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Research Collection Lee Kong Chian School Of Business

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Full-Text Articles in Business

Envy In Response To Help: A Helping As Status Relations Model, Kenneth Tai, Katrina Lin, Catherine K. Lam Aug 2019

Envy In Response To Help: A Helping As Status Relations Model, Kenneth Tai, Katrina Lin, Catherine K. Lam

Research Collection Lee Kong Chian School Of Business

Social exchange theory suggests that after receiving help, peopleexperience gratitude and they reciprocate by helping the original help giver.However, it remains unclear whether people experience other emotions that drive positive reciprocation after receiving help.Building on helping as status relations framework, we suggest that when higherperformers provide task-related help to lower performers, help recipients perceivethat help givers have higher status, and respond to the help with envy. Torebalance the status relation, help recipients are motivated to reciprocate byhelping the help giver. Results from three studies progressively support our predictionsthat help recipients respond with envy when they receive task-related help, butonly toward …


The Information Content Of Sudden Insider Silence, Claire Yurong Hong, Frank Weikai Li Aug 2019

The Information Content Of Sudden Insider Silence, Claire Yurong Hong, Frank Weikai Li

Research Collection Lee Kong Chian School Of Business

We present evidence of investors underreacting to the absence of events in financialmarkets. Routine-based insiders strategically choose to be silent when they possessprivate information not yet reflected in stock prices. Consistent with our hypothesis,insider silence following routine sell (buy) predict positive (negative) future return aswell as fundamentals. The return predictability of insider silence is stronger amongfirms with poor information environment and facing higher arbitrage costs, and alarge fraction of abnormal returns concentrates on future earnings announcements. Along-short strategy that exploits insiders’ strategic silence behavior generates abnormalreturns of 6% to 10% annually


Socioeconomic Mobility And Talent Utilization Of Workers From Poorer Backgrounds: The Overlooked Importance Of Within-Organization Dynamics, Marko Pitesa, Madan M. Pillutla Jul 2019

Socioeconomic Mobility And Talent Utilization Of Workers From Poorer Backgrounds: The Overlooked Importance Of Within-Organization Dynamics, Marko Pitesa, Madan M. Pillutla

Research Collection Lee Kong Chian School Of Business

Socioeconomic mobility, or the ability of individuals to improve their socioeconomicstanding through merit-based contributions, is a fundamental ideal of modern societies.The key focus of societal efforts to ensure socioeconomic mobility has been on the provision of educational opportunities. We review evidence that even with the same education and job opportunities, being born into a poorer family undermines socioeconomicmobility because of processes occurring within organizations. The burden of poorerbackground might, ceteris paribus, be economically comparable to the gender gap. Weargue that in the societal and scientific effort to promote socioeconomic mobility, the keycontext in which mobility is supposed to happen—organizations—and the …


Modeling Newsvendor Behavior: A Prospect Theory Approach, Bhavani Shanker Uppari, Sameer Hasija Jul 2019

Modeling Newsvendor Behavior: A Prospect Theory Approach, Bhavani Shanker Uppari, Sameer Hasija

Research Collection Lee Kong Chian School Of Business

Problem definition: Studies have shown that the behavior of subjects in newsvendor experiments is not consistent with expected profit maximization - an assumption that is often made in operations management literature. Although prospect theory has been established as a popular model of behavioral decision making under uncertainty, it was considered to be inconsistent with observed newsvendor behavior (in particular, the pull-to-center effect) until a recent study proposed a prospect theory model that is consistent with the pull-to-center effect; however, this model's ability in representing newsvendor behavior compared to other plausible prospect theory models is unexplored in the literature. This paper …


Organizations And Societal Economic Inequality: A Review And Way Forward, Hari Bapuji, Gokhan Ertug, Jason D. Shaw Jul 2019

Organizations And Societal Economic Inequality: A Review And Way Forward, Hari Bapuji, Gokhan Ertug, Jason D. Shaw

