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Full-Text Articles in Business

Walking The Talk Of Wall Street, Singapore Management University Mar 2012

Walking The Talk Of Wall Street, Singapore Management University

Perspectives@SMU

The rules of the game on Wall Street may be ever changing but a professor of economics at Princeton University, Burton Malkiel, has held on to his views on how the game should be played for almost four decades.


Get Organised: The Importance Of Focus In Shopping, Singapore Management University Mar 2012

Get Organised: The Importance Of Focus In Shopping, Singapore Management University

Perspectives@SMU

Shopping may seem like a carefree experience with some regarding it as a stress reliever when they lose themselves in the mall. The reality is, however, that most of the work has been cut out for consumers from the time they enter, to the time the cash tills ring.


Markowitz 2.0: Innovations For Asset Allocation, Knowledge@Smu Mar 2012

Markowitz 2.0: Innovations For Asset Allocation, Knowledge@Smu

Knowledge@SMU

The idea of conducting financial analysis on asset classes, while widely accepted today, was a new concept in the 1950s. It was so new that Nobel Prize winner in economics Harry Markowitz almost did not receive his doctorate because his thesis on portfolio optimisation was deemed as “not economics” by his supervisor. Dr Paul Kaplan, quantitative research director at Morningstar, introduces an updated model of Markowitz’s portfolio optimisation model at a seminar in SMU.


Part Of The Job: The Positive Side Of Office Politics, Knowledge@Smu Mar 2012

Part Of The Job: The Positive Side Of Office Politics, Knowledge@Smu

Knowledge@SMU

It may sound counter intuitive but playing with office politics may not necessary make you the villain at work. Embracing office politics and learning to use it positively can help companies retain talent and build ethical leadership, says Jane Horan author of a new book I Wish I’d Known That Earlier In My Career: The Power of Positive Workplace Politics


Get Organised: The Importance Of Focus In Shopping, Knowledge@Smu Mar 2012

Get Organised: The Importance Of Focus In Shopping, Knowledge@Smu

Knowledge@SMU

Consumer decision making can be conceptualised as a series of stages progressing from the recognition of a need to search for information about alternatives, the formation of a consideration set, a formal evaluation of the choices, and finally, making the purchase. But how much of this process might be affected by a consumer’s style of goal pursuit? According to Hannah Chang, an assistant professor of marketing at SMU, businesses will do well to pay attention to their target customers' decision environments.


Customer Satisfaction Index Of Singapore 2011: Full Year Overview, Institute Of Service Excellence, Smu Mar 2012

Customer Satisfaction Index Of Singapore 2011: Full Year Overview, 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 with 2011 marking its fifth year of measurement.


Walking The Talk Of Wall Street, Knowledge@Smu Mar 2012

Walking The Talk Of Wall Street, Knowledge@Smu

Knowledge@SMU

Years after he theorised that a blindfolded monkey throwing darts at stock listings can select a portfolio that would perform as well as one chosen by experts, Princeton economist Burton Malkiel is sticking by it. In the tenth edition of his investment classic, A Random Walk Down Wall Street, Malkiel explains why the experts are overrated, and why sticking with a buy-and-hold strategy using a broad stock market index fund will outperform the professionally managed ones.


Making Sense Of The Strategic Value Behind Ceo Pay Cheques, Knowledge@Smu Mar 2012

Making Sense Of The Strategic Value Behind Ceo Pay Cheques, Knowledge@Smu

Knowledge@SMU

In a country where conformity and harmony are valued, Japanese multinationals have become open to appointing foreign CEOs, who are deemed to be able to effect change faster than a Japanese CEO, as part of corporate strategies to conquer overseas markets. But one difficulty in hiring these foreign CEOs is that their pay is much higher than their Japanese counterparts, who are famous for their relatively modest salaries. A study on the impact of firm strategy and foreign ownership sheds more light on the strategy-compensation relationship in Japanese firms.


Good Reputation: A Reputation For Doing Good, Knowledge@Smu Mar 2012

Good Reputation: A Reputation For Doing Good, Knowledge@Smu

Knowledge@SMU

Having a good product is no longer sufficient for companies to retain a competitive edge in the modern society where consumers are getting more sophisticated and environmentally conscious. And corporations around the world are realising it. What is it that motivates companies to take up the corporate social responsibility flag and how does it relate to their corporate reputation?


