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2004

Research Collection Lee Kong Chian School Of Business

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Full-Text Articles in Business

The Singapore-India Connection: A Tale Of Two Industrial Parks, Caroline Yeoh, Wongso Kevin, Wee Tan Dec 2004

The Singapore-India Connection: A Tale Of Two Industrial Parks, Caroline Yeoh, Wongso Kevin, Wee Tan

Research Collection Lee Kong Chian School Of Business

In recent times, Singapore has, as part of its regionalisation strategy, established industrial parks in various countries, including China, Vietnam, and India. The parks are marketed as a winning combination of the host country’s unique location advantages and Singapore-style efficiency and management know-how. Singapore’s foray into India, in particular, was marked by the setting up of the ITPL in Bangalore; a development that met with great success. However, with global businesses shifting interests towards India, and competing industrial parks emerging to meet the increasing demand, ITPL is faced with stiff competition from other industrial parks; and Singapore has since announced …

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Investing When Volatility Fluctuates, Leping Wang Dec 2004

Investing When Volatility Fluctuates, Leping Wang

Research Collection Lee Kong Chian School Of Business

No abstract provided.

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Easing The Inferential Leap In Competency Modeling: The Effects Of Task-Related Information And Subject Matter Expertise, Filip Lievens, Juan I. Sanchez, Wilfred De Corte Dec 2004

Easing The Inferential Leap In Competency Modeling: The Effects Of Task-Related Information And Subject Matter Expertise, Filip Lievens, Juan I. Sanchez, Wilfred De Corte

Research Collection Lee Kong Chian School Of Business

Despite the rising popularity of the practice of competency modeling, research on competency modeling has lagged behind. This study begins to close this practice-science gap through 3 studies (1 lab study and 2 field studies), which employ generalizability analysis to shed light on (a) the quality of inferences made in competency modeling and (b) the effects of incorporating elements of traditional job analysis into competency modeling to raise the quality of competency inferences. Study 1 showed that competency modeling resulted in poor interrater reliability and poor between-job discriminant validity amongst inexperienced raters. In contrast, Study 2 suggested that the quality …

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Penny Pricing And The Components Of Spread And Depth Changes, David K. Ding, K.H. Chuang, C. Chearoenwong Dec 2004

Penny Pricing And The Components Of Spread And Depth Changes, David K. Ding, K.H. Chuang, C. Chearoenwong

Research Collection Lee Kong Chian School Of Business

Recent studies show that decimal pricing led to significant reductions in the spread and depth on the NYSE. In this paper, we examine how the observed changes in the spread and depth can be attributed to different factors. We show that stocks with higher proportions of one-tick spreads and odd-sixteenth quotes, and more frequent trading before decimalization experienced larger declines in the spread and depth afterwards. We interpret this result as evidence of reduced binding constraints and increased price competition under decimal pricing. We also find that decimal pricing led to nontrivial changes in select stock attributes, and that these …

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International Joint Ventures And Political Risk, Sundaram Janakiramanan, Lamba Asjeet S. Nov 2004

International Joint Ventures And Political Risk, Sundaram Janakiramanan, Lamba Asjeet S.

Research Collection Lee Kong Chian School Of Business

In recent years, a number of researchers have examined the existence and source of shareholder wealth effects around announcements of international joint ventures. The results of these studies are mixed with no clear answers as to when and why investors attach value to firms using joint ventures to enter overseas markets. In this context, we examine the shareholder wealth effects for 92 international joint venture announcements made by Australian firms during June 1988 - December 1997. We find that, on average, shareholders of firms announcing joint ventures realize an abnormal return of +1.65% over the two-day announcement period of days …

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Organizational Politics And Multisource Feedback: An Opportunity Or A Threat?, Gary J. Greguras, John M. Ford Nov 2004

Organizational Politics And Multisource Feedback: An Opportunity Or A Threat?, Gary J. Greguras, John M. Ford

Research Collection Lee Kong Chian School Of Business

No abstract provided.

