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Full-Text Articles in Business

Empirical Evidences On Risk-Taking And Performance Of Mutual Fund, Jingchang Lu Jan 2009

Empirical Evidences On Risk-Taking And Performance Of Mutual Fund, Jingchang Lu

Dissertations and Theses Collection (Open Access)

This paper examines the relationship between performance and risk exposure for mutual funds. The preliminary analysis fails to support the tournament hypothesis, which predicts that poorly performing managers will increase risk exposure while outperforming managers will decrease risk exposure. Instead, we find evidence of risk reduction for extreme losers and risk increase for winning managers. Besides, the risk-taking fails to align manager interest with shareholder interest since the returns from the risk enhancement by winners and the risk reduction by losers is relatively worse than those with contradictory strategies. Overall, the competition among fund managers appears to affect management risk …


International Evidence On Analyst Monitoring And Earnings Management: The Roles Of Corporate Disclosure And National Culture, Soongsoo Han, Tony Kang, Gerald Lobo, Yong Keun Yoo Jan 2009

International Evidence On Analyst Monitoring And Earnings Management: The Roles Of Corporate Disclosure And National Culture, Soongsoo Han, Tony Kang, Gerald Lobo, Yong Keun Yoo

Research Collection School Of Accountancy

We examine country-level determinants of private information search incentives, and whether analysts’ role in constraining managers’ opportunistic earnings management varies across countries. In a sample of 31,312 firm-year observations originating from 30 countries, we document that: (1) analyst coverage is negatively (positively) related to the level of corporate disclosure (how secretive the national culture is); (2) the negative association between analyst coverage and earnings management is observed in stronger investor protection countries but not in weaker investor protection countries; and (3) analyst monitoring fails to mitigate culturedriven earnings manipulations in countries with more individualistic and uncertainty-tolerant cultures. Taken together, financial …


The Importance Of Exercise And Dimension Factors In Assessment Centers: Simultaneous Examinations Of Construct-Related And Criterion-Related Validity, Filip Lievens, Stephan Dilchert, Deniz S. Ones Jan 2009

The Importance Of Exercise And Dimension Factors In Assessment Centers: Simultaneous Examinations Of Construct-Related And Criterion-Related Validity, Filip Lievens, Stephan Dilchert, Deniz S. Ones

Research Collection Lee Kong Chian School Of Business

This study presents a simultaneous examination of multiple evidential bases of the validity of assessment center (AC) ratings. In particular, we combine both construct-related and criterion-related validation strategies in the same sample to determine the relative importance of exercises and dimensions. We examine the underlying structure of ACs in terms of exercise and dimension factors while directly linking these factors to a work-related criterion (salary). Results from an AC (N = 753) showed that exercise factors not only explained more variance in AC ratings than dimension factors but also were more important in predicting salary. Dimension factors explained a smaller …


The Emergence Of Justice Climate In Groups, Teams, And Organizations: A Theory Of Multilevel Information Aggregation And Judgment, D. Rupp, Elizabeth Layne Paddock Jan 2009

The Emergence Of Justice Climate In Groups, Teams, And Organizations: A Theory Of Multilevel Information Aggregation And Judgment, D. Rupp, Elizabeth Layne Paddock

Research Collection Lee Kong Chian School Of Business

We outline a theoretical model of the emergence of justice climate in groups, teams, and organizations, and in doing so integrate multiple justice perspectives (e.g., affective events, fairness heuristic, deonance, justice integration, multifoci justice, overall justice). We propose that justice climate is spawned at the event level, where individuals use their emotional reactions to situations as information in forming fairness judgments. Over time, these judgments about various perpetrators--which may include the evaluation of outcomes, procedures, information, and interpersonal treatment--are aggregated to form individual-level stable judgments regarding the fairness of exchange partners with whom employees interact (e.g., supervisors, co-workers, customers). Through …


Trust In Coworkers And Trust In Organizations, Hwee Hoon Tan, Augustine K. H. Lim Jan 2009

Trust In Coworkers And Trust In Organizations, Hwee Hoon Tan, Augustine K. H. Lim

Research Collection Lee Kong Chian School Of Business

The authors proposed a modified model of organizational trust that incorporates trust in 2 foci: coworkers and organizations. They found a relation between the 2 foci. The authors also found that trust in organizations mediates the relation between trust in coworkers and organizational outcomes of affective commitment and performance. These findings suggest that it would be meaningful to examine the relations between other foci of trust to better understand how different domains interact and how such exchanges eventually lead to desired organizational outcomes.