Research Collection Lee Kong Chian School Of Business

We review research on the organizational causes (how do organizations contribute?) and consequences (how are organizations affected?) of economic inequality. Our review of 151 conceptual and empirical articles indicates that organizational research on economic inequality encompasses a wide range of topics at multiple levels of analysis, but also that this broad-scope literature exhibits conceptual ambiguities and lacks overarching organizing frameworks. To address these two issues, we develop an organizational perspective on economic inequality and clarify it as uneven distribution in the endowment and/or access to resources in a society, which manifests in differential abilities and opportunities to engage in value …


Altering The Environment To Improve Appointment System Performance, Tugba Cayirli, Kum Khiong Yang Jul 2019

Altering The Environment To Improve Appointment System Performance, Tugba Cayirli, Kum Khiong Yang

Research Collection Lee Kong Chian School Of Business

Current research on clinicperformance is focused primarily on appointment scheduling rather than shapingthe clinical environments. The goal of this study is to investigate the impactof environmental factors on the total cost performance of a clinic, measured asa weighted sum of patients’ wait times and physician’s idle time and overtime.The environmental factors investigated include the variability of servicetimes, the probabilities of no-shows and walk-ins, the number of appointmentsper session and the cost ratio of physician’s time to patients’ time. The effectsof these factors are evaluated using a near-optimal rule that already adjuststhe patients’ appointment times to minimize the negative effects of …


Crowdfunding: Sharing The Entrepreneurial Journey, Anirban Mukherjee, Hannah H. Chang, Amitava Chattopadhyay Jul 2019

Crowdfunding: Sharing The Entrepreneurial Journey, Anirban Mukherjee, Hannah H. Chang, Amitava Chattopadhyay

Research Collection Lee Kong Chian School Of Business

No abstract provided.


Toward A Typology Of Organizational Creativity, Gilbert Tan Jul 2019

Toward A Typology Of Organizational Creativity, Gilbert Tan

Research Collection Lee Kong Chian School Of Business

Both researchers and practitioners realize the importance of organizational creativity as a source of competitive advantage and long-term organizational success. Although, research on organizational creativity abounds, many researchers and practitioners view organizational creativity as a unidimensional construct. This narrow view of creativity limit our understanding on how organizations generate creative ideas to compete in the market. This paper examines organizational creativity using a two-by-two matrix along 2 dimensions: Thinking Approach (Analytical versus Intuitive) and Problem Type (Bounded versus Unbounded). According to the framework, there are four types of organizational creativity: (1) Imaginative Creativity (application of intuitive approach to unbounded problem); …


Retail Format Selection In On-The-Go Shopping Situations, Sabine Benoit, Heiner Evanschitzky, Christoph Teller Jul 2019

Retail Format Selection In On-The-Go Shopping Situations, Sabine Benoit, Heiner Evanschitzky, Christoph Teller

Research Collection Lee Kong Chian School Of Business

Consumers patronize different store formats to purchase products. Prior literature describes store and format choices for big, multi-item shopping baskets, but limited insights determine consumers' unique shopping routines when they seek to buy just one or a few items while on the go. Such shopping situations might affect consumers' format selections for both search and experience goods. This study uses multi-attribute utility theory to develop a framework, tested with a scenario-based experiment. For search goods, a format's economic utility (price level, speed) is more important; its functional utility (quality, variety) and psychological utility (atmosphere, service) become less important considerations. Furthermore, …


Momentum And Reversal: The Role Of Short Selling, Zhaobo Zhu, Xinrui Duan, Licheng Sun, Jun Tu Jul 2019

Momentum And Reversal: The Role Of Short Selling, Zhaobo Zhu, Xinrui Duan, Licheng Sun, Jun Tu

Research Collection Lee Kong Chian School Of Business

This paper investigates the relation between short selling and momentum. We document that a consistent momentum strategy that buys lightly shorted winners and sells heavily shorted losers exhibits strong short-term momentum and no long-term reversal. In contrast, an inconsistent momentum strategy that buys heavily shorted winners and sells lightly shorted losers experiences weak short-term momentum and persistent long-term reversal. Our results are robust after controlling for firm characteristics, proxy for short-sale constraints, and investor sentiment, as well as an exogenous shock (the Taxpayer Relief Act of 1997). These findings present a new challenge to existing theories of momentum that rely …


