Business Commons^™

Attention To Market Expansion: Aspirational Antecedent And Risk-Taking Consequence, Renfei Gao, Man Zhang, Xiaogang He, Zhengyu Li

Research Collection Lee Kong Chian School Of Business

The behavioral theory of the firm (BTOF) emphasizes the goal-directed logic in explaining firms’ risk-taking.Scholars in this tradition typically conceptualize how performance feedback indicates problems and triggers risk-taking behaviors. Yet, the theory remains underdeveloped in understanding decision-makers’ attention to forward-looking goals, such as market expansion, and its impact on firm risk-taking. In this study, we theorize performance feedback as an antecedent to decision-makers’ attention to forward-looking goals, and firm risktaking as a consequence of such attention. Focusing on market expansion as a critical forward-looking goal, we first theorize how performance feedback influences decision-makers’ attention to market expansion. Then, we examine …

From Low Power To Action: Reappraising Powerlessness As An Opportunity Restores Agency, Tianyu He, Michael Schaerer, Trevor A. Foulk, Elizabeth B. Wolf, Winnie Y. Jiang

Research Collection Lee Kong Chian School Of Business

Agentic behaviors are a critical pathway to power in contemporary organizations. Paradoxically, employees who lack power are the least likely to think and act agentically—creating a self-perpetuating cycle of disadvantage. Existing research on facilitating employee agentic behaviors relies on structural solutions that are often out of reach for individual employees. Yet, anecdotal evidence suggests that this view may be incomplete, as some individuals seem to be able to overcome the challenges powerlessness poses without relying on external resources, control, or organizational change. Integrating research on powerlessness and cognitive reappraisal, the present research proposes that cognitively reappraising powerless situations as opportunities …

Disaster Relief, Inc.: When Is Corporate Philanthropy Good Or Bad For Shareholders?, Hao Liang, Cara Vansteenkiste

Research Collection Lee Kong Chian School Of Business

A long-standing question in finance is why companies donate to charity, often attributing it to either managerial agency problems or strategic behavior. Based on a global sample of donation announcements by firms providing relief to disaster-affected communities, we test the relative importance of these two motives and the conditions under which each dominates. We exploit disaster-specific factors in an event study setting around corporate donation announcement dates to show that, on average, relief donations decrease returns. However, the strategic benefits of donating around salient events can mitigate these negative effects. To account for firms’ donation decisions, we rely on exogenous …

The Regenerative Future Of Loyalty: A Guide For Green Loyalty Programs To Engage Eco-Consumers, Simon J.D. Schillebeeckx, Ryan Merrill

Research Collection Lee Kong Chian School Of Business

Loyalty programs are challenged to attract and retain consumers who increasingly value purpose-driven engagement and environmental impact alongside traditional rewards. With growing awareness of climate issues, many customers expect brands to integrate sustainability and eco-conscious actions into their loyalty offerings.
 71% of consumers believe loyalty programs should support sustainable practices, and this expectation is particularly strong among younger demographics like Gen Z and Millennials. As companies respond by integrating eco-conscious actions — like recycling incentives, carbon offsets, and donations to green causes — these efforts foster emotional loyalty, drive repeat purchases, and ensure long-term retention. Loyalty programs that align with …

Csr As Hedging Against Institutional Transition Risk: Corporate Philanthropy After The Sunflower Movement In Taiwan, Yishu Cai, Lori Yue, Fangwen Lin, Shipeng Yan, Haibin Yang

Research Collection Lee Kong Chian School Of Business

Firms with political connections to a regime with an authoritarian history face a dilemma when the regime undergoes a democratic transition. Such connections provide an essential competitive advantage when the regime is in power but become a liability when an institutional transition brings democratic change. This study theorizes that when mass protests expose a regime’s distorted policies favoring elites over others and signal a high probability of regime turnover, firms may hedge against the risks associated with their political connections by engaging in philanthropy. We further contend that this effect is stronger for firms located in regions characterized by the …

Sell-Side Analysts’ Rating Systems, Ohad Kadan, Leonardo Madureira, Rong Wang, Tzachi Zach

Research Collection Lee Kong Chian School Of Business

Different brokers employ a variety of stock recommendations rating systems. There are five- and three-tier systems, as well as different mappings from the economic meaning of recommendations to numerical values in popular data sets such as IBES. We show that the rating systems and their mappings have important implications on the distribution of stock recommendations, investors’ reactions to stock recommendations, the consensus and dispersion of stock recommendations, and measures of analysts’ herding and boldness. We demonstrate how one can control for the variation in rating systems in order to separate the true economic impact of recommendations from the mechanical, non-economic, …

Amazon Versus Walmart: Clash Or Strategic Complementarity, Nirmalya Kumar

Research Collection Lee Kong Chian School Of Business

Nirmalya Kumar explains why Amazon and Walmart will continue to coexist, with Amazon dominating online retail and Walmart shifting to an omnichannel strategy.

