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Research Collection Lee Kong Chian School Of Business

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Full-Text Articles in Business

Shades Of Darkness: A Pecking Order Of Trading Venues, Albert J. Menkveld, Bart Zhou Yueshen, Haoxiang Zhu Jun 2017

Shades Of Darkness: A Pecking Order Of Trading Venues, Albert J. Menkveld, Bart Zhou Yueshen, Haoxiang Zhu

Research Collection Lee Kong Chian School Of Business

We characterize the dynamic fragmentation of U.S. equity markets using a unique data set that disaggregates dark transactions by venue types. The "pecking order" hypothesis of trading venues states that investors "sort" various venue types, putting low-cost-low-immediacy venues on top and high-cost-high-immediacy venues at the bottom. Hence, midpoint dark pools on top, non-midpoint dark pools in the middle, and lit markets at the bottom. As predicted, following VIX shocks, macroeconomic news, and firms' earnings surprises, changes in venue market shares become progressively more positive (or less negative) down the pecking order. We further document heterogeneity across dark venue types and …

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The Retransmission Of Rumor And Rumor Correction Messages On Twitter, Alton Y. K. Chua, Cheng-Ying Tee, Augustine Pang, Ee-Peng Lim Jun 2017

The Retransmission Of Rumor And Rumor Correction Messages On Twitter, Alton Y. K. Chua, Cheng-Ying Tee, Augustine Pang, Ee-Peng Lim

Research Collection Lee Kong Chian School Of Business

This article seeks to examine the relationships among source credibility, message plausibility, message type (rumor or rumor correction) and retransmission of tweets in a rumoring situation. From a total of 5,885 tweets related to the rumored death of the founding father of Singapore Lee Kuan Yew, 357 original tweets without an “RT” prefix were selected and analyzed using negative binomial regression analysis. The results show that source credibility and message plausibility are correlated with retransmission. Also, rumor correction tweets are retweeted more than rumor tweets. Moreover, message type moderates the relationship between source credibility and retransmission as well as that …

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Motivated Cognition And Fairness: Insights, Integration, And Creating A Path Forward, Laurie J. Barclay, Michael R. Bashshur, Marion Fortin Jun 2017

Motivated Cognition And Fairness: Insights, Integration, And Creating A Path Forward, Laurie J. Barclay, Michael R. Bashshur, Marion Fortin

Research Collection Lee Kong Chian School Of Business

How do individuals form fairness perceptions? This question has been central to the fairness literature sinceits inception, sparking a plethora of theories and a burgeoning volume of research. To date, the answer to thisquestion has been predicated on the assumption that fairness perceptions are subjective (i.e., “in the eye of thebeholder”). This assumption is shared with motivated cognition approaches, which highlight the subjectivenature of perceptions and the importance of viewing individuals arriving at those perceptions as active andmotivated processors of information. Further, the motivated cognition literature has other key insights thathave been less explicitly paralleled in the fairness literature, including …

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The Association Of Hospital Governance With Innovation In Taiwan, Chen-Wei Yang, Yu-Hua Yan, Shih-Chieh Fang, Noorein S. Inamdar, Hsiencheng Lin Jun 2017

The Association Of Hospital Governance With Innovation In Taiwan, Chen-Wei Yang, Yu-Hua Yan, Shih-Chieh Fang, Noorein S. Inamdar, Hsiencheng Lin

Research Collection Lee Kong Chian School Of Business

Hospitals in Taiwan are facing major changes and innovation is increasingly becoming a critical factor for remaining competitive. One determinant that can have a significant impact on innovation is hospital governance. However, there is limited prior research on the relationship between hospital governance and innovation. The purpose of this study is to propose a conceptual framework to hypothesize the relationship between governance mechanisms and innovation and to empirically test the hypotheses in hospital organizations. We examine the relationship between governance mechanisms and innovation using data on 102 hospitals in Taiwan from the Taiwan Joint Commission on Hospital Accreditation and Quality …

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Liquidity In A Market For Unique Assets: Specified Pool And To-Be-Announced Trading In The Mortgage-Backed Securities Market, Pengjie Gao, Paul Schultz, Zhaogang Song Jun 2017