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Style Effects In The Cross-Section Of Stock Returns, Melvyn Teo, Sung-Jun Woo Nov 2004

Style Effects In The Cross-Section Of Stock Returns, Melvyn Teo, Sung-Jun Woo

Research Collection Lee Kong Chian School Of Business

Using CRSP stock and mutual fund data, we find strong evidence for reversals at the style level (e.g., large value, small growth, etc.). There are significant excess and risk-adjusted returns for stocks in styles characterized by the worst past returns and net inflows. We also find evidence for momentum and positive feedback trading at the style level. These value and momentum effects are driven neither by fundamental risk nor by stock-level reversals and momentum. Taken together, the results are consistent with the style-level positive feedback trading model of Barberis and Shleifer (2003).

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The Impact Of Regulation Fair Disclosure On Information Asymmetry And Trading: An Intraday Analysis, Chiraphol N. Chiyachantana, Christine X. Jiang, Nareerat Taechapiroontong, Robert A. Wood Nov 2004

The Impact Of Regulation Fair Disclosure On Information Asymmetry And Trading: An Intraday Analysis, Chiraphol N. Chiyachantana, Christine X. Jiang, Nareerat Taechapiroontong, Robert A. Wood

Research Collection Lee Kong Chian School Of Business

This study examines the impact of Regulation Fair Disclosure (FD) on liquidity, information asymmetry, and institutional and retail investors trading behavior. Our main findings suggest three conclusions. First, Regulation FD has been effective in improving liquidity and in decreasing the level of information asymmetry. Second, retail trading activity increases dramatically after earnings announcements but there is a significant decline in institutional trading surrounding earnings announcements, particularly in the pre‐announcement period. Last, the decline in information asymmetry around earnings announcements is closely associated with a lower participation rate in the pre‐announcement period and more active trading of retail investors after earnings …

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Watching The Shop From The Front Seat: Determinants Of Venture Capitalists' Representation On The Board, Reddi Kotha, Eli Talmor Nov 2004

Watching The Shop From The Front Seat: Determinants Of Venture Capitalists' Representation On The Board, Reddi Kotha, Eli Talmor

Research Collection Lee Kong Chian School Of Business

Oversight and involvement are essential for a venture capital firm to influence the destiny of the portfolio company. This paper focuses primarily on the venture capital firm’s decision to take a formal responsibility through joining the board. Our study uses a large sample of private British companies that received institutional investment between 1999 and 2002. We examine the determinants of board composition and board size. Contrary to common belief, only 30 % of the companies have any institutional investor (a “VC”) on board. The decision to take a formal board seat is based on the ability to make a contribution: …

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The Relationship Between Governance Structure And Risk Management Approaches In Japanese Venture Capital Firms, Toru Yoshikawa, Phillip H. Phan, Jonathan Linton Nov 2004

The Relationship Between Governance Structure And Risk Management Approaches In Japanese Venture Capital Firms, Toru Yoshikawa, Phillip H. Phan, Jonathan Linton

Research Collection Lee Kong Chian School Of Business

This paper attempts to understand what drives Japanese venture capital (JVC) fund managers to select either active managerial monitoring or portfolio diversification to manage their firms' investment risks [J. Bus. Venturing 4 (1989) 231]. Unlike U.S. venture capitalists that use active managerial monitoring to gain private information in order to maximize returns [J. Finance 50 (1995) 301], JVCs have traditionally used portfolio diversification to attenuate investment risks [Hamada, Y., 2001. Nihon no Bencha Kyapitaru no Genkyo (Current State of Japanese Venture Capital), Nihon Bencha Gakkai VC Seminar, May 7]. We found that performance pay is positively related to active monitoring …

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Prospect Theory, Analyst Forecast, And Stock Returns, David K. Ding, Charlie Charoenwong, Raymond Seetoh Oct 2004

Prospect Theory, Analyst Forecast, And Stock Returns, David K. Ding, Charlie Charoenwong, Raymond Seetoh

Research Collection Lee Kong Chian School Of Business

This paper documents how prospect theory can be used to explain stock returns and analysts' forecast behavior. Positive earnings surprises are associated with increases in abnormal returns but negative earnings surprises have only a limited negative impact on returns. We find that analysts display asymmetric behavior towards positive and negative earnings growth. Analysts' forecasts are found to be accurate during periods of positive earnings growth, but overly optimistic during periods of negative earnings growth. Our findings have implications for the structuring of investment products, as well as the role of market timing in their introduction.

