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Articles 4951 - 4980 of 6939

Full-Text Articles in Business

Executive Equity Compensation And Earnings Management: A Quantile Regression Approach, Chih-Ying Chen, Ming-Yuan Li Jul 2011

Executive Equity Compensation And Earnings Management: A Quantile Regression Approach, Chih-Ying Chen, Ming-Yuan Li

Research Collection School Of Accountancy

Prior research has investigated the association between executive equity compensation and earnings management but the evidence is not conclusive. We investigate this question using the quantile regression approach which allows the coefficient on the independent variable (equity compensation) to shift across the distribution of the dependent variable (earnings management). Based on a sample of 18,203 U.S. non-financial firm-year observations from 1995 to 2008, we find that chief executive officer (CEO) equity compensation is positively associated with the absolute value of discretionary accruals at all quantiles of absolute discretionary accruals, but the association becomes weaker as the quantile decreases. The association …

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Sme Inc: Corporate Success And Social Good, Paul Lim, Brendan Barrett, Nils Steinbrecher, Tomoki Fujii, Ted Tschang, Lieven Demeester Jul 2011

Sme Inc: Corporate Success And Social Good, Paul Lim, Brendan Barrett, Nils Steinbrecher, Tomoki Fujii, Ted Tschang, Lieven Demeester

Research Collection School Of Economics

Panel of experts share their views ranging from the definition of sustainable business to how governments should lead by example.

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Do Merger-Related Operating Synergies Exist?, Gennaro Bernile, Scott W. Bauguess Jul 2011

Do Merger-Related Operating Synergies Exist?, Gennaro Bernile, Scott W. Bauguess

Research Collection Lee Kong Chian School Of Business

Executives frequently forecast large operating efficiency gains from mergers. Using these projections, we study the impact of operating synergies on merger performance. Investors' reaction to mergers varies directly with the availability of these forecasts and the gains they imply, and post-merger operating performance increases with the predictable component of forecasted synergies based on deal characteristics. The realized improvements, however, do not depend on the availability of forecasts or the surprise they convey, and post-merger stock returns reconcile discrepancies between investors' ex ante beliefs and mergers' ex post performance related to management forecasts. Overall, the evidence supports the neoclassical view that …

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Regret Aversion In Reason-Based Choice, Terry Connolly, Jochen Reb Jul 2011

Regret Aversion In Reason-Based Choice, Terry Connolly, Jochen Reb

Research Collection Lee Kong Chian School Of Business

This research examines the moderating role of regret aversion in reason-based choice. Earlier research has shown that regret aversion and reason-based choice effects are linked through a common emphasis on decision justification, and that a simple manipulation of regret salience can eliminate the decoy effect, a well-known reason-based choice effect. We show here that the effect of regret salience varies in theory-relevant ways from one reason-based choice effect to another. For effects such as the select/reject and decoy effect, both of which were independently judged to be unreasonable bases for deciding, regret salience eliminated the effect. For the most-important attribute …

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Asset Performance Evaluation With Mean-Variance Ratio, Zhidong Bai, Kok Fai Phoon, Keyan Wang, Wing-Keung Wong Jul 2011

Asset Performance Evaluation With Mean-Variance Ratio, Zhidong Bai, Kok Fai Phoon, Keyan Wang, Wing-Keung Wong

Research Collection Lee Kong Chian School Of Business

Bai, et al. (2011c) develop the mean-variance-ratio (MVR) statistic to test the performance among assets for small samples. They provide theoretical reasoning to use MVR and prove that our proposed statistic is uniformly most powerful unbiased. In this paper we illustrate the superiority of our proposed test over the Sharpe ratio (SR) test by applying both tests to analyze the performance of Commodity Trading Advisors (CTAs). Our findings show that while the SR test concludes most of the CTA funds being analyzed as being indistinguishable in their performance, our proposed statistics show that some funds outperform the others. On the …

