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Full-Text Articles in Business

Spot(Ify) On: Streaming Music And Revenue, Singapore Management University Nov 2016

Spot(Ify) On: Streaming Music And Revenue, Singapore Management University

Perspectives@SMU

The Swedish music service is accumulating technical know-how and gaining customers at the forefront of the streaming revolution


What Makes Consumers Use Their Loyalty Points?, Singapore Management University Nov 2016

What Makes Consumers Use Their Loyalty Points?, Singapore Management University

Perspectives@SMU

Companies are utilising loyalty programs more often than ever to retain customers and boost sales. But not all of them are successful. What makes people spend their points and stay loyal to a program? A research by the Chinese University of Hong Kong (CUHK) Business School has the answer


Customer Satisfaction Index Of Singapore 2016: Q3 Results, Institute Of Service Excellence, Smu Nov 2016

Customer Satisfaction Index Of Singapore 2016: Q3 Results, Institute Of Service Excellence, Smu

Research Collection Institute of Service Excellence (2007-2024)

The Customer Satisfaction Index of Singapore (CSISG) computes customer satisfaction scores at the national, sector, sub-sector, and company levels. The CSISG serves as a quantitative benchmark of the quality of goods and services produced by the Singapore economy over time and across countries. This is the CSISG’s tenth year of measurement.


Designing And Evaluating Business Process Models: An Experimental Approach, Yuecheng Martin Yu, Alexander Pelaez, Karl R. Lang Nov 2016

Designing And Evaluating Business Process Models: An Experimental Approach, Yuecheng Martin Yu, Alexander Pelaez, Karl R. Lang

Research Collection School Of Computing and Information Systems

This paper presents an experimental approach to compare the performance of alternative business process designs. We use an example case of an electronic group buying setting to demonstrate how our approach can be applied in practice. More specifically, we chose a standard business process, the sales process as implemented on a group buying platform, to illustrate how a business process may be redesigned in order to better meet the needs of customers. For that purpose, we introduce a social technology feature to support cooperation among buyers in the sales process and then analyze the performance impact of the proposed business …


Aspect-Based Helpfulness Prediction For Online Product Reviews, Yinfei Yang, Cen Chen, Forrest Sheng Bao Nov 2016

Aspect-Based Helpfulness Prediction For Online Product Reviews, Yinfei Yang, Cen Chen, Forrest Sheng Bao

Research Collection School Of Computing and Information Systems

Product reviews greatly influence purchase decisions in online shopping. A common burden of online shopping is that consumers have to search for the right answers through massive reviews, especially on popular products. Hence, estimating and predicting the helpfulness of reviews become important tasks to directly improve shopping experience. In this paper, we propose a new approach to helpfulness prediction by leveraging aspect analysis of reviews. Our hypothesis is that a helpful review will cover many aspects of a product at different emphasis levels. The first step to tackle this problem is to extract proper aspects. Because related products share common …


Building Asian Business Schools: Hindsight, Insight & Foresight, Dipak C. Jain Nov 2016

Building Asian Business Schools: Hindsight, Insight & Foresight, Dipak C. Jain

Asian Management Insights

Management education for the 21st century.


A Bankable Future, Jonathan Henry Chang Nov 2016

A Bankable Future, Jonathan Henry Chang

Asian Management Insights

Efforts to promote financialinclusion in Cambodia arepaying dividends economically,and unlocking opportunity.


Audit Committees And Financial Reporting Quality In Singapore, Yuanto Kusnadi, Kwong Sin Leong, Themin Suwardy, Jiwei Wang Nov 2016

Audit Committees And Financial Reporting Quality In Singapore, Yuanto Kusnadi, Kwong Sin Leong, Themin Suwardy, Jiwei Wang

Research Collection School Of Accountancy

We examine three characteristics (independence, expertise, and overlapping membership) of audit committees and their impact on the financial reporting quality for Singapore-listed companies. The main finding is that financial reporting quality will be higher if audit committees have mixed expertise in accounting, finance, and/or supervisory. In addition, we do not find evidence that incremental independence of audit committees enhances financial reporting quality because audit committees already consist of a majority of independent directors. Finally, we fail to find any impact of overlapping membership on audit and remuneration committees on financial reporting quality. Overall, the results have policy implications on improving …


Ueber-Brands: How To Make Your Brand Priceless?, J. P. Kuehlwein, Wolf Schaefer Nov 2016

Ueber-Brands: How To Make Your Brand Priceless?, J. P. Kuehlwein, Wolf Schaefer

Asian Management Insights

Ueber-Brands—brands that are valued beyond their price and esteemed beyond their size. These brands are unique in that they have captured not just the wallet but also the hearts of a huge, loyal and growing customer base.