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Measuring Marketing Productivity: Current Knowledge And Future Directions, Roland T. Rust, Tim Ambler, Gregory S. Carpenter, V. Kumar, Rajendra Kumar Srivastava Oct 2004

Measuring Marketing Productivity: Current Knowledge And Future Directions, Roland T. Rust, Tim Ambler, Gregory S. Carpenter, V. Kumar, Rajendra Kumar Srivastava

Research Collection Lee Kong Chian School Of Business

For too long, marketers have not been held accountable for showing how marketing expenditures add to shareholder value. As time has gone by, this lack of accountability has undermined marketers' credibility, threatened the standing of the marketing function within the firm, and even threatened marketing's existence as a distinct capability within the firm. This article proposes a broad framework for assessing marketing productivity, cataloging what is already known, and suggesting areas for further research. The authors conclude that it is possible to show how marketing expenditures add to shareholder value. The effective dissemination of new methods of assessing marketing productivity …

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Investing In Hedge Funds: Risks, Returns And Performance Measurement, Francis Koh, Winston T. H. Koh, David K. C. Lee, Kok Fai Phoon Oct 2004

Investing In Hedge Funds: Risks, Returns And Performance Measurement, Francis Koh, Winston T. H. Koh, David K. C. Lee, Kok Fai Phoon

Research Collection Lee Kong Chian School Of Business

Hedge funds are collective investment vehicles that are often established with a special legal status that allows their investment managers a free hand to use derivatives, short sell, and exploit leverage to raise returns and cushion risk. We review various issues relating to the investment in hedge funds, which have become popular with high net-worth individuals and institutional investors, as well as discuss their empirical risk and return profiles. The concerns regarding the empirical measurements are highlighted, and meaningful analytical methods are proposed to provide greater risk transparency in performance reporting. We also discuss the development of the hedge fund …

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House Prices And Fundamental Value, John Krainer, Chi Shen Wei Oct 2004

House Prices And Fundamental Value, John Krainer, Chi Shen Wei

Research Collection Lee Kong Chian School Of Business

The performance of the residential housing market over the last ten years has been remarkable. According to the Office of Federal Housing Enterprise Oversight (OFHEO), house prices have appreciated at an annual rate of 5.4% on average (68.9% over the whole time period). Perhaps even more remarkable is that the performance was strong even when economic activity overall was weak. Average annual appreciation rates have been 7.4% (26% in total) since the collapse of the Nasdaq in 2000 and 7.1% (20% in total) since 2001:Q1, the beginning of the 2001 recession. In contrast, since the start of the 2001 recession, …

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The Role Of Manufacturing Flexibility On Product Platform Development, Soumen Ghosh, Byung Joon Park Oct 2004

The Role Of Manufacturing Flexibility On Product Platform Development, Soumen Ghosh, Byung Joon Park

Research Collection Lee Kong Chian School Of Business

In recent years firms from a range of industries have responded to growing market uncertainty by investing heavily in manufacturing flexibility. Manufacturing Flexibility is understood as process flexibility, that is a process that results from being able to build different types of products on the same production line at the same time. One benefit of manufacturing flexibility is the reduction of change over cost from building one product to another. Flexible manufacturing also relieves the problem of overcapacity, since excessive overcapacity could be avoided through the introduction of flexible manufacturing plants. Recently, firms have examined a new concept of enabling …

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How To Make Knowledge Management A Dynamic Capability, Arun Kumaraswamy, Raghu Garud Oct 2004

How To Make Knowledge Management A Dynamic Capability, Arun Kumaraswamy, Raghu Garud

Research Collection Lee Kong Chian School Of Business

No abstract provided.

