Business Commons^™

Financial Literacy And Ipo Underpricing, Xiaoran Jia, Kiridaran G. Kanagaretnam, Chee Yeow Lim, Gerald J. Lobo

Research Collection School Of Accountancy

Using an international sample of IPO firms and two country-level measures of financial literacy, we find strong evidence that financial literacy is negatively associated with IPO underpricing. In cross-sectional analyses, we find that the effect of financial literacy in reducing IPO underpricing is more pronounced when the information environment is less transparent. Employing path analysis, we document that information friction, firm transparency, and stock market participation are mechanisms that mediate this relationship. Our study contributes to and extends the literature by providing strong evidence that citizens' financial literacy has an important and consistent influence on IPO underpricing.

The Governance Of Director Compensation, Lily Fang, Sterling Huang

Research Collection School Of Accountancy

The average total compensation of directors in U.S.-listed companies was $342,030 in 2020, 5.06 times the median household income. Directors set their own pay, giving rise to potential self-dealing. We argue and document that in the presence of self-dealing, external mechanisms such as legal standards act as effective means of governance. Following a landmark Delaware court ruling that subjected director pay to a more stringent legal standard, Delaware-incorporated firms reduced director compensation relative to non-Delaware firms and experienced positive and non-transient stock price reactions. Our results indicate that proper governance of director compensation enhances firm value.

Do Firms With Technological Capabilities Rush In? Evidence From The Timing Of Licensing Of Stanford Inventions, Young-Choon Kim, Reddi Kotha, Mooweon Rhee

Research Collection Lee Kong Chian School Of Business

This study investigates the influence of licensees’ technological capabilities on the timing of technology licensing in university technology commercialization. Drawing on the appropriation-collaboration tension from the literature on university technology licensing and intellectual property management, we propose that while the licensee’s technological capabilities drive early licensing by averting technological obsolescence, this effect diminishes significantly with an overlap in the technological domain of the focal invention due to expropriation concerns. Cox regression analysis of Stanford University’s invention dataset confirmed our hypotheses. This research reveals that technology licensing experiences delays with the most suitable licensees, namely, those with strong technological capabilities in …

Bridging The Chasm Between Intentions And Behaviors: Developing And Testing A Construal Level Theory Of Internalwhistle-Blowing, Abhijeet K. Vadera, Ann E. Tenbrunsel, Kristina A. Diekmann

Research Collection Lee Kong Chian School Of Business

The recent wave of corporate scandals has necessitated a more systematic investigation of internal whistle-blowing as a potential way to prevent wrongdoing. Our understanding of whistle-blowing, however, has been hampered by a deep chasm that exists between employees’ intent to blow the whistle and their whistle-blowing behaviors. We argue that to fully bridge this gap, we need to consider employees’ cognitive states at the time of whistle-blowing intentions versus behaviors and to link these cognitive states to the ethical systems within the organization’s ethical infrastructure to understand which systems are more effective in cultivating whistle-blowing intentions and which systems help …

The Regenerative Playbook: Fintech’S Bold Approach To Sustainability, Simon J.D. Schillebeeckx, Ryan Merrill

Research Collection Lee Kong Chian School Of Business

Fintechs are struggling to attract and retain Gen Z and Millennial customers. Research has shown that this demographic is demanding purpose and climate action. As a result, companies are responding by integrating nature-positive actions into fintech activities. Captivating Gen Z and Millennial customers attention with tangible impact, fosters long-term loyalty, retention and business growth.

Quantum Machine Learning For Credit Scoring, Nikolaos Schetakis, Davit Aghamalyan, Micheael Boguslavsky, Agnieszka Rees, Marc Rakotomalala, Paul Robert Griffin

Research Collection School Of Computing and Information Systems

This study investigates the integration of quantum circuits with classical neural networks for enhancing credit scoring for small- and medium-sized enterprises (SMEs). We introduce a hybrid quantum–classical model, focusing on the synergy between quantum and classical rather than comparing the performance of separate quantum and classical models. Our model incorporates a quantum layer into a traditional neural network, achieving notable reductions in training time. We apply this innovative framework to a binary classification task with a proprietary real-world classical credit default dataset for SMEs in Singapore. The results indicate that our hybrid model achieves efficient training, requiring significantly fewer epochs …

