand-name firm with its home supplier, and a counterfeiter who produces high-quality counterfeits and can be potentially converted to an authorized overseas supplier. Our results show …

Esg News, Future Cash Flows, And Firm Value, Francois Derrien, Philipp Krüger, Augustin Landier, Tianhao Yao

Research Collection Lee Kong Chian School Of Business

We investigate the expected consequences of negative environmental, social, and governance (ESG) news on firms' future profits. After learning about negative ESG news, analysts significantly downgrade their forecasts at short and longer horizons. Negative ESG news affects forecasts more strongly at longer horizons than other types of negative corporate news. The negative revisions of earnings forecasts following negative ESG news largely reflect expectations of lower future sales, rather than higher future costs. Quantitatively, forecast revisions can explain most of the negative impacts of ESG news on firm value. Analysts are correct to revise forecasts downward following negative ESG news.

In Crypto We Trust: A Cross-National Comparison Of Factors Affecting Trust In Cryptocurrencies, Arif Perdana, W. Eric Lee, Chu Yeong Lim, Gary Pan, Poh Sun Seow

Research Collection School Of Accountancy

Background: Trust in cryptocurrencies is a complex and evolving construct influenced by technological, economic, and social factors. Unlike traditional information systems that rely on institutional trust, cryptocurrency users often depend on underlying technology and community insights. Despite growing interest, existing research has primarily focused on narrow aspects of trust, with limited cross-national perspectives and comprehensive models.

Method: This study investigates how geographic differences impact user trust in cryptocurrencies by surveying 644 respondents from China, Germany, and the USA. Drawing on established trust formation theories, it utilizes a comprehensive model encompassing technological, economic, and social factors.

Results: Our analysis reveals multiple …

Banking On Incumbents: How Do Fintech Start-Ups Benefit From Collaborations, Theodor Florian Cojoianu, Pia Helbing, Vladimir Pazitka, Dariusz Wojcik, Beiyun Xiao

Research Collection College of Integrative Studies

We investigate whether collaborations with established incumbents bolster innovation and access to capital for FinTech start-ups. Collaborations increase patent applications and raise both short-and long-term citations. Collaborations with finance incumbents stimulate finance and technology citations and boost both short-and long-horizon venture capital fundraising. These effects persist after addressing endogeneity and conducting additional robustness tests. Theoretically, our findings test the resource based theory in the FinTech ecosystem and enrich the open innovation literature by showing that, despite power asymmetries, FinTech start-ups can sustain innovative momentum and capture innovation gains via collaborations with incumbents. Collaborations function as credible signals that confer capital …

Optimizing Initial Screening For Colorectal Cancer Detection With Adherence Behavior, Sarah Yini Gao, Yan He, Ruijie Zhang, Zhichao Zheng, Shao Wei Lam Lam, Emile Tan

Research Collection Lee Kong Chian School Of Business

Background: Two-stage screening programs are widely adopted for early colorectal cancer (CRC) detection, where individuals receiving positive outcomes in the first-stage (initial) test are recommended to undergo a second-stage test (colonoscopy) for further diagnosis. Methods: We study the initial test design—the selection of cutoffs for reporting test outcomes—to balance the trade-off between screening effectiveness (i.e., CRC and polyp detection) and efficiency (i.e., colonoscopy costs), incorporating the fact that not all individuals follow up with a colonoscopy after receiving positive outcomes. We integrate the Bayesian persuasion framework with information avoidance to model this problem and apply it to Singapore's CRC screening …

Temporal Patterns Of New Product Introductions And Ipo Value: The Importance Of Recency, Dispersion, And Asymmetry, Suyun Mah, Rebecca J. Slotegraaf, Girish Mallapragada

Research Collection Lee Kong Chian School Of Business

A firm’s innovation activity is often judged by the number and type of new products it launches, but when these products are introduced may be equally important, especially before going public. This research investigates how the temporal pattern of new product introductions (NPIs) influences a firm’s initial public offering (IPO) value. The analysis uses data from 298 firms that went public between 2006 and 2023, and focuses on three patterns of timing: recency (how recently the latest product was launched before the IPO), dispersion (the degree to which NPIs before the IPO are spread out over time), and asymmetry (how …