Case Studies For Teaching Stylistics For Business Communication, Siow-Heng Ong Jan 2009

Case Studies For Teaching Stylistics For Business Communication, Siow-Heng Ong

Research Collection Lee Kong Chian School Of Business

The employment of stylistics can influence the effectiveness of a brochure, pamphlet, press release and other forms of business communication dramatically. When we consider that the language used to formulate the texts of these publicity materials has the potential to generate hundreds of thousands of dollars in sales, we do well to pay attention to how stylistics can be applied persuasively. This paper provides a theoretical framework for the mother of all stylistics, the metaphor. Examples of how metaphors are used to persuade are then discussed in prominent speeches and other texts. Finally, analytical and constructive assignments are posed and …


A Transformational Model Of Legal-Claiming, B. M. Goldman, Elizabeth Layne Paddock, R. Cropanzano Jan 2009

A Transformational Model Of Legal-Claiming, B. M. Goldman, Elizabeth Layne Paddock, R. Cropanzano

Research Collection Lee Kong Chian School Of Business

This paper proposes a model of legal-claiming based on the transformational approach to disputes detailed by Felstiner et al. The model suggest disputes evolve, with a number of areas of organizational behavior providing explanations for individual disputant actions at specific points in time, including self-categorization theory, attribution theory, social accounts, organizational justice, conflict escalation, and social information processing. Multiple propositions relating to legal-claiming were also developed that were inductively derived from in-depth interviews with 38 employees who filed employment-discrimination claims with the federal Equal Employment Opportunity Commission. Propositions focus on various stages of the dispute, including naming, blaming, claiming, and …


Modeling The Impact Of Test Anxiety And Test Familiarity On The Criterion-Related Validity Of Cognitive Ability Tests, Charlie L. Reeve, Eric D. Heggestad, Filip Lievens Jan 2009

Modeling The Impact Of Test Anxiety And Test Familiarity On The Criterion-Related Validity Of Cognitive Ability Tests, Charlie L. Reeve, Eric D. Heggestad, Filip Lievens

Research Collection Lee Kong Chian School Of Business

The assessment of cognitive abilities, whether it is for purposes of basic research or applied decision making. is potentially susceptible to both facilitating and debilitating influences. However, relatively little research has examined the degree to which these factors might moderate the criterion-related validity of cognitive ability tests. To address this gap, we use Classical Test Theory formulas to articulate how test anxiety and test familiarity can influence observed scores, observed score variance, and most importantly, the criterion-related validity of observed scores. The resulting equations reveal that understanding the influence of test anxiety and test familiarity on criterion-related validity coefficients requires …


Business Schools: Positioning, Rankings, Research And Futures, Howard Thomas Jan 2009

Business Schools: Positioning, Rankings, Research And Futures, Howard Thomas

Research Collection Lee Kong Chian School Of Business

In a recent paper (Thomas, 2007) I noted that, despite the undoubted success of business schools and particularly MBA programmes (Antunes and Thomas, 2007, p. 382), there has been considerable discussion about the purpose of business schools in modern universities. Indeed, I pointed out (Thomas, 2007, p. 9) that business schools “currently face an image and identity crisis and have been subject to a wide range of critical reviews about their societal status as academic and professional schools”. Bennis and O’Toole (2005); Ghoshal (2005); Pfeffer and Fong (2004); and Mintzberg and Gosling (2002) have suggested that business schools are too …


Ontology-Based Business Process Customization For Composite Web Services, Qianhui (Althea) Liang, Xindong Wu, E. K. Park, T. Khoshgoftaar, C. Chi Jan 2009

Ontology-Based Business Process Customization For Composite Web Services, Qianhui (Althea) Liang, Xindong Wu, E. K. Park, T. Khoshgoftaar, C. Chi