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Chaos-Induced Escape Over A Potential Barrier, L. Y. Chew, Hian Ann, Christopher Ting, C. H. Lai Oct 2004

Chaos-Induced Escape Over A Potential Barrier, L. Y. Chew, Hian Ann, Christopher Ting, C. H. Lai

Research Collection Lee Kong Chian School Of Business

We investigate the statistical parity of a class of chaos-generated noises on the escape of strongly damped particles out of a potential well. We show that statistical asymmetry in the chaotic fluctuations can lead to a skewed Maxwell–Boltzmann distribution in the well. Depending on the direction of skew, the Kramers escape rate is enhanced or suppressed accordingly. Based on the Perron–Frobenious equation, we determine an analytical expression for the escape rate’s prefactor that accounts for this effect. Furthermore, our perturbative analysis proves that in the zeroth-order limit, the rate of particle escape converges to the Kramers rate.

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Exploitation, Exploration, And Firm Performance: The Case Of Small Manufacturing Firms In Japan, Takehiko Isobe, Shige Makino, David B. Montgomery Oct 2004

Exploitation, Exploration, And Firm Performance: The Case Of Small Manufacturing Firms In Japan, Takehiko Isobe, Shige Makino, David B. Montgomery

Research Collection Lee Kong Chian School Of Business

The purpose of this study is to investigate the relationship between technological capabilities and firm performance. We divide technological capabilities into two types – exploitation, which refers to refinement, production and execution, and exploration, which refers to searching, flexibility, and innovation. Based on a sample of 302 small and medium-sized manufacturing firms in Japan, our analysis reveals that exploitation relates more positively to operational efficiency than exploration, and conversely, exploration relates more positively to strategic performance, such as technological innovation and new product development, than exploitation. Moreover, firms with superior exploitation capabilities tend to possess superior exploration skills. Our findings …

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Future Perspectives On Employee Selection: Key Directions For Future Research And Practice, Neil Anderson, Filip Lievens, Karen Van Dam, Ann Marie Ryan Oct 2004

Future Perspectives On Employee Selection: Key Directions For Future Research And Practice, Neil Anderson, Filip Lievens, Karen Van Dam, Ann Marie Ryan

Research Collection Lee Kong Chian School Of Business

A future-oriented perspective for selection and assessment research is presented. Four superordinate themes of critical import to the development of future research are identified: (i) bimodal prediction, (ii) multilevel fit, (iii) applicant reactions and decision making, and (iv) tensions between research and practice in employee selection. Under each theme we pose a number of outstanding questions for research. Implications for practice and the ongoing advancement of the sub-field of selection, traditionally one of the most robust core disciplines in international IWO psychology, are discussed.

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The Contribution Of A Satellite Market To Price Discovery: Evidence From The Singapore Exchange, Vicentiu Covrig, David K. Ding, Buen Sin Low Oct 2004

The Contribution Of A Satellite Market To Price Discovery: Evidence From The Singapore Exchange, Vicentiu Covrig, David K. Ding, Buen Sin Low

Research Collection Lee Kong Chian School Of Business

The Singapore Exchange (SGX), a small satellite market, successfully competes with a large home market, the Osaka Securities Exchange (OSE), in trading the Nikkei 225 futures index. In this paper, we investigate the contribution of the SGX to price discovery and shed light on the reasons for its continued success. Evidence is provided from information revelation and price discovery of three competing but informationally linked markets of the Nikkei 225 index - domestic spot (Tokyo Stock Exchange), domestic futures (OSE), and foreign futures (SGX), which represents the satellite market. Overall, the futures market contributes 77% to price discovery, with the …

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Silence, Procrustes And Colonization: A Response To Clegg Et Al.'S 'Noise, Parasites And Translation: Theory And Practice In Management Consulting', Andrew Sturdy, Timothy Adrian Robert Clark, Robin Fincham, Karen Handley Sep 2004

Silence, Procrustes And Colonization: A Response To Clegg Et Al.'S 'Noise, Parasites And Translation: Theory And Practice In Management Consulting', Andrew Sturdy, Timothy Adrian Robert Clark, Robin Fincham, Karen Handley