Producer-Oriented And Consumer-Oriented Alternative Food Networks And Rural Revitalization In China: Distinct Trajectories And Variegated Impacts, Meiling Wu, Qian Forrest Zhang

Research Collection School of Social Sciences

Alternative food networks (AFNs) have been increasingly perceived as an engine for rural revitalization, yet AFNs can differ in their founding motivations, operational methods, and organizational forms, which thus produce varying economic, social, and environmental outcomes. Despite this, the complexity of AFNs in the role of rural revitalization remains surprisingly under-researched. This study, drawing a distinction between producer-oriented and consumer-oriented AFNs in China, explores the dynamics of how producer-oriented and consumer-oriented AFNs are formed and give rise to distinct trajectories of rural revitalization. When AFNs prioritize producers' pursuit of alternatives to conventional agrifood systems over merely catering to urban consumers’ …

A Head-To-Head Comparison Of Situational Judgment Tests And Assessment Centers For Measuring And Predicting The Same Performance Dimensions, Iman Shakeri, Filip Lievens

Research Collection Lee Kong Chian School Of Business

To date, a limited set of studies have compared the criterion-related validity of low-fidelity (SJT) versus high-fidelity (AC) simulations for predicting job performance. Unfortunately, these studies validated these simulations through the overall assessment rating (OAR) instead of on the basis of specific dimensions. Given SJTs and ACs were compared that measured different dimensions, our understanding of the relative and comparative validity of these assessment approaches in measuring the same set of dimensions is still limited. Therefore, this study aims to conduct a head-to-head comparison of the criterion-related validity of the AC and the SJT (and their incremental validity) while keeping …

Retirement And Organizations: Advocating Organizational Responsibility For Retirement In Practice And Scholarship, Valerie Caines, Gokhan Ertug, Prashant Bordia, Deidra J. Schleicher

Research Collection Lee Kong Chian School Of Business

In this editorial we discuss organizations’ role in the process of retirement. We argue that organizations have abdicated their moral obligation to older workers, thereby negatively impacting older workers’ wellbeing and their successful transition to retirement. We also note that organizational studies scholars have not paid adequate attention to that negligence, or its alternatives. We suggest that, among other reasons, this oversight can be a result of the comparatively privileged socioeconomic positions of faculty in business schools vis-à-vis older workers in many other occupations, as well as to a discord between traditional human capital and human resource management theories and …

Coevolution Of Soes And The Chinese Economy: The Roles Of Soe Heterogeneity From The Institutional, Strategic, And Organizational Perspectives, Kenneth G. Huang, Runtian Jing, Jun Xia, Man Zhang, Weiguo Zhong, David Zhu

Research Collection Lee Kong Chian School Of Business

State-owned enterprises (SOEs) in China play a critical role in national economic development and the country's positioning on the global stage. Chinese SOEs have undergone substantial transformations from traditional government-run entities to a variety of corporate forms exhibiting different levels of state involvement. Despite their substantial influence, the internal diversity of SOEs – from wholly state-owned to mixed-ownership – has not been thoroughly examined. This paper provides an overview of SOEs' critical roles in the Chinese economy, the relationship between SOEs and privately owned enterprises (POEs), and the challenges of SOEs in different stages of Chinese economic development. It then …

How Strategic Investors Drive The Transformation And Upgrading Of China's Automotive Industry, Gongwei Wang

Dissertations and Theses Collection (Open Access)

This dissertation conducts a systematic study on the successful transformation and upgrading of China's automotive industry over the past decade, especially the remarkable progress made in the field of Electric and Intelligent Vehicles, and examines how China's automotive industry chain has seized the historical opportunity of the great transformation of the global automotive industry by “Four Modernizations”—electrification, intelligentization, lightweighting and modularization along the path of "Independent Innovation", and realized the overall improvement of both corporate performance and industrial strength under the synergy of strategic investors.