Why Stressed Candidates Make Better Cross-Cultural Hires, Shilpa Madan

Research Collection Lee Kong Chian School Of Business

When interviewing job candidates, you may look for evidence that they stay calm under pressure and interpret signs of stress as red flags. However, our recent research shows that for cross-cultural positions, those red flags might actually indicate your best potential hires. Candidates who exhibit signs of stress may be better suited to navigate the complexities of cross-cultural roles, suggesting a need to reassess traditional interview evaluations.

Optimal Abort Policy For Mission-Critical Systems Under Imperfect Condition Monitoring, Qiuzhuang Sun, Jiawen Hu, Zhi-Sheng Ye

Research Collection College of Integrative Studies

Although most on-demand mission-critical systems are engineered to be reliable to support critical tasks, occasional failures may still occur during missions. To increase system survivability, a common practice is to abort the mission before an imminent failure. We consider optimal mission abort for a system whose deterioration follows a general three-state (normal, defective, failed) semi-Markov chain. The failure is assumed self-revealed, whereas the healthy and defective states have to be inferred from imperfect condition-monitoring data. Because of the non-Markovian process dynamics, optimal mission abort for this partially observable system is an intractable stopping problem. For a tractable solution, we introduce …

Not All Political Ties Are The Same: Firms' Ties To The Government And Pollution, Wen Helena Li, Ilya R. P. Cuypers, Gokhan Ertug, Hari Bapuji, Wei Liu

Research Collection Lee Kong Chian School Of Business

Complementing research on the implications of political ties for firms’ strategic decisions and financial performance, recent studies are increasingly focusing on the environmental consequences of firms’ political connections. We contribute to this stream of work by integrating insights from the literature on political ties and the multifaceted nature of governments to explore how the level of government influences the pollution implications of firms’ political ties. Specifically, we theorize and demonstrate that, in China, firms' achieved political ties with high levels of the government reduce pollution, while such ties with low levels of the government increase it. Furthermore, we examine how …

Research On The Relationship Between Manufacturing Process Digitalization And Product Quality Performance: A Case Study Of Discrete Manufacturing, Baozhong Zhang

Dissertations and Theses Collection (Open Access)

The study aims to explore the impact of digital transformation on product quality in discrete manufacturing enterprises. As the global economy and technology rapidly advance, the manufacturing industry faces unprecedented challenges and opportunities. Digital transformation has emerged as a key strategy for tackling these challenges and has become a significant trend in the manufacturing industry. The discrete manufacturing industry, which demands high product quality, faces even greater challenges in digital transformation. However, if discrete manufacturing enterprises successfully navigate this transformation, they can significantly improve quality, gain a competitive edge, and unlock even greater opportunities for their business.

The study combines …

Is R&D Rivalry Slowing The Growth Of Productive Firms?, Yoshiki Ando, James Bessen, Xiupeng Wang

Research Collection School Of Economics

The reallocation of jobs to more productive firms is a substantial component of aggregate productivity growth, yet job reallocation rates have declined substantially in the United States. This paper explores the hypothesis that greater technological rivalry has exacerbated adjustment costs, slowing reallocation. Using microdata at the US Census and estimates of technological rivalry in firm growth regressions, we find that technological rivalry slows firm responses to productivity shocks. Firms do not expand as rapidly in the face of higher obsolescence risk. Estimating counterfactual firm growth from 1997-2018, we find that growing technological rivalry accounts for most of the decline in …

Issues In Contrasting Conservative And Considered Estimation: A Reply To Bobko Et Al. (2024), Paul R. Sackett, Christopher M. Berry, Filip Lievens, Charlene Zhang

