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Articles 3931 - 3960 of 6939

Full-Text Articles in Business

Portfolio Manager Ownership And Mutual Fund Risk Taking, Linlin Ma, Yuehua Tang Nov 2014

Portfolio Manager Ownership And Mutual Fund Risk Taking, Linlin Ma, Yuehua Tang

Research Collection Lee Kong Chian School Of Business

We study the effect of portfolio manager ownership, that is, “skin in the game”, on the risk taking of mutual funds. Using a holdings-based risk-shifting measure and a difference-indifferences approach, we find that managers with greater ownership engage in less risk-shifting behavior. We also find that managers with higher ownership exhibit superior reward-to-risk (i.e., Sharpe and appraisal) ratios. Funds with greater managerial ownership attract more capital flows. Taken together, our findings indicate that managerial ownership reduces managers’ incentive to engage in risk-shifting behavior and increases shareholder wealth.

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Governance Matter: Morningstar Stewardship Grades And Mutual Fund Performance, Jerry X. Cao, Aurobindo Ghosh, Jeremy Goh, Wee Seng Ng Nov 2014

Governance Matter: Morningstar Stewardship Grades And Mutual Fund Performance, Jerry X. Cao, Aurobindo Ghosh, Jeremy Goh, Wee Seng Ng

Research Collection School Of Economics

Mutual fund investors have the arduous task of disentangling luck from ability of mutual fund managers’ performance. In this paper we investigate the role of mutual fund corporate governance (measured by Morningstar Stewardship grade) in mutual fund performance. We propose an objective data-driven corporate governance score based on principal components of Morningstar Stewardship Grades. Furthermore, we establish corporate governance scores have Granger Causality on long-term risk-adjusted returns. The findings suggest that corporate governance grades of mutual funds carry information content beyond the usual star rating measures for predicting long-term mutual fund performance and provide an effective tool for selecting funds.

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Mutual Funds And Information Diffusion: The Role Of Country-Level Governance, Chunmei Lin, Massimo Massa, Hong Zhang Nov 2014

Mutual Funds And Information Diffusion: The Role Of Country-Level Governance, Chunmei Lin, Massimo Massa, Hong Zhang

Research Collection Lee Kong Chian School Of Business

We hypothesize that poor country-level governance, which makes public information less reliable, induces fund managers to increase their use of semipublic information. Utilizing data from international mutual funds and stocks over the 2000-2009 period, we find that semipublic information-related stock rebalancing can be five times higher in countries with the worst quality of governance than in countries with the best. The use of semipublic information increases price informativeness but also increases information asymmetry and reduces stock liquidity. It also intensified the price impact and liquidity crunch during the recent global financial crisis.

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Geography Of Firms And Propagation Of Local Economic Shocks, Gennaro Bernile, George Korniotis, Alok Kumar Nov 2014

Geography Of Firms And Propagation Of Local Economic Shocks, Gennaro Bernile, George Korniotis, Alok Kumar

Research Collection Lee Kong Chian School Of Business

This study shows that the geographical distribution of publicly-traded firms generates an economic network that links the economic environments of all U.S. states. Using a novel measure of economic linkages among publicly-traded firms, we build a state-level network of economic connections and show that local economic shocks propagate through this geographical network. Specifically, for each state, we identify U.S. states that are economically relevant for firms headquartered in that state and show that economic conditions in economically relevant states predict the economic environment in the headquarter state. These results do not merely reflect the impact of omitted common national shocks. …

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Start-Up Reputations In Asian Markets, Mark Chong, Jurrien Gregor Halff Nov 2014

Start-Up Reputations In Asian Markets, Mark Chong, Jurrien Gregor Halff

Research Collection Lee Kong Chian School Of Business

No abstract provided.