Rejoinder To “Confronting The Crisis Of Confidence In Management Studies: Why Senior Scholars Need To Stop Setting A Bad Example” From The Asian Perspective, Toru Yoshikawa Jul 2019

Rejoinder To “Confronting The Crisis Of Confidence In Management Studies: Why Senior Scholars Need To Stop Setting A Bad Example” From The Asian Perspective, Toru Yoshikawa

Research Collection Lee Kong Chian School Of Business

Critical issues that Bill Harley discusses such as the lack of value in management research output can possibly be amplified by the diffusion of the same research practices, goals, and norms around the world and in Asia. Although the issues raised by Bill Harley touch on three levels - university, business school, and the management field - this rejoinder focus on research at Asian business schools in general and also specifically research in the management field to share an Asian perspective.


How Do Board Ties Affect The Adoption Of New Practices? The Effects Of Managerial Interest And Hierarchical Power, Toru Yoshikawa, Jung Wook Shim, Chang Hyun Kim, Anja Tuschke Jul 2019

How Do Board Ties Affect The Adoption Of New Practices? The Effects Of Managerial Interest And Hierarchical Power, Toru Yoshikawa, Jung Wook Shim, Chang Hyun Kim, Anja Tuschke

Research Collection Lee Kong Chian School Of Business

Research Question/Issues: Most extant literature implicitly equates obtaining information through board interlocks to acting on the information. We investigate triggers that help to translate the information into action. In addition to exposure to the information by board interlocks, we suggest that the self-interest of the individuals who create these ties and hierarchical power of interlinked firms determines the likelihood of taking actions of adopting new practices. Research Findings/Insights: Using the action of adopting two distinctive governance practices, stock option pays or board reform, we find that sent ties and received ties affect the adoption decisions differently. Whereas sent ties reflect …


Mocked And Shamed: Satirical News And Its Effects On Organizational Reputation, Lisbeth Lim, Juliana Chia, Augustine Pang Jul 2019

Mocked And Shamed: Satirical News And Its Effects On Organizational Reputation, Lisbeth Lim, Juliana Chia, Augustine Pang

Research Collection Lee Kong Chian School Of Business

With fake news the rage (Tavernise, 2016), this study examines one form of fake news, satire news (Reilly, 2010). This study examines factors that lead satire news to be created, how they are used to criticize organizations and the impact on reputations. News on five satire news sites – The Onion (US), New Nation (Singapore), The Shovel (Australia), NewsThump (UK), and Der Postillon (Germany) – were analyzed using social media monitoring tools. Findings suggested that crises or paracrises (Coombs & Holladay, 2012) were likely to be exacerbated. While its effects are not immediate, satire news may have impact on organizations’ …


Tail Risk Concerns Everywhere, George P. Gao, Xiaomeng Lu, Zhaogang Song Jul 2019

Tail Risk Concerns Everywhere, George P. Gao, Xiaomeng Lu, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

We show that the beta with respect to an index of global ex ante tail risk concerns (��ℝ����), which we construct using out-of-the-money options on multiple global assets, negatively drives cross-sectional return variations across asset classes, including international equity indices, foreign currencies, and government bond futures. The pricing power of ��ℝ���� becomes stronger when more asset-class-level tail risk concerns are incorporated in the index construction. ��ℝ���� also dominates asset-class-level tail risk concerns in pricing assets within each asset class. These evidences imply that the pricing effect of tail risk concerns works predominantly as a global channel. The ��ℝ���� pricing effect …


Biclustering Via Mixtures Of Regression Models, Raja Velu, Zhaoque Zhou, Chyng Wen Tee Jun 2019

Biclustering Via Mixtures Of Regression Models, Raja Velu, Zhaoque Zhou, Chyng Wen Tee

Research Collection Lee Kong Chian School Of Business

Biclustering of observations and the variables is of interest in many scientific disciplines. In a single set of data matrix it is handled through the singular value decomposition. Here we deal with two sets of variables: response and predictor sets. We model the joint relationship via regression models and then apply SVD on the coefficient matrix. The sparseness condition is introduced via Group Lasso. The approach discussed here is quite general and is illustrated with an example from Finance.


