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Research Collection Lee Kong Chian School Of Business

2018

Articles 1 - 30 of 142

Full-Text Articles in Business

Executive Overconfidence And Securities Class Actions, Suman Banerjee, Mark Humphery-Jenner, Vikram Nanda, T. Mandy Tham Dec 2018

Executive Overconfidence And Securities Class Actions, Suman Banerjee, Mark Humphery-Jenner, Vikram Nanda, T. Mandy Tham

Research Collection Lee Kong Chian School Of Business

Overconfident CEOs/senior executives tend to have excessively positive views of their own skills and their company’s future performance. We hypothesize that overconfident managers are more likely to engage in reckless or intentional actions/disclosures that give rise to securities class actions (SCAs). Empirical evidence is supportive: Overconfident CEOs/senior executives increase SCA likelihood, though litigation risk is ameliorated through improved governance, such as following the Sarbanes–Oxley Act of 2002. Post-SCA, companies are less likely to hire an overconfident CEO. Following an SCA, overconfident CEOs appear to moderate behavior and to reduce their litigation risk.

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Performance Trends Matter: But Why, How, And When?, Jochen Reb, Gary J. Greguras, Shenghua Luan Dec 2018

Performance Trends Matter: But Why, How, And When?, Jochen Reb, Gary J. Greguras, Shenghua Luan

Research Collection Lee Kong Chian School Of Business

That performance is dynamic and varies over time has long been recognized. However, research is only beginning to understand the implications of dynamic performance for performance appraisals and performance-based decisions. Against this backdrop, despite what we see as serious methodological concerns (e.g., single-item measures, operationalization of variables), we believe that Schmidt (2017) makes several contributions that point to important directions for future research.

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China’S Belt And Road Initiative And Asean’S Maritime Cluster, Hans-Dieter Evers, Thomas Menkhoff Dec 2018

China’S Belt And Road Initiative And Asean’S Maritime Cluster, Hans-Dieter Evers, Thomas Menkhoff

Research Collection Lee Kong Chian School Of Business

This paper centres around China’s Belt and Road Initiative (BRI) and makes a case for further examining the possible effects of the complementary ‘Maritime Silk Road’ on Southeast Asia’s maritime clusters with reference to Singapore, Malaysia and Indonesia. Port development with “Chinese engagement” from Port Klang in Malaysia to Sri Lanka to Gwadar in Pakistan to some Gulf state ports to Piraeus in Greece provides a string of valuable pearls in the form of harbours from which adjoining areas can be serviced through feeder vessels or railway lines by Chinese government-linked companies. Whether China’s heavy investments in land and maritime …

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Look Before You Jump, Kapil R. Tuli Dec 2018

Look Before You Jump, Kapil R. Tuli

Research Collection Lee Kong Chian School Of Business

Coming to grips with the reality of eLearning. In boardrooms all over the world today a scenario is played out again and again: Chief Learning Officers (CLOs) enthusiastically pitch the strategy of eLearning while chief executives remain sceptical over the outcomes. For years, eLearning appeared to be the perfect answer for corporations that need to train their employees. And it certainly has its advantages.

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What's In A Name? The Impact Of Subcategory Salience On Value Perception And Upgrade Intention For Multicategory Products, Jin K. Han, Seh-Woong Chung, Yong Seok Sohn Dec 2018

What's In A Name? The Impact Of Subcategory Salience On Value Perception And Upgrade Intention For Multicategory Products, Jin K. Han, Seh-Woong Chung, Yong Seok Sohn

Research Collection Lee Kong Chian School Of Business

Despite many convergence products rapidly approaching market saturation, academic research yet lags behind with the focus still on the primary demand in the introduction stage. The authors close this gap by focusing on how the labeling of convergence products may impact on value perception and upgrade intentions for these products. Convergence products, which combine multiple categories of products into a single device, create a unique naming dilemma for manufacturers and retailers: Whether to opt for (a) a subordinate label—a lower‐level descriptor or name that embodies its subcategory elements (e.g., smartphone or Apple’s iPhone) or (b) a superordinate label—a higher‐level descriptor …