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Size And Return: A New Perspective, Fangjian Fu, Wei Yang Jul 2011

Size And Return: A New Perspective, Fangjian Fu, Wei Yang

Research Collection Lee Kong Chian School Of Business

We document robust empirical evidence that, after controlling for idiosyncratic volatility, large stocks earn significantly higher returns than small stocks. Our empirical results indicate that idiosyncratic volatility is positively related to return, but negatively related to size. Hence, failure to control for idiosyncratic volatility generates a downward omitted variable bias and leads to the widely documented negative relation between size and return. We explain the two contrasting size-return relations, with and without the control for idiosyncratic volatility, in a parsimonious equilibrium model that incorporates three empirical regularities: some individual investors are under-diversified; small stocks have higher idiosyncratic volatilities than large …

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Political Connection And Firm Value, James S. Ang, David K. Ding, Tiong Yang Thong Jul 2011

Political Connection And Firm Value, James S. Ang, David K. Ding, Tiong Yang Thong

Research Collection Lee Kong Chian School Of Business

We study the effect of political connection (PC) on company value in an environment where low PC is due to better institutions and not confounded by favorable social/cultural factors. We find that in Singapore, the only country that fits this description, PC in general adds little to the value of a company. However, in industries that are subject to more stringent government regulations, PC appears to be somewhat important. Robustness checks show that alternative PC variables give rise to similar results, and the addition of control variables do not drastically change the findings. Politically connected firms have higher managerial ownership …

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"Now My Eyes Have Seen You": A Comparative Study Of Secret Sunshine And The Book Of Job, Teng-Kuan Ng Jul 2011

"Now My Eyes Have Seen You": A Comparative Study Of Secret Sunshine And The Book Of Job, Teng-Kuan Ng

Research Collection College of Integrative Studies

This essay engages in a comparative study of Lee Chang-Dong's Secret Sunshine (2007) in light of the biblical book of Job, focusing on issues of grief, recovery, and theodicy. Drawing from perspectives in philosophical, mystical, and pastoral theology, three allegorical interpretations of the film's title are suggested. The eponymous “secret sunshine” adumbrates, first, the female protagonist Shin-Ae's hidden journey toward her true self, a self in which the theological virtues of faith and love are mystically internalized. Second, it intimates the quiet, unobtrusive presence of an emphatic Immanuel in the figure of Jong-Chan, the film's male protagonist. Finally, through a …

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Securing Human Rights In Business, Mahdev Mohan, Delphia Lim Jun 2011

Securing Human Rights In Business, Mahdev Mohan, Delphia Lim

2008 Asian Business & Rule of Law initiative

No abstract provided.

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Managing Risk In A Failing It Project: A Social Constructionist View, Wee-Kiat Lim, Siew Kien Sia, Adrian Yeow Jun 2011

Managing Risk In A Failing It Project: A Social Constructionist View, Wee-Kiat Lim, Siew Kien Sia, Adrian Yeow

CCX Research

Why do IT projects continue to stumble, despite the proliferation of risk management methodologies and a growing body of knowledge on project risk assessment and mitigation? In this paper, we propose an alternative theoretical perspective that views project risk as a social construction process shaped by the risk accounts of social groups and actors within an implementation context. Risk management is embedded in the social processes where risks are negotiated and contested, with some risk accounts amplified and some attenuated. Through the analysis of a large IT implementation in an Asian logistics firm and its trajectory of successive crises, we …

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Firm Structure And Corporate Cash Holdings, Venkat Subramaniam, Tony Tang, Heng Yue, Xin Zhou Jun 2011

Firm Structure And Corporate Cash Holdings, Venkat Subramaniam, Tony Tang, Heng Yue, Xin Zhou