Understanding The Operating Landscape Of The Global Airline Industry: A Dea Integrated Alternating Conditional Expectation Approach, Joyce M. W. Low, Kum Khiong Yang Jun 2019

Understanding The Operating Landscape Of The Global Airline Industry: A Dea Integrated Alternating Conditional Expectation Approach, Joyce M. W. Low, Kum Khiong Yang

Research Collection Lee Kong Chian School Of Business

Purpose: This study investigates the relationships between service efficiency in 5 major cost centres (namely, business orientation, network coverage, physical resources, maintenance, repair and overhaul (MRO), and human resources) and profitability in the global airline industry. Design/methodology: The study integrates the Slack-based Model (SBM) of Data Envelopment Analysis (DEA) with the Alternating Conditional Expectation (ACE) regression to understand the relationships between an airline’s profitability and its efficiencies in 5 identified operations areas. Findings: Based on the observational data obtained from 75 international airlines, the relationships between operational performances and profitability are found to be curvilinear and contingent on an airline’s …


The Future Of Business Schools: Shut Them Down Or Broaden Our Horizons?, Ken Starkey, Howard Thomas Jun 2019

The Future Of Business Schools: Shut Them Down Or Broaden Our Horizons?, Ken Starkey, Howard Thomas

Research Collection Lee Kong Chian School Of Business

Ken Starkey and Howard Thomas report on a groundbreaking workshop that debated the mounting criticism of business schools and where they might go from here.


Crossed Wires: Endorsement Signals And The Effects Of Ipo Firm Delistings On Venture Capitalists’ Reputations, David Gomulya, Kyuho Jin, Peggy M. Lee, Timothy G. Pollock Jun 2019

Crossed Wires: Endorsement Signals And The Effects Of Ipo Firm Delistings On Venture Capitalists’ Reputations, David Gomulya, Kyuho Jin, Peggy M. Lee, Timothy G. Pollock

Research Collection Lee Kong Chian School Of Business

Signaling theorists have paid a great deal of attention to the costs of acquiring characteristics that can serve as signals, such as endorsements from reputable third parties. However limited attention has been devoted to the penalty costs associated with providing inaccurate signals and the factors that can exacerbate or attenuate the penalties. In this study, we examine the effect of negative feedback loops on venture capital firms’ reputations that result from the failures (delistings) of the newly-public firms they once endorsed. Drawing on signaling and attribution theories, we argue that endorsements by reputable VC firms create high expectations that, when …


Are Bond Ratings Informative? Evidence From Regulatory Regime Changes, Louis H. Ederington, Jeremy C. Goh, Yen Teik Lee, Lisa Zongfei Yang Jun 2019

Are Bond Ratings Informative? Evidence From Regulatory Regime Changes, Louis H. Ederington, Jeremy C. Goh, Yen Teik Lee, Lisa Zongfei Yang

Research Collection Lee Kong Chian School Of Business

The Dodd–Frank Act (Section 939B) enacted in 2010 repealed the exemption of credit rating agencies (CRAs) from Regulation Fair Disclosure. Testing whether CRAs continue to provide new information to the market after the repeal, the authors find that the significant prerepeal stock price responses to rating changes disappear after the regime change. Bond price reactions, however, remain significant. These results are even more significant at the investment–speculative boundary. Evidence suggests that CRAs served as a conduit for transmitting private information before the repeal and that the continued bond price reactions are likely due to regulations favoring higher-rated bonds.