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A Dual-Process Theory Perspective To Better Understand Judgments In Assessment Centers: The Role Of Initial Impressions For Dimension Ratings And Validity, Pia V. Ingold, Mirjam Donni, Filip Lievens Dec 2018

A Dual-Process Theory Perspective To Better Understand Judgments In Assessment Centers: The Role Of Initial Impressions For Dimension Ratings And Validity, Pia V. Ingold, Mirjam Donni, Filip Lievens

Research Collection Lee Kong Chian School Of Business

Insight into assessors’ initial impressions has the potential to advance knowledge on how assessors form dimension-based judgments and on possible biases in these ratings. Therefore, this study draws on dual process theory to build and test a model that integrates assessors’ dimension ratings (i.e., systematic, slow, deliberate processing mode) with their initial impressions (i.e., intuitive, fast, automatic processing mode). Data collection started with an AC where assessors provided ratings of assessees, and an online survey of assessees’ supervisors who rated their job performance. In addition, two other rater pools provided initial impressions of these assessees by evaluating extracted 2-min video …

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Flipping A Course On Entrepreneurial Leadership In Ethnic Chinese Business: A Mobile Learning Perspective, Thomas Menkhoff Dec 2018

Flipping A Course On Entrepreneurial Leadership In Ethnic Chinese Business: A Mobile Learning Perspective, Thomas Menkhoff

Research Collection Lee Kong Chian School Of Business

This exploratory article reflects on the teaching experiences for a course on “Entrepreneurial Leadership in Ethnic Chinese Business” at the Singapore Management University (SMU). It was categorised as a mobile learning course with reference to the flipped classroom model, learner mobility, and user-generated content outside the classroom. We examine three examples of mobile learning projects which were assigned to students so that they would be able to internalise key course objectives such as gaining an appreciation of the structure, functions, and cultural uniqueness of traditional small Chinese business organisations in Singapore. The paper also addresses some of the challenges faced …

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Sensation Seeking And Hedge Funds, Stephen Brown, Yan Lu, Sugata Ray, Song Wee Melvyn Teo Dec 2018

Sensation Seeking And Hedge Funds, Stephen Brown, Yan Lu, Sugata Ray, Song Wee Melvyn Teo

Research Collection Lee Kong Chian School Of Business

We show that motivated by sensation seeking, hedge fund managers who own powerful sports cars take on more investment risk but do not deliver higher returns, resulting in lower Sharpe ratios, information ratios, and alphas. Moreover, sensation-seeking managers trade more frequently, actively, and unconventionally, and prefer lottery-like stocks. We show further that some investors are themselves susceptible to sensation seeking and that sensation-seeking investors fuel the demand for sensation-seeking managers. While investors perceive sensation seekers to be less competent, they do not fully appreciate the superior investment skills of sensation-avoiding fund managers.

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Hexaco Personality Predicts Counterproductive Work Behavior And Organizational Citizenship Behavior In Low-Stakes And Job Applicant Contexts, Jeromy Anglim, Filip Lievens, Lisa Everton, Sharon L. Grant, Andrew Marty Dec 2018

Hexaco Personality Predicts Counterproductive Work Behavior And Organizational Citizenship Behavior In Low-Stakes And Job Applicant Contexts, Jeromy Anglim, Filip Lievens, Lisa Everton, Sharon L. Grant, Andrew Marty

Research Collection Lee Kong Chian School Of Business

This study examined the degree to which the predictive validity of personality declines in job applicant settings. Participants completed the 200-item HEXACO Personality Inventory-Revised, either as part of confidential research (347 non-applicants) or an actual job application (260 job applicants). Approximately 18-months later, participants completed a confidential survey measuring organizational citizenship behavior (OCB) and counterproductive work behavior (CWB). There was evidence for a small drop in predictive validity among job applicants, however honesty-humility, extraversion, agreeableness, and conscientiousness predicted lower levels of CWB and higher levels of OCB in both job applicants and non -applicants. The study also informs the use …

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Commonality: A Longitudinal Study, Raja Velu, Zhaoque Zhou, Chyng Wen Tee Dec 2018