Research Collection School Of Accountancy

We analyze whether the organizational structure of firms (i.e., whether a firm is diversified or focused) affects their cash holdings. Using Compustat firm level and segment-level data, we find that diversified firms hold significantly less cash than their focused counterparts. Our results are robust to industry adjustments at the segment level and to different factors previously found to be important determinants of cash holdings. Using time-series, cross-sectional, and additional robustness tests we are able to attribute the lower cash holdings among diversified firms to complementary growth opportunities across the different segments of these firms and the availability of active internal …

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Digitisation's Impacts On Publics: Public Knowledge And Civic Conversation, Alessandro Lovari, Soojin Kim, Kelly Vibber, Jeong-Nam Kim Jun 2011

Digitisation's Impacts On Publics: Public Knowledge And Civic Conversation, Alessandro Lovari, Soojin Kim, Kelly Vibber, Jeong-Nam Kim

Research Collection Lee Kong Chian School Of Business

This paper proposes a new way of classifying publics in terms of their adoption and use of digitalised communication technologies. A CATI (computer aided telephone interview) survey of 1,014 citizens revealed that people in Siena, Italy, show different patterns and gaps in adopting new media and technologies as well as in using them in their civic participation and engagement. Based on the survey results, four types of publics are suggested (inactive, analogical, hybrid, and digital publics) and a demographic profile of each public including age, gender, and education is provided. The relationships among public types, level of education, and gender …

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Cio Reporting Structure, Strategic Positioning, And Firm Performance, Rajiv D Banker, Nan Hu, Paul A Pavlou, Jerry Luftman Jun 2011

Cio Reporting Structure, Strategic Positioning, And Firm Performance, Rajiv D Banker, Nan Hu, Paul A Pavlou, Jerry Luftman

Research Collection School Of Computing and Information Systems

Almost 30 years after the introduction of the CIO position, the ideal CIO reporting structure (whether the CIO should report to the CEO or the CFO) is yet to be identified. There is an intuitive assumption among some proponents of IT that the CIO should always report to the CEO to promote the importance of IT and the CIO's clout in the firm, while some adversaries of IT call for a CIO—CFO reporting structure to keep a tab on IT spending. However, we challenge these two ad hoc prescriptions by arguing that neither CIO reporting structure is necessarily optimal, and …

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The Impact Of Transnational Intellectual Property Rights On Firms’ Knowledge Formation: Evidence From China-Us Patent Dyads, Kenneth Guang-Lih Huang Jun 2011

The Impact Of Transnational Intellectual Property Rights On Firms’ Knowledge Formation: Evidence From China-Us Patent Dyads, Kenneth Guang-Lih Huang

Research Collection Lee Kong Chian School Of Business

As firms and organizations increasingly operate and conduct R&D in emerging economies, “transnational patenting” – patenting of the same invention across more than one country – is becoming the cornerstone of their intellectual property strategy. Drawing on works from signaling theory and intellectual property strategy, I examine the dynamics and impact of transnational patenting on technological knowledge formation across distinct intellectual property right (IPR) institutions. Using a novel dataset of 4226 China-US patent dyads covering 1104 firms and organizations, I find patent grant to technological invention under a weak IPR institution such as China significantly increases (by up to 108%) …

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Adverse Selection And Corporate Governance, Charlie Charoenwong, David K. Ding, Vasan Siraprapasiri Jun 2011

Adverse Selection And Corporate Governance, Charlie Charoenwong, David K. Ding, Vasan Siraprapasiri

Research Collection Lee Kong Chian School Of Business

This paper examines the impact of corporate governance on the adverse selection component of the bid-ask spread of stocks listed on the Singapore Exchange. These companies have been identified by Credit Lyonnais Securities Asia (CSLA) with the highest level of corporate governance among 25 emerging markets. We measure corporate governance by several criteria: discipline, transparency, independence, accountability, responsibilities, fairness, and social awareness. The results show that corporate governance has an inverse relationship with adverse selection. However, only the transparency dimension exhibits a significant inverse relationship with adverse selection. In addition, Government-Linked Companies (GLCs) are shown to have a smaller adverse …

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Sec Rule 105 And Price Discovery In The Secondary Market, C. Charoenwong, David K. Ding, P. Wang Jun 2011

Sec Rule 105 And Price Discovery In The Secondary Market, C. Charoenwong, David K. Ding, P. Wang

Research Collection Lee Kong Chian School Of Business

No abstract provided.