Liquidity In A Market For Unique Assets: Specified Pool And To-Be-Announced Trading In The Mortgage-Backed Securities Market, Pengjie Gao, Paul Schultz, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

Agency mortgage-backed securities (MBS) trade simultaneously in a market for specified pools (SPs) and in the to-be-announced (TBA) forward market. TBA trading creates liquidity by allowing thousands of different MBS to be traded in a handful of TBA contracts. SPs that are eligible to be traded as TBAs have significantly lower trading costs than other SPs. We present evidence that TBA eligibility, in addition to characteristics of TBA-eligible SPs, lowers trading costs. We show that dealers hedge SP inventory with TBA trades, and they are more likely to prearrange trades in SPs that are difficult to hedge.

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Not Just How Much You Know: Interactional Effect Of Cultural Knowledge And Metacognition On Creativity In A Global Context, Chua, Roy Y. J., Kok Yee Ng Jun 2017

Not Just How Much You Know: Interactional Effect Of Cultural Knowledge And Metacognition On Creativity In A Global Context, Chua, Roy Y. J., Kok Yee Ng

Research Collection Lee Kong Chian School Of Business

The ability to think and solve problems creatively in a multicultural environment is critical for success in the 21st century. Integrating research on creative cognition and cultural intelligence, we examine the interactional effects of two cognitive capabilities – cultural knowledge and cultural metacognition – on individuals’ creativity in multicultural teams. We propose that although cultural knowledge is useful for creativity,too much knowledge can be detrimental because of cognitive overload and entrenchment.This inverted U-shaped relationship however, is moderated by cultural metacognition.Results of our study support our hypothesis of an inverted U-shape relationship between cultural knowledge and creativity. As expected, we found …

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Organisational Citizenship Behaviors Of Directors: An Integrated Framework Of Director Role-Identity And Boardroom Structure, Toru Yoshikawa, Helen Wei Hu Jun 2017

Organisational Citizenship Behaviors Of Directors: An Integrated Framework Of Director Role-Identity And Boardroom Structure, Toru Yoshikawa, Helen Wei Hu

Research Collection Lee Kong Chian School Of Business

While directors’ task boundaries are usually ambiguous, some of their activities or behaviors clearly constitute their formal duties, whereas others are usually perceived as organizational citizenship behavior (OCB). Applying identity theory, we present a theoretical model that demonstrates one of the key drivers for directors to engage in OCB with a focus on their role identity. We argue that an individual director’s role identity is one of the key factors that motivate directors to engage in OCB. Furthermore, we propose that two board-level contingencies, board capital, and informal board hierarchy order, can moderate the effect of directors’ role-identity salience on …

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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, …

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Situational Judgement Tests For Selection, Jan Corstjens, Filip Lievens, Stefan Krumm May 2017

Situational Judgement Tests For Selection, Jan Corstjens, Filip Lievens, Stefan Krumm

Research Collection Lee Kong Chian School Of Business

When situational judgement tests (SJTs) began to regain popularity among the scientific community in the 1990s there was an implicit notion that they captured context‐dependent knowledge. In fact, the term ‘situational judgement’ carries the connotation of test‐takers’ responses being more effective when they consider the specifics of the situation. In recent years another perspective has emerged, which views SJTs as capturing relatively contextindependent knowledge (or general domain knowledge; Motowidlo, Crook, Kell & Naemi, 2009; Motowidlo, Hooper & Jackson, 2006a). Although SJTs and their items will often fall somewhere between these two perspectives, we posit in this chapter that it might …

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Variance Risk Premiums Of Commodity Etfs, Chyng Wen Tee, Christopher H. A. Ting May 2017

Variance Risk Premiums Of Commodity Etfs, Chyng Wen Tee, Christopher H. A. Ting

Research Collection Lee Kong Chian School Of Business

We propose a model-independent method to account for the early exercise premiums in American options on non-dividend paying stocks. We find that our estimates of early exercise premium are generally larger than the estimates by existing methods. Given the American options on the Exchange-Traded Funds (ETFs) of gold, silver, natural gas, and crude oil, we find strong empirical evidence of variance risk premiums for these commodities, over a volatility term structure up to 18 months. Furthermore, we show that volatility indexes constructed by using existing methods tend to overestimate the risk-neutral variance, and consequently the magnitude of variance risk premium.