Commonality: A Longitudinal Study, Raja Velu, Zhaoque Zhou, Chyng Wen Tee

Research Collection Lee Kong Chian School Of Business

The commonality in the asset characteristics such as returns, liquidity and other non-trade parameters attracted intense research interest in the literature. In this paper, we investigate the longitudinal trend in commonality for the duration 2000-2016, an extensive that include years of boom and bust in the financial market. Our results show that while market has become more fragmented, commonality in returns has doubled over this period. This observation holds across all exchanges, with a clear trend of convergence in exchange-wide commonality over time due to increased information efficiency. We develop a unified methodology to systematically accommodate all explanatory factors for …

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Managing Swaption Portfolio Risk Under Different Interest Rate Regimes, Poh Ling Neo, Chyng Wen Tee Dec 2018

Managing Swaption Portfolio Risk Under Different Interest Rate Regimes, Poh Ling Neo, Chyng Wen Tee

Research Collection Lee Kong Chian School Of Business

Efficient risk managing of swaption portfolios is crucial in the hedging of interest rate exposure. This paper formulates a portfolio risk management framework under stochastic volatility models. The implication of using the right volatility backbone in the stochastic-alpha-beta-rho (SABR) model is analyzed. In order to handle negative interest rates, we derive a displaced-diffusion stochastic volatility (DDSV) model with closed-form analytical expression for swaption pricing. We demonstrate that the dynamics naturally allow for negative rates, and is also able to fit the market well. Finally, we show that choosing the right backbone in the DDSV model results in optimal hedging performance …

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The Transformation Of Globe Telecom, Havovi Joshi, Christopher Dula, Philip Zerrillo Dec 2018

The Transformation Of Globe Telecom, Havovi Joshi, Christopher Dula, Philip Zerrillo

Research Collection Lee Kong Chian School Of Business

Redefining telecommunications in the Philippines. Globe Telecom—a major telecommunications service provider in the Philippines—had a long, pioneering history in the communications business. Incorporated in 1935, it was the first international wireless communications company connecting the Philippines to the rest of the world.

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Instead Of Predicting The Future, We Should Get On With Creating The Future, Shweta Midgil, Richard Smith Dec 2018

Instead Of Predicting The Future, We Should Get On With Creating The Future, Shweta Midgil, Richard Smith

Research Collection Lee Kong Chian School Of Business

It is important to note that there is a lot of hype about “Digital Disruption” these days. We see too many organizations trying to take on the topic of “Digital” without really focusing their efforts on something that is meaningful to the people in the organization. Leaders going around talking about digital disruption or digital transformation does not serve any purpose – only creates anxiety and uncertainty. In other words, leaders would be better served to break down the topic into meaningful topics that are linked to areas of the business.

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Single Sourcing Versus Multisourcing: The Roles Of Output Verifiability On Task Modularity, Shantanu Bhattacharya, Alok Gupta, Sameer Hasija Dec 2018

Single Sourcing Versus Multisourcing: The Roles Of Output Verifiability On Task Modularity, Shantanu Bhattacharya, Alok Gupta, Sameer Hasija

Research Collection Lee Kong Chian School Of Business

This paper compares two modes for outsourcing the development of information services projects: single-sourcing (where one vendor handles all outsourced activities) and multisourcing (where multiple vendors handle those activities). We assess the relative efficacy of these two outsourcing modes by identifying the effects of three factors: task modularity, the extent of alignment between a (verifiable) performance metric and project revenue, and the extent to which project revenue is itself verifiable. We find that if tasks are modular then multisourcing strictly dominates single-sourcing—provided the verifiable performance metric and project revenue are not completely aligned. Yet if tasks are integrated, then the …

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Likely Trajectory Of Fed Policy Far From Settled, Thomas Lam, David Fernandez Dec 2018

Likely Trajectory Of Fed Policy Far From Settled, Thomas Lam, David Fernandez

Research Collection Lee Kong Chian School Of Business

Markets seem to be assuming an almost pre-set path of Fed policy normalization in 2019, including hiking rates and shrinking the balance sheet. In contrast, we see many uncertainties ahead.

