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Full-Text Articles in Business

Muddling Through Or Knee Deep In The Big Muddy?, Howard Thomas May 2015

Muddling Through Or Knee Deep In The Big Muddy?, Howard Thomas

Asian Management Insights

A widening gulf between thepractice of managementand academic organisationscharacterises the stateof affairs in business schools today.


An Investigation Of Credit Borrower Concentration, Heng Yue, Pingui Rao, Jigao Zhu May 2015

An Investigation Of Credit Borrower Concentration, Heng Yue, Pingui Rao, Jigao Zhu

Research Collection School Of Accountancy

Credit borrower concentration arises when a bank or financial institution lends a large amount of its funds to a few large borrowers. We find that borrower concentration is positively related to non-performing loans and negatively related to financial performance. We also find that the voting power of bank’s controlling shareholder is positively related to the borrower concentration. The evidence is consistent with the view that controlling shareholders divert resources away from banks by extending a high volume of loans to a few related parties, which leads to high borrower concentration. Further evidence indicates that some seemingly unrelated large borrowers, as …


Investment, Duration, And Exit Strategies For Corporate And Independent Venture Capital-Backed Start-Ups, Bing Guo, Yun Lou, David Perez-Castrillo May 2015

Investment, Duration, And Exit Strategies For Corporate And Independent Venture Capital-Backed Start-Ups, Bing Guo, Yun Lou, David Perez-Castrillo

Research Collection School Of Accountancy

We propose a model of investment, duration, and exit strategies for start-ups backed by venture capital (VC) funds that accounts for the high level of uncertainty, the asymmetry of information between insiders and outsiders, and the discount rate. Our analysis predicts that start-ups backed by corporate VC funds remain for a longer period of time before exiting and receive larger investment amounts than those financed by independent VC funds. Although a longer duration leads to a higher likelihood of an exit through an acquisition, a larger investment increases the probability of an IPO exit. These predictions find strong empirical support.


Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae Bum Kim May 2015

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

Research Collection School Of Accountancy

In this paper, we examine the effect of managers’ pay duration on firms’ voluntary disclosures. Pay duration refers to the average period that it takes for managers’ annual compensation to vest. We hypothesize and find that pay duration can incentivize managers to provide more bad news earnings forecasts. This result holds after controlling for the level of stock-based compensation and the endogeneity of pay duration. In addition, we find that the effect of pay duration is more pronounced for firms with weaker governance and for firms with a more opaque information environment, where the marginal benefits of additional disclosures are …


Developing A Global Mindset For Leadership Success In Asia, Richard Raymond Smith May 2015

Developing A Global Mindset For Leadership Success In Asia, Richard Raymond Smith

Research Collection Lee Kong Chian School Of Business

No abstract provided.


A Comparison Of Milestone-Based And Buyout Options Contracts For Coordinating R&D Partnerships, Shantanu Bhattacharya, Vibha Gaba, Sameer Hasija May 2015

A Comparison Of Milestone-Based And Buyout Options Contracts For Coordinating R&D Partnerships, Shantanu Bhattacharya, Vibha Gaba, Sameer Hasija

Research Collection Lee Kong Chian School Of Business

We analyze optimal contractual arrangements in a bilateral research and development (R&D) partnership between a risk-averse provider that conducts early-stage research followed by a regulatory verification stage and a risk-neutral client that performs late-stage development activities, including production, distribution, and marketing. The problem is formulated as a sequential investment game with the client as the principal, where the investments are observable but not verifiable. The model captures the inherent incentive alignment problems of double-sided moral hazard, risk aversion, and holdup. We compare the efficacy of milestone-based options contracts and buyout options contracts from the client's perspective and identify conditions under …


How To Be A Top-Gun Deal Maker, Michael Benoliel May 2015

How To Be A Top-Gun Deal Maker, Michael Benoliel

Research Collection Lee Kong Chian School Of Business

In the late 1970s, while working as a cable industry lobbyist in Washington, Robert Johnson realized that African Americans, a group representing a lot of consumer buying power, were not collectively served by a dedicated cable television channel. This fact represented a tremendous business opportunity to anyone with significant investment capital.