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Ceo Optimism And Incentive Compensation, Clemens A. Otto Nov 2014

Ceo Optimism And Incentive Compensation, Clemens A. Otto

Research Collection Lee Kong Chian School Of Business

I study the effect of chief executive officer (CEO) optimism on CEO compensation. Usingdata on compensation in US firms, I provide evidence that CEOs whose option exercisebehavior and earnings forecasts are indicative of optimistic beliefs receive smaller stockoption grants, fewer bonus payments, and less total compensation than their peers. Thesefindings add to our understanding of the interplay between managerial biases andremuneration and show how sophisticated principals can take advantage of optimisticagents by appropriately adjusting their compensation contracts.

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Risk Sharing In An Asymmetric Environment, Eric Fesselmeyer, Leonard J. Mirman, Marc Santugini Nov 2014

Risk Sharing In An Asymmetric Environment, Eric Fesselmeyer, Leonard J. Mirman, Marc Santugini

Research Collection College of Integrative Studies

We study the effect of an asymmetric environment on risk sharing. In our model, entrepreneurs consider undertaking risky projects in the real sector as well as selling part of their projects to investors. To capture the idea of an asymmetric environment, the returns on the alternative risk-free investment are allowed to differ between the entrepreneurs and the investors, i.e., agents have different opportunity costs of participating in the risky projects. We first show that the presence of asymmetric options establishes links between the risk-free and risky sectors as well as between the real and financial sectors. In particular, an asymmetric …

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Double Adjusted Mutual Fund Performance, Jeffrey Busse, Lei Jiang, Yuehua Tang Nov 2014

Double Adjusted Mutual Fund Performance, Jeffrey Busse, Lei Jiang, Yuehua Tang

Research Collection Lee Kong Chian School Of Business

We develop a new approach for estimating mutual fund performance that controls for both factor model betas and stock characteristics in one measure. Our double adjustment procedure shows that fund returns are significantly related to stock characteristics in the cross section after controlling for risk via factor models. Compared to standard mutual fund performance estimates, the new measure substantially affects performance rankings, with a quarter of funds experiencing a change in percentile ranking greater than ten. Double-adjusted fund performance persists a full nine years after the initial ranking period, much longer than standard performance. Moreover, inference based on the new …

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How To Nurture A Successful Start-Up, Singapore Management University Oct 2014

How To Nurture A Successful Start-Up, Singapore Management University

Perspectives@SMU

Sir Terry Matthews calls himself "the most persistent S.O.B. you'll ever meet in your life". That persistence has made him a billionaire. He distills four decades of entrepreneurial wisdom down to three points: finding the right team; hire a retired auditor; and insist on quarterly reports.

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All That Glitters Is Gold, Singapore Management University Oct 2014

All That Glitters Is Gold, Singapore Management University

Perspectives@SMU

Limited supply of the precious metal and an age gap in leadership translate into career opportunities in the gold industry

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Building Family Businesses In Thailand, Singapore Management University Oct 2014

Building Family Businesses In Thailand, Singapore Management University

Perspectives@SMU

State policies, an access to political rent, plus investing in relationships and innovation are some of the ways family businesses thrive in Thailand

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Collaborating With Faculty In Information Literacy Classes Works! A Case Study Of Partnership Between Research Librarians And Faculty At The Li Ka Shing Library, Singapore Management University, Rajendra Munoo, Elizabeth Su Oct 2014

Collaborating With Faculty In Information Literacy Classes Works! A Case Study Of Partnership Between Research Librarians And Faculty At The Li Ka Shing Library, Singapore Management University, Rajendra Munoo, Elizabeth Su

Research Collection Library

No abstract provided.

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Change Leadership In South East Asian Academic Libraries, Gulcin Cribb, Tamera Hanken Oct 2014

Change Leadership In South East Asian Academic Libraries, Gulcin Cribb, Tamera Hanken

Research Collection Library

No abstract provided.

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Library Space And Business Information Literacy: Investment Studio At Li Ka Shing Library, Jiaxin Low Oct 2014

Library Space And Business Information Literacy: Investment Studio At Li Ka Shing Library, Jiaxin Low

Research Collection Library

No abstract provided.