China has newly become the world's largest automotive exporter and successfully built up an advantageous …

Venture Capital, Marketization, And Corporate Innovation Performance, Jia Dong

Dissertations and Theses Collection (Open Access)

The paper explores the impact of venture capital (VC) on the innovation performance of companies listed on the ChiNext and STAR markets of China’s A-share market. By examining the effect of VC involvement on the number of patent applications and patents granted to listed companies, the study reveals the role of VC in promoting corporate innovation and its potential mechanisms. The research finds that venture capital significantly enhances firms’ innovation performance through increased R&D investment and management incentives. Additionally, the degree of marketisation, as an important external factor, significantly amplifies the positive impact of VC on corporate innovation.

The paper …

Research On The Implementation Path Of Digital Transformation In Manufacturing Enterprises: A Case Study Of An Aluminum Deep Processing Company, Yanhong Zhang

Dissertations and Theses Collection (Open Access)

Currently, the internal conditions and external environment for the development of China’s manufacturing industry are undergoing profound and complex changes, and face new opportunities and challenges. In this context, why do manufacturing enterprises need to urgently carry out digital transformation, and the motivations, paths, values and criteria for the success for digital transformation all need to be systematically analyzed and studied?

This paper takes a certain aluminum deep-processing company as an example, focusing on the development strategies of digital transformation in the manufacturing industry. A maturity model of digital transformation for aluminum deep-processing company is constructed through literature research, qualitative …

Exploring The Trust Paradox: Adoption Dynamics Of Family Trusts Among Chinese High-Net-Worth Individuals, Janet Jing Di Zhang

Dissertations and Theses Collection (Open Access)

This research explores the adoption dynamics of family trusts among Chinese High-Net-Worth Individuals (HNWIs), focusing on the key barriers and facilitating factors. Despite the formal recognition of family trusts in China under its Trust Law (2001), the adoption rate remains low. This paradox is addressed through a comparative study between Chinese HNWIs in China and those in Canada, examining the impact of legal, regulatory, and cultural factors on adoption rates. By employing a two-stage quantitative approach, the research develops a Trust Adoption Model that incorporates factors like perceived benefits, professional trust, complexity, and regulatory transparency. The study identifies significant barriers …

It's Just A Game! Effects Of Fantasy In A Storified Test On Applicant Reactions, Marie L. Ohlms, Klaus G. Melchers, Filip Lievens

Research Collection Lee Kong Chian School Of Business

There is increasing attention to storification of assessments (i.e., embedding a storyline into a non-storified assessment) in research and practice and to gamified and game-based assessment in general. However, there is a surprising lack of agreement and of recommendations regarding what level of fantasy of the storyline one should choose for the storification from the perspective of applicant reactions. A distinction is typically made between fantasy (e.g., fighting aliens) and realistic (e.g., workday simulations) storylines, with both choices having their advantages and disadvantages. In this study, a sample of 195 participants was shown either a storified realistic test, a storified …

Effects Of Applicants' Use Of Generative Ai In Personnel Selection: Towards A More Nuanced View?, Filip Lievens, Patrick D. Dunlop

Research Collection Lee Kong Chian School Of Business

Generative AI (GenAI) has made rapid inroads in assessment, as a growing number of applicants rely on it as a coach in unproctored assessments of various selection procedures. This had led to assertions that applicants' GenAI use undermines key assumptions of the predictive model underlying selection and is thus disruptive for organizations' current unproctored assessments, thereby invoking various strategies of organizations to deter and detect its use. In this provocation article, we present a more nuanced view. To this end, we start by reviewing the recent research related to the effects of applicants' use of GenAI in assessment and discuss …

Is Carbon Risk Priced In The Cross Section Of Corporate Bond Returns?, Tinghua Duan, Frank Weikai Li, Quan Wen

Research Collection Lee Kong Chian School Of Business

This article examines the pricing of a firm’s carbon risk in the corporate bond market. Contrary to the “carbon risk premium” hypothesis, bonds of more carbon-intensive firms earn significantly lower returns. This effect cannot be explained by a comprehensive list of bond characteristics and exposure to known risk factors. Investigating sources of the low carbon alpha, we find the underperformance of bonds issued by carbon-intensive firms cannot be fully explained by divestment from institutional investors. Instead, our evidence is most consistent with investor underreaction to the predictability of carbon intensity for firm cash-flow news, creditworthiness, and environmental incidents.