Research Collection School Of Computing and Information Systems

A key goal of the Semantic Web is to shift social interaction patterns from a producer-centric paradigm to a consumer-centric one. Treating customers as the most valuable assets and making the business models work better for them are at the core of building successful consumer-centric business models. It follows that customizing business processes constitutes a major concern in the realm of a knowledge-pull-based human semantic Web. This paper conceptualizes the customization of service-based business processes leveraging the existing knowledge of Web services and business processes. We represent this conceptualization as a new Extensible Markup Language (XML) markup language Web Ontology …


Integrated Resource Allocation And Scheduling In Bidirectional Flow Shop With Multi-Machine And Cos Constraints, Hoong Chuin Lau, Zhengyi Zhao, Shuzhi Sam Ge Jan 2009

Integrated Resource Allocation And Scheduling In Bidirectional Flow Shop With Multi-Machine And Cos Constraints, Hoong Chuin Lau, Zhengyi Zhao, Shuzhi Sam Ge

Research Collection School Of Computing and Information Systems

An integer programming (IP) model is proposed for integrated resource allocation and operation scheduling for a multiple job-agents system. Each agent handles a specific job-list in a bidirectional flowshop. For the individual agent scheduling problem, a formulation is proposed in continuous time domain and compared with an IP formulation in discrete time domain. Of particular interest is the formulation of the machine utilization function-- both in continuous time and discrete time. Fast heuristic methods are proposed with the relaxation of the machine capacity. For the integrated resource allocation and scheduling problem, a linear programming relaxation approach is applied to solve …


Chaos And Uncertainty, M. Thulasidas Jan 2009

Chaos And Uncertainty, M. Thulasidas

Research Collection School Of Computing and Information Systems

The end of 2008 in the finance industry can be summarized in two words – chaos and uncertainty. The subprime crisis, where everybody lost; the dizzying commodity price movements; the pink slip syndrome; the spectacular bank busts; and the gargantuan bail-outs all vouch for it.


A Metaheuristic For The Pickup And Delivery Problem With Split-Loads And Its Extension, Dai Yao Jan 2009

A Metaheuristic For The Pickup And Delivery Problem With Split-Loads And Its Extension, Dai Yao

Dissertations and Theses Collection (Open Access)

In this dissertation, we study improvements in the Pickup and Delivery Problem that can be achieved by allowing multiple vehicle trips to serve a common load. We explore how costs can be reduced through the elimination of the constraint that a load must be served by only one vehicle trip. Specifically, we investigate the problem of routing vehicles to serve loads that have distinct origins and destinations, with no constraint on the amount of a load that a vehicle may serve at a time. We develop a metaheuristic to solve large scale practical size problems in this form and apply …


Acquisitions Driven By Stock Overvaluation, Leming Lin Jan 2009

Acquisitions Driven By Stock Overvaluation, Leming Lin

Dissertations and Theses Collection (Open Access)

Overvaluation might drive a firm to use its stock to acquire another firm whose stock is not as overpriced. Though hypothetically desirable, these acquisitions create little, if any, value for acquirer shareholders. Two factors impede value creation for acquirer stockholders from these transactions (despite large differences in relative overvaluation at announcement): acquirers paying large premiums to targets, and investors' correction of acquirer overvaluation during the bid period. Furthermore, acquirer CEOs obtain a large amount of new stock and option grants after acquisitions and realize a net gain in wealth, further suggesting that equity overvaluation increases agency costs and the resulting …


Does Morningstar Shine In The Universe Of Mutual Funds? A Study On Morningstar Mutual Fund Ratings, Wee Seng Ng Jan 2009

Does Morningstar Shine In The Universe Of Mutual Funds? A Study On Morningstar Mutual Fund Ratings, Wee Seng Ng

Dissertations and Theses Collection (Open Access)

