Open Access. Powered by Scholars. Published by Universities.®

Business Commons

Open Access. Powered by Scholars. Published by Universities.®

Research Collection Lee Kong Chian School Of Business

2017

Discipline
Keyword

Articles 31 - 60 of 135

Full-Text Articles in Business

Comparative Price And The Design Of Effective Product Communications, Thomas Allard, Dale Griffin Sep 2017

Comparative Price And The Design Of Effective Product Communications, Thomas Allard, Dale Griffin

Research Collection Lee Kong Chian School Of Business

The authors propose amodel relating a product's comparative price to the construal level of its associated communications and show how perceived expensiveness shapes consumers' response to the wording of marketing communications. A series of six studies shows that for both absolute low-and high-cost product categories, comparatively expensive (inexpensive) products are preferred when accompanied by high-construal (low-construal) messages, due to the conceptual fluency of the "match" between price-induced psychological distance and construal level. The model provides novel implications for designing effective marketing communications: comparatively expensive versions of objectively low-priced products (e.g., an expensive chocolate truffle) are best promoted through more abstract …


Firm-Specific Knowledge Assets And Employment Arrangements: Evidence From Ceo Compensation Design And Ceo Dismissal, Heli Wang, Shan Zhao, Guoli Chen Sep 2017

Firm-Specific Knowledge Assets And Employment Arrangements: Evidence From Ceo Compensation Design And Ceo Dismissal, Heli Wang, Shan Zhao, Guoli Chen

Research Collection Lee Kong Chian School Of Business

Research Summary: We argue that firms with greater specificity in knowledge structure need to both encourage their CEOs to stay so that they make investments with a long-term perspective, and provide job securities to the CEOs so that they are less concerned about the risk of being dismissed. Accordingly, we found empirical evidence that specificity in firm knowledge assets is positively associated with the use of restricted stocks in CEO compensation design (indicating the effort of CEO retention) and negatively associated with CEO dismissal (indicating the job securities the firm committed to CEOs). Furthermore, firm diversification was found to mitigate …


Optimizing (S, S) Policies For Multi-Period Inventory Models With Demand Distribution Uncertainty: Robust Dynamic Programming Approaches, Ruozhen Qiu, Minghe Sun, Yun Fong Lim Sep 2017

Optimizing (S, S) Policies For Multi-Period Inventory Models With Demand Distribution Uncertainty: Robust Dynamic Programming Approaches, Ruozhen Qiu, Minghe Sun, Yun Fong Lim

Research Collection Lee Kong Chian School Of Business

We consider a finite-horizon single-product periodic-review inventory managementproblem with demand distribution uncertainty. We formulate the problemas a dynamic program and prove the existence of an optimal (s, S) policy. Thecorresponding dynamic robust counterpart models are then developed for thebox and the ellipsoid uncertainty sets. These counterpart models are transformedinto tractable linear and second-order cone programs, respectively. Weillustrate the effectiveness and practicality of the proposed robust optimizationapproaches through a numerical study.


Cyber-Empathic Design: A Data-Driven Framework For Product Design, Dipanjan Ghosh, Andrew Olewnik, Kemper Lewis, Junghan Kim, Arun Lakshaman Sep 2017

Cyber-Empathic Design: A Data-Driven Framework For Product Design, Dipanjan Ghosh, Andrew Olewnik, Kemper Lewis, Junghan Kim, Arun Lakshaman

Research Collection Lee Kong Chian School Of Business

A critical task in product design is mapping information from consumer to design space. Currently, this process largely depends on designers identifying and mapping psychological and consumer level factors to engineered attributes. In this way, current methodologies lack provision to test a designer's cognitive reasoning and could introduce bias when mapping from consumer to design space. In addition, current dominant frameworks do not include user-product interaction data in design decision making, nor do they assist designers in understanding why a consumer has a particular perception about a product. This paper proposes a framework-cyber-empathic (CE) design-where user-product interaction data are acquired …


Assessing Personality-Situation Interplay In Personnel Selection: Toward More Integration Into Personality Research, Filip Lievens Sep 2017