Reinforcement Learning With Maskable Stock Representation For Portfolio Management In Customizable Stock Pools, Wentao Zhang, Yilei Zhao, Shuo Sun, Jie Ying, Yonggang Xie, Zitao Song, Xinrun Wang, Bo An

Research Collection School Of Computing and Information Systems

Portfolio management (PM) is a fundamental financial trading task, which explores the optimal periodical reallocation of capitals into different stocks to pursue long-term profits. Reinforcement learning (RL) has recently shown its potential to train profitable agents for PM through interacting with financial markets. However, existing work mostly focuses on fixed stock pools, which is inconsistent with investors’ practical demand. Specifically, the target stock pool of different investors varies dramatically due to their discrepancy on market states and individual investors may temporally adjust stocks they desire to trade (e.g., adding one popular stocks), which lead to customizable stock pools (CSPs). Existing …

From Tweets To Token Sales: Assessing Ico Success Through Social Media Sentiments, Donghao Huang, S. Samuel, Quoc Toan Huynh, Zhaoxia Wang

Research Collection School Of Computing and Information Systems

With the advent of social network technology, the influence of collective opinions has significantly impacted business, marketing, and fundraising. Particularly in the blockchain space, Initial Coin Offerings (ICOs) gain substantial exposure across various online platforms. Yet, the intricate relationships among these elements remain largely unexplored. This study aims to investigate the relationships between social media sentiment, engagement metrics, and ICO success. We hypothesize a positive correlation between favorable sentiment in ICO-related tweets and overall project success. Additionally, we recognize social media engagement indicators (mentions, retweets, likes, follower counts) as critical factors affecting ICO performance. Employing machine learning techniques, we conduct …

Green Transition And Financial Stability: The Role Of Green Monetary And Macroprudential Policies And Vouchers, Ying Tung Chan, Maria Teresa Punzi, Hong Zhao

Sim Kee Boon Institute for Financial Economics

This paper analyzes a mix of alternative policies in supporting the green transition and the phase-out of fossil fuels, without compromising financial stability. An environmental dynamic stochastic general equilibrium (E-DSGE) model with two sectors (green and brown) and endogenous default is developed to assess potential climate-induced financial stability threats that can be mainly generated through physical and transition risks mechanism. Those risks are evaluated through a compound capital depreciation shock and a carbon tax shock. The paper offers several findings. First of all, a too stringent carbon tax would increase the medium-term default rate in both sectors, harming financial stability …

Informed Trading In Peers Of M&A Firms: Evidence From M&A Advisor Banks, Xuanbo Li

Dissertations and Theses Collection (Open Access)

M&A advisor banks are privy to valuable and sensitive information through their service. I examine whether M&A advisor banks exploit such private information to trade in peers of M&A firms. I provide evidence that M&A advisor banks gain higher profits through their trading in peers of M&A firms, compared with non-advisor banks. Such informed trading is more intensive for M&A deals with larger impacts on peer firms (i.e., when the deal value is more significant for peer firms; when the M&A firms have larger market share in the industry; and when the stock price reactions of peer firms are stronger). …

Loose Purse Strings, Loose Cultures: How Resource Increase Affects Cultural Tightness-Looseness And Creativity In Large And Small Organizations, Caleb Chun Kwan Chu

Dissertations and Theses Collection (Open Access)

For over a decade, cultural tightness-looseness (TL) has established itself as a culture construct that is useful in diverse contexts at multiple levels. While most TL research has focused on TL consequences, less attention has been paid to TL antecedents. This dissertation proposes resource increase as a TL predictor and uses a resource-based perspective to review and extend extant TL literature. I empirically examine the effect of resource increase on incremental and radical creativity as mediated by TL at the team level. I also explore the moderating effect of organizational size on these team-level relationships. The data were drawn from …

Research On The Impact Of Tech Founders On Enterprise Innovation And Market Performance, Zhihao Xu

Dissertations and Theses Collection (Open Access)

In recent years, increased entrepreneurial projects have been spearheaded by scientists and technical experts. The likelihood of success for such entrepreneurship has garnered considerable attention.