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Future Directions In Personality, Occupational And Medical Selection: Myths, Misunderstandings, Measurement, And Suggestions, Eamonn Ferguson, Filip Lievens May 2017

Future Directions In Personality, Occupational And Medical Selection: Myths, Misunderstandings, Measurement, And Suggestions, Eamonn Ferguson, Filip Lievens

Research Collection Lee Kong Chian School Of Business

This paper has two objectives: (1) presenting recent advances in personality theory whereby personality traits are conceptualized within a framework that focuses on the dynamic interactions of behaviour, biology, context, and states, and (2) discussing the implications of these developments for measurement and medical selection. We start by presenting evidence that traits are no longer regarded as stable deterministic predictors of behaviour. Instead, traits are found to change across generations, the life span, and in response to environmental contingencies. Thus, there is an urgent need to explore how traits change as function of medical education. Second, drawing on recent theory …

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The Value Of Trading Relations In Turbulent Times, Marco Di Maggio, Amir Kermani, Zhaogang Song May 2017

The Value Of Trading Relations In Turbulent Times, Marco Di Maggio, Amir Kermani, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

This paper investigates how dealers’ trading relations shape their trading behavior in the corporate bond market. Dealers charge lower spreads to dealers with whom they have the strongest ties and more so during periods of market turmoil. Systemically important dealers exploit their connections at the expense of peripheral dealers as well as clients, charging higher markups than to other core dealers. Also, intermediation chains lengthened by 20% following the collapse of a flagship dealer in 2008 and even more for institutions strongly connected to this dealer. Finally, dealers drastically reduced their inventory during the crisis.

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Warm Weather Leads To Safe Choices, Shilpa Madan May 2017

Warm Weather Leads To Safe Choices, Shilpa Madan

Research Collection Lee Kong Chian School Of Business

Consumers have different purchase journeys depending on the temperature, according to research; and not just when it comes to purchasing cold drinks.Writing for WARC, Shilpa Madan, an Associate at the Institute on Asian Consumer Insight (ACI) in Singapore, explains that outward bodily sensations, such as feeling hot in summertime, can influence the way consumers perceive people and things, and shape preferences and choices, without conscious thought.

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Stefano Harney: In Conversation With The Co-Author Of The Undercommons’ With Michael Schapira And Jesse Montgomery, Michael Schapira, Jesse Montgomery Montgomery, Stephen Matthias Harney May 2017

Stefano Harney: In Conversation With The Co-Author Of The Undercommons’ With Michael Schapira And Jesse Montgomery, Michael Schapira, Jesse Montgomery Montgomery, Stephen Matthias Harney

Research Collection Lee Kong Chian School Of Business

‘In Conversation with the Co-author of The Undercommons’ with Michael Schapira and Jesse Montgomery, Full-Stop Quarterly, May 2017 http://www.full-stop.net/quarterly/

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Construct-Driven Sjts: Toward An Agenda For Future Research, Filip Lievens May 2017

Construct-Driven Sjts: Toward An Agenda For Future Research, Filip Lievens

Research Collection Lee Kong Chian School Of Business

A common theme running through recent research on Situational Judgment Tests (SJTs) and this special issue is the aim to improve the measurement of constructs via SJTs. Construct-driven SJTs differ from traditional SJTs in that they present a trait activating situation to test-takers and a more unidimensional set of response options that depict different trait levels. In this commentary, I frame the different papers of this special issue into a research agenda related to construct-driven SJTs. Specifically, I posit that future research should examine whether construct-driven SJTs lead to more unidimensionality at the item level, cleaner measurement of the constructs, …

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Digital Transformation And Value Creation: Sea Change Ahead, Srinivas K. Reddy, Werner Reinartz May 2017