Client Strategies In Vendor Transition: A Threat Balancing Perspective, Cecil Eng Huang Chua, Wee-Kiat Lim, Christina Soh, Siew Kien Sia Mar 2012

Client Strategies In Vendor Transition: A Threat Balancing Perspective, Cecil Eng Huang Chua, Wee-Kiat Lim, Christina Soh, Siew Kien Sia

CCX Research

Many outsourcing contracts are expiring, and vendor transition is an increasing concern. This paper attempts to develop guidelines for vendor transition by applying balance of threat theory, which suggests a client organization should pursue either a “soft” or “hard” balancing strategy, depending on the outgoing vendor’s capability and aggressive intent to disrupt client operations. Balance of threat theory is explored across two contrasting case sites. In addition to demonstrating the relevance of balance of threat theory, the cases identify specific tactics associated with hard and soft balancing, as well as key areas of conflict in vendor transition.


Decision-Making Models, Decision Support And Problem Solving, Mark R. Lehto, Fiona Fui-Hoon Nah, Ji Soo Yi Mar 2012

Decision-Making Models, Decision Support And Problem Solving, Mark R. Lehto, Fiona Fui-Hoon Nah, Ji Soo Yi

Research Collection School Of Computing and Information Systems

This chapter focuses on the broad topic of human decision making. Decision making is often viewed as a stage of human information processing because people must gather, organize, and combine information from various sources to make decisions. However, as decisions grow more complex, information processing actually becomes part of decision making, and methods of decision sup-port that help decision makers process information become of growing importance. Decision making also overlaps with problem solving. The point where decision making becomes problem solving is fuzzy, but many decisions require problem solving, and the opposite is true as well. Cognitive models of problem …


Accounting Restatements And External Financing Choices, Qiang Cheng, Xia Chen, Alvis Lo Mar 2012

Accounting Restatements And External Financing Choices, Qiang Cheng, Xia Chen, Alvis Lo

Research Collection School Of Accountancy

There is little research on how accounting information quality affects a firm’s external financing choices. In this paper, we use the occurrence of accounting restatements as a proxy for the reduced credibility of accounting information and investigate how restatements affect a firm’s external financing choices. We find that for firms that obtain external financing after restatements, they rely more on debt financing, especially private debt financing, and less on equity financing. The increase in debt financing is more pronounced for firms with more severe information problems and less pronounced for firms with prompt CEO/CFO turnover and auditor dismissal. Our evidence …


Lifecycle Pricing For Installed Base Management With Constrained Capacity And Remanufacturing, Andreas Robotis, Shantanu Bhattacharya, Luk N. Van Wassenhove Mar 2012

Lifecycle Pricing For Installed Base Management With Constrained Capacity And Remanufacturing, Andreas Robotis, Shantanu Bhattacharya, Luk N. Van Wassenhove

Research Collection Lee Kong Chian School Of Business

Installed base management is the policy in which the manufacturer leases the product to consumers, and bundles repair and maintenance services along with the product. In this article, we investigate for the optimal leasing price and leasing duration decisions by a monopolist when the production and servicing capacity are constrained. The effect of diffusion of consumers in the installed base is considered, with the ownership of the product resting with the monopolist during the product lifecycle. The monopolist operating the installed base jointly optimizes the profits from leasing the product/service bundle along with maintenance revenues and remanufacturing savings. We formulate …


A Theory Of Strategic Mergers, Gennaro Bernile, Evgeny Lyandres, Alexei Zhdanov Mar 2012

A Theory Of Strategic Mergers, Gennaro Bernile, Evgeny Lyandres, Alexei Zhdanov

Research Collection Lee Kong Chian School Of Business

We examine firms’ strategic incentives to engage in horizontal mergers. In a real options framework, we show that strategic considerations may explain abnormally high takeover activity during periods of positive and negative demand shocks. Importantly, this pattern emerges solely as a result of firms’ strategic interaction in output markets. We show that the U-shaped relation between the state of demand and the propensity of firms to merge, documented in past studies, is driven by horizontal mergers in industries that are: (1) relatively more concentrated, (2) characterized by relatively strong competitive interaction among firms, and (3) characterized by relatively low merger-related …


On-Market Share Buy-Backs: Asx Disclsoure, Jason David Mitchell, Holub M. Mar 2012

On-Market Share Buy-Backs: Asx Disclsoure, Jason David Mitchell, Holub M.