Industry Return Predictability: A Machine Learning Approach, David E. Rapach, Jack K. Strauss, Jun Tu, Guofu Zhou Jun 2019

Industry Return Predictability: A Machine Learning Approach, David E. Rapach, Jack K. Strauss, Jun Tu, Guofu Zhou

Research Collection Lee Kong Chian School Of Business

In this article, the authors use machine learning tools to analyze industry return predictability based on the information in lagged industry returns. Controlling for post-selection inference and multiple testing, they find significant in-sample evidence of industry return predictability. Lagged returns for the financial sector and commodity- and material-producing industries exhibit widespread predictive ability, consistent with the gradual diffusion of information across economically linked industries. Out-of-sample industry return forecasts that incorporate the information in lagged industry returns are economically valuable: Controlling for systematic risk using leading multifactor models from the literature, an industry-rotation portfolio that goes long (short) industries with the …


Product Diversification Strategy, Business Group Affiliation, And Ipo Underpricing: A Study Of Chinese Firms, A. Xiaodan Wang, William P. Wan, Daphne W. Yiu Jun 2019

Product Diversification Strategy, Business Group Affiliation, And Ipo Underpricing: A Study Of Chinese Firms, A. Xiaodan Wang, William P. Wan, Daphne W. Yiu

Research Collection Lee Kong Chian School Of Business

Research Summary: Extant research has largely ignored if and how product diversification strategy influences IPO performance. We intend to fill this gap in the literature, especially in relation to transition economies where the role of diversification is institutionally bound. Specifically, drawing on the strategic actions and political connections arguments, we contend that the level of a firm's product diversification has a positive relationship with IPO underpricing. Given the prominent role of business groups in shaping firms' diversification strategies in transition economy, we further examine whether business groups' nonmarket capital-political, relational, and reputational capital-moderates the relationship between product diversification strategy and …


Analyst Career Concerns, Effort Allocation, And Firms Information Environment, Jarrad Harford, Feng Jiang, Rong Wang, Fei Xie Jun 2019

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

Research Collection Lee Kong Chian School Of Business

Analysts strategically allocate more effort to portfolio firms that are relatively more important to their careers. Thus, the other firms the analysts cover indirectly affect a firm’s information environment. Controlling for analyst and firm characteristics, we find that an analyst makes more accurate, frequent, and informative earnings forecasts and recommendations for firms ranked higher within her portfolio based on proxies for importance to institutions. A firm’s relative rank widely varies across analysts, but its information environment improves when a larger proportion of analysts consider it to be relatively important. Analysts experience more favorable career outcomes when strategically allocating their efforts.


The Information In Asset Fire Sales, Sheng Huang, Matthew C. Ringgenberg, Zhe Zhang Jun 2019

The Information In Asset Fire Sales, Sheng Huang, Matthew C. Ringgenberg, Zhe Zhang

Research Collection Lee Kong Chian School Of Business

Duplicate record, see https://ink.library.smu.edu.sg/lkcsb_research/5894/. Asset prices remain depressed for several years following mutual fund fire sales. We show that price pressure from fire sales is partly due to asymmetric information which leads to an adverse selection problem for arbitrageurs. After a flow shock, fund managers do not scale down their portfolio, rather, they choose to sell a subset of low-quality stocks that subsequently underperform. In other words, fund managers have selling skill. Our findings suggest an explanation for the tendency of asset prices to remain depressed following fire sales: information asymmetries make it difficult for arbitrageurs to disentangle pure …


Building Trust For A Positive Employee Experience, Richard Raymond Smith Jun 2019

Building Trust For A Positive Employee Experience, Richard Raymond Smith

Research Collection Lee Kong Chian School Of Business

How do we create the right environment of trust at workplace and avoid surprises?


Can Algorithms Help Us Decide Who To Trust?, David De Cremer, Jack Mcguire, Yorck Hesselbarth, Ke M Mai Jun 2019

Can Algorithms Help Us Decide Who To Trust?, David De Cremer, Jack Mcguire, Yorck Hesselbarth, Ke M Mai

Research Collection Lee Kong Chian School Of Business

The use of artificial intelligence (AI) and algorithms is increasing within organizations to manage business processes, hire employees, and automate routine organizational decision making. This comes as no surprise, since the application of simple linear algorithms have been shown to outperform human judgment in the accuracy of many administrative tasks. A 2017 Accenture survey also revealed that 85% of executives want to invest more extensively in AI-related technologies over the next three years.