Digital Transformation And Value Creation: Sea Change Ahead, Srinivas K. Reddy, Werner Reinartz

Research Collection Lee Kong Chian School Of Business

Digital transformation is taking place all around us and there is hardly a single aspect of life that has not been affected. In a traditional sense, digital transformation refers to the use of computer and internet technology for a more efficient and effective economic value creation process. In a broader sense, it refers to the changes that new technology has on the whole; on how we operate, interact, and configure, and how wealth is created within this system. It has become clear by now that the digital transformation has an obvious, lasting, and even revolutionary impact, not only on the …

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The Value Of Trading Relations In Turbulent Times, Marco Di Maggio, Amir Kermani, Zhaogang Song May 2017

The Value Of Trading Relations In Turbulent Times, Marco Di Maggio, Amir Kermani, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

This paper investigates how dealers’ trading relations shape their trading behavior in the corporate bond market. Dealers charge lower spreads to dealers with whom they have the strongest ties and more so during periods of market turmoil. Systemically important dealers exploit their connections at the expense of peripheral dealers as well as clients, charging higher markups than to other core dealers. Also, intermediation chains lengthened by 20% following the collapse of a flagship dealer in 2008 and even more for institutions strongly connected to this dealer. Finally, dealers drastically reduced their inventory during the crisis.

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The Four Horsemen Of Power At The Bargaining Table, Adam D. Galinsky, Michael Schaerer, Joe C. Magee May 2017

The Four Horsemen Of Power At The Bargaining Table, Adam D. Galinsky, Michael Schaerer, Joe C. Magee

Research Collection Lee Kong Chian School Of Business

This paper aims to identify and discuss four major sources of power in negotiations. Findings: The four sources of power are alternatives, information, status and social capital. Each of these sources of power can enhance a negotiator’s likelihood of obtaining their ideal outcome because power allows negotiators to be more confident and proactive, and it shields them from the bargaining tactics of their opponents. Practical implications: The paper discusses how negotiators can utilize each source of power to improve their negotiation outcomes. Originality/value: The paper provides a parsimonious definition of power in negotiations, identifies the four major sources of negotiator …

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Having Too Many Options Can Make You A Worse Negotiator, Michael Schaerer, David D. Loschelder, Roderick I. Swaab May 2017

Having Too Many Options Can Make You A Worse Negotiator, Michael Schaerer, David D. Loschelder, Roderick I. Swaab

Research Collection Lee Kong Chian School Of Business

The conventional wisdom about negotiating — whether for a job salary or the price of a house — is that you’re better positioned to get what you want when you have more offers to leverage. For example, the more job offers an MBA graduate has, the better positioned they are to get a good deal with a recruiter. If you’re considering multiple options, your counterpart may feel pressured to make a better offer to keep you at the negotiation table. As our research shows, however, having alternative offers does not always help you. In a series of experiments, we found …

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Moral Traps: When Self-Serving Attributions Backfire In Prosocial Behavior, Stephanie C. Lin, Julian J. Zlatev, Dale T. Miller May 2017

Moral Traps: When Self-Serving Attributions Backfire In Prosocial Behavior, Stephanie C. Lin, Julian J. Zlatev, Dale T. Miller

Research Collection Lee Kong Chian School Of Business

Two assumptions guide the current research. First, people's desire to see themselves as moral disposes them to make attributions that enhance or protect their moral self-image: When approached with a prosocial request, people are inclined to attribute their own noncompliance to external factors, while attributing their own compliance to internal factors. Second, these attributions can backfire when put to a material test. Studies 1 and 2 demonstrate that people who attribute their refusal of a prosocial request to an external factor (e.g., having an appointment), but then have that excuse removed, are more likely to engage in prosocial behavior than …

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Corporate Donations And Shareholder Value, Hao Liang, Luc Renneboog Apr 2017