Research Collection School Of Accountancy

Our paper investigates the compliance of Australian listed firms with the ASX disclosure rules for on‐market share buy‐backs. We find that firm compliance is reasonable for initial buy‐back announcements, but poor for final buy‐back notices. In the latter instance, the disclosure in the appropriate ASX notice is provided in only 53% of cases. Of significant concern is the even lower degree of final notice compliance (42%) for buy‐backs tagged as having ‘unlimited’ duration. Across our total sample of 807 buy‐backs, an alternative form of disclosure of buy‐back completion is provided in 25% of cases, and no proper notification of either …


Cash Is King, Themin Suwardy Mar 2012

Cash Is King, Themin Suwardy

Research Collection School Of Accountancy

What can SMEs do to monitor, manage and improve their cash flow


Hedge Funds And Analyst Conflict Of Interest, Sung Gon Chung, Melvyn Teo Mar 2012

Hedge Funds And Analyst Conflict Of Interest, Sung Gon Chung, Melvyn Teo

Research Collection School Of Accountancy

Are sell-side analysts reluctant to go against the investment views of their hedge fund clients? We show that analysts tend to upgrade stocks recently bought and downgrade stocks recently sold by hedge funds. Relative to other buy and strong buy recommendations, similar recommendations on stocks predominantly held by hedge funds parlay into poorer three-month and six-month stock returns. Hedge funds concurrently offload their stock holdings when analysts issue flattering reports. In line with an agency based explanation, our results are more pronounced for important brokerage clients such as high dollar turnover hedge funds and hedge funds who are prime brokerage …


The Effects Of Culture And Structure On Strategic Flexibility During Business Model Innovation, Adam J. Bock, Tore Opsahl, Gerard George, David M. Gann Mar 2012

The Effects Of Culture And Structure On Strategic Flexibility During Business Model Innovation, Adam J. Bock, Tore Opsahl, Gerard George, David M. Gann

Research Collection Lee Kong Chian School Of Business

This study uses responses from 107 multinational firms to reveal CEO perceptions of the drivers of strategic flexibility during business model innovation. While the positive effect of creative culture is confirmed, partner reliance reduces strategic flexibility during business model innovation. Further, structural change is disaggregated into efforts that either focus managerial attention on core activities or reconfigure existing activities. CEOs perceive that structural flexibility requires structural simplification while retaining control of non-core functions. We find that the relative magnitude of business model innovation effort moderates the effect of reconfiguration on strategic flexibility. The implications for theories of organizational design and …


The Role Of Faculty Members' Cross-Cultural Competencies In Their Perceived Teaching Quality: Evidence From Culturally-Diverse Classes In Four European Countries, Alain De Beuckelaer, Filip Lievens, Joost Bucker Mar 2012

The Role Of Faculty Members' Cross-Cultural Competencies In Their Perceived Teaching Quality: Evidence From Culturally-Diverse Classes In Four European Countries, Alain De Beuckelaer, Filip Lievens, Joost Bucker

Research Collection Lee Kong Chian School Of Business

In the field of higher education, it has often been claimed that in culturally-diverse classes high levels of cross-cultural competence will result in better teaching performance among faculty. Unfortunately, to date this relationship has not been tested empirically. In this study, we examine the nature of this relationship using course-related survey data from faculty members (N = 46) teaching management-related courses to master's students (N = 1,219) in four EU countries (Belgium, France, Germany, and The Netherlands). Results demonstrate that cross-cultural competence (in particular showing a high degree of cultural empathy and being open-minded) is an important asset for faculty …


The Validity Of Interpersonal Skills Assessment Via Situational Judgment Tests For Predicting Academic Success And Job Performance, Filip Lievens, Paul R. Sackett Mar 2012

The Validity Of Interpersonal Skills Assessment Via Situational Judgment Tests For Predicting Academic Success And Job Performance, Filip Lievens, Paul R. Sackett