Leveraging theories including upper echelons theory and attention-based view, this study develops an analytical framework, research hypotheses, and measurement models to examine the correlation between entrepreneurs’ technical backgrounds and enterprise performance. Use first-hand and second-hand data together constitute the core data sources. Utilizing a fixed effect regression analysis model, the study elucidates the correlation between the technical backgrounds of entrepreneurs and enterprise performance. Building upon empirical research, this study also selects entrepreneur cases of typical …

Ceo Polychronicity And Firm Resilience, Qianliang Xia

Dissertations and Theses Collection (Open Access)

In my dissertation, I examined the effect of CEO polychronicity on firm resilience. Building on the upper echelons theory, I argue that polychronic CEOs could divide their attention to multitask, which might prevent firms with extreme risk with more information acquired and backup plans reserved; in addition, polychronic CEOs should be more capable of handling the threats and disruptions. Thus, polychronic CEOs help build firm resilience. In addition, I propose the six moderators that could influence the effect of CEO polychronicity on firm resilience including market competition, market complexity, innovation capability, financial slack, TMT size and CEO duality. I collected …

Designing Pareto-Optimal Selection Systems For Multiple Minority Subgroups And Multiple Criteria, Wilfried De Corte, Paul R. Sackett, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Currently used Pareto-optimal (PO) approaches for balancing diversity and validity goals in selection can deal only with one minority group and one criterion. These are key limitations because the workplace and society at large are getting increasingly diverse and because selection system designers often have interest in multiple criteria. Therefore, the article extends existing methods for designing PO selection systems to situations involving multiple criteria and multiple minority groups (i.e., multiobjective PO selection systems). We first present a hybrid multiobjective PO approach for computing selection systems that are PO with respect to (a) a set of quality objectives (i.e., criteria) …

Siphoned Apart: A Portfolio Perspective On Order Flow Segmentation, Markus Baldauf, Joshua Mollner, Bart Zhou Yueshen

Research Collection Lee Kong Chian School Of Business

We study liquidity supply in fragmented markets. Market makers intermediate heterogeneous order flows, trading off spread revenue against inventory costs. Applying our model to payment for order flow (PFOF), we demonstrate that portfolio-based considerations of inventory management incentivize market makers to segment retail orders by siphoning them off-exchange. Banning order flow segmentation reduces total welfare, can make trading more costly for all investors, and can resolve a prisoner's dilemma among market makers. These results differentiate our inventory-based model from the existing information-based theories of PFOF.

The More The Merrier: How Psychological Standing And Work Group Size Explain Managers' Willingness To Communicate About Unethical Conduct In Their Work Group, Burak Oc, Maryam Kouchaki

Research Collection Lee Kong Chian School Of Business

Business ethics research has long examined the dichotomy between remaining silent or reporting ethical misconduct to a third party. Little is known, however, about ethical conversations within a work group after observing misconduct. Specifically, we do not know how many members of their work group individuals choose to communicate with. These conversations could have important implications for creating an ethical workplace. We propose that psychological standing is an important driver of individuals' decisions not to remain silent and to instead raise moral concerns with a greater number of others in their work group. In addition, integrating existing work on structural …

Intrafirm Knowledge Sharing In The Investment Research Industry, Artur Hugon, An-Ping Lin, Stanimir Markov

Research Collection School Of Accountancy

We study interdepartment knowledge sharing in an investment research setting where the benefits are potentially significant for the brokerage and the capital market, but so are the frictions impeding it. Using hand-collected data on equity analyst access to in-house debt research expertise, we find significant benefits to equity analysts in the form of improved ability to forecast cash flows and to anticipate credit rating downgrades. Moreover, we find evidence that access to management and research expertise underlie in-house debt analysts' capacity to generate information beneficial to equity analysts. Finally, these benefits exist only in the presence of a collaborative brokerage …

Impact Of Government Outsourcing Contracts On High-Tech Vendors: An Empirical Study, Yi Dong, Nan Hu, Yonghua Ji, Chenkai Ni, Jing Xie

Research Collection School Of Computing and Information Systems

Outsourcing is an important strategic decision of high-tech firms. However, while the research has extensively studied the implications of outsourcing to high-tech clients, its impact on high-tech vendors remains underexplored. This study empirically estimates the impact of government outsourcing contracts on high-tech vendors. Employing the earnings-return analyses framework, we find that, for high-tech vendors engaged in government outsourcing contracts, the stock market places a higher value on each unit of unexpected earnings compared to other firms. Additionally, this impact becomes stronger for contracts with longer terms, for contracts outsourced by the U.S. government or by countries with better political and …