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Financial Hedging Decision On Procurement Risk For Newsvendor Model With Value-At-Risk Constraint, Yuan Wen, Qing Ding, Jian Chen Jun 2011

Financial Hedging Decision On Procurement Risk For Newsvendor Model With Value-At-Risk Constraint, Yuan Wen, Qing Ding, Jian Chen

Research Collection Lee Kong Chian School Of Business

Manufacturers must now deal with increasingly fluctuating procurement prices for commodities and industrial component parts. However, it is hard for them to pass cost increases on to downstream markets efficiently. Therefore, manufacturers have sought to solve this problem with various supply management tactics. While vertical integration of key suppliers or signing long-term contracts is possible, financial hedging emerges as the most effective approach to counter commodities price risks. In situations where market demand uncertainty is still unresolved and often interplays with upstream price volatilities, Value-at-Risk (VaR) can help managers handle the multi-fold uncertainties and their potential interactions, by effectively measuring …

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Corporate Tax Avoidance And Stock Price Crash Risk: Firm-Level Analysis, Jeong-Bon Kim, Yinghua Li, Liandong Zhang Jun 2011

Corporate Tax Avoidance And Stock Price Crash Risk: Firm-Level Analysis, Jeong-Bon Kim, Yinghua Li, Liandong Zhang

Research Collection School Of Accountancy

Using a large sample of U.S. firms for the period 1995-2008, we provide strong and robust evidence that corporate tax avoidance is positively associated with firm-specific stock price crash risk. This finding is consistent with the following view: Tax avoidance facilitates managerial rent extraction and bad news hoarding activities for extended periods by providing tools, masks, and justifications for these opportunistic behaviors. The hoarding and accumulation of bad news for extended periods lead to stock price crashes when the accumulated hidden bad news crosses a tipping point, and thus comes out all at once. Moreover, we show that the positive …

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An Analysis Of Japanese Earnings Forecast Revisions With Application To Seasoned Equity Offerings, Gary L. Caton, Justin S. P. Chan, Jeremy C. Goh, Sheng Yung Yang Jun 2011

An Analysis Of Japanese Earnings Forecast Revisions With Application To Seasoned Equity Offerings, Gary L. Caton, Justin S. P. Chan, Jeremy C. Goh, Sheng Yung Yang

Research Collection Lee Kong Chian School Of Business

Using the bootstrap method, we explore the characteristics of revisions in Japanese earnings forecast data. We find that forecast revisions exhibit a downward trend over time as the actual earnings announcement date approaches, and are serially correlated with three significant lags. Using these characteristics we develop a model to estimate abnormal forecast revisions, and illustrate the model's use with a sample of Japanese companies announcing seasoned equity offerings (SEOs). In contrast to results obtained by studies using American data, our findings indicate significant positive upward revisions when Japanese firms announce an SEO.

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Valuation Of Risky Projects And Other Illiquid Investments Using Portfolio Selection Models, Janne Gustafsson, Bert De Reyck, Zeger Degraeve, Ahti Salo Jun 2011

Valuation Of Risky Projects And Other Illiquid Investments Using Portfolio Selection Models, Janne Gustafsson, Bert De Reyck, Zeger Degraeve, Ahti Salo

Research Collection Lee Kong Chian School Of Business

We develop a portfolio selection framework for the valuation of projects and other illiquid investments for an investor who can invest in a portfolio of private, illiquid investment opportunities as well as in securities in financial markets, but who cannot necessarily replicate project cash flows using financial instruments. We demonstrate how project values can be solved using an inverse optimization procedure and prove several general analytical properties for project values. We also provide an illustrative example on the modeling and pricing of multiperiod projects that are characterized by managerial flexibility.