Assessing Personality-Situation Interplay In Personnel Selection: Toward More Integration Into Personality Research, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Over the years, the personnel selection field has developed methods to assess trait expression in particular situations, but these approaches have evolved mostly outside the field of personality psychology. In this article, I review available personnel selection evidence regarding two such approaches: (i) situational judgement tests that present short scenarios and ask job candidates how they would handle the situations and (ii) assessment centre exercises requiring candidates to display behaviour in specified interactive situations. I describe these approaches and discuss their relations with personality research. I posit that adapting these approaches to personality research creates methodological diversity to address key …


The Impact Of Csr On Corporate Financial Performance, David K. Ding Sep 2017

The Impact Of Csr On Corporate Financial Performance, David K. Ding

Research Collection Lee Kong Chian School Of Business

We provide one of the first analyses of corporate social responsibility (CSR) and firm performance using only annual financial reports. We document a link between corporate financial performance (CFP) and CSR, although this is not always positive. Specifically, we investigate whether CSR performance can be implied from financial reporting and provide evidence that CSR information implied by financial reports have a significant association with CFP. Furthermore, we provide the first comprehensive study of CSR reporting and link it with CFP in New Zealand.


Twin Momentum: Fundamental Trends Matter, Dashan Huang, Huacheng Zhang, Guofu Zhou Aug 2017

Twin Momentum: Fundamental Trends Matter, Dashan Huang, Huacheng Zhang, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

Using both the levels and the time-series trends of a collection of firms' major fundamentals, we find that fundamentals matter after all: they can also generate strong return momentum. A fundamental momentum strategy that goes long stocks with fundamental in the top quintile and short stocks with fundamental in the bottom quintile earns a monthly average return of 88 bps, and is comparable with the popular price momentum but has little correlation. Combining price momentum and fundamental momentum yields a twin momentum, which has an average return more than the sum of both price momentum and fundamental momentum. Twin momentum …


Analyst Effort Allocation And Firms' Information Environment, Rong Wang, Jarrad Harford, Feng Jiang, Fei Xie Aug 2017

Analyst Effort Allocation And Firms' Information Environment, Rong Wang, Jarrad Harford, Feng Jiang, Fei Xie

Research Collection Lee Kong Chian School Of Business

We show that a firm’s information environment is significantly impacted by the characteristics of the other firms its analysts cover. Analysts strategically allocate effort among portfolio firms by devoting more effort to firms that are relatively more important for their career concerns. Specifically, controlling for analyst and firm characteristics, we find that within each analyst’s portfolio, firms ranked relatively higher based on market capitalization, trading volume, or institutional ownership receive more accurate, frequent, and informative earnings forecast revisions and stock recommendation changes that contain greater information content from that analyst. Firms’ relative rank across analysts varies widely, so this is …


A Closer Look At The Measurement Of Dispositional Reasoning: Dimensionality And Invariance Across Assessor Groups, François S. De Kock, Filip Lievens, Marise Ph. Born Aug 2017

A Closer Look At The Measurement Of Dispositional Reasoning: Dimensionality And Invariance Across Assessor Groups, François S. De Kock, Filip Lievens, Marise Ph. Born

Research Collection Lee Kong Chian School Of Business

Despite the growing interest in dispositional reasoning as a construct and determinant of good raters (good judges'), its measurement still requires attention. We address two measurement issues in the present study. First, this study tests a hierarchical model as a more parsimonious account for dispositional reasoning than component- or general-factor models that were examined in earlier studies. So, this provides a more comprehensive test of the different measurement models underlying dispositional reasoning data. Second, we assess the measurement invariance of dispositional reasoning measure scores across two different populations of assessors that are often trained and used in workplace assessments, namely …


Temporal Aggregation And Risk-Return Relation, Xing Jin, Leping Wang, Jun Yu Aug 2017

Temporal Aggregation And Risk-Return Relation, Xing Jin, Leping Wang, Jun Yu

Research Collection Lee Kong Chian School Of Business

The function form of a linear intertemporal relation between risk and return is suggested by Merton's (1973) analytical work for instantaneous returns, whereas empirical studies have examined the nature of this relation using temporally aggregated data, i.e., daily, monthly, quarterly, or even yearly returns. Our paper carefully examines the temporal aggregation effect on the validity of the linear specification of the risk-return relation at discrete horizons, and on its implications on the reliablility of the resulting inference about the risk-return relation based on different observation intervals. Surprisingly, we show that, based on the standard Heston's (1993) dynamics, the linear relation …