The Impact Of Psychological Resilience On Job Performance In A Cross-Cultural Context: Evidence From Chinese Multinational Corporations, Chunlin Wu

Dissertations and Theses Collection (Open Access)

As globalisation accelerates and multinational companies expand, more employees are being assigned to work in other countries. This phenomenon of international assignments brings business opportunities and numerous challenges, the most prominent being cross-cultural adjustment. Expatriates must face different cultural backgrounds, values, and lifestyles. Such cultural differences can lead to communication barriers, psychological stress, and lifestyle difficulties, subsequently affecting job performance. This study explores the mechanism between psychological resilience and job performance from the perspective of expatriates' cross-cultural adjustment. It conducts empirical research through two rounds of three surveys, collecting 229 valid questionnaires in Cambodia, Thailand, and Vietnam.

First, this study …

Research On Rejuvenation Strategies Of Traditional Apparel Brands, Ziming Yang

Dissertations and Theses Collection (Open Access)

This paper discusses the brand rejuvenation of traditional apparel companies, focusing on whether brand rejuvenation affects brand preference and purchasing behavior, and how to effectively implement brand rejuvenation strategies. In theory, it constructs a brand rejuvenation measurement model and explores the impact of brand rejuvenation on brand equity, as well as the relationship between brand rejuvenation, brand preference and brand equity. In practice, this paper takes Cabbeen as an example to conduct a case study to analyze the implementation process, influencing factors and implementation effects of Cabbeen's brand rejuvenation strategy.

Qualitative and quantitative research methods, specifically the case study and …

How Does The Pace Of Digital Transformation Affect Team Viability And Performance? — The Role Of Adaptive Response, Jing Tian

Dissertations and Theses Collection (Open Access)

The national strategy of “Digital China” implemented in 2021 has catalyzed efforts to bolster the digital ecosystem across industries. With pervasive claims of digital transformation and upgrading by nearly all enterprises, digital technology permeates various sectors. This study explores, from the perspective of working teams—the smallest unit within enterprise production organizations—how the pace of digital transformation influences team viability and performance. It investigates the transmission mechanism of this effect and identifies influencing factors.

Drawing from extant research on the impact of digital technology on organizations, trends in organizational change, and psychological research on team behavior, this study establishes a theoretical …

The Impact Of Vr-Based Service Innovation On Brand Equity, Pan Cheung

Dissertations and Theses Collection (Open Access)

The increasingly fierce competition in the service market have made service innovation a focal point of continuous attention and exploration in both academic and industry. The development of VR technology has provided new options for enterprises to innovate in services. However, employing VR technology for service innovation requires a certain level of cost investment and entails risks. Moreover, how using VR technology for service innovation will impact consumer cognition and behavior, and how this cognition will affect brand equity, remains unknown. These uncertainties hinder the application and development of VR technology in the service sector. Therefore, clearly understanding the benefits …

Research On Futures, Profit Hedging, And Enterprise Price Risk Management In The Bulk Commodity Industry Chain — A Case Study Of Hot-Rolled Coil Industry Chain, Shengxi Liu

Dissertations and Theses Collection (Open Access)

Traditional hedging strategies usually center around a single product, commonly involving companies hedging against the price of their endproducts or essential production materials. At present, traditional hedgingstrategies are no longer sufficient to address the production and management requirements of physical enterprises. There is a need to develop hedgingstrategies aligning with the significant changes in both domestic andinternational markets.

The thesis presents a new profit hedging model based on product manufacturing processes within the industry chain. This method involves hedging production profits by buying (selling) end products and selling(buying) raw materials according to the proportional relationships in the production process on …

Can Organizational Focus On Responsible Ai Lead To Improved Ai Adoption By Employees?, Seema Chokshi

Dissertations and Theses Collection (Open Access)

The duality inherent in Artificial Intelligence technology entails that while AI has the potential to bring about transformative benefits to organizations, unintended consequences of AI applications could lead to biased and discriminatory outcomes, which could have negative consequences for the organization and society in general. Concerns about such unintended consequences are an impediment to AI adoption where unwilling employees and practitioners often fear ethical breaches, thereby, negatively impacting their engagement with AI driven applications. In response to these concerns various organizations and regulatory bodies have developed governing frameworks broadly known as Responsible AI standards, that set guidelines to design, …