Corporate Tax Aggressiveness And Managerial Rent Extraction: Evidence From Insider Trading, Sung Gon Chung, Beng Wee Goh, Kiat Bee Jimmy Lee, Terry J. Shevlin May 2015

Corporate Tax Aggressiveness And Managerial Rent Extraction: Evidence From Insider Trading, Sung Gon Chung, Beng Wee Goh, Kiat Bee Jimmy Lee, Terry J. Shevlin

Research Collection School Of Accountancy

Recent studies argue that aggressive forms of tax avoidance can be used to facilitate managerial rent extraction from shareholders (e.g., Desai 2004; Desai and Dharmapala 2006; Desai et al. 2007). Despite this agency view of tax avoidance receiving increasing attention in the literature, there is limited empirical evidence that managers actually extract rents generated from tax avoidance activities. In this paper, we examine the association between corporate tax aggressiveness and managerial rent extraction in the form of insider trading profitability. We document that, on average, insider purchase profitability, but not sale profitability, is significantly higher in more tax aggressive firms. …


Managers' Pay Duration And Voluntary Disclosures, Qiang Cheng, Young Jun Cho, Jae Bum Kim May 2015

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

Research Collection School Of Accountancy

In this paper, we examine the effect of managers’ pay duration on firms’ voluntary disclosures. Pay duration refers to the average period that it takes for managers’ annual compensation to vest. We hypothesize and find that pay duration can incentivize managers to provide more bad news earnings forecasts. This result holds after controlling for the level of stock-based compensation and the endogeneity of pay duration. In addition, we find that the effect of pay duration is more pronounced for firms with weaker governance and for firms with a more opaque information environment, where the marginal benefits of additional disclosures are …


Corruption In Bank Lending: The Role Of Timely Loan Loss Provisioning, B Atkins, Y Dou, Jeffrey Tee Yong Ng May 2015

Corruption In Bank Lending: The Role Of Timely Loan Loss Provisioning, B Atkins, Y Dou, Jeffrey Tee Yong Ng

Research Collection School Of Accountancy

Building on the recent literature on corruption in bank lending, we examine the effect of country-level timely loan loss provisioning by banks on such corruption using a unique World Bankdataset that covers more than 3,600 firms across 44 countries. We find evidence consistent with timely loan loss provisions constraining lending corruption because it increases the likelihood of problem loans being uncovered earlier. This result is robust to using the tax-deductibility of loan loss provisions as an instrumental variable. In further analysis, we find timely loan loss provisioning less associated with reduced corruption in countries with deposit insurance schemes and significant …


Guidelines And Ethical Considerations For Assessment Center Operations, Deborah E. Rupp, Brian J Hoffman, David Bischof, William Byham, Lynn Collins, Alyssa Gibbons, Shinichi Hirose, Martin Kleinmann, Jeffrey D. Kudisch, Martin Lanik, Duncan J. R. Jackson, Myungjoon Kim, Filip Lievens, Deon Meiring, Klaus G. Melchers, Vina G. Pendit, Dan J. Putka, Nigel Povah, Doug Reynolds, Sandra Schlebusch May 2015

Guidelines And Ethical Considerations For Assessment Center Operations, Deborah E. Rupp, Brian J Hoffman, David Bischof, William Byham, Lynn Collins, Alyssa Gibbons, Shinichi Hirose, Martin Kleinmann, Jeffrey D. Kudisch, Martin Lanik, Duncan J. R. Jackson, Myungjoon Kim, Filip Lievens, Deon Meiring, Klaus G. Melchers, Vina G. Pendit, Dan J. Putka, Nigel Povah, Doug Reynolds, Sandra Schlebusch

Research Collection Lee Kong Chian School Of Business

This document’s intended purpose is to provide professional guidelines and ethical considerations for users of the assessment center method. These guidelines are designed to cover both existing and future applications. The title assessment center is restricted to those methods that follow these guidelines.