Industry Peer Information And The Equity Valuation Accuracy Of Firms Emerging From Chapter 11, Bingxu Fang, Sasan Saiy, Dushyantkumar Vyas

Research Collection School Of Accountancy

Valuation plays a central role in determining Chapter 11 reorganization outcomes. However, obtaining accurate valuation estimates of reorganized firms is challenging because of limited firm-specific market-based information and the oft-conflicting incentives of claimholders. We examine the role of industry peer information in reducing misvaluations and its implications for unintended interclaimant wealth transfers and postreorganization performance. First, we find that the availability of relevant industry peer information is negatively associated with equity valuation errors for firms emerging from Chapter 11. Cross-sectional results suggest that the relation between industry peer information and valuation errors varies substantially with debtors’ information environment and case …

From The Accounting Graduate’S And The Employer’S Perspectives: Exploring The Key Roles In Making Skill Acquisition And Transfer Happen, Gary Pan, Poh Sun Seow, Clarence Goh, Duan Ning, Magdeleine Lew

Research Collection School Of Accountancy

While extant research has discussed how a teacher’s role may have to change when facilitating accounting students’ learning in today’s fast-moving accounting landscape, nevertheless, little is known about the roles played by the accounting graduate and the employer in a similar process. To plug this knowledge gap in the accounting education literature, this study aims to address the following research question: What are the key roles played by the accounting graduate and the employer in the process of skill acquisition and transfer from the university to the workplace? By applying Fitts and Posner’s (1967) three stages of learning and adopting …

Green Innovation And Firms’ Financial And Environmental Performance: The Roles Of Pollution Prevention Versus Control, Qiang Cheng, An-Ping Lin, Mengjie Yang

Research Collection School Of Accountancy

This study examines the effects of firms' green innovation on their future financial and environmental performance. If pollution is primarily a manifestation of wasted resources, then investments in pollution prevention technologies can both reduce the environmental impact of production and improve financial performance. In contrast, investments in pollution control technologies likely reduce the environmental impact of production without improving financial performance. Using green patents to capture firms' investments in these two types of technologies, we find that the value of a firm's pollution prevention patents is positively associated with its future financial and environmental performance, and that the positive impact …

Geographic Distance And State's Grip: Information Asymmetry, State Inattention, And Firm Implementation Of State Policy, Xiyi Yang, Heli Wang, Xiaoyu Zhou

Research Collection Lee Kong Chian School Of Business

In this study, we develop the argument that geographic distance between the state and local governments undermines the state's capacity to influence the implementation of state policies by local organizations. Drawing from information economics and the attention-based view, we propose that physical distance reduces the state's monitoring effectiveness through two interrelated mechanisms: information asymmetry and state leaders' inattention to distant issues. Using data of Chinese public firms' implementation of environmental activities between 2008 and 2016, we find that firms conduct fewer environmental activities required by the state when they are regulated by local governments that are more geographically distant to …

Information Spillover And Corporate Policies: The Case Of Listed Options, Gennaro Bernile, Jianfeng Hu, Guangzhong Li, Roni Michaely

Research Collection Lee Kong Chian School Of Business

Information production associated with derivatives markets is not a sideshow; rather, it has significantly positive spillover effects on an array of corporate decisions of underlying firms. Using a regression-discontinuity design based on exogenous variation in options availability as an instrument for changes in the information environment, we show that options introductions have causal effects on corporate policies on both sides of the balance sheet. Through improved information efficiency, options availability reduces the need for debt and payout, increases efficient investment, and yields superior innovation. We conduct two independent experiments demonstrating that our instrument s impact is not derived from alternative …

The Boundaries Of The Law: Can Us Private Enforcement Discipline Foreign Firms?, Massimo Massa, Xiaoqiao Wang, Bohui Zhang, Hong Zhang

Research Collection Lee Kong Chian School Of Business

Existing studies tend to focus on how a legal system reinforces the efficiency of its domestic firms or foreign companies that are subject to its domestic jurisdiction (e.g., via cross-listing). Our study provides critical normative implications in the era of financial globalization by showing that the influence of a country’s legal institutions extend beyond its territorial boundaries. We examine whether US shareholder-initiated class action lawsuits can discipline non-US firms. Using an international sample of firms over the period 1994–2019, we find that a US class action lawsuit against a non-US firm cross-listed in the US negatively affects the value of …

Technology-Enhanced Personalized Learning: Lessons From Online Teaching At Three South-East Asian Universities, Kiran Kaur, Rohaida Mohd Saat, Lieven Demeester, Magdeleine Lew, Wei Leng Neo, Nopphol Pausawasdi, Thasaneeya Ratanaroutai Nopparatjamjomras