Research Collection Lee Kong Chian School Of Business

This study provides conceptual and empirical arguments why an assessment of applicants' procedural knowledge about interpersonal behavior via a video-based situational judgment test might be valid for academic and postacademic success criteria. Four cohorts of medical students (N = 723) were followed from admission to employment. Procedural knowledge about interpersonal behavior at the time of admission was valid for both internship performance (7 years later) and job performance (9 years later) and showed incremental validity over cognitive factors. Mediation analyses supported the conceptual link between procedural knowledge about interpersonal behavior, translating that knowledge into actual interpersonal behavior in internships, and …


Rational Financial Management: Evidence From Seasoned Equity Offerings, Michael Barclay, Fangjian Fu, Clifford Smith Mar 2012

Rational Financial Management: Evidence From Seasoned Equity Offerings, Michael Barclay, Fangjian Fu, Clifford Smith

Research Collection Lee Kong Chian School Of Business

Current theories of capital structure have difficulty explaining the aspects of financing behavior we document. In contrast to the tradeoff theory, seasoned equity offers frequently move firms away from their target leverage ratios. At odds with the pecking-order theory, SEO firms typically are financially healthy companies with low leverage, unused debt capacity and substantial cash balances. Inconsistent with the market-timing theory, SEOs appear to be driven by capital requirements associated with large investment projects rather than by market-timing considerations. Moreover, firms issue debt following SEOs, not only to finance investment, but to increase leverage toward its target level. Each of …


Cuing Consumerism: Situational Materialism Undermines Personal And Social Well-Bein, Monika A. Bauer, James E. B. Wilkie, Jung K. Kim, Galen V. Bodenhausen Mar 2012

Cuing Consumerism: Situational Materialism Undermines Personal And Social Well-Bein, Monika A. Bauer, James E. B. Wilkie, Jung K. Kim, Galen V. Bodenhausen

Research Collection Lee Kong Chian School Of Business

Correlational evidence indicates that materialistic individuals experience relatively low levels of well-being. Across four experiments, we found that situational cuing can also trigger materialistic mind-sets, with similarly negative personal and social consequences. Merely viewing desirable consumer goods resulted in increases in materialistic concerns and led to heightened negative affect and reduced social involvement (Experiment 1). Framing a computer task as a “Consumer Reaction Study” led to a stronger automatic bias toward values reflecting self-enhancement, compared with framing the same task as a “Citizen Reaction Study” (Experiment 2). Consumer cues also increased competitiveness (Experiment 3) and selfishness in a water-conservation dilemma …


Is Specialization Desirable In Committee Decision Making?, Ruth Ben-Yashar, Winston T. H. Koh, Shmuel Nitzan Mar 2012

Is Specialization Desirable In Committee Decision Making?, Ruth Ben-Yashar, Winston T. H. Koh, Shmuel Nitzan

Research Collection School Of Economics

Committee decision making is examined in this study focusing on the role assigned to the committee members. In particular, we are concerned about the comparison between committee performance under specialization and non-specialization of the decision makers. Specialization (in the context of project or public policy selection) means that the decision of each committee member is based on a narrow area, which typically results in the acquirement and use of relatively high expertise in that area. When the committee members’ expertise is already determined, specialization only means that the decision of each committee member is based solely on his/her relatively high …


Simulations, Filip Lievens, Britt De Coete Mar 2012

Simulations, Filip Lievens, Britt De Coete

Research Collection Lee Kong Chian School Of Business

Simulations represent more or less exact replicas of tasks, knowledge, skills, and abilities required in actual work behavior. This chapter reviews research on the more traditional high-fidelity simulations (i.e., assessment centers and work samples) and contrasts it with the growing body of research on low-fidelity simulations (i.e., situational judgment tests). Both types of simulations are compared in terms of the following five statements: “The use of simulations enables organizations to make predictions about a broader array of KSAOs,” “We don't know what simulations exactly measure,” “When organizations use simulations, the adverse impact of their selection system will be reduced,” “Simulations …


Us Government Efforts To Repair Its Image After The 2008 Financial Crisis, Andrea A. Chua, Augustine Pang Mar 2012

Us Government Efforts To Repair Its Image After The 2008 Financial Crisis, Andrea A. Chua, Augustine Pang

Research Collection Lee Kong Chian School Of Business

Globalization has intensified the interaction and interdependency among countries. The need to maintain good reputation and establish good relationships should dominate public diplomacy efforts (Hiebert, 2005). Using the US financial crisis 2008 as a case study, this study examines how the world's only superpower repaired its image when it was accused of triggering the financial meltdown that impacted the world economy. Few studies have examined repair strategies by nations. The need to undertake more empirical research to understand how the image-rebuilding rhetoric can aid diplomatic efforts remains relevant today.