Emotional Labor Actors: A Latent Profile Analysis Of Emotional Labor Strategies, Allison S. Gabriel, Michael A. Daniels, James M. Diefendorff, Gary J. Greguras May 2015

Emotional Labor Actors: A Latent Profile Analysis Of Emotional Labor Strategies, Allison S. Gabriel, Michael A. Daniels, James M. Diefendorff, Gary J. Greguras

Research Collection Lee Kong Chian School Of Business

Research on emotional labor focuses on how employees utilize 2 main regulation strategies—surface acting (i.e., faking one’s felt emotions) and deep acting (i.e., attempting to feel required emotions)—to adhere to emotional expectations of their jobs. To date, researchers largely have considered how each strategy functions to predict outcomes in isolation. However, this variable-centered perspective ignores the possibility that there are subpopulations of employees who may differ in their combined use of surface and deep acting. To address this issue, we conducted 2 studies that examined surface acting and deep acting from a person-centered perspective. Using latent profile analysis, we identified …


E-Finance In Asean, David Kuo Chuen Lee May 2015

E-Finance In Asean, David Kuo Chuen Lee

Research Collection Lee Kong Chian School Of Business

No abstract provided.


Rinse, But No Need To Repeat, Srinivas K. Reddy May 2015

Rinse, But No Need To Repeat, Srinivas K. Reddy

Research Collection Lee Kong Chian School Of Business

Unilever promotes water sustainability through product innovation. By October 2007, it had become apparent that competition in the laundry products segment in Vietnam was heating up rapidly. Huyen Bui, the senior brand manager for Comfort at Unilever Vietnam, was contemplating how to stay ahead of long-time rival, Procter & Gamble (P&G), in terms of market share. In April 2007, Unilever launched Comfort One Rinse, a fabric conditioner designed to reduce water use in hand-washed laundry by 66 percent. Six months later, P&G responded by launching Downy One Rinse, a nearly identical product.


The Unburdening Effects Of Forgiveness: Effects On Slant Perception And Jumping Height, Zheng Xue, Ryan Fehr, Kenneth Tai, Jayanth Narayanan, Michele J. Gelfand May 2015

The Unburdening Effects Of Forgiveness: Effects On Slant Perception And Jumping Height, Zheng Xue, Ryan Fehr, Kenneth Tai, Jayanth Narayanan, Michele J. Gelfand

Research Collection Lee Kong Chian School Of Business

Research shows that in the aftermath of conflict, forgiveness improves victims’ well-being and the victim–offender relationship. Building on the research on embodied perception and economy of action, we demonstrate that forgiveness also has implications for victims’ perceptions and behavior in the physical domain. Metaphorically, unforgiveness is a burden that can be lightened by forgiveness; we show that people induced to feel forgiveness perceive hills to be less steep (Study 1) and jump higher in an ostensible fitness test (Study 2) than people who are induced to feel unforgiveness. These findings suggest that forgiveness may lighten the physical burden of unforgiveness, …


Family Ownership And R&D Investment: The Role Of Growth Opportunities And Business Group Membership, Young Rok Choi, Shaker A. Zahra, Toru Yoshikawa, Bong H. Han May 2015

Family Ownership And R&D Investment: The Role Of Growth Opportunities And Business Group Membership, Young Rok Choi, Shaker A. Zahra, Toru Yoshikawa, Bong H. Han

Research Collection Lee Kong Chian School Of Business

This study examines whether the influence of family ownership on R&D investment varies depending on growth opportunities and business group membership. Using data on Korean firms over ten years (1998-2007), the study shows that family ownership is negatively related to R&D investment, but the relationship becomes positive when growth opportunities are present. The moderating effect, however, differs between independent family firms and family business groups. The positive influence that growth opportunities have on promoting R&D investment is diminished for affiliates of family business groups. These findings imply that family owners invest more in R&D when their family control goals are …