Diversification, Policy Shock, And Firm Performance: An Empirical Study Of The Game Industry In China, Weiwei Li

Dissertations and Theses Collection (Open Access)

Based on the reform of the game licence approval system in 2018, this thesis studied how diversification strategies influence the ability of game enterprises to withstand risk shocks. Specifically, using financial data from A-share enterprises and third-party game product data, this thesis applied econometric methods to examine and obtain a comprehensive picture of the policy effect on the performance of game enterprises, and explored how different diversification strategies affect risk.

Taking other application software enterprises as the control group, this thesis explored the effect of the policy shock on business performance using a difference-in-differences method. The profitability of game enterprises …

Channel Of Exposure And Its Effect On Purchase Decision: Evidence From An Online Retailer, Lei Li

Dissertations and Theses Collection (Open Access)

In the digital era, online retailers engage consumers through a variety of channels, making it critical to understand how multi-channel exposure impacts consumer behavior, purchase conversion and firm outcomes. Drawing upon information overload and attention theories as well as extant research on conversion models, this study examines how channel-specific browsing time and channel diversity influence online users’ conversion and revenue contribution. By utilizing a multi-touch attribution approach, this study analyzes user-level visit data from an online eyewear retailer including millions of visits over a three-month period and finds that cumulative browsing time has a positive impact on both conversion and …

Social Distance In Workplace Relationships And Its Impact On Employee Well-Being, Jha Nilotpal

Dissertations and Theses Collection (Open Access)

In modern collaborative work environments, interactions with colleagues span a spectrum from close relationships to those perceived as socially distant. While close relationships are traditionally emphasized for their benefits on well-being, distant ties often go overlooked despite their prevalence and ease of maintenance. Building on construal-level theory, I first propose a theory of relational construing, emphasizing how the perceived psychological distance with colleagues influences mental representations and shifts in these representations, termed mindful construing. Leveraging the full spectrum of workplace relationships, from close to distant, can enhance well-being by alleviating the burdens of maintaining solely close connections. I then use …

Learning To Outsmart A Crisis: A Strategic Management View On Managing Aviation Crises With Machine Learning, Kok Yew Tan

Dissertations and Theses Collection (Open Access)

In strategic management literature, a crisis is public, unexpected, interferes with the norm, has negative impact on organizations, and generates widespread negative perceptions among stakeholders. Among crises, aviation crises are complex and present multiple vulnerabilities due to their scale, and the involvement of numerous stakeholders. With the high visibility of aviation crises due to the potential for mass injuries, deaths, and collateral damage, it could be seen as a full spectrum crisis – one of the worst among crises. The magnitude of each aviation crisis decides and allows the world to assess the efficacy of an airlines or aviation firm’s …

How Does The Captain Guide The Brightest Stars? The Effect Of Leadership Styles On Star's Work Performance, Jen-Tsung Chen

Dissertations and Theses Collection (Open Access)

This study aims to investigate the effect of leadership styles on the work performance of star talents. As star talents play more and more critical roles in the sustainable development of enterprise, how to effectively manage star talents’ sustaining growth becomes a crucial issue for organizations. The questionnaire survey is conducted to explore how different leadership styles influence the work performance of star talents. How leader-member exchange mediates the relationship between leadership styles and star talents’ work performance, and how star talents’ annual income moderates the relationship between leadership and star talents’ work performance. A total number of qualified 149 …

The Effects Of Perceived Cultural Conflicts On Employee Retention After Mergers And Acquisitions, Chengpeng Luan

Dissertations and Theses Collection (Open Access)

With China’s deepening medical reform, the state has introduced a series of regulatory policies, which has set off a frenzy of mergers and acquisitions in the medical device industry. Small and medium-sized device distribution companies with small scale and weak strength have closed. Large and powerful large medical device distribution enterprises seize the opportunity to expand mergers and acquisitions rapidly.

Based on the researcher's work experience and data availability, this paper takes an MNC company, M, acquisition of a high-quality local company, K, as the research object. Based on the actual operation of the medical device industry, combined with the …