Disruption Risk Mitigation In Supply Chains: The Risk Exposure Index Revisited, Sarah Yini Gao, David Simchi-Levi, Chung-Piaw Teo, Zhenzhen Yan May 2019

Disruption Risk Mitigation In Supply Chains: The Risk Exposure Index Revisited, Sarah Yini Gao, David Simchi-Levi, Chung-Piaw Teo, Zhenzhen Yan

Research Collection Lee Kong Chian School Of Business

Simchi-Levi et al. (2014, 2015a) proposed a novel approach using the Time-To-Recover (TTR) parameters to analyze the Risk Exposure Index (REI) of supply chains under disruption. This approach is able to capture the cascading effects of disruptions in the supply chains, albeit in simplified environments -- TTRs are deterministic, and at most one node in the supply chain can be disrupted. In this paper, we proposed a new method to integrate probabilistic assessment of disruption risks into the REI approach and measure supply chain resiliency by analyzing the Worst-case CVaR (WCVaR) of total lost sales under disruptions.We show that the …


Crop Planning In Sustainable Agriculture: Dynamic Farmland Allocation In The Presence Of Crop Rotation Benefits, Onur Boyabatli, Javad Nasiry, Yangfang (Helen) Zhou May 2019

Crop Planning In Sustainable Agriculture: Dynamic Farmland Allocation In The Presence Of Crop Rotation Benefits, Onur Boyabatli, Javad Nasiry, Yangfang (Helen) Zhou

Research Collection Lee Kong Chian School Of Business

This paper examines crop planning decision in sustainable agriculture---that is, how to allocate farmland among multiple crops in each growing season when the crops have rotation benefits across growing seasons. We consider a farmer who periodically allocates the farmland between two crops in the presence of revenue uncertainty where revenue is stochastically larger and farming cost is lower when a crop is grown on rotated farmland (where the other crop was grown in the previous season). We characterize the optimal dynamic farmland allocation policy and perform sensitivity analysis to investigate how revenue uncertainty of each crop affects the farmer's optimal …


Revisiting The Human Capital System, Richard Raymond Smith May 2019

Revisiting The Human Capital System, Richard Raymond Smith

Research Collection Lee Kong Chian School Of Business

A holistic view of human capital inside any organization consists of talent management, organizational structure and culture, and strategic leadership.


Being Sensitive To Positives Has Its Negatives: An Approach/Avoidance Perspective On Reactivity To Ostracism, Ferris D. Lance, Shereen Fatimah, Ming Yan, Lindie H. Liang, Huiwen Lian, Douglas J. Brown May 2019

Being Sensitive To Positives Has Its Negatives: An Approach/Avoidance Perspective On Reactivity To Ostracism, Ferris D. Lance, Shereen Fatimah, Ming Yan, Lindie H. Liang, Huiwen Lian, Douglas J. Brown

Research Collection Lee Kong Chian School Of Business

Workplace mistreatment is typically conceptualized as being exposed to a negative stimulus – for example, a threat, verbal abuse, or other forms of harassment. Consequently, we expect workplace mistreatment will have the greatest effect on individuals who are sensitive to the presence and absence of negative stimuli – or those with a strong avoidance temperament. Although this may be the rule for most mistreatment constructs, we argue that ostracism may be the exception. Using an approach/avoidance framework to highlight unique elements of ostracism, we build on the definition of ostracism as being the absence of an expected positive stimulus (i.e., …


Organizing For Artificial Intelligence (Ai) Technologies, Sukti Ghosh May 2019

Organizing For Artificial Intelligence (Ai) Technologies, Sukti Ghosh

Research Collection Lee Kong Chian School Of Business

This study focuses on organisation design choices as tools for addressing the management challenges of commercialising AI technologies for competitive advantage. It explores how design choices address fundamental problems of organising in such context, illustrating notable design features observed. Additionally, it examines external alignment and internal coherence reiterating interdependencies in organisation’s design choices, when adapting to exogenous changes due to emerging AI technologies.