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The Role Of Simmelian Friendship Ties On Retaliation Within Triads, Kenneth T. Goh, David Krackhardt, Laurie R. Weingart, Tat Koon Koh Oct 2014

The Role Of Simmelian Friendship Ties On Retaliation Within Triads, Kenneth T. Goh, David Krackhardt, Laurie R. Weingart, Tat Koon Koh

Research Collection Lee Kong Chian School Of Business

We examine the effect of friendship in triads on retaliatory responses to unfair outcomes that originate from a group member. Drawing on Simmel's classic discussion of relationships in social triads versus dyads, we hypothesized that the effect of unfairness on retaliation between friends is stronger when the third party in the triad is a mutual friend, rather than a stranger. We also draw on social categorization theory to hypothesize that the effect of unfairness on retaliation between strangers is stronger when the third party is a friend of that stranger than when the triad consists of all strangers. Hypotheses were …

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A Literature Review Of The Impact Of Extracurricular Activities Participation On Students' Academic Performance, Poh Sun Seow, Gary Pan Oct 2014

A Literature Review Of The Impact Of Extracurricular Activities Participation On Students' Academic Performance, Poh Sun Seow, Gary Pan

Research Collection School Of Accountancy

Extracurricular activities (ECA) have become an important component of students’ school life and many schools have invested significant resources on extracurricular activities. The authors suggest three major theoretical frameworks (zero-sum, developmental, and threshold) to explain the impact of ECA participation on students’ academic performance. The authors urge researchers to conduct future research on the impact of ECA participation so as to extend the stream of research in the accounting education literature on determinants of students’ academic performance.

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Internal Control And Operational Efficiency, Qiang Cheng, Beng Wee Goh, Jae Bum Kim Oct 2014

Internal Control And Operational Efficiency, Qiang Cheng, Beng Wee Goh, Jae Bum Kim

Research Collection School Of Accountancy

In this study, we examine whether and how internal control over financial reporting affects firmoperational efficiency. We find that operational efficiency, derived from the frontier analysis, issignificantly lower among firms with material weaknesses in internal control relative to firmswithout such weaknesses. We document some evidence suggesting that effective internal controlleads to greater operational efficiency through reducing the likelihood of misappropriation ofcorporate resources and through enhancing the quality of internal reports for decision making.We also document that smaller firms benefit more from having effective internal control in termsof operational efficiency. In addition, we find that the market appears to understand the …

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Strategic Sourcing In The Presence Of Uncertain Supply And Retail Competition, Jianqing Chen, Zhiling Guo Oct 2014

Strategic Sourcing In The Presence Of Uncertain Supply And Retail Competition, Jianqing Chen, Zhiling Guo

Research Collection School Of Computing and Information Systems

This paper develops an analytical model to evaluate competing retail firms’ sourcing strategies in the presence of supply uncertainty. We consider a common supplier that sells its uncertain supply to two downstream retail firms engaging in price competition in a horizontally differentiated product market. The focal firm has a dual-sourcing option, while the rival firm can only source from the common supplier. We assess the system-wide effects of supply uncertainty on the focal firm's incentive to pursue the dual-sourcing strategy. We find that the focal firm's dual-sourcing strategy can create a win-win situation that leads to increased retail prices and …

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Auction With Rolling Horizon For Urban Consolidation Centre, Chen Wang, Stephanus Daniel Handoko, Hoong Chuin Lau Oct 2014

Auction With Rolling Horizon For Urban Consolidation Centre, Chen Wang, Stephanus Daniel Handoko, Hoong Chuin Lau

Research Collection School Of Computing and Information Systems

A number of cities around the world have adopted urban consolidation centres (UCCs) to address some challenges of their last-mile deliveries. At the UCC, goods are consolidated based on their destinations prior to their deliveries into the city centre. In many examples, the UCC owns a fleet of eco-friendly vehicles to carry out the deliveries. A carrier/shipper who buys the UCC’s service hence no longer needs to enter the city centre in which time-window and vehicle-type restrictions may apply. As a result, it becomes possible to retain the use of large trucks for the economies of scale outside the city …