Research Collection Lee Kong Chian School Of Business

Online teaching during the COVID-19 pandemic compelled many instructors to seek efficient and effective ways to stay connected with their students and improve the learning experience by using a wide range of available technologies. This multiple-case study, in three South-East Asian universities, investigated whether the use of technology in university teaching and learning during that period influenced personalized learning, and if so, how. The study also explored the kinds of institutional support for teachers and learners that led to increased technology-enhanced personalized learning (TEPL). Using a qualitative approach, the study analyzed 23 individual interviews and 3 document analyses (circulars, announcements, …

Something In The Air: Does Air Pollution Affect Fund Managers’ Carbon Divestment?, Thanh Huynh, Frank Weikai Li, Ying Xia

Research Collection Lee Kong Chian School Of Business

We examine whether fund managers overestimate carbon risk when they are exposed to local air pollution. We find that air pollution causes managers to underweight stocks of high-emission firms. The effects are stronger for less salient scopes of carbon emissions, among managers located in pro-environmental states, and among those likely to be surprised by air pollution—consistent with the idea that managers revise their beliefs about climate-transition risk following their exposure to air pollution. Carbon-intensive stocks sold by managers who are exposed to air pollution subsequently outperform stocks that they buy, suggesting that such underweighting is costly to fund investors.

Star Inventors, Knowledge Complexity And Collaborative Ties: What Drives Deference In Invention Teams?, Metin Onal Vural, Simon J.D. Schillebeeckx

Research Collection Lee Kong Chian School Of Business

This paper provides an empirical investigation of factors that drive deference in an invention team setting. Drawing on innovation literature, we hypothesise and test the distinct factors that determine the extent of deference an inventor receives in an invention team. Using patent data from U.S. semiconductor industry, we show that star inventors command deference among their peers and that this effect is moderated by stars’ embeddedness in knowledge, social and geographical context. Deference is amplified when stars have complex knowledge, but not necessarily when they have strong ties. When the stars are geographically distant from their peers, the amount of …

Does Felt Obligation Or Gratitude Better Explain The Relationship Between Perceived Organizational Support And Outcomes?, Robert Eisenberger, Xueqi Wen, Dianhan Zheng, Jia Yu, Zihan Liu, Jing Zhang, Lei Wang, Tae-Yeol Kim, Sara Krivacek, Thomas J. Zagenczyk, Min-Kyu Joo, Salar Mesdaghinia, Deog-Ro Lee, Tae-Hyun Kim

Research Collection Lee Kong Chian School Of Business

The employee-organization relationship (EOR) is a key component of organizational behavior. Researchers have consistently shown that employees who perceive that they are supported by their organizations (favorable EORs) tend to have positive attitudes and behave in a manner that helps the organization to reach its goals. For many years, the reciprocity norm (e.g. felt obligation) has been a widely accepted explanation for the EOR. Yet, despite calls to explore additional pathways, little work has examined other mediating mechanisms between favorable EORs and outcomes. We draw on the affect theory of social exchange to argue for the mediating effects of gratitude, …

When Leaders Self-Sacrifice In Times Of Crisis: The Roles Of Employee Emotional Suppression And Leader Coping Strategies, Xingyu Wang, Xueqi Wen, Zihan Liu, Yixing Lisa Gao, Juan M. Madera

Research Collection Lee Kong Chian School Of Business

While literature articulates the relevance of self-sacrificial leadership to crisis situations, little attention has been paid to employees’ attitudinal and behavioral responses to self-sacrificial leadership. This is a particularly salient gap in the scholarship, given the decisions leaders must make to address challenges in the hospitality industry (e.g., the COVID-19 pandemic). Drawing on conservation of resources theory, this pair of field and experimental studies examines how individual differences in employee emotional suppression and leader coping strategy moderate the impacts of self-sacrificial leadership on employee perceptions of leader effectiveness. By sampling U.S. hospitality employees, the studies reveal that leaders who display …

Exploring The Dynamics Of Volitional Personality Change: A Psychoeducational Intervention Study With Young Adults Transitioning To The Workforce, Erica Baranski, Ramona L. Martinez, Zihan Liu, Kevin Hoff

Research Collection Lee Kong Chian School Of Business

College graduates transitioning to the workforce completed a 13-week, light, psychoeducation intervention designed to increase volitional personality change motivation via weekly email newsletters. Contrary to expectations, the intervention did not significantly enhance overall change motivation or consistently inspire desired trait change goals following the study period or after 6 or 10 months. However, participants in the intervention group did report increased desire to change emotional stability at specific points during the study. These findings underscore the limitations of this particular psychoeducational intervention approach and help to fill in the boundary conditions of when and how personality change is possible. Additionally, …