Research Collection Lee Kong Chian School Of Business

Bobko et al. (2024) responded to Sackett et al.'s (2022) compilation of meta-analytic evidence for the validity of a wide variety of measures used as predictors of overall job performance, offering a set of alternative methodological choices which they term “considered estimation” to counter the Sackett et al. approach of “conservative estimation.” Here we offer a rebuttal to Bobko et al. A primary concern is that Bobko et al. apply the label “conservative estimation” to the full range of methodological choices made by Sackett et al. Yet, we clarify the narrow and specific meaning of “conservative estimation,” and note that …

Would Order-By-Order Auctions Be Competitive?, Thomas Ernst, Chester Spatt, Jian Sun

Research Collection Lee Kong Chian School Of Business

We model two methods of executing segregated retail orders: brokers’ routing,whereby brokers allocate orders using the market maker’s overall performance, andorder-by-order auctions, where market makers bid on individual orders, a recent U.S.Securities and Exchange Commission proposal. Order-by-order auctions improve al-locative efficiency, but face a winner’s curse reducing retail investor welfare, partic-ularly when liquidity is limited. Additional market participants competing for retailorders fail to improve total efficiency and investor welfare when entrants possess in-formation superior to incumbent wholesalers. Our results hold when new entrants are less informed or the information structure differs. We also examine the cross-subsidization of brokers’ routing.

High Flying Adored: How Ceo Narcissism Influences Firms’ Responses To Above-Aspiration Performance With Risky Organizational Change, Korcan Kavusan, Daniel Mack, Matthew P. Mount, Gokhan Ertug

Research Collection Lee Kong Chian School Of Business

Research Summary: Research on performance feedback presents conflicting views on how above-aspiration performance influences organizational change. Some studies argue that it constrains change due to a lack of organizational motivation, while others suggest that it enables change by expanding managerial discretion. Reconciling these perspectives, we suggest that managers’ narcissistic tendencies can fundamentally alter how a firm responds to above-aspiration performance. We theorize and find evidence that high-narcissism CEOs respond to above-aspiration performance with more acquisitions—attention-generating actions that align with their self-enhancement motives, while under similar conditions low-narcissism CEOs avoid acquisitions, due to their uncertainty and risk. Our findings highlight the …

What Values Best Distinguish The World's Cultures? The Machine Learning-Based Cultural Values Inventory, Abhishek Sheetal, Shilpa Madan, Rui Ling Lee, Krishna Savani

Research Collection Lee Kong Chian School Of Business

Scientists studying culture typically focus on a small number of theoretical constructs, such as individualism–collectivism, when seeking to explain cultural differences in psychological tendencies and behaviors. However, existing theories of culture could have missed out on important constructs that are useful for explaining cross-cultural differences. We used an abductive approach combining prediction and explanation to uncover important cultural values. In the prediction phase, based on 594 attitudes, values, and beliefs included in the World Values Survey, a neural network could classify respondents’ nationalities with 90% accuracy in out-of-sample data. In the explanation phase, a feature importance analysis identified the values …

Eliciting Supplier Cooperation For Value Chain Decarbonization: A Field Experiment With Smallholder Farmers In India, Sukti Ghosh, Jasjit Singh

Research Collection Lee Kong Chian School Of Business

Many firms are attempting to reduce greenhouse gas emissions across their value chain. However, this requires convincing suppliers to adopt relevant decarbonization practices, which is challenging when the suppliers perceive such practices as risky or detrimental for their economic well-being. We employ a field experiment to examine relational investments (i.e., investments intended to promote mutual benefit for the exchange partners) as a tool for overcoming this challenge. In a research collaboration with a global firm pursuing decarbonization of its agricultural supply chain in India, we investigated the effectiveness of complementing training their supplier farmers on climate-friendly agricultural practices with also …

On The Origin Of Green Finance Policies, Theodor Florian Cojoianu, D. French, Andrea G. F. Hoepner, Sheenan L., Anh Vu

Research Collection College of Integrative Studies

Despite the rising number of green finance policies, the socioeconomic determinants shaping them remain largely unexamined. Drawing from the literature analysing the relationship between regulation, market development and institutional economics, we contend that green finance policy adoption is driven by both market-based and institutional factors. Using a survival analysis approach to understand the levers influencing green finance policy adoption across 188 countries from 2000 to 2019, we find that exposure to the fossil fuel industry predominantly drives the initial issuance of green finance policies. The positive effect of fossil fuel commercial financing on the adoption of green finance policies exists …