The Effect Of Corporate Tax Avoidance On The Cost Of Equity, Beng Wee Goh, Jimmy Lee, Chee Yeow Lim, Terry J. Shevlin Nov 2016

The Effect Of Corporate Tax Avoidance On The Cost Of Equity, Beng Wee Goh, Jimmy Lee, Chee Yeow Lim, Terry J. Shevlin

Research Collection School Of Accountancy

Based on Lambert, Leuz, and Verrecchia (2007)'s derivation of the cost of equity capital in terms of expected cash flows, we generate a testable hypothesis that relates tax avoidance to a firm's cost of equity capital. Using three broad measures of tax avoidance-book-tax differences, permanent book-tax differences, and long-run cash effective tax rates-to test our hypothesis, we find that the cost of equity is lower for tax-avoiding firms. This effect is stronger for firms with better outside monitoring, firms that likely realize higher marginal benefits from tax savings, and firms with higher information quality. Overall, our results suggest that equity …


Smu Is First Asian University To Offer Master’S Degree Accredited By International Professional Hr Body Cipd, Singapore Management University Nov 2016

Smu Is First Asian University To Offer Master’S Degree Accredited By International Professional Hr Body Cipd, Singapore Management University

SMU Press Releases and News

The Singapore Management University (SMU) has become the first university in Asia to offer a master’s degree accredited by the Chartered Institute of Personnel and Development (CIPD). SMU joins prestigious universities such as the London School of Economics and Political Science (LSE) and Kings College London to deliver the CIPD’s premier level accredited qualifications. SMU’s Master of Human Capital Leadership (MHCL) has been designed in partnership with the CIPD, the Human Capital Leadership Institute (HCLI), and the Wharton Centre for Human Resources (USA), resulting in a market-leading study programme that provides unparalleled professional qualifications, business acumen and academic knowledge.


Major Government Customers And Loan Contract Terms, Daniel Cohen, Bin Li, Ningzhong Li, Yun Lou Nov 2016

Major Government Customers And Loan Contract Terms, Daniel Cohen, Bin Li, Ningzhong Li, Yun Lou

Research Collection School Of Accountancy

This study examines how a firm’s business relationship with the U.S. government, in particular, sales to the government, impacts its loan contract terms and how the effect is different from that of major corporate customers. We find that firms with major government customers have a lower number of covenants and are less likely to have performance pricing provisions in their loan contracts than other firms, whereas major corporate customers do not have such impacts. We do not find evidence that major government customers affect the supplier firm’s loan spread, security, or maturity. We conjecture that lenders benefit from the strict …


Relation Between Auditor Quality And Corporate Tax Aggressiveness: Implications Of Cross-Country Institutional Differences, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo Nov 2016

Relation Between Auditor Quality And Corporate Tax Aggressiveness: Implications Of Cross-Country Institutional Differences, Kiridaran Kanagaretnam, Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of firms from 31 countries, we study the relation between auditor quality and corporate tax aggressiveness. Employing an indicator variable for tax aggressiveness when the firm's corporate tax avoidance measure is within the top quintile of each country-industry combination, we find strong evidence that auditor quality is negatively associated with the likelihood of tax aggressiveness, even after controlling for other institutional determinants such as home-country tax system characteristics. We also find that the negative relation between auditor quality and the likelihood of tax aggressiveness is more pronounced in countries where investor protection is stronger, auditor litigation …


Blame The Shepherd Not The Sheep: Imitating Higher-Ranking Transgressors Mitigates Punishment For Unethical Behavior, Christopher W. Bauman, Leigh Plunkett Tost, Ong, Madeline Nov 2016

Blame The Shepherd Not The Sheep: Imitating Higher-Ranking Transgressors Mitigates Punishment For Unethical Behavior, Christopher W. Bauman, Leigh Plunkett Tost, Ong, Madeline