China’S Digital Landscape: Breaking Barriers To Innovation, Srinivas K. Reddy, Zack Zheng Wang, Deckie He Dong May 2015

China’S Digital Landscape: Breaking Barriers To Innovation, Srinivas K. Reddy, Zack Zheng Wang, Deckie He Dong

Research Collection Lee Kong Chian School Of Business

When e-commerce giant Alibaba went public on the New York Stock Exchange in September 2014, its market capitalisation rocketed to roughly US$219 billion - a sum greater than any record previously set by its American contemporaries, Facebook, eBay and Amazon. It was a historic event that led many to believe that China’s digital economy was echoing the Middle Kingdom’s own meteoric rise onto the world-stage. China ranks high in digital connectivity. In 2015, almost half of the country’s population, or 649 million people, were online. It’s fast-growing Internet economy generates about US$100 billion annually and is predicted to reach US$277 …


The Effects Of Linguistic Distance And Lingua Franca Proficiency On The Stake Taken By Acquirers In Cross-Border Acquisitions, Ilya Cuypers, Gokhan Ertug, Jean-Francois Hennart May 2015

The Effects Of Linguistic Distance And Lingua Franca Proficiency On The Stake Taken By Acquirers In Cross-Border Acquisitions, Ilya Cuypers, Gokhan Ertug, Jean-Francois Hennart

Research Collection Lee Kong Chian School Of Business

We study the effects of linguistic distance and lingua franca proficiency on the equity stake taken by acquirers from 67 countries in 59,092 acquisition targets in 69 host countries. We theorize and find that acquirers take lower equity stakes in foreign targets when linguistic distance and differences in lingua franca proficiency between them are high, and take higher stakes when the combined lingua franca proficiency of the parties is high. We also find that linguistic and cultural distance reduce the impact of the combined lingua franca proficiency of the parties on the level of equity taken, which shows that the …


Employment Duration And Match Quality Over The Business Cycle, Ismail Baydur, Toshihiko Mukoyama May 2015

Employment Duration And Match Quality Over The Business Cycle, Ismail Baydur, Toshihiko Mukoyama

Research Collection School Of Economics

This paper studies the cyclical behavior of employment duration using data from the National Longitudinal Survey of Youth 1979 cohort. We estimate a proportional hazard model with competing risks, distinguishing different types of separations. A higher unemployment rate at the start of an employment relationship increases the probability that the worker quits to take or look for another job, but it decreases the probability that the firm fires the worker. The net effect of these opposing forces on the overall duration of the employment is negative, but small, implying that match quality is weakly pro-cyclical. We also build a simple …


Moving Average Reversion Strategy For On-Line Portfolio Selection, Bin Li, Steven C. H. Hoi, Doyen Sahoo, Zhi-Yong Liu May 2015

Moving Average Reversion Strategy For On-Line Portfolio Selection, Bin Li, Steven C. H. Hoi, Doyen Sahoo, Zhi-Yong Liu

Research Collection School Of Computing and Information Systems

On-line portfolio selection, a fundamental problem in computational finance, has attracted increasing interest from artificial intelligence and machine learning communities in recent years. Empirical evidence shows that stock's high and low prices are temporary and stock prices are likely to follow the mean reversion phenomenon. While existing mean reversion strategies are shown to achieve good empirical performance on many real datasets, they often make the single-period mean reversion assumption, which is not always satisfied, leading to poor performance in certain real datasets. To overcome this limitation, this article proposes a multiple-period mean reversion, or so-called "Moving Average Reversion" (MAR), and …


Thinking Bigger: Pushing Singaporean Entrepreneurship To The Next Level, Arcot Desai Narasimhalu May 2015

Thinking Bigger: Pushing Singaporean Entrepreneurship To The Next Level, Arcot Desai Narasimhalu

Research Collection School Of Computing and Information Systems

The environment in Singaporehas become more conducive forentrepreneurship. What lies aheadand what lessons can other Asiancountries learn?