Configuring Innovative Societies: The Crossvergent Role Of Cultural And Institutional Varieties, Di Fan, Yi Li, Liang Chen Aug 2017

Configuring Innovative Societies: The Crossvergent Role Of Cultural And Institutional Varieties, Di Fan, Yi Li, Liang Chen

Research Collection Lee Kong Chian School Of Business

The study aims to explore why some societies are more innovative than others in high-technology sectors. Following a crossvergence perspective, we generate nine causal conditions by accommodating both cultural and institutional varieties: uncertainty avoidance, masculinity, individualism and power distance as culture indicators, and union density, skill development, market capitalization to credit, prevalence of cluster and state dominance as institutional indicators. Applying the configurational approach, we conducted fuzzy-set qualitative comparative analysis (fsQCA) on Organization for Economic Co-operation and Development (OECD) member countries. We confirm the equal importance of both cultural and institutional mechanisms as contributors to national innovativeness, and identify equifinal …


Economic Downturns Undermine Workplace Helping By Promoting A Zero-Sum Construal Of Success, Nina Sirola, Marko Pitesa Aug 2017

Economic Downturns Undermine Workplace Helping By Promoting A Zero-Sum Construal Of Success, Nina Sirola, Marko Pitesa

Research Collection Lee Kong Chian School Of Business

Workplace helping is essential to the success of organizations and economies. Given the economic benefits of helping, it seems important that during difficult economic periods the amount of helping does not decline. In this research, we propose and show that it does. We argue that cues that signal the economy is performing poorly prompt a construal that the success of one person implies less success for others. This zero-sum construal of success in turn makes employees less inclined to help. Four studies found evidence consistent with our theory. Study 1 found that worse economic periods are associated with a more …


Are Capital Market Anomalies Common To Equity And Corporate Bond Markets?, Tarun Chordia, Amit Goyal, Yoshio Nozowa, Avanidhar Subrahmanyam, Qing Tong Aug 2017

Are Capital Market Anomalies Common To Equity And Corporate Bond Markets?, Tarun Chordia, Amit Goyal, Yoshio Nozowa, Avanidhar Subrahmanyam, Qing Tong

Research Collection Lee Kong Chian School Of Business

This paper studies whether the commonly analyzed equity return predictors also predict corporate bond returns. Bond markets do price risk, but are also susceptible to delayed information transmission relative to equities. Firm size and profitability are negatively priced while idiosyncratic volatility is positively priced, suggesting that large firms, more profitable firms and relatively less volatile firms are more attractive to bond investors, thus requiring lower returns. Consistent with a relatively sophisticated institutional clientele, bonds are efficiently priced in that none of the behaviorally-motivated variables provide profitable trading strategies after accounting for transactions costs, though some risk-based variables continue to do …


Public Hedge Funds, Lin Sun, Song Wee Melvyn Teo Aug 2017

Public Hedge Funds, Lin Sun, Song Wee Melvyn Teo

Research Collection Lee Kong Chian School Of Business

Hedge funds managed by listed firms significantly underperform funds managed by unlisted firms. The underperformance is more severe for funds with low manager deltas, poor governance, and no manager co-investment, or managed by firms whose prices are sensitive to earnings news. Notwithstanding the underperformance, listed asset management firms raise more capital, by growing existing funds and launching new funds post listing, and harvest greater fee revenues than do comparable unlisted firms. The results are consistent with the view that, for asset management firms, going public weakens the alignment between ownership, control, and investment capital, thereby engendering conflicts of interest.