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Stability And Endogenous Formation Of Inventory Transshipment Networks, Xin Fang, Soo-Haeng Cho Oct 2014

Stability And Endogenous Formation Of Inventory Transshipment Networks, Xin Fang, Soo-Haeng Cho

Research Collection Lee Kong Chian School Of Business

This paper studies a cooperative game of inventory transshipment among multiple firms. In this game, firms first make their inventory decisions independently and then decide collectively how to transship excess inventories to satisfy unmet demands. In modeling transshipment, we use networks of firms as the primitive, which offer a richer representation of relationships among firms by taking the coalitions used in all previous studies as special cases. For any given cooperative network, we construct a dual price allocation under which the network is stable for any residual demands and supplies in the sense that no firms find it more profitable …

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Managing The Accounting And Finance Function – Productivity Trends And Focus, Clarence Goh Oct 2014

Managing The Accounting And Finance Function – Productivity Trends And Focus, Clarence Goh

Research Collection School Of Accountancy

We found that firms in Singapore, HongKong, Japan, and China tend to favourstaff-related initiatives over processrelatedones when looking to raiseproductivity, with this being relativelymore prominent in the more developedeconomies of Singapore, Hong Kongand Japan.

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Raising The Bar: Trends In Implementing Productivity Initiatives In The Finance And Accounting Function, Clarence Goh Oct 2014

Raising The Bar: Trends In Implementing Productivity Initiatives In The Finance And Accounting Function, Clarence Goh

Research Collection School Of Accountancy

Faced with a tightening labour supply, raising productivity has become an increasingly important issue for manybusinesses in Singapore. To understand how this impacts the finance and accounting functions of businesses,the Institute of Singapore Chartered Accountants (ISCA) collaborated with Robert Half to survey over 550senior finance executives in Singapore and also the region to understand the focus of finance and accountingfunctions of businesses regarding raising productivity of these departments or functional units.

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Should Singapore Adopt ‘Say On Pay’, Clarence Goh Oct 2014

Should Singapore Adopt ‘Say On Pay’, Clarence Goh

Research Collection School Of Accountancy

In the corporate setting, the remuneration of chief executive officers (CEOs) and senior executives is typically determined by the board of directors. In many countries, corporate governance codes have been developed to provide guidance on such remuneration practices. However, there has been a recent trend of countries adopting regulations which allow shareholders some form of voting rights on executive remuneration. Such voting rights are commonly referred to as Say on Pay (SoP) votes.

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Does It Pay To Outclass? Corporate Social Responsibility And Its Impact On Firm Value, C. Ferreira, David K. Ding, U. Wongchoti Oct 2014

Does It Pay To Outclass? Corporate Social Responsibility And Its Impact On Firm Value, C. Ferreira, David K. Ding, U. Wongchoti

Research Collection Lee Kong Chian School Of Business

We show that conventional aggregation of corporate social responsibility (CSR) raw scores and its interpreted impact on firm value is less than reliable. Instead, the value impact of CSR activities relies heavily on the industry-specific relative position of the firm. Firms that distinguish themselves over their peers are associated with an increased value. This finding is robust and holds for both responsible and irresponsible behavior. Information concerns and portfolio construction allude to a possible CSR clientele, suggesting the existence of an optimal CSR level. Our peer-effect results are robust to unobserved heterogeneity.

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Firm Litigation Risk And The Insurance Value Of Corporate Social Performance, Ping-Sheng Koh, Cuili Qian, Heli Wang Oct 2014

Firm Litigation Risk And The Insurance Value Of Corporate Social Performance, Ping-Sheng Koh, Cuili Qian, Heli Wang

Research Collection Lee Kong Chian School Of Business

This paper advances the risk management perspective that superior social performance enhances firm value by serving as an ex ante valuable insurance mechanism. We posit that good social performance is more valuable as an insurance mechanism for firms with higher litigation risks. Moreover, value generation of corporate social performance (CSP) depends on whether a firm has gained pragmatic legitimacy (i.e., a firm's financial health) and moral legitimacy (i.e., whether or not a firm operates in a socially contested industry) among its stakeholders. We find that the value of CSP as insurance against litigation risk is practically significant, adding 2 to …