Research Collection Lee Kong Chian School Of Business

The article by Clegg, Kornberger and Rhodes in March 2004’s issue of Management Learning is a refreshing and welcome contribution to an otherwise largely sterile, atheoretical and overly prescriptive literature on management consulting. However, and sadly, it stops very short of offering a critique and therefore generating substantially novel insights into this phenomenon. Also, and despite the authors’ assertions otherwise, it ends up celebrating consultancy as a privileged arena in achieving what is described as radical change, but what is, in effect, typically a reinforcement of existing power relations and of managerialism and its associated language.This response comes from a …

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A Social Exchange Model Of Subordinate's Trust In Supervisors, Wei Hua Sep 2004

A Social Exchange Model Of Subordinate's Trust In Supervisors, Wei Hua

Research Collection Lee Kong Chian School Of Business

This study demonstrates how the subordinate’s defensiveness predicts perception of managerial behaviors, which in turn leads to trust in supervisors. From a social information processing perspective, defensiveness, the affective reaction to uncertainty and vulnerability, serves as the frame subordinates use to decode and evaluate managerial behaviors. Trust in supervisors is anchored in this perception. A two-group analysis in Structural Equation Modeling (SEM) is used to test this model by a Chinese and a US sample

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Information Contents Of Trade And Quote Imbalances, And The Hypothesis Of Reverse Liquidity, Hian Ann, Christopher Ting Sep 2004

Information Contents Of Trade And Quote Imbalances, And The Hypothesis Of Reverse Liquidity, Hian Ann, Christopher Ting

Research Collection Lee Kong Chian School Of Business

In this paper, we study the information contents of imbalances in trades and quotes emanated from an exchange resembling the one envisioned by Black (1971). We find dollar volume is more informative than number in measuring daily trading and quoting activities. Our measure of quote imbalance permits an investigation on the information asymmetry between market and limit orders. In case illegal insider trading does not occur regularly, we present a hypothesis of reverse liquidity as an alternative interpretation for our empirical findings. It could be that market-order traders charge an implicit liquidity premium for fulfilling the contrarian trading demand of …

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The Antecedents Of Value Creation In Singapore Corporation, Wee Liang Tan, Teck Meng Tan Sep 2004

The Antecedents Of Value Creation In Singapore Corporation, Wee Liang Tan, Teck Meng Tan

Research Collection Lee Kong Chian School Of Business

The impetus for value creation has led to greater interest in encouraging entrepreneurship within organizations (intrapreneurship). The intrapreneurship literature reveals general agreement that organizational entrepreneurship flourishes where the environmental conditions of an organization are most favorable. However, there is little empirical research examining the relationship of the organizational climate and the intentions of employees to be intrapreneurs, and their actual participation in such activities. This paper reports a study on the elements of organizational climate on intrapreneurship attitudes, intentions and actions on the part of middle managers in corporations in Singapore.

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The Impact Of Corporate Governance On Value Creation In Entrepreneurial Firms, Wee Liang Tan, Teck Meng Tan Sep 2004

The Impact Of Corporate Governance On Value Creation In Entrepreneurial Firms, Wee Liang Tan, Teck Meng Tan

Research Collection Lee Kong Chian School Of Business

The compliance with codes of corporate governance has become the norm for listed firms all over the world. In most countries, entrepreneurial firms do not have to comply with such codes but it has been argued that such codes should also apply to these small medium enterprises (SMEs). Since corporate governance forms the environment for the internal activities of a company and appropriate environmental conditions are crucial for corporate entrepreneurship to flourish in a company, it is apt that these two topics be discussed in relation with each other. Corporate governance mechanisms may dampen value creation in firms if appropriate …

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Confirmatory Factor Analysis And Invariance Of An Organizational Citizenship Behaviour Measure Across Samples In A Dutch-Speaking Context, Filip Lievens, Frederik Anseel Sep 2004