Corporate Donations And Shareholder Value, Hao Liang, Luc Renneboog

Research Collection Lee Kong Chian School Of Business

Do corporate donations enhance shareholder wealth or reflect agency problems? We address this question for a global sample of firms whereby we distinguish between charitable and political donations, as well as between donations in cash and in kind. We find that charitable donations are positively related to financial performance and firm value, which is consistent with the value-enhancement hypothesis. This positive effect on firm value is stronger for cash than in-kind donations. In contrast, political donations do not appear to enhance shareholder value, but rather tend to reflect agency problems, as they are higher for firms with poor internal corporate …

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On The Foundations Of Corporate Social Responsibility, Hao Liang, Luc Renneboog Apr 2017

On The Foundations Of Corporate Social Responsibility, Hao Liang, Luc Renneboog

Research Collection Lee Kong Chian School Of Business

A firm’s corporate social responsibility (CSR) practice and its country’s legal origin are strongly correlated. This relation is valid for various CSR ratings coming from several large datasets that comprise more than 23,000 large companies from 114 countries. We find that CSR is more strongly and consistently related to legal origins than to “doing good by doing well”-factors, and most firm and country characteristics such as ownership concentration, political institutions, and degree of globalization. In particular, companies from common law countries have lower level of CSR than companies from civil law countries, and Scandinavian civil law firms assume highest level …

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The Role Of Facial Appearance On Ceo Selection After Firm Misconduct, David M. Gomulya, Elaine M. Wong, Margaret E. Ormiston, Warren Boeker Apr 2017

The Role Of Facial Appearance On Ceo Selection After Firm Misconduct, David M. Gomulya, Elaine M. Wong, Margaret E. Ormiston, Warren Boeker

Research Collection Lee Kong Chian School Of Business

We investigate a particular aspect of CEO successor trustworthiness that may be critically important after a firm has engaged in financial misconduct. Specifically, drawing on prior research that suggests that facial appearance is one critical way in which trustworthiness is signaled, we argue that leaders who convey integrity, a component of trustworthiness, will be more likely to be selected as successors after financial restatement. We predict that such appointments garner more positive reactions by external observers such as investment analysts and the media because these CEOs are perceived as having greater integrity. In an archival study of firms that have …

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Upper Bounds On Return Predictability, Dashan Huang, Guofu Zhou Apr 2017

Upper Bounds On Return Predictability, Dashan Huang, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

Can the degree of predictability found in data be explained by existing asset pricing models? We provide two theoretical upper bounds on the R2 of predictive regressions. Using data on the market portfolio and component portfolios, we find that the empirical R2 are significantly greater than the theoretical upper bounds. Our results suggest that the most promising direction for future research should aim to identify new state variables that are highly correlated with stock returns instead of seeking more elaborate stochastic discount factors.

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Bridging Strategy Versus Buffering Strategy: Enhancing Crisis Management Capability In Public Management For Relational And Reputational Improvement, And Conflict Avoidance, Soojin Kim, Arunima Krishna Apr 2017

Bridging Strategy Versus Buffering Strategy: Enhancing Crisis Management Capability In Public Management For Relational And Reputational Improvement, And Conflict Avoidance, Soojin Kim, Arunima Krishna

Research Collection Lee Kong Chian School Of Business

This study seeks to understand the effectiveness ofan organization’s communication strategy in enhancing its crisis managementcapability in public management. The relationships between two types ofcommunication strategies (bridging and buffering), crisis management capabilityin public management, relational improvement, reputational improvement, andconflict avoidance have been tested in this study to suggest how anorganization’s overall strategic orientation may help its ability to weather acrisis. A survey of communication managers was conducted in South Korea with 105responses, representing 105 organizations. Results revealed that organizations whichare predisposed toward adopting the bridging strategy as their maincommunication strategy are likely to report better crisis management capabilityin public management, …

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Signaler Credibility, Signal Susceptibility, And Relative Reliance On Signals: How Stakeholders Change Their Evaluative Processes After Violation Of Expectations And Rehabilitative Efforts, David Gomulya, Yuri Mishina Apr 2017

Signaler Credibility, Signal Susceptibility, And Relative Reliance On Signals: How Stakeholders Change Their Evaluative Processes After Violation Of Expectations And Rehabilitative Efforts, David Gomulya, Yuri Mishina