Public Hedge Funds, Lin Sun, Song Wee Melvyn Teo Aug 2017

Public Hedge Funds, Lin Sun, Song Wee Melvyn Teo

Research Collection Lee Kong Chian School Of Business

Hedge funds managed by listed firms significantly underperform funds managed by unlisted firms. The underperformance is more severe for funds with low manager deltas, poor governance, and no manager co-investment, or managed by firms whose prices are sensitive to earnings news. Notwithstanding the underperformance, listed asset management firms raise more capital, by growing existing funds and launching new funds post listing, and harvest greater fee revenues than do comparable unlisted firms. The results are consistent with the view that, for asset management firms, going public weakens the alignment between ownership, control, and investment capital, thereby engendering conflicts of interest.


Get Innovative In Personnel Selection: The Case Of The Port Of Antwerp, Filip Lievens, Britt De Soete, Christoph Nils Herde Aug 2017

Get Innovative In Personnel Selection: The Case Of The Port Of Antwerp, Filip Lievens, Britt De Soete, Christoph Nils Herde

Research Collection Lee Kong Chian School Of Business

Thanks to its central location and its large storage and distribution capacity, the Port of Antwerp can be regarded as a key gateway to Europe. Concerning international maritime transport, Antwerp is ranked as the second harbor of Europe and the seventh harbor worldwide. The Port of Antwerp is the European market leader in terms of the transportation of steel, fruit, forest products, coffee, tobacco, and other products. In 2009, it dealt with almost 160 million tons of goods. Each year, over 14,000 sea-going vessels and 55,000 inland navigation vessels are passing through the Port of Antwerp. As nearly every important …


Powerful Blockholders And Ceo Turnover, Chi Shen Wei, Lei Zhang Aug 2017

Powerful Blockholders And Ceo Turnover, Chi Shen Wei, Lei Zhang

Research Collection Lee Kong Chian School Of Business

We identify the power of institutional blockholders to influence management using previous occurrences of forced CEO turnover at other firms in the blockholders’ overall portfolio. We create a “powerful blockholder linkage” measure that strongly predicts future forced CEO turnover. These effects are larger when “powerful” blockholders are more motivated to monitor and when they have had valuable monitoring experience. Moreover, firms with powerful blockholders display higher CEO turnover-performance sensitivity, pursue more value-increasing mergers, and have higher firm value. Overall, our results suggest that an identifiable group of powerful blockholders play an important role in corporate governance.


Does The Crowd Support Innovation? Innovation Claims And Success On Kickstarter, Anirban Mukherjee, Cathy L. Yang, Ping Xiao, Amitava Chattopadhyay Jul 2017

Does The Crowd Support Innovation? Innovation Claims And Success On Kickstarter, Anirban Mukherjee, Cathy L. Yang, Ping Xiao, Amitava Chattopadhyay

Research Collection Lee Kong Chian School Of Business

Online crowdfunding is a popular new tool for raising capital to commercialize product innovation. Product innovation must be both novel and useful (1-4). Therefore, we study the role of novelty and usefulness claims on Kickstarter. Startlingly, we find that a single claim of novelty increases project funding by about 200%, a single claim of usefulness increases project funding by about 1200%, and the co-occurrence of novelty andusefulness claims lowers funding by about 26%. Our findings are encouraging because they suggest the crowd strongly supports novelty and usefulness. However, our findings are disappointing because the premise of crowdfunding is to support …


Strategy Making: How To Tap The Wisdom Of The Crowd, Daniel Z. Mack, Gabriel. Szulanski Jul 2017

Strategy Making: How To Tap The Wisdom Of The Crowd, Daniel Z. Mack, Gabriel. Szulanski

Research Collection Lee Kong Chian School Of Business

Even firms that typically prefer to centralise decisions needn’t miss out on the benefits of opening up their strategy making.


Fast-And-Frugal Trees As Noncompensatory Models Of Performance-Based Personnel Decisions, Shenghua Luan, Jochen Reb Jul 2017

Fast-And-Frugal Trees As Noncompensatory Models Of Performance-Based Personnel Decisions, Shenghua Luan, Jochen Reb

Research Collection Lee Kong Chian School Of Business

Employees’ performance provides the basis for many personnel decisions, and to make these decisions,managers often need to integrate information from different performance-related cues. We asked college students and experienced managers to make a series of performance-based personnel decisions and tested how well weighting-and-adding, compensatory logistic regression and lexicographic, noncompensatory fast-and-frugal trees (FFTs) could describe participants’ decision processes regarding both choices and reaction times. Results show that a significant proportion of the participants (i.e., nearly half of the college students and more than two-thirds of the experienced managers) applied FFTs to make such decisions,and that the majority of them adopted key …


