Business

Publication Search Results

Now showing 1 - 10 of 31
  • (2021) Wang, Hang
    Thesis
    This thesis examines the role of public information on equity prices. In the first study, we add new evidence that news increases investor disagreement. First, we find that stock prices are convex in relation to news, confirming that prices on news days reflect the risk compensation of opinion divergence. Second, using unexplained trading volume as a proxy for investor disagreement, we find that investor disagreement is positively priced in the cross-section, confirming that news increases investor disagreement. Finally, we distinguish empirically between two competing channels regarding how trading volume gets incorporated into asset prices when trading volume is a proxy for disagreement. We find that news-day unexplained trading volume is associated with high liquidity and low average bias, which reduces the effect of optimistic views. In the second study, motivated by the existing evidence that investors misreaction to news generates skewness and creates mispricing, we draw novel evidence that investors inability to interpret news correctly contributes to the pricing of skewness. Specifically, we find that only the skewness extracted from observed corporate news-day returns is negatively priced. This effect is particularly pronounced for stocks with greater asymmetric responses to good and bad news, and investors lottery preferences do not explain these results. Collectively, our findings suggest that accounting for endogeneity in skewness rather than treating skewness as an exogenous characteristic (lottery feature) of the return distribution is critical for understanding the negative relationship between skewness and future returns. In the final study, we examine the effect of Mercury Retrograde on stock market returns. Focusing on market indexes in 48 countries, we find that the average market returns in Mercury Retrograde periods are about 3.22% annually lower than those in other periods. This effect comes from a belief channel: investors who hold an astrological belief that Mercury Retrograde can destroy their decision-making will stay away from the market. This belief results in a higher risk premium required by remaining investors in sharing more risk. We further confirm that this belief channel concerns belief in ancient Greek culture, highlighting the importance of ancient culture in equity prices. Collectively, our findings suggest that investors may deem some ancient cultures important and behave accordingly.

  • (2021) Yustantio, Jessica
    Thesis
    The ‘bamboo ceiling’ is a metaphorical term used to explain the underrepresentation of Asians in leadership positions. This includes the individual, cultural and organisational barriers and challenges that Asians encounter on their way to attaining higher-level positions in Western organisations. The aim of this thesis is to provide a more informed understanding of the bamboo ceiling effect and to shape research questions that are of priority areas for knowledge sharing. Chapter 1 introduces the thesis topic and presents a review of the literature on the bamboo ceiling effect. In examining the literature, I synthesise the major findings in the literature, and subsequently gain further insight into under-examined areas. I pool together a series of research questions to guide the subsequent empirical studies (Chapter 2 and Chapter 3) that help explain the bamboo ceiling effect and its potential solutions. Chapter 2 focuses on the lack of knowledge in explaining the bamboo ceiling effect through an emotions perspective—namely, the mediating effect of perceived ability to manage emotions as a way to understand the differences in the leadership promotability of male and female Asian and Caucasian leaders. Chapter 3 addresses the limitations in the field to investigate potential solutions to eliminate the bamboo ceiling. This chapter presents the effect of race of mentors and role models through a two-wave field study, and applies signaling theory and similarity attraction paradigm to highlight the potential benefits for Asians of having a Caucasian mentor and an Asian role model towards their self-perceived leadership promotability. Chapter 4 presents the thesis’ overarching theoretical and practical contributions, alongside limitations and future research proposals.

  • (2021) Paramita, Widya
    Thesis
    Ethical issues commonly occur within the frontline job context. Failure to handle ethical issues properly may incur damage to company reputation, making the management of frontline employees’ (FLEs) ethical strategies critical. Current literature suggests that ethical strategy is influenced by recognition of ethical issues, a subjective interpretive process that leads individuals to recognise distinct types of ethical issues. Unexpectedly, the existing theoretical frameworks do not account for variations in individuals' recognition of ethical issue types. The absence of such a theoretical framework has precluded previous studies investigating the implications of different ethical issue types on individual ethical decision-making. Building upon social cognition theory and the everyday problem-solving framework, this thesis proposes a theoretical framework that considers individual variations in ethical issue recognition and validates it across four sequential studies using Australian retail FLEs as the sample. Studies 1 and 2 employ a qualitative approach to explore the types of ethical issues being recognised by FLEs (Study 1) and FLEs’ ethical strategy types (Study 2). Studies 1 and 2 produce a taxonomy of ethical issues and a taxonomy of FLE ethical strategies, respectively. Study 3 uses a quantitative survey method to examine the implications of the different ethical issue types recognised by FLEs for ethical strategy, individual (i.e., customer-orientation, ethical ideology, organisational identification and moral identity) and contextual (i.e., ethical work climate, formal ethics system, and supervisor’s ethical leadership) factors, as well as FLE-perceived company reputation. The findings of Study 3 show that each type of ethical issue recognised by FLEs leads to different FLE ethical strategy types. In addition, each ethical issue type is related to different individual and contextual factors. Study 3 also reveals that FLEs’ ethical strategy types do not influence FLE-perceived company reputation. In contrast, using an experimental design, Study 4 demonstrates that FLEs’ ethical strategy types do affect consumer-perceived company reputation. Theoretically, this thesis contributes by establishing a framework accounting for the distinct types of ethical issues recognised by FLEs and the implications for their ethical decision-making process. From a practical perspective, this thesis provides guidelines for companies to manage FLEs’ ethical strategies so as to improve company reputation.