Using data from Morningstar Principia CDs and employing standard methodologies, we examine the extent to which two mutual fund ratings: Morningstar star ratings and Morningstar stewardship grades can predict future fund performance. In particular, we investigate whether the combined predictive power of the two ratings exceeds that of a single rating. We decompose funds into various groups characterized by fund age and fund categories in order to address such issues as whether predictive performance is uniform across characteristic-based groups. Although our analysis shows that none of the ratings alone possesses strong predictive power, there is statistical evidence to support the …


Does Vc Reputation Affect Function Of Lockup Agreement?, Kejia He Jan 2009

Does Vc Reputation Affect Function Of Lockup Agreement?, Kejia He

Dissertations and Theses Collection (Open Access)

Instead of perceiving lockup agreement and VC-backing as exogenous variables, this paper employs the VC-backed IPO data and takes a closer examination on the specific effect of VC reputation, which impacts the choice of lockup length and return and volume abnormality around lockup expiry. Contrary to the commitment hypothesis proposed by previous literatures, the data suggests that less VC-backed companies tend to choose a longer lockup agreement as a compensation device and those companies backed by more reputable VC experience less negative abnormal return and less abnormal volume around lockup expiry.


Entrepreneurial Competencies As An Entrepreneurial Distinctive: An Examination Of The Competency Approach In Defining Entrepreneurs, Xiang Li Jan 2009

Entrepreneurial Competencies As An Entrepreneurial Distinctive: An Examination Of The Competency Approach In Defining Entrepreneurs, Xiang Li

Dissertations and Theses Collection (Open Access)

Entrepreneurship is of critical importance to the modern economy. Researchers have studied entrepreneurship for decades. In recent years, significant relationship between entrepreneurial competencies and firm performance has been reported in empirical studies. Applying the competency approach, researchers have assumed that entrepreneurial competency differentiates entrepreneurs from non-entrepreneurs without empirically examining if this is the case. The research conducted under this thesis addresses this gap. Drawing upon a thorough literature review regarding the components, antecedents and performance outcomes of the entrepreneurial competency, we propose the following hypothesis: the entrepreneurs generally possess higher level of entrepreneurial competencies than the non-entrepreneurs, and the entrepreneurs …


Expected Equity Option Returns, Xue Zhang Jan 2009

Expected Equity Option Returns, Xue Zhang

Dissertations and Theses Collection (Open Access)

Substantial progress has been made in investigating `Overpriced Puts Puzzle' which exists in index futures options. However, scarce studies focus on whether single-stock options also have similar problems. This thesis analyzes the returns of individual stocks' calls, puts, and their portfolios, both theoretically and empirically. Adopting the methodology of Broadie, Chernov, and Johannes (2008), I find that (1) calls have positive expected returns while puts have negative expected returns. The expected returns of both calls and puts are increasing in the strike price. (2) CAPM alphas and Sharpe ratios are reasonable for calls options, but they are too negative for …


Has The Introduction Of Bookbuilding Increased The Efficiency Of China's Ipo Pricing?, Jiehui Fei Jan 2009

Has The Introduction Of Bookbuilding Increased The Efficiency Of China's Ipo Pricing?, Jiehui Fei

Dissertations and Theses Collection (Open Access)

Book-building is commonly adopted in global primary markets and regarded as the most efficient pricing method for accurate IPO pricing by literatures. China has introduced book-building in 2005 to increase IPO pricing accuracy and the capabilities of domestic institutional investors. However, with the current IPO data from China, I find the level of under-pricing has unexpectedly increased after book-building, which is against the empirical studies of a few domestic papers. Secondly, there's some evidence that with better information disclosure from issuer-side through book-building process, the signaling and ex-ante uncertainty effect that previously caused under-pricing has been reduced. But there're unique …


Illiquidity, Stock Return And Corporate Capital Structure: Evidence From Seasoned Equity Offering, Zhao Yu Jan 2009

Illiquidity, Stock Return And Corporate Capital Structure: Evidence From Seasoned Equity Offering, Zhao Yu

Dissertations and Theses Collection (Open Access)