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A Martingale Approach For Testing Diffusion Models Based On Infinitesimal Operator, Zhaogang Song Jun 2011

A Martingale Approach For Testing Diffusion Models Based On Infinitesimal Operator, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

I develop an omnibus specification test for diffusion models based on the infinitesimal operator. The infinitesimal operator based identification of the diffusion process is equivalent to a “martingale hypothesis” for the processes obtained by a transformation of the original diffusion model. My test procedure is then constructed by checking the “martingale hypothesis” via a multivariate generalized spectral derivative based approach that delivers a  asymptotical null distribution for the test statistic. The infinitesimal operator of the diffusion process is a closed-form function of drift and diffusion terms. Consequently, my test procedure covers both univariate and multivariate diffusion models in a unified …

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Publishing In Amj: Part 1: Topic Choice: From The Editors, Jason A. Colquitt, Gerard George Jun 2011

Publishing In Amj: Part 1: Topic Choice: From The Editors, Jason A. Colquitt, Gerard George

Research Collection Lee Kong Chian School Of Business

The authors reflect on the criteria of effective topics that get published in the journal. They state that effective topics allow researchers to pursue an interesting direction that ignites and maintains curiosity, uncovers actionable insights, and builds an ambitious study. They talk about several topics that had an ambitious scope, such an an examination of social capital and career success, and topics that touch upon multiple perspectives. They recommend against topics that are too familiar.

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Earnings Management Surrounding Seasoned Bond Offerings: Do Managers Mislead Ratings Agencies And The Bond Market, Gary L. Gaton, Chiraphol New Chiyachantana, Choong Tze Chua, Jeremy Goh Jun 2011

Earnings Management Surrounding Seasoned Bond Offerings: Do Managers Mislead Ratings Agencies And The Bond Market, Gary L. Gaton, Chiraphol New Chiyachantana, Choong Tze Chua, Jeremy Goh

Research Collection Lee Kong Chian School Of Business

We study earnings management (EM) efforts surrounding seasoned bond offerings using discretionary current accruals. We find that issuers tend to inflate earnings performance prior to an offering. In order for EM efforts to effectively mislead ratings agencies and the bond market, they must lead to inflated bond ratings and decreased offering yields. Regression results indicate the opposite; aggressive EM efforts are associated with lower initial ratings and higher offering yields. We also find a statistically lower proportion of subsequent downgrades for firms with the most aggressive EM efforts, which is inconsistent with these firms’ inflated initial ratings. While some firms …

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Investor Heterogeneity, Investor-Management Agreement And Open Market Share Repurchase, Sheng Huang, Anjan V. Thakor Jun 2011

Investor Heterogeneity, Investor-Management Agreement And Open Market Share Repurchase, Sheng Huang, Anjan V. Thakor

Research Collection Lee Kong Chian School Of Business

This paper develops and tests a new theoretical explanation for why a firm conducts open-market stock repurchases. Investors may disagree with the manager about the firm’s investment projects. A repurchase causes a change in the investor base as investors who are more likely to disagree with the manager tender their shares. This model leads to the following predictions: first, a firm is more likely to buy back shares when the level of investor-management agreement is low, and second, the level of agreement improves following a repurchase. Our empirical tests provide strong support for these predictions. The results are robust to …

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A Quality Metric For Sustainable Innovations, Arcot Desai Narasimhalu Jun 2011

A Quality Metric For Sustainable Innovations, Arcot Desai Narasimhalu

Research Collection School Of Computing and Information Systems

Sustainability has become a major concern for nations and firms especially since the Kyoto Protocol was defined in 1997. While there have been several studies on benchmarks for national innovation systems and effectiveness of innovation management within firms there is as yet no reasonable metric for determining the quality of an innovation much less its quality relating to sustainability? Similarly, there have been several studies on sustainability but that such research groups have also not focused on developing a metric for denoting the quality of sustainable innovations. This paper offers a metric that defines the quality of an innovation, especially …