  • (2021) Li, Yijing
    Thesis
    Reward-based crowdfunding is rapidly shaping up to be a revolutionary avenue for companies, especially start-ups, to broadcast their businesses and solicit capital through digital platforms. The platformized micro-investment mechanism in crowdfunding creates an unprecedented digital market that ensures a more fluid and granular distribution of financial resources. The Information Systems (IS) community has endeavored to shed light on this growing market by studying the decisive factors that motivate funders’ contributions and lead to crowdfunding success. Yet, despite its risky nature, no study thus far systematically investigates how risk perceptions emerge and impact funders’ investment behavior in reward-based crowdfunding and what companies can do to address funders’ risk concerns. To bridge these gaps, this thesis synthesizes contemporary knowledge on the contextual characteristics of crowdfunding and risks around diverse transactional environments to arrive at a typology of the risks encountered by funders when participating in reward-based crowdfunding. Drawing on the indispensable link between trust and risk, a holistic research model is constructed to: (1) postulate the impact of funders’ risk perceptions on their willingness to invest using a reward-based crowdfunding platform, (2) discern how different types of crowdfunding risks can be mitigated by enhancing the assessability of fundraiser’s trustworthiness, and (3) explore the optimum trust-building mechanisms that can facilitate funders’ assessments of fundraiser’s trustworthiness. Three experimental studies are conducted to validate the advanced research model empirically. The findings from the three studies yield theoretical insights on crowdfunding risks and mechanisms to diminish funders’ risk perceptions via trust-building. The results also yield actionable design principles that platform providers can adopt to help funders assess risk and improve their financing experience in this emerging market. 

  • (2021) Dias, Malshika
    Thesis
    Emerging technologies are radically changing the future of work. From artificial intelligence for customer support to robotics for performing surgery, the change is unprecedented in the history of most organisations. This thesis aims to understand and contribute rich, empirically informed insights into the phenomenon of the future of work in the context of emerging technologies from an organisational history perspective. The thesis comprises three related but standalone studies that discuss organisational trajectories and the implications of emerging technologies in three distinct organisational contexts. To explore this emerging and intrinsic phenomenon in organisations, this work adopts the historical narrativist approach and the qualitative case study method. The first study explores the interplay between tradition and technology at a pre-digital organisation when new technologies are introduced. The second study delves into the strategies and practices of realising historically embodied process knowledge when adopting a robotic process automation technology at a digitally reformed organisation. The third study traces the evolution of a strategic path towards technology and data driven innovation, from the foundation to the implementation of artificial intelligence technologies, at a born-digital organisation. Each of the three studies provides a distinct but complementary understanding on the role of organisational history by contributing to the theories of imprinting, organisational memory and path dependence. Collectively, the thesis studies contribute to our understanding of “how history matters” in the future of work. The thesis discussion contributes to the literature by integrating the implications of surface- and deep-level effects of emerging technologies for the future of work and how they are shaped by the distant, intermediate and immediate histories of organisations.

  • (2021) Nguyen, Dinh Yen Oanh
    Thesis
    Consumers encounter thousands of scarcity messages daily, yet the effects of scarcity tactics are unclear. This thesis aims to uncover the effects of different types of scarcity tactics from both firm and customer perspectives. Included herein are fifteen studies that employed mixed research designs (i.e., experimental designs, cross-sectional surveys) with a variety of product categories (i.e., clothing, shoes, electronics, food, sustainable products, etc.). Three essays are produced to articulate this work; Essay One focuses on product scarcity and investigates when and why a corporate decision to create an intentional scarcity of products would improve or impair the brands. Essay Two examines how two types of messaging, scarcity based, and social proof based, can drive or diminish consumers’ information sharing in promotional contexts. Essay Three identifies how a personal scarcity concept - feelings of relative deprivation - undermines consumers’ adoption of sustainable products. Collectively, this thesis contributes advances to multiple streams of research including scarcity, branding, information sharing behaviour, and sustainable purchases. It also offers practical guidance for marketers, retailers, and policy makers.