Forecasting Stock Returns In Good And Bad Times: The Role Of Market States, Dashan Huang, Fuwei Jiang, Jun Tu, Guofu Zhou Jul 2017

Forecasting Stock Returns In Good And Bad Times: The Role Of Market States, Dashan Huang, Fuwei Jiang, Jun Tu, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

This paper proposes a two-state predictive regression model and shows that stock market 12-month return (TMR), the time-series momentum predictor of Moskowitz, Ooi, and Pedersen (2012), forecasts the aggregate stock market negatively in good times and positively in bad times. The out-of-sample R-squares are 0.96% and 1.72% in good and bad times, or 1.28% and 1.41% in NBER economic expansions and recessions, respectively. The TMR predictability pattern holds in the cross-section of U.S. stocks and the international markets. Our study shows that the absence of return predictability in good times, an important finding of recent studies, is largely driven by …


Peer Effects Of Corporate Social Responsibility, Hao Liang, Hao Liang, Xintong Zhan Jul 2017

Peer Effects Of Corporate Social Responsibility, Hao Liang, Hao Liang, Xintong Zhan

Research Collection Lee Kong Chian School Of Business

We investigate how firms react to their peers' adoption of corporate social responsibility (CSR) by using a regression discontinuity design that relies on "locally" exogenous variations of CSR generated by shareholder proposals that pass or fail by a small margin of votes. Specifically, we find that peers of a voting firm who passed a close-call CSR proposal experience lower announcement returns and higher following-year CSR scores compared to those of a voting firm that marginally failed a CSR proposal. Such effects are stronger in peer firms with higher competitive pressure, better CSR performance relative to the voting firm, and a …


Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik Jul 2017

Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik

Research Collection Lee Kong Chian School Of Business

The desire of risk-averse households to hedge rent risk is thought to increase home ownership and prices. While evidence for the ownership implication is compelling, support for the price effect is mixed. We show that an important reason is search frictions. Rent risk reduces outside options, leading to less-picky buyers and worse home/buyer matches. This attenuates the rise in the price-to-rent ratio that would otherwise occur without frictions. Consistent with our model, a house remains on the market for fewer days when rent risk is higher. Accounting for frictions significantly increases the effect of rent risk on home prices.


Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik Jul 2017

Hedging And Pricing Rent Risk With Search Frictions, Briana Chang, Hyunsoo Choi, Harrison Hong, Jeffrey Kubik

Research Collection Lee Kong Chian School Of Business

The desire of risk-averse households to hedge rent risk is thought to increase home ownership and prices. While evidence for the ownership implication is compelling, support for the price effect is mixed. We show that an important reason is search frictions. Rent risk reduces outside options, leading to less-picky buyers and worse home/buyer matches. This attenuates the rise in the price-to-rent ratio that would otherwise occur without frictions. Consistent with our model, a house remains on the market for fewer days when rent risk is higher. Accounting for frictions significantly increases the effect of rent risk on home prices.


Toward A Theoretical Framework To Studying Climate Change Policies: Insights From Case Study Of Singapore, Ai Sian Ng, May O. Lwin, Augustine Pang Jul 2017

Toward A Theoretical Framework To Studying Climate Change Policies: Insights From Case Study Of Singapore, Ai Sian Ng, May O. Lwin, Augustine Pang

Research Collection Lee Kong Chian School Of Business

The world decided in December 2015 to take actions to reduce global warming. To contribute toward this goal, this research examines possible policy levers for inclusion in the climate change ratification plan. A case study of the measures taken by the Republic of Singapore, a low-lying 719.2 km2 island without natural resources in Asia, is conducted. Being vulnerable to climate change impact and yet having to balance her people’s needs and economic progress with limited resources, the measures taken by this small country could offer policy insights for small states and states without access to alternative energy sources. This research …


Explicating The Information Vacuum: Stages, Intensifications, And Implications, Eugene Woon, Augustine Pang Jul 2017