Research Collection Lee Kong Chian School Of Business

Do bad role models exonerate others’ unethical behavior? Based on social learning theory and psychologicaltheories of blame, we predicted that unethical behavior by higher-ranking individuals changes howpeople respond to lower-ranking individuals who subsequently commit the same transgression. Fivestudies explored when and why this rank-dependent imitation effect occurs. Across all five studies, wefound that people were less punitive when low-ranking transgressors imitated high-ranking membersof their organization. However, imitation only reduced punishment when the two transgressors werefrom the same organization (Study 2), when the transgressions were highly similar (Study 3), and whenit was unclear whether the initial transgressor was punished (Study 5). …


Least Squares Approximation To The Distribution Of Project Completion Times With Gaussian Uncertainty, Zhichao Zheng, Karthik Natarajan, Chung-Piaw Teo Nov 2016

Least Squares Approximation To The Distribution Of Project Completion Times With Gaussian Uncertainty, Zhichao Zheng, Karthik Natarajan, Chung-Piaw Teo

Research Collection Lee Kong Chian School Of Business

This paper is motivated by the following question: How to construct good approximation for the distribution of the solution value to linear optimization problem when the random objective coefficients follow a multivariate normal distribution? Using Stein’s Identity, we show that the least squares normal approximation of the random optimal value can be computed by estimating the persistency values of the corresponding optimization problem. We further extend our method to construct a least squares quadratic estimator to improve the accuracy of the approximation; in particular, to capture the skewness of the objective. Computational studies show that the new approach provides more …


Private Lawmaking In Commercial Cyberspace, Eliza Mik Nov 2016

Private Lawmaking In Commercial Cyberspace, Eliza Mik

Research Collection Yong Pung How School Of Law

No discussion of “Law and Technology” would be complete without at least one essay centred on the Internet. While the Internet no longer captures our imagination with the same force as it did 20 years ago, we cannot assume that it no longer creates (or perpetuates?) multiple legal problems. When we talk about the Internet we must, however, refrain from the popular “Internet metanarrative” that often leads to superficial arguments and unhelpful generalisations.1 We must always remain aware of the multiplicity of the Internet’s technical applications and the wide range of legal contexts in which the term gains significance. Discussing …


Interpersonal Dynamics In Assessment Center Exercises: Effects Of Role Player Portrayed Disposition, Tom Oliver, Peter Hausdorf, Filip Lievens, Peter Conlon Nov 2016

Interpersonal Dynamics In Assessment Center Exercises: Effects Of Role Player Portrayed Disposition, Tom Oliver, Peter Hausdorf, Filip Lievens, Peter Conlon

Research Collection Lee Kong Chian School Of Business

Although interpersonal interactions are the mainstay of many assessment center exercises, little is known about how these interactions unfold and affect participant behavior and performance. More specifically, participants interact with role players who have been instructed to demonstrate behavior reflecting specific dispositions as part of the exercise. This study focuses on role player portrayed disposition as a potentially important social demand relevant to participant behavior and performance in interpersonal simulations. We integrate interpersonal theory and trait activation theory to formulate hypotheses about the effects of role player portrayed disposition on participant behavior and performance in 184 interpersonal simulations. A significant …


Valuation Uncertainty, Market Sentiment And The Informativeness Of Institutional Trades, Lisa Yang, Jeremy Goh, Chiraphol N. Chiyachantana Nov 2016

Valuation Uncertainty, Market Sentiment And The Informativeness Of Institutional Trades, Lisa Yang, Jeremy Goh, Chiraphol N. Chiyachantana

Research Collection Lee Kong Chian School Of Business

Prior studies indicate that institutional investors are informed, in the sense that their trades predict price changes. In this study we show that return predictive ability of institutions arises (after controlling for size, book-to-market, and momentum) mainly from institutional sales of hard-to-value stocks during periods of positive market sentiment. These results support the notion that these stocks tend to be overvalued during periods of bullish market sentiment, and institutions contribute to market efficiency by identifying and trading on these overpriced stocks.