Crowdsourcing With Tullock Contests: A New Perspective, Tie Luo, Salil S Kanhere, Hwee-Pink Tan, Fan Wu May 2015

Crowdsourcing With Tullock Contests: A New Perspective, Tie Luo, Salil S Kanhere, Hwee-Pink Tan, Fan Wu

Research Collection School Of Computing and Information Systems

Incentive mechanisms for crowdsourcing have been extensively studied under the framework of all-pay auctions. Along a distinct line, this paper proposes to use Tullock contests as an alternative tool to design incentive mechanisms for crowdsourcing. We are inspired by the conduciveness of Tullock contests to attracting user entry (yet not necessarily a higher revenue) in other domains. In this paper, we explore a new dimension in optimal Tullock contest design, by superseding the contest prize - which is fixed in conventional Tullock contests - with a prize function that is dependent on the (unknown) winner's contribution, in order to maximize …


Electronic Contract Signing Without Using Trusted Third Party, Zhiguo Wan, Robert H. Deng, David Kuo Chuen Lee May 2015

Electronic Contract Signing Without Using Trusted Third Party, Zhiguo Wan, Robert H. Deng, David Kuo Chuen Lee

Research Collection School Of Computing and Information Systems

Electronic contract signing allows two potentially dis-trustful parties to digitally sign an electronic document “simultaneously” across a network. Existing solutions for electronic contract signing either require the involvement of a trusted third party (TTP), or are complex and expensive in communication and computation. In this paper we propose an electronic contract signing protocol between two parties with the following advantages over existing solutions: 1) it is practical and scalable due to its simplicity and high efficiency; 2) it does not require any trusted third party as the mediator; and 3) it guarantees fairness between the two signing parties. We achieve …


Michael Wong Pakshong [Singapore, Managing Director Of Mas], Michael Wong Pakshong Apr 2015

Michael Wong Pakshong [Singapore, Managing Director Of Mas], Michael Wong Pakshong

Digital Narratives of Asia

Michael Wong Pakshong was the first Managing Director of the Monetary Authority of Singapore. He shares with DNA the challenges of building up a new institution in a newly independent country, as well as the obstacles he faced when the government's vision for MAS changed.


Social Marketing: Delivering On Passion, Singapore Management University Apr 2015

Social Marketing: Delivering On Passion, Singapore Management University

Perspectives@SMU

Focus on your audience’s desire and motivations, and deliver your product’s unique proposition with every interaction on social media


How To Create Value Like Master Negotiators, Singapore Management University Apr 2015

How To Create Value Like Master Negotiators, Singapore Management University

Perspectives@SMU

Be thoroughly prepared but know when there is no deal


A Tale Of Two Stores, Singapore Management University Apr 2015

A Tale Of Two Stores, Singapore Management University

Perspectives@SMU

Customised and personalised online shopping brings benefits to consumers and profits to retailers


Becoming An Online Business Owner, Singapore Management University Apr 2015

Becoming An Online Business Owner, Singapore Management University

Perspectives@SMU

Here are four ways to start an online business as quickly as over the weekend


Advertising In The Digital Age, Singapore Management University Apr 2015

Advertising In The Digital Age, Singapore Management University

Perspectives@SMU

Algorithms, big data and real-time computing are revolutionising the advertising industry, but brands still need to be clear about their business objectives to maximise advertising returns


Marketplace Lending: Investors Beware, Singapore Management University Apr 2015

Marketplace Lending: Investors Beware, Singapore Management University

Perspectives@SMU

Marketplace lending could help finance SMEs that might otherwise be denied loans by banks, and investors could earn high returns by financing these deals. However, risk of default is high