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Robo-Advisors And Wealth Management, Kok Fai Phoon, Cher Chiew Francis Koh Dec 2018

Robo-Advisors And Wealth Management, Kok Fai Phoon, Cher Chiew Francis Koh

Research Collection Lee Kong Chian School Of Business

The recent rise of robo-advisors (RAs) has threatened the traditional fund and wealth management industry. RAs' assets under management (AUM) have risen manyfold through competitiveness on pricing, transparency and services and better expected returns linked to the use of quantitative finance and technology with less subjective human intervention. This article examines the postulation that RAs have an edge over traditional wealth managers. RAs can combine the judgement and computing resources of both human and machine, or bionic power, to provide alternative wealth management services to meet the diverse needs of private wealth clients. However, the authors expect traditional wealth managers …

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Commodity Return Predictability: Evidence From Implied Variance, Skewness And Their Risk Premia, Marinela Adriana Finta, Jose Renato Haas Ornelas Dec 2018

Commodity Return Predictability: Evidence From Implied Variance, Skewness And Their Risk Premia, Marinela Adriana Finta, Jose Renato Haas Ornelas

Research Collection Lee Kong Chian School Of Business

This paper investigates the role of realized and implied and their risk premia (variance and skewness) for commodities’ future returns. We estimate these moments from high frequency and commodity futures option data that results in forward-looking measures. Risk premia are computed as the difference between implied and realized moments. We highlight, from a cross-sectional and time series perspective, the strong positive relation between commodity returns and implied skewness. Moreover, we emphasize the high performance of skewness risk premium. Additionally, we show that their portfolios exhibit the best risk-return tradeoff. Most of our results are robust to other factors such as …

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Low Power Individuals In Social Power Research: A Quantitative Review, Theoretical Framework, And Empirical Test, Michael Schaerer, Christilene Du Plessis, Andy J. Yap, Stefan Thau Nov 2018

Low Power Individuals In Social Power Research: A Quantitative Review, Theoretical Framework, And Empirical Test, Michael Schaerer, Christilene Du Plessis, Andy J. Yap, Stefan Thau

Research Collection Lee Kong Chian School Of Business

We examine the role of low-power individuals in social power research. A multi-method literature review reveals that low-power individuals may be insufficiently understood because many studies lack necessary control conditions that allow drawing inferences about low power, effects are predominantly attributed to high power, and qualitative reviews primarily focus on how high-power individuals feel, think, and behave. Challenging the assumption that low power tends to produce opposite consequences of high power, we highlight several similarities between the two states. Based on social exchange theories, we propose that unequal-power (vs. equal-power) relationships make instrumental goals, competitive attitudes, and exchange rules salient, …

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The Making Of Successful Teams: A Study On Psychological Safety And Great Workplaces In Asia Pacific: 2018 Asia Insights, Richard Raymond Smith, Valerie Tan Nov 2018

The Making Of Successful Teams: A Study On Psychological Safety And Great Workplaces In Asia Pacific: 2018 Asia Insights, Richard Raymond Smith, Valerie Tan

Research Collection Lee Kong Chian School Of Business

Drawing on existing literature as well as our own research, we set out to answer this question: what is the best approach to foster quality teamwork that transforms companies into great workplaces that are future-ready? We considered this research question specifically in the context of Asia Pacific – a region where Gartner predicts that 80 percent of traditional companies may lose 10 percent of their market share by 2021 if disruptions are not well considered and addressed. For this purpose, we examined the Great Place to Work data gathered from over 800 organisations with more than 400,000 survey respondents across …

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Assessing The Effects Of Post-Crisis Regulatory Reforms On Liquidity In The Singapore Government Securities And Mas Bills Market, John M. Sequeira Nov 2018

Assessing The Effects Of Post-Crisis Regulatory Reforms On Liquidity In The Singapore Government Securities And Mas Bills Market, John M. Sequeira