Can Asians Be Creative?, Chua, Roy Y. J., Jerry Zremski Nov 2016

Can Asians Be Creative?, Chua, Roy Y. J., Jerry Zremski

Research Collection Lee Kong Chian School Of Business

A crotchety American named Henry Ford invented a modern, fast and efficient way to manufacture automobiles and a Japanese man named Eiji Toyoda refined and perfected it. A series of innovators across the western world developed the television - and the tech specialists at Sony, Toshiba and a host of other Asian companies found ways to make TVs better, cheaper, faster. And an idiosyncratic Californian named Steve Jobs invented a company that made a smart phone for the masses - and then outsourced the manufacturing to China. If you detect a pattern here, you are not alone. Asia may be …


Informal Institutions And The Geography Of Innovation: An Integrative Perspective, Xuesong Geng, Kenneth G. Huang Nov 2016

Informal Institutions And The Geography Of Innovation: An Integrative Perspective, Xuesong Geng, Kenneth G. Huang

Research Collection Lee Kong Chian School Of Business

Integrating the insights from both institutional theory and economic geography, we develop a new conceptual framework to explain how formal and informal institutions in developing countries influence knowledge exchanges within and across geographical locations, thus affecting entrepreneurs’ and firms’ innovative behaviors and outputs. We suggest that the prevalence of informal institutions in developing countries increases the importance of geographic proximity for knowledge exchanges. At the same time, informal institutions provide alternative channels for maintaining non-local social interactions that facilitate knowledge exchanges among geographically distant firms. Using China as the context, we provide theoretical propositions that illustrate these mechanisms in terms …


Bargaining Zone Distortion In Negotiations: The Elusive Power Of Multiple Alternatives, Michael Schaerer, David D. Loschelder, Roderick I. Swaab Nov 2016

Bargaining Zone Distortion In Negotiations: The Elusive Power Of Multiple Alternatives, Michael Schaerer, David D. Loschelder, Roderick I. Swaab

Research Collection Lee Kong Chian School Of Business

We challenge the assumption that having multiple alternatives is always better than a single alternative by showing that negotiators who have additional alternatives ironically exhibit downward-biased perceptions of their own and their opponent’s reservation price, make lower demands, and achieve worse outcomes in distributive negotiations. Five studies demonstrate that the apparent benefits of multiple alternatives are elusive because multiple alternatives led to less ambitious first offers (Studies 1–2) and less profitable agreements (Study 3). This distributive disadvantage emerged because negotiators’ perception of the bargaining zone was more distorted when they had additional (less attractive) alternatives than when they only had …


Days To Cover And Stock Returns, Harrison G. Hong, Frank Weikai Li, Sophie X. Ni, Jose A. Scheinkman, Philip Yan Nov 2016

Days To Cover And Stock Returns, Harrison G. Hong, Frank Weikai Li, Sophie X. Ni, Jose A. Scheinkman, Philip Yan

Research Collection Lee Kong Chian School Of Business

A crowded trade emerges when speculators' positions are large relative to the asset's liquidity, making exit difficult. We study this problem of recent regulatory concern by focusing on short-selling. We show that days to cover (DTC), the ratio of short interest to trading volume, measures the costliness of exiting crowded trades. Crowding is an important concern as short-sellers avoid illiquid stocks, which we establish using an instrumental-variables strategy involving staggered stock market decimalization reforms. Arbitrageurs require a premium to enter into such trades as a strategy shorting high DTC stocks and buying low DTC stocks generates a 1.2% monthly return. …


Decimalization, Ipo Aftermath, And Liquidity, Charlie Charoenwong, David K. Ding, Tiong Yang Thong Nov 2016

Decimalization, Ipo Aftermath, And Liquidity, Charlie Charoenwong, David K. Ding, Tiong Yang Thong

Research Collection Lee Kong Chian School Of Business

We investigate the effect of decimalization on the aftermarket trading of NYSE-listed IPOs. We find that the relation between bid–ask spread and underpricing becomes negative post-decimalization, suggesting that benefits from the increased price competition accrue more to hot IPOs. The quoted depth is generally smaller post-decimalization due to a higher probability of front running, which aggravates the cost of adverse selection and limit order submission. We show that underwriters continue to provide price support but are only willing to cover the initial short position, if profitable to do so. Decimal pricing does not affect the flipping strategy of institutions for …