The post-issue underperformance of seasoned equity offering (SEO) is generally explained by asymmetric information and deteriorating operating performance. We complement these traditional explanations with a new parameter, the liquidity, which results from the change of capital structure due to equity offering. The new issuing of equity lowers the debt to asset ratio, lowers the information asymmetry, thus increasing stock liquidity, which is in accordance with the hypotheses presented by Kyle(1985)'s model; Evidence that stocks become more liquid after SEO, thus lower the expected return, resulting to underperformance, combined with the high stock illiquidity before SEO, which coincides the high return, …


Information Role Of Analysts' Target Prices: Event And Intra-Day Analysis, Fan Chen Jan 2009

Information Role Of Analysts' Target Prices: Event And Intra-Day Analysis, Fan Chen

Dissertations and Theses Collection (Open Access)

I have documented that target prices subsumed in downgrade recommendations are the most informative while target prices in coverage reiteration are the least informative. The First Call database enables me to extend the analysis to an intraday frequency. Conducting event studies using high frequency data, is even more critical given the advent of information technology systems has dramatically changed the landscape of stock trading. The modified approach to event study is relevant to the fast-changing trading environment in today's capital market. For upgrades, there are significant positive market-adjusted returns lasting 20 minutes; for downgrades, there are significant negative market-adjusted returns …


Institutional Distance And Location Choice Of Multinational Enterprises, Yumeng Du Jan 2009

Institutional Distance And Location Choice Of Multinational Enterprises, Yumeng Du

Dissertations and Theses Collection (Open Access)

Even though scholars have realized the importance of the impact of the institutional environment on the strategy of MNEs, most of them have overlooked the first and essential step of the FDI decision location choice. In this paper, we link institutional theory and location choice literature and propose that the difference in the host country and home country`s institutional environments - institutional distance - has a negative effect on the FDI`s location choice. We also formulate hypotheses about firm specific attributes that may moderate this impact of institutional distance on location choice. Using data on Japanese companies` FDI information and …


On Stock Return Patterns Following Large Weekly Price Movements: The Case Of Hong Kong, Yue Lu Jan 2009

On Stock Return Patterns Following Large Weekly Price Movements: The Case Of Hong Kong, Yue Lu

Dissertations and Theses Collection (Open Access)

In this paper, I examine the short-run and long-run performance of the largest 49 stocks in Hong Kong market which experience weekly price movements of more than ±10% between 1999 and 2007. For both decline and increase events, one-week significant reversal is documented. But such reversal in returns diminishes very quickly within two or three weeks. From a long-run perspective, I find that large price increases are followed by negative performance, which is consistent with the overreaction hypothesis. However, large price declines are also followed by negative cumulative abnormal returns, which supports the underreaction hypothesis. Such findings indicate that the …


The Announcement Effects And The Long-Run Performances Of Convertible Bond Issuances, Wei Xie Jan 2009

The Announcement Effects And The Long-Run Performances Of Convertible Bond Issuances, Wei Xie

Dissertations and Theses Collection (Open Access)

We discuss several measurements of equity components in CBs and then examine the short-run announcement effects and the long-run performances surrounding CB issuances by dividing the whole sample of CBs into a debt-like portfolio, a mixed portfolio and an equity-like portfolio. At the time of the CB issuance announcements, the market reactions to different portfolios strictly follow a hierarchy predicted by the pecking order hypothesis. In the long-run subsequent to the CB issuances, the buy and hold stock returns of the equity-like portfolio significantly underperform the industry and market benchmarks and the debt-like portfolio; the operating performances of the issuers …


The Effect Of Concentrated Institutional Portfolio On Stock Returns, Hao Li Zhang Jan 2009

The Effect Of Concentrated Institutional Portfolio On Stock Returns, Hao Li Zhang

Dissertations and Theses Collection (Open Access)

This paper examines whether stock return is related to the extent of portfolio concentration on the part of institutional fund managers. There is evidence that large firms are preferred for both concentrated and well-diversified funds. Also, a trading strategy based on concentrated ownership generates positive abnormal return. This implies that informational effect (implied in an increase in concentrated capital) has significant impacts and predictability on returns. Meanwhile, we do not find diversified ownership has predictability on future stock returns.