Research Collection Lee Kong Chian School Of Business

The FSB initiated in 2017 an evaluation of the effects of post-crisis regulatory reforms, by developing a framework to assess whether the reforms are achieving their intended outcomes and identify any material unintended consequences. In tandem, MAS established an evaluation framework, which covers four broad impact areas, comprising FIs, financial markets, financial end-users and the broader financial landscape. Internationally, there have been particular concerns over whether post-crisis reforms may have impaired liquidity conditions in specific financial markets. We provide an assessment of the effects of the reforms on liquidity in a key market in Singapore, the SGS and MAS bills …

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How Sending E-Mails Compares With Carbon Emission Of Car Use, Thomas Menkhoff Nov 2018

How Sending E-Mails Compares With Carbon Emission Of Car Use, Thomas Menkhoff

Research Collection Lee Kong Chian School Of Business

Digitalnatives can reduce their carbon footprint by being conscious about Internetusage. Everwondered how your e-mails may contribute to your personal carbon footprint? Accordingto estimates published in Phys.org, sending a short e-mail adds about 4g of CO2equivalent (gCO2e) to the atmosphere (an e-mail with a long attachment has atenfold carbon footprint, that is 50 gCO2e.

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Partisan Conflict And Stock Price, Dashan Huang, Wang Liyao Nov 2018

Partisan Conflict And Stock Price, Dashan Huang, Wang Liyao

Research Collection Lee Kong Chian School Of Business

Partisan conflict has been one dominant theme in U.S. politics in recent years. By using the textual index of Azzimonti (2018), this paper shows that partisan conflict positively predicts market returns, controlling for economic predictors and proxies for uncertainty, disagreement, geopolitical risk, and political sentiment. A one standard-deviation increase in partisan conflict is associated with a 0.58% increase in next month market return. The forecasting power concentrates in periods when the president is from the Republican Party or the majority of House is Republicans. Partisan conflict is positively related to downside risk, and makes investors more conservative when its value …

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Delayed Adoption Of Rules: A Relational Theory Of Firm Exposure And State Cooptation, Cyndi Man Zhang, Henrich. R. Greve Nov 2018

Delayed Adoption Of Rules: A Relational Theory Of Firm Exposure And State Cooptation, Cyndi Man Zhang, Henrich. R. Greve

Research Collection Lee Kong Chian School Of Business

Thestate creates and changes rules that coerce firms, but firms can delay or decouple responses to rule changes in order to managethe cost of demands. Theoryof compliance to thestate has not yet considered the degree to which the firm candelay adoption because of low exposure to rules and state linksthat allow cooptation, butboth of these relations between state power and firm ability to counteract itcan affect the adoption decision. This makes the response to state rule changes a more strategic outcome than the theoryof coercive isomorphism implies. We develop a relational theory of delayed firmcompliance to a state rule change …

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The Market Impact Of The Appointment Of Female Directors In Listed Companies In New Zealand, Kuan Yong David Ding, Echo Su Chen Oct 2018

The Market Impact Of The Appointment Of Female Directors In Listed Companies In New Zealand, Kuan Yong David Ding, Echo Su Chen

Research Collection Lee Kong Chian School Of Business

This study examines investor reaction to the appointment of female directors in New Zealand-listed companies. Using the event study method, we ϐind that female directors tend to be appointed as independent directors rather than in a Chief Executive Ofϐicer (CEO) role. The results reveal that female board appointments are generally negatively associated with stock performance. This study captures both the gender diversity arising in New Zealand companies and the performance of stock price resulting from the reaction of investors to the different positions of female directors. The evidence of a decrease in market performance is shown by the negative cumulative …

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The Case For Learning Journeys, Siow-Heng Ong Oct 2018

The Case For Learning Journeys, Siow-Heng Ong

Research Collection Lee Kong Chian School Of Business

No abstract provided.