Economic Consequences Of Public Pension Accounting Regulation Changes: Evidence From Housing Markets And Local Economies, Grace Haoqing Fan

Research Collection School Of Accountancy

I examine whether, and through which channels, government pension accounting regulations affect local housing markets and economies. Using both a contiguous border-county approach across multiple states and a single-state study in California, I find that regions exposed to more severe state-level pension underfunding experience lower housing market growth after the introduction of Government Accounting Standards Board (GASB) regulations 67 and 68, which significantly enhance the transparency of public pension underfunding. The effect is more pronounced in states heavily impacted by the new regulations and in counties more reliant on state funding. Further analyses suggest that the observed effect is driven …

Do Search Costs Explain Persistent Investment In Active Mutual Funds?, Aljoscha Janssen, Jurre Thiel

Research Collection School Of Economics

Active funds, though losing market share since the 1990s, make up nearly half of all mutual funds but charge more without better performance. We analyze fund data and a search model, highlighting the impact of search costs and active fund preferences. From 1993 to 2018, reduced search costs expanded the market and heightened competition, while a preference shift from active to passive funds increased the latter's market share. However, investors who choose active funds, facing higher search costs, and continue to show a strong preference for them, allow these funds to keep charging higher fees.

Mindfulness And Entrepreneurship: Looking Back And Moving Forward, Eva Katharina Peters

Dissertations and Theses Collection (Open Access)

This dissertation spans three chapters covering the topics of mindfulness and entrepreneurship. The first chapter is a literature review summarizing the existing literature on mindfulness in entrepreneurship. The review provides an organizing framework for structuring the knowledge of mindfulness in entrepreneurship, along with an integrative framework and a detailed agenda for future research. Building on the insights generated through the literature review, the following two chapters provide empirical evidence for the role of mindfulness in entrepreneurship. The second chapter is an empirical study exploring how mindfulness relates to entrepreneurial well-being via its relation to co-founding team relationship quality and team …

Socio-Economic Dynamics Of Engagement And Incentivization In Emerging Digital Platforms, Danyang Song

Dissertations and Theses Collection (Open Access)

The rapid advancement of digital technology—particularly mobile and blockchain technologies—has fueled the unprecedented growth of online platforms. Among these, live commerce and blockchain-based social media have emerged as two distinct business models that profoundly shape both commercial and social aspects of people’s lives. E-commerce livestreaming integrates live video streaming with e-commerce, offering consumers real-time product information and interactive shopping experiences. Different from traditional social media platforms that rely on either voluntary contributions or ad revenue sharing to incentivize user participation, blockchain-based social media platforms often use cryptocurrency or tokens to reward users for creating and curating content. This dissertation investigates …

Information Production By Institutions And Information Extraction By Underwriters In Hybrid Ipo Auctions, Thomas J. Chemmanur, Pengfei Ma, Qianqian Yu

Research Collection Lee Kong Chian School Of Business

We analyze the informational properties of hybrid IPO auctions using a large and unique database of institutional bids from Chinese IPO auctions. We find strong evidence of information production by institutions about the intrinsic values of IPO firms and of underwriters extracting and using this information in IPO pricing. The IPO offer price is more sensitive to bids from institutions able to produce more precise information. In particular, the offer price is more sensitive to bids from domestic institutions, compared to bids from foreign institutions who likely have less knowledge or experience about the Chinese firms and financial market due …

The Aggregate Welfare And Trade Implications Of Contracting Frictions In Global Sourcing, Davin Chor, Lin Ma

Research Collection School Of Economics

How much do contracting frictions between global firms and their suppliers impact country welfare and trade? We answer this by developing a model of global sourcing under partial contractibility, where firm-supplier relationships are exposed to a bilateral holdup problem. Sourcing decisions aggregate into a gravity equation for trade flows by organizational mode (intrafirm vs. arm’s length), which we take to structural estimation. We can then evaluate welfare changes with an extended Arkolakis, Costinot and Rodriguez-Clare (2012) formula that incorporates these contracting frictions. Our counterfactual analysis reveals a sizeable average country welfare gain of 9.2% from eliminating contracting frictions in global …