The Effects Of Patent Characteristics As Signals On The Growth Of Follow-On Innovations: Evidence From Chinese Patenting Activities In U.S, Wenxin Guo Jan 2009

The Effects Of Patent Characteristics As Signals On The Growth Of Follow-On Innovations: Evidence From Chinese Patenting Activities In U.S, Wenxin Guo

Dissertations and Theses Collection (Open Access)

As global trade and business activities intensified, cross-national patenting activities have been playing an increasingly important role in the process of innovation accumulation and growth. However, few studies (to my knowledge) have examined the characteristics of cross-national patents and their relationship to the accumulation and growth of innovation, especially in the context of a developing versus a developed country.
Motivated by the anecdotal evidence and `Patent Signaling Theory'(Spence, 1973), I investigate the possible influential factors on the `quality' of a US patent with a Chinese priority (thereafter `US-CN' patent) and their impact on the growth of follow-on innovation. By developing …


Three Sections Of Applications Of Co-Integration: Hedge Funds, Industry And Main Global Equity Markets, Zhongjian Lin Jan 2009

Three Sections Of Applications Of Co-Integration: Hedge Funds, Industry And Main Global Equity Markets, Zhongjian Lin

Dissertations and Theses Collection (Open Access)

Co-integration is an econometric property of time series variables. If two or more series are themselves non-stationary (unit root process), but a linear combination of them is stationary, then the series are said to be co-integrated. If there is a co-integration among some time series, we can say there is a long-run equilibrium. That is the non-stationary time series may diverge from each other in short-run, however they would arrive at equilibrium in long-run. Therefore, we can use this methodology to test the existence of commonality of some non-stationary time series. Here we apply a semi-parametric cointegration test introduced by …


The Role Of Accounting Information In The Sentiment-Price Relation, Kun-Chih Chen Jan 2009

The Role Of Accounting Information In The Sentiment-Price Relation, Kun-Chih Chen

Research Collection School Of Accountancy

This study reconciles inconsistent evidence on the sentiment-price relation in prior studies by explicitly considering the effects of sentiment on both investor judgments and risk preferences. Using the uncertainty in accounting information, I am able to disentangle these two effects of sentiment and investigate the causes of the variations in the sentiment-price relation. The results show that, under low uncertainty, the effect of sentiment on risk preferences dominates in the sentiment-price relation, such that a negative effect of sentiment on price is observed. In contrast, under high uncertainty, the effect is less negative and, in fact, becomes positive. This suggests …


Venture Capital Firm's Reputation Effect On Its Start-Up Company's Long Term Operating Performance And Survivorship, Huei Siang Yap Jan 2009

Venture Capital Firm's Reputation Effect On Its Start-Up Company's Long Term Operating Performance And Survivorship, Huei Siang Yap

Dissertations and Theses Collection (Open Access)

In this paper, I tested the effects of three proxies for venture capitalist(VC) reputation on its invested company's long term industry-djusted operating performances (ROA , ROE), market-to-book ratio and survival time (time to delisting) in the aftermarket. VC's market share and VC's IPO share have strong and positive association with the post-IPO long-term performance metrics, and the effects are statistically significant even after accounting for self-selection bias. For long term survivorship of start-up companies, I applied hazard analysis to the IPO company's time to delisting with accelerated failure time (AFT) model as the baseline hazard function, and found that start …


The Application Of Single-Pass Heuristics For U-Lines, Jaydeep Balakrishnan, Chun Hung Cheng, Kin Chuen Ho, Kum Khiong Yang Jan 2009

The Application Of Single-Pass Heuristics For U-Lines, Jaydeep Balakrishnan, Chun Hung Cheng, Kin Chuen Ho, Kum Khiong Yang

Research Collection Lee Kong Chian School Of Business

U-lines have been adopted in many manufacturing settings as part of JIT implementation. In this paper, we examine the applicability of existing straight-line heuristics for obtaining a balance on a U-line. We modify 13 single-pass heuristics and study the effectiveness of various heuristics under different problem conditions. An extensive computational study is carried out to help identify the best heuristics. In addition, we compare recent U-line procedures with a single-pass heuristic using some literature problems. Based on a single-pass heuristic, we compare the configurations of a straight- and U-line. © 2009 The Society of Manufacturing Engineers.