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Dynamic Capabilities And The Business School Of The Future, Howard Thomas, Peter Lorange, Jagdish Sheth Oct 2014

Dynamic Capabilities And The Business School Of The Future, Howard Thomas, Peter Lorange, Jagdish Sheth

Research Collection Lee Kong Chian School Of Business

Business schools need to focus more clearly on their dynamic capabilities in order to re-invigorate and re-develop themselves and their students.

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Leveling The Playing Field: Financial Regulation And Disappearing Local Bias Of Institutional Investors, Gennaro Bernile, Alok Kumar, Johan Sulaeman Oct 2014

Leveling The Playing Field: Financial Regulation And Disappearing Local Bias Of Institutional Investors, Gennaro Bernile, Alok Kumar, Johan Sulaeman

Research Collection Lee Kong Chian School Of Business

This study examines how changes in firms’ information environment affect local agents. We show that local bias and informational advantage of institutional investors and equity analysts located around corporate headquarters decline sharply following the adoption of Regulation Fair Disclosure and Sarbanes-Oxley Act. The decline in local bias is more salient among firms whose information environment is more opaque before the new rules. At the aggregate market level, the degree of informed trading attributed to local investors also declines. Overall, the evidence is consistent with disclosure regulation affecting the informational advantage that market participants enjoy due to their proximity to firms.

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Organizations With Purpose: From The Editors, Elaine Hollensbe, Charles Wookey, Loughlin Hickey, Gerard George, Vincent Nichols Oct 2014

Organizations With Purpose: From The Editors, Elaine Hollensbe, Charles Wookey, Loughlin Hickey, Gerard George, Vincent Nichols

Research Collection Lee Kong Chian School Of Business

Trust in business is improving from its nadir in 2009, but still remains dishearteningly low. Recent surveys report that only one in four members of the general public trusts business leaders to correct issues, and only one in five trusts them to tell the truth and make ethical and moral decisions. The 2014 Edelman Trust Barometer, a 27-country survey with more than 33,000 respondents, finds that overall trust declined across countries and sectors, with CEOs ranking second lowest at 43% and government officials the lowest at 36% as credible spokespeople to win public trust (Edelman Berland, 2014). This public distrust …

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It’S Alive! How Kinetic Property In Ads Shapes Novelty Perceptions, Junghan Kim, Arun Lakshmanan Oct 2014

It’S Alive! How Kinetic Property In Ads Shapes Novelty Perceptions, Junghan Kim, Arun Lakshmanan

Research Collection Lee Kong Chian School Of Business

We propose that speed and direction changes in moving ad elements influence product novelty perceptions. Three studies show thatinanimate but moving elements within an advertisement enhance novelty perceptions due to their kinetic property. Further, we showthat this effect is driven by perceptions of ad aliveness and product atypicality.

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Finance And Social Responsibility In The Informal Economy: Institutional Voids, Globalization And Microfinance Institutions, Hao Liang, Chris Marquis, Sunny Li Sun Oct 2014

Finance And Social Responsibility In The Informal Economy: Institutional Voids, Globalization And Microfinance Institutions, Hao Liang, Chris Marquis, Sunny Li Sun

Research Collection Lee Kong Chian School Of Business

We examine how different types of country-level globalization and the industry structure of microfinance institutions (MFIs) affect organization-level microcredit interest rates which crucially affect the poor's entrepreneurial opportunities. We develop an opportunity structure perspective that argues that MFI interest rates can be reduced by egalitarian-based social globalization but increased by neoliberal-based economic globalization. Moreover, stronger presence of nonprofit organizations in the microfinance industry lowers interest rates. Furthermore, these three forces can moderate the relationship between MFIs' outreach to the poor and average interest rate. Analyses of 2,559 MFI observations across 74 countries from 2002 - 2012 largely support our hypotheses.

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