Research Collection Lee Kong Chian School Of Business

Prior studies have shown that a firm’s violation of expectations might lead to less favorable evaluations of that firm by stakeholders. However, the literature has been silent on whether and how the process by which stakeholders evaluate a firm could change subsequent to the violation. Drawing from signaling and screening theory, we examine how evaluative processes might change in the context of financial restatements. We find that investors appear to shift their relative reliance on particular signals in determining a firm’s stock price following an earnings restatement. These changes are at least partly reversed following the replacement of an incumbent …

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The Interplay Of Customer Experience And Commitment, Timothy Keiningham, Joan Ball, Sabine Benoit, Helen L. Bruce, Alexander Buoye, Julija Dzenkovska, Linda Nasr, Yi-Chun Ou, Mohamed Zaki Apr 2017

The Interplay Of Customer Experience And Commitment, Timothy Keiningham, Joan Ball, Sabine Benoit, Helen L. Bruce, Alexander Buoye, Julija Dzenkovska, Linda Nasr, Yi-Chun Ou, Mohamed Zaki

Research Collection Lee Kong Chian School Of Business

Purpose: This research aims to better understand customer experience, as it relates to customer commitment and provides a framework for future research into the intersection of these emerging streams of research. Design/methodology/approach: This research contributes to theoretical and practical perspectives on customer experience and its measurement by integrating extant literature with customer commitment and customer satisfaction literature. Findings: The breadth of the domains that encompass customer experience – cognitive, emotional, physical, sensorial and social – makes simplistic metrics impossible for gauging the entirety of customers’ experiences. These findings provide strong support of the need for new research into customer experience …

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Licensing Contracts: Control Rights, Options And Timing, Pascale Crama, Bert De Reyck, Niyazi Taneri Apr 2017

Licensing Contracts: Control Rights, Options And Timing, Pascale Crama, Bert De Reyck, Niyazi Taneri

Research Collection Lee Kong Chian School Of Business

Research and development (R&D) collaborations, common in high-tech industries, are challenging to manage due to technical and market risks as well as incentive problems. We investigate how control rights, options, payment terms and timing allow the innovator to capture maximum value from its R&D collaborations with a marketer. Our study reveals a counterintuitive result; the innovator may, under certain conditions, prefer to grant launch control rights or buy-out options to the marketer despite the fact that both terms restrict its downstream actions. We demonstrate that a menu of contracts is not necessary to address the adverse selection problem as the …

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Institutional Logics And Power Sources: Merger And Acquisition Decisions, Henrich R. Greve, Cyndi Man Zhang Apr 2017

Institutional Logics And Power Sources: Merger And Acquisition Decisions, Henrich R. Greve, Cyndi Man Zhang

Research Collection Lee Kong Chian School Of Business

Institutional theory has explained greater prevalence of many strategic actions by increases in their legitimacy over time, but has not developed theory on how firms decide between actions backed by competing institutional logics. We address this shortfall by applying theory of organizational coalitions and power to predict effects of external influence through ownership and internal influence through decision participation. We analyze how the old state socialism logic and the new market capitalism logic compete for influencing the Chinese firms’ engagement in merger and acquisitions. We found that the logics affected firm M&A decisions through the coalitions committed to each logic, …

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Mutual Fund Trading Costs And Diseconomies Of Scale, Jeffrey Busse, Tarun Chordia, Lei Jiang, Yuehua Tang Apr 2017

Mutual Fund Trading Costs And Diseconomies Of Scale, Jeffrey Busse, Tarun Chordia, Lei Jiang, Yuehua Tang

Research Collection Lee Kong Chian School Of Business

Larger mutual funds underperform smaller funds even though they have lower percentage transaction costs. Larger funds hold and trade a larger fraction of bigger, more liquid stocks, which leads to lower percentage transaction costs than smaller funds. Smaller funds outperform larger funds primarily when small cap stocks outperform large cap stocks. Overall, we find that it is not trading costs but fund holding characteristics, especially the market capitalization of stock holdings, that drive diseconomies of scale in the mutual fund industry.

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