The Impact Of Consumer Complaints On Corporate Digital Transformation, Yingchao Lu, Hailing Chang, Yadan Zhou

Research Collection Lee Kong Chian School Of Business

This paper examines the impact of consumer complaints on corporate digital transformation and its underlying mechanisms. Using quarterly data from China's Shanghai and Shenzhen A-share listed companies from 2018 to 2023, the empirical results show that an increase in consumer complaints significantly hinders corporate digital transformation. Mechanism analysis reveals that consumer complaints raise legal risks and non-productive costs for firms, leading them to allocate more resources toward short-term crisis management rather than long-term digital development. Heterogeneity analysis indicates that this inhibitory effect is more pronounced in firms with weaker cybersecurity governance, firms whose executives lack a digital background, and firms …

Relational History: Correcting Temporal Myopia In Social Network Research, Julia Brennecke, Gianluca Carnabuci, Gokhan Ertug

Research Collection Lee Kong Chian School Of Business

Scholars have used network concepts and methods to explain a wide range of organizational phenomena. Despite this broad interest, prevalent approaches tend to neglect a critical constitutive dimension of network ties: their history. We invoke the concept of relational history to signify the temporal path and biography of a network tie. We argue that a network tie’s history shapes what the relationship means to the parties involved, what can be accomplished in and through the relationship, and how the relationship might further evolve. In directing the attention of organizational network researchers to the relational history of network ties, we aim …

A Power Dependence Model Of The Impact Of Leader Impostorism On Supervisor Support And Undermining: The Moderating Role Of Power Distance, Zihan Liu, Zihan Liu, Feng Qiu, Keith Leavitt, Xingyu Wang, Ziyang Tang

Research Collection Lee Kong Chian School Of Business

Leaders, often perceived as possessing exceptional confidence and competence, are not immune to feelings of self-doubt. Leader impostorism describes the experience that one’s attributes, experiences, skills, and abilities fall short of the standards expected in the leadership role, resulting in a sense of deception in fulfilling leadership responsibilities. While existing research has examined the antecedents and individual outcomes of leader impostorism, its implications for leaders’ treatment of subordinates remain largely unexplored. In this research, we investigate the downstream consequences of leader impostorism on behaviors directed toward subordinates. Integrating research on leader impostorism with power dependence theory, we propose that for …

Misinformation Regulations: Early Evidence On Corporate Social Media Strategy, Richard M. Crowley, Yun Lou, Samuel T. Tan, Liandong Zhang

Research Collection School Of Accountancy

Against the backdrop of an increasing threat of misinformation on social media, several countries have enacted regulations to curb the spread of misinformation. This study examines how corporate social media strategy responds to misinformation regulations. Using a large cross-country dataset of corporate tweets and a stacked regression analysis, we show that misinformation regulations lead to less corporate social media disclosure. This result suggests that by deterring misinformation, these regulations reduce firms’ need to use social media to counteract its adverse effects. Additional analyses show that the effect is more pronounced among countries with higher social media usage and countries with …

Extubation Decisions With Predictive Information For Mechanically Ventilated Patients In Icu, Guang Cheng, Jingui Xie, Zhichao Zheng, Haidong Luo, Oon Cheong Ooi

Research Collection Lee Kong Chian School Of Business

Weaning patients from mechanical ventilators is a crucial decision in intensive care units (ICUs), significantly affecting patient outcomes and the throughput of ICUs. This study aims to improve the current extubation protocols by incorporating predictive information on patient health conditions. We develop a discrete-time, finite-horizon Markov decision process with predictions of future state to support extubation decisions. We characterize the structure of the optimal policy and provide important insights into how predictive information can lead to different decision protocols. We demonstrate that adding predictive information is always beneficial, even if physicians place excessive trust in the predictions, as long as …