Confirmatory Factor Analysis And Invariance Of An Organizational Citizenship Behaviour Measure Across Samples In A Dutch-Speaking Context, Filip Lievens, Frederik Anseel

Research Collection Lee Kong Chian School Of Business

Although Organizational Citizenship Behaviour (OCB) has been studied extensively over the years in the US, the measurement of OCB has received relatively limited attention in other international contexts. This study investigates the dimensionality of a specific OCB measure in a Dutch-speaking context (Flemish part of Belgium). In addition, we examine the invariance of this measure across two different samples: supervisor ratings of 259 subordinates and peer ratings of 215 employees. Generally, we found clear support for the discriminant validity of five OCB factors but convergent validity was only established for three of the five factors. This measurement structure found was …

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The Economy And Demand For Finance Ph.D.S: 1989-2001, David K. Ding, Sheng-Syan Chen Sep 2004

The Economy And Demand For Finance Ph.D.S: 1989-2001, David K. Ding, Sheng-Syan Chen

Research Collection Lee Kong Chian School Of Business

We investigate the demand for new finance Ph.D.s from 1989 to 2001. Three categories of schools (Top 20, Top 21-50, and Other Finance Departments) are explored and the differences between private and public institutions are reported. The demand for assistant professors is the greatest and most institutions require an earned Ph.D. While most do not specify the position type, there is some evidence that tenure-tracked ones are on the rise. The most desired areas of expertise are corporate/business finance, investments, and bank management/financial markets and institutions. The total demand is positively related to the Gross Domestic Product and Dow Jones.

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Testing Market Efficiency Using Statistical Arbitrage With Applications To Momentum And Value Strategies, Steve Hogan, Robert Jarrow, Melvyn Teo, Mitchell Warachka Sep 2004

Testing Market Efficiency Using Statistical Arbitrage With Applications To Momentum And Value Strategies, Steve Hogan, Robert Jarrow, Melvyn Teo, Mitchell Warachka

Research Collection Lee Kong Chian School Of Business

This paper introduces the concept of statistical arbitrage, a long horizon trading opportunity that generates a riskless profit and is designed to exploit persistent anomalies. Statistical arbitrage circumvents the joint hypothesis dilemma of traditional market efficiency tests because its definition is independent of any equilibrium model and its existence is incompatible with market efficiency. We provide a methodology to test for statistical arbitrage and then empirically investigate whether momentum and value trading strategies constitute statistical arbitrage opportunities. Despite adjusting for transaction costs, the influence of small stocks, margin requirements, liquidity buffers for the marking-to-market of short-sales, and higher borrowing rates, …

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Risk, Return And Risk Aversion: A Behavioral Rendition, Hian Ann, Christopher Ting Sep 2004

Risk, Return And Risk Aversion: A Behavioral Rendition, Hian Ann, Christopher Ting

Research Collection Lee Kong Chian School Of Business

Behavioral finance and classical finance based on utility maximization appear to be mutually exclusive schools of thought. Despite the fundamental difference, we show that behavioral finance also has a linear relation between risk and return. This relation is obtained without the assumptions of market equilibrium, rational expectations, a specific utility function and the market portfolio. In the behavioral approach, the pricing error of CAPM is not an error. It is attributable to the higher-order moments of return. Empirical tests suggest that the relative risk aversion coefficient is positive and time-varying. Moreover, it correlates negatively with both volatility and return.

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How Do Institutional Investors Trade, Paul G. J. O'Connell, Melvyn Teo Aug 2004

How Do Institutional Investors Trade, Paul G. J. O'Connell, Melvyn Teo

Research Collection Lee Kong Chian School Of Business

Using a novel and detailed custody trades dataset, this paper analyzes the trading behavior of institutions. Extant studies have examined the effects of past performance on trading by retail investors, day traders, and futures floor traders. Yet very little work has been done on institutions. We find that unlike other investors, institutions take on more risk following an increase in net profit and loss. However, the responses to a gain and loss are highly asymmetric. Institutions aggressively reduce risk in the wake of losses, but only mildly increase risk in the wake of gains. This asymmetry is more pronounced for …

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