Explicating The Information Vacuum: Stages, Intensifications, And Implications, Eugene Woon, Augustine Pang

Research Collection Lee Kong Chian School Of Business

Purpose: Information vacuums (IVs) arise from organizational failure to satisfy the stakeholders’ informational demands during crises. The purpose of this paper is to expand Pang’s (2013) study of the phenomenon of IV by investigating its nature, stages, intensifying factors and resolution. Design/methodology/approach: Print and social media data of five recent international crises with apparent IVs were analyzed. Findings: Poor crisis communications are intensifying factors that induce media hijacks and hypes, distancing, and public confusion. A four-stage model maps the phenomenon into a flow chart describing its development. IV termination begins when organizations either respond with information or provide solutions, results, …


Analyzing The Impact Of Public Transit Usage On Obesity, Zhaowei She, Douglas M. King, Jacobson Sheldon Sheldon Jun 2017

Analyzing The Impact Of Public Transit Usage On Obesity, Zhaowei She, Douglas M. King, Jacobson Sheldon Sheldon

Research Collection Lee Kong Chian School Of Business

The objective of this paper is to estimate the impact of county-level public transit usage on obesity prevalence in the United States and assess the potential for public transit usage as an intervention for obesity. This study adopts an instrumental regression approach to implicitly control for potential selection bias due to possible differences in commuting preferences among obese and non-obese populations. United States health data from the 2009 Behavioral Risk Factor Surveillance System and transportation data from the 2009 National Household Travel Survey are aggregated and matched at the county level. County-level public transit accessibility and vehicle ownership rates are …


Closed-Form Approximations For Optimal (R, Q) And (S, T) Policies In A Parallel Processing Environment, Marcus Ang, Karl Sigman, Jing-Sheng Song, Hanqin Zhang Jun 2017

Closed-Form Approximations For Optimal (R, Q) And (S, T) Policies In A Parallel Processing Environment, Marcus Ang, Karl Sigman, Jing-Sheng Song, Hanqin Zhang

Research Collection Lee Kong Chian School Of Business

We consider a single-item continuous-review (r, q) inventory system with a renewal demand process and independent, identically distributed stochastic lead times. Using a stationary marked-point process technique and a heavy-traffic limit, we prove a previous conjecture that inventory position and inventory on-order are asymptotically independent. We also establish closed-form expressions for the optimal policy parameters and system cost in heavy-traffic limit, the first of their kind, to our knowledge. These expressions sharpen our understanding of the key determinants of the optimal policy and their quantitative and qualitative impacts. For example, the results demonstrate that the well-known square-root …


Africa: The Management Education Challenge, Howard Thomas, Michelle P. Lee, Lynne Thomas, Alexander Wilson Jun 2017

Africa: The Management Education Challenge, Howard Thomas, Michelle P. Lee, Lynne Thomas, Alexander Wilson

Research Collection Lee Kong Chian School Of Business

The research evidence for this second volume of Africa: The Management Education Challenge is based primarily on around 40 in-depth, face-to-face, semi-structured interviews lasting about two to three hours. The interviewees were drawn from academia, business, media and government with expertise in management education.


The Mediating Role Of Emotional Exhaustion In The Relationship Of Mindfulness With Turnover Intentions And Job Performance, Jochen Reb, Jayanth Narayanan, Sankalp Chaturvedi, Srinivas Ekkirala Jun 2017

The Mediating Role Of Emotional Exhaustion In The Relationship Of Mindfulness With Turnover Intentions And Job Performance, Jochen Reb, Jayanth Narayanan, Sankalp Chaturvedi, Srinivas Ekkirala

Research Collection Lee Kong Chian School Of Business

Mindfulness in the workplace has emerged as a legitimate and growing area of organizational scholarship. The present research examined the role of employee emotional exhaustion in mediating the relationship of mindfulness with turnover intentions and task performance. Drawing on theory and empirical research on both organizational behavior and mindfulness, we predicted that more mindful employees would show lower turnover intentions and higher task performance and that these relationships would be mediated by emotional exhaustion. We tested these hypotheses in two field studies in an Indian context. Study 1 was a field study of call center employees of a multinational organization, …