Spillover Effects Of Ingredient Branded Strategies On Brand Choice: A Field Study, Swaminathan Vanitha, Srinivas K. Reddy, Sara Loughran Dommer Mar 2012

Spillover Effects Of Ingredient Branded Strategies On Brand Choice: A Field Study, Swaminathan Vanitha, Srinivas K. Reddy, Sara Loughran Dommer

Research Collection Lee Kong Chian School Of Business

Ingredient branding, or the use of two or more brand names on a single product, is widely seen as providing significant benefits in terms of increased product differentiation and greater market share. The association between two brand names can both enhance and dilute the brand equity of the host brand name and the ingredient brand name. This research examines the behavioral spillover effects associated with cobranded strategies across segments of consumers that vary in their prior brand commitment or loyalty. Different from previous research, this paper uses A.C. Nielsen scanner panel data to investigate the behavioral spillover effects of ingredient …


Becoming Aware Of The Unknown: Decision Making During The Implementation Of A Strategic Initiative, Ronald Klingebiel, Arnoud De Meyer Mar 2012

Becoming Aware Of The Unknown: Decision Making During The Implementation Of A Strategic Initiative, Ronald Klingebiel, Arnoud De Meyer

Research Collection Lee Kong Chian School Of Business

This qualitative study analyzes the decision-making process involved in adapting preconceived courses of action during the implementation of a strategic initiative. We observe that the type of decision-making process hinges on the nature of managers’ emerging awareness of future events. When managers become aware of new uncertainty, the process involves selectiveness, deliberateness, and diligence. By contrast, when managers become aware of new certainty, the process conforms to the problem-solving adhocracy and decision-making messiness emphasized in prior literature. We summarize our findings in a framework, proposing that decision-level differences in awareness and uncertainty can explain the observed variation in strategic decision-making …


Spin-Offs And Operating Performance, Gary L. Caton, Jeremy C. Goh, Frank Kerins Mar 2012

Spin-Offs And Operating Performance, Gary L. Caton, Jeremy C. Goh, Frank Kerins

Research Collection Lee Kong Chian School Of Business

This study examines the relation between changes in industry-adjusted operating performance associated with corporate spin-offs and the market’s assessment of the spin-off as either a value increasing or value decreasing activity. I find that the average change in industry-adjusted operating performance associated with my sample of spin-offs is not significantly different from zero. However, I also present evidence suggesting that this average result is misleading because some spin-offs appear to be value increasing while others are value decreasing. I establish that a positive and significant relation exists between parent company revaluation and a) the change in industry-adjusted operating performance of …


Business And Data Analytics: New Innovations In The Management Of E-Commerce, Robert J. Kauffman, Jaideep Srivastava, Jamshid Vayghan Mar 2012

Business And Data Analytics: New Innovations In The Management Of E-Commerce, Robert J. Kauffman, Jaideep Srivastava, Jamshid Vayghan

Research Collection School Of Computing and Information Systems

The success of many different kinds of e-business operations depends on data and information, and how they are used to optimize operations, drive sales and marketing, and grow the business. The ability to manage and safeguard data as a strategic asset, transform it into actionable information, and use it as a strategic differentiator is a key contributor to the success of any business operation. What makes this an even more interesting challenge is the speed at which data have been growing in recent years, due to social networking, the Internet, mobile telephony and all kinds of new technologies that create …


Enhancing Internal Communications: How Microsoft Cuts Through The Clutter, Singapore Management University Feb 2012

Enhancing Internal Communications: How Microsoft Cuts Through The Clutter, Singapore Management University

Perspectives@SMU

How do you communicate with 5,000 employees across 17 countries in a simple yet effective and compelling way? This was a question that Jovina Ang had to answer back in 2010, when she joined Microsoft Services Asia as marketing communications director.