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The Making Of A Construct: Lessons From 30 Years Of The Kogut And Singh Cultural Distance Index, Ilya R. P. Cuypers, Gokhan Ertug, Pursey Pmar M.A.R. Heugens, Bruce Kogut, Tengjian Zou Oct 2018

The Making Of A Construct: Lessons From 30 Years Of The Kogut And Singh Cultural Distance Index, Ilya R. P. Cuypers, Gokhan Ertug, Pursey Pmar M.A.R. Heugens, Bruce Kogut, Tengjian Zou

Research Collection Lee Kong Chian School Of Business

The 30-year anniversary of Kogut and Singh’s (1988) groundbreaking study that introduced the concept of cultural distance and its accompanying measure provides the opportunity to take stock of what makes for a good construct. We organize our discussion around the issues of concept, algorithm, and data to clarify and gauge their contribution, before highlighting the impact of their work more generally. Many of the challenges raised by critical observers focus on one of these three dimensions. As there is value in looking systematically at the construct from concept to data, we set out the argument of the index and discuss …

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New Factors Wanted: Evidence From A Simple Specification Test, Ai He, Dashan Huang, Guofu Zhou Oct 2018

New Factors Wanted: Evidence From A Simple Specification Test, Ai He, Dashan Huang, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

In this paper, we examine the pricing errors (PEs) of three kinds of factor models: a) six well known ones– the CAPM, the Fama-French three-factor model, the Carhart four-factor model, the Fama-French five-factor model, the Hou-Xue-Zhang Q-factor model, and the Stambaugh-Yuan mispricing-factor model; b) principal component factors of sixty-two anomalies; c) extracted statistical factors. We find that there is a systematic PE reversal pattern. A spread portfolio that buys stocks in the bottom PE decile and sells stocks in the top PE decile earns significant abnormal returns across all the models, implying that none of them is adequate in explaining …

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Identifying Ineffective Monitors From Securities Class Action Lawsuits, Chi Shen Wei, Lei Zhang Oct 2018

Identifying Ineffective Monitors From Securities Class Action Lawsuits, Chi Shen Wei, Lei Zhang

Research Collection Lee Kong Chian School Of Business

We identify “ineffective” institutional monitors based on the prevalence of occurrences of securities class-action lawsuits in their overall portfolio. We find that firms with a higher representation of such institutional investors among the firms’ large shareholders have a greater likelihood of future litigation and experience more negative market reactions upon such litigation filings. These firms exhibit other unfavorable governance outcomes including poorer acquisitions and lower CEO turnover-performance sensitivity. We find suggestive evidence that ineffective monitoring may be a result of higher operational risk.

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Monitoring From Afar: Do Foreign Institutional Investors Deter Insider Trading?, Claire Yurong Hong, Frank Weikai Li, Qifei Zhu Sep 2018

Monitoring From Afar: Do Foreign Institutional Investors Deter Insider Trading?, Claire Yurong Hong, Frank Weikai Li, Qifei Zhu

Research Collection Lee Kong Chian School Of Business

This paper examines the disciplinary effect of foreign institutional investors on opportunistic insider trading. Using a novel global insider trading data set containing 35,557 firms from 26 countries over the period 2000-2015, we find that greater foreign institutional ownership significantly reduces the profitability of insider trading, above and beyond the effect of domestic institutional ownership. Using the exogenous variation in foreign institutional ownership induced by MSCI index inclusion, we show that the effect is causal. The impact of foreign investors is stronger in countries with weak insider trading regulations and poor institutional environments, and operates mainly through the monitoring channel, …

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Monitoring From Afar: Do Foreign Institutional Investors Deter Insider Trading?, Claire Yurong Hong, Frank Weikai Li, Qifei Zhu Sep 2018

Monitoring From Afar: Do Foreign Institutional Investors Deter Insider Trading?, Claire Yurong Hong, Frank Weikai Li, Qifei Zhu

Research Collection Lee Kong Chian School Of Business

This paper examines the disciplinary effect of foreign institutional investors on opportunistic insider trading. Using a novel global insider trading data set containing 35,557 firms from 26 countries over the period 2000-2015, we find that greater foreign institutional ownership significantly reduces the profitability of insider trading, above and beyond the effect of domestic institutional ownership. Using the exogenous variation in foreign institutional ownership induced by MSCI index inclusion, we show that the effect is causal. The impact of foreign investors is stronger in countries with weak insider trading regulations and poor institutional environments, and operates mainly through the monitoring channel, …

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