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The Implications Of Sovereign Wealth Fund Investment On Capital Markets: A Bottom-Up View, David Fernandez Jun 2011

The Implications Of Sovereign Wealth Fund Investment On Capital Markets: A Bottom-Up View, David Fernandez

Research Collection Lee Kong Chian School Of Business

The buzz around sovereign wealth funds has been turned down a notch, but they remain a hot topic. The accusations of sovereign wealth funds having hidden agendas remain, but with the very public losses suffered by some during the recent financial turmoil, such talk has even less credibility. And given that most of those losses were from investments in US, UK, and European financial institutions, hope that sovereign wealth funds would be the saviors of Wall Street has also faded. At its base, four trends continue to keep sovereign wealth funds in focus. First, there is the phenomenal rise of …

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A Macro Perspective To Micro Issues, Devasheesh P. Bhave, Stephane Brutus Jun 2011

A Macro Perspective To Micro Issues, Devasheesh P. Bhave, Stephane Brutus

Research Collection Lee Kong Chian School Of Business

Comments on an article by Elaine D. Pulakos and Ryan S. O'Leary. The authors argue that bringing the focus on the relationship between the manager and the employee will mend performance management. We concur with the broad assessment that an excessive focus on technical improvements in performance management systems is misplaced and that implementation issues plague performance management. But we believe that poor implementation is an operational challenge not because of the practice itself but rather on account of misalignment. They also allude to a consideration of alignment. They also glosses over the issue of internal alignment or the fact …

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Embeddedness And New Idea Discussion In Professional Networks: The Mediating Role Of Affect-Based Trust, Roy Y. J. Chua, Michael W. Morris, Paul Ingram Jun 2011

Embeddedness And New Idea Discussion In Professional Networks: The Mediating Role Of Affect-Based Trust, Roy Y. J. Chua, Michael W. Morris, Paul Ingram

Research Collection Lee Kong Chian School Of Business

This article examines how managers' tendency to discuss new ideas with others in their professional networks depends on the density of shared ties surrounding a given relationship. Consistent with prior research which found that embeddedness enhances information flow, an egocentric network survey of mid-level executives shows that managers tend to discuss new ideas with those who are densely embedded in their professional networks. More specifically, embeddedness increases the likelihood to discuss new ideas by engendering affect-based trust, as opposed to cognition-based trust. Implications for network and creativity research are discussed.

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Relation-Specific Creative Performance In Voluntary Collaborations: A Micro-Foundation For Competitive Advantage?, Terence Ping Ching Fan, Duncan Robertson Jun 2011

Relation-Specific Creative Performance In Voluntary Collaborations: A Micro-Foundation For Competitive Advantage?, Terence Ping Ching Fan, Duncan Robertson

Research Collection Lee Kong Chian School Of Business

A fundamental question in the strategy literature is how sustainable competitive advantage can be generated within one firm and yet difficult to copy by another. We offer one solution to this conundrum by way of relation-specific performance that is developed in creative projects – where the individuals involved have significant latitude on the intended objectives as well as their collaborators on these projects. Because higher-level cognition is involved in navigating such projects from conception to implementation, there is heightened relation-specificity in their performance – as measured by how widely they are adopted by third-party users. This relationspecificity means that any …

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Internationalizing Through Franchising - Singapore's Gambits In The Gcc: Mining The Silver Around The Gold, Caroline Yeoh, Joses Wong Jun 2011

Internationalizing Through Franchising - Singapore's Gambits In The Gcc: Mining The Silver Around The Gold, Caroline Yeoh, Joses Wong

Research Collection Lee Kong Chian School Of Business

No abstract provided.

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