Knowledge Will Set You Free: Financial Awareness And Inclusion In The Bottom Of The Pyramid, Aurobindo Ghosh Nov 2016

Knowledge Will Set You Free: Financial Awareness And Inclusion In The Bottom Of The Pyramid, Aurobindo Ghosh

Research Collection Lee Kong Chian School Of Business

In this project, we explored whether financial literacy and economic awareness alleviates financial exclusion for the general population, particularly the financially underserved sections of the population in Ho Chi Minh City (HCMC) in Vietnam. We overcame the problem of identifying the financially excluded by looking at multiple measures of financial inclusion including frequency of bank use, access to borrowing for business, having a regular savings plan and having some insurance for possible future unfavorable outcomes. Using an innovative principal component (PCA) based method we identified a single score factor that can be construed as an overall measure of the degree …


State Ownership And Corporate Innovation Efficiency, Jerry X. Cao, Douglas J. Cumming, Sili Zhou, Lu Zhou Nov 2016

State Ownership And Corporate Innovation Efficiency, Jerry X. Cao, Douglas J. Cumming, Sili Zhou, Lu Zhou

Research Collection Lee Kong Chian School Of Business

The conventional wisdom is that state ownership may hinder patenting through reduced incentives and pronounced agency problems associated with state-owned enterprises (SOEs). Empirical evidence from a variety of contexts, including the U.S., Europe, and China, is consistent with this view, including evidence that shows that reductions in state ownership are associated with an increase in patent counts. In this paper, we investigate the innovative efficiency of Chinese SOEs. Innovative efficiency refers to patents/R&D expenditure, and not patent counts. The data indicate that SOEs, and especially central government SOEs, are substantially more innovatively efficient than non-SOEs. The relative innovative efficiency of …


I Just Got Fired!, Nirmalya Kumar Nov 2016

I Just Got Fired!, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

Prof Kumar takes about his experience of suddenly losing his position in the Tata Group, due to stepping down of the Chairman Cyrus Mistry.


Invitation Strategy For Cutting Edge Industries Through Mncs And Global Talents: The Case Of Singapore, Kim Song Tan Nov 2016

Invitation Strategy For Cutting Edge Industries Through Mncs And Global Talents: The Case Of Singapore, Kim Song Tan

Research Collection School Of Economics

Singapore presents an interesting case of how a country achieves dynamic economic development and innovation through the "invitation" strategy of a business hub. Despite being a small city-state with limited domestic market size and no meaningful hinterland or natural resources to speak of, Singapore has managed to transform its economy dramatically over the past 50 years by leveraging the strengths of other economies. Specifically, it has been able to attract (or "invite") various types of productive resources, including foreign capital, foreign technology and foreign workers (both skilled and unskilled) to make up for what it lacks. This has helped Singapore …


Stranded Assets: A Climate Risk, Ben Caldecott, Elizabeth Harnett, Theodor Florian Cojoianu, Irem Kok, Alexander Pfeiffer Nov 2016

Stranded Assets: A Climate Risk, Ben Caldecott, Elizabeth Harnett, Theodor Florian Cojoianu, Irem Kok, Alexander Pfeiffer

Research Collection College of Integrative Studies

Over the last few years, the topic of "stranded assets" resulting from environment-related risk factors has loomed larger. These factors include the effects of physical climate change as well as societal and regulatory responses to climate change. Despite the increasing prominence of these stranded assets as a topic of significant interest to academics, governments, financial institutions, and corporations, there has been little work specifically looking at this issue in Latin America and the Caribbean (LAC). This is a significant omission, given the region's exposure to environment-related risk factors, the presence of extensive fossil fuel resources that may become "unburnable" given …


An Entrepreneur's Journey In The Food Services Industry, Singapore Management University Oct 2016

An Entrepreneur's Journey In The Food Services Industry, Singapore Management University

Perspectives@SMU

Desmond Lee grew a three-man startup into a S$20 million operation by adapting to market trends


Leader Of The Pack: What Makes The Alibaba Group So Successful, Singapore Management University Oct 2016

Leader Of The Pack: What Makes The Alibaba Group So Successful, Singapore Management University

Perspectives@SMU

The 'people's platform' sells more than eBay and Amazon combined