  • (2021) Bay, Joshua
    Thesis
    This paper explores extensive asset allocation possibilities and asset pricing tests shedding light into the cross-sectional and time-varying nature of combining multi-asset alternative risk premia. Existing literature in the multi-asset risk premia space is limited in terms of allocation studies as most research on combining factor exposures are only in the single-stock equity space. The literary gap is further exacerbated over the last decade with the explosion of new factors discovered. To address this, key asset allocation techniques commonly used in allocating across long-only traditional asset classes and equity factors are applied to multi-asset risk premia. The results seem to suggest the key assumptions of expected returns, followed by expected risks, higher moments and then lastly correlations in this order of importance are associated with building portfolios with higher risk-reward. To the best of my knowledge, this is one of the first papers that provide a comprehensive and practical study of a wide array of portfolio implementation approaches to multi-asset risk premia. This paper serves as an annex for investors to better understand the interaction and concentration of multi-asset risk premia exposures to meet their desired investment profiles.

  • (2020) McDaid, Emma
    Thesis
    This thesis examines the role of accounting control and labour resistance in platform organisations. In the context of disaggregated forms of work, the applicability of traditional modes of management control is unclear. As such, this thesis is motivated by the complexities and opportunities that characterise the literature on control and resistance in platform organisations. Uber is selected as the site for investigation. Drawing on interviews with 36 Uber drivers from Australia, France and Canada, and a wide range of secondary materials, this thesis asks the following questions: (i) how do we understand the control that platform organisations exert over their disaggregated workforces? (ii) what are the effects of this style of control? (iii) why and how do workers resist the conditions and control they are subjected to in the provision of disaggregated work? and (iv) what are the implications of this resistance on the management control environment? This thesis addresses these research questions by means of two articles. Combined, these articles contribute to the literature on accounting control and resistance in platform organisations as follows: (i) Article One conceptualises platform-based control as technocratic, where technocratic control is understood as control enacted through data accumulation and experimentation, and the corresponding predictability of worker behaviour; (ii) Article One argues that algorithmic technologies enact control with dividualising, as opposed to individualising, effects; (iii) Article Two conceptualises resistance as the workers’ opposition to constraining controls that are decoupled from the neoliberal promises of the platform organisation; and (iv) Article Two finds that resistance is mobilised because of threats to the drivers’ imagined sense of self-identity rather than because of threats to a narrative of identity already established. Together, the two articles affix the post-disciplinary foundations of platform-based control and labour resistance

  • (2020) Fu, Yi
    Thesis
    This thesis is motivated by reported instances of opportunistic aggressive tax positions taken by large corporations across the globe. The role of professional service providers in delivering various types of tax services, especially the role of accounting firms which provide audit services at the same time to their clients, has received significant public attention. One salient concern is the appropriateness of an audit division reviewing the work conducted by the tax division of the same accounting firm. During the conduct of financial statement audits, the audit engagement team undertakes detailed examinations of the validity and reasonableness of tax-related accounts in financial reports. In situations where the tax division of an audit firm has been engaged to provide tax-related services, this could impact the incentives of the accounting firms in enabling or constraining clients’ tax aggressiveness. This thesis is comprised of three related studies that provide empirical evidence of associations between accounting firms and client firms’ tax aggressiveness. Study One examines whether accounting firm office size affects corporate tax aggressiveness. Study Two explores the association between different auditor characteristics (i.e., group audit arrangements and Big 4 identity) and the tax aggressiveness of multinational enterprises (MNEs). Study Three investigates whether corporate tax aggressiveness is associated with auditors’ propensity to issue first time going-concern opinions. In addition, these three studies also explore whether factors such as whether an audit firm also provides tax services to clients, the existence of audit or tax-specific expertise, and client importance, could moderate associations between auditor characteristics and client firms’ tax aggressiveness. Study One (accounting office size study) uses a large U.S sample covering the period from 2003 to 2017 and finds that clients audited by large audit offices have lower levels of corporate tax aggressiveness. In addition, this negative relationship is less pronounced when an audit office also provides tax services or when the audit office is exposed to more complex tax issues, but it is more pronounced when a client is financially important to the audit office. Using the unique Australian listed firms’ audit fee disclosure, Study Two (group audit study) finds that MNEs are less likely to be tax aggressive when network auditors are involved in audit engagements, compared to when the principal auditor conducts the entire audit engagement, or when unaffiliated auditors are involved in the audit. In addition, Big 4 accounting firms are associated with a lower likelihood of being tax aggressive only when network auditors are involved. These results collectively suggest that the local tax and legal knowledge of network auditors, as well as their cooperation with a principal auditor’s in-house tax division, plays an important role in constraining MNEs’ aggressive tax planning. Study Three (going-concern reporting study) finds that for a large sample of U.S. financially distressed firms over the period 2003 to 2017, firms with more aggressive tax positions are less likely to receive first-time going-concern opinions. Also, this study finds that auditors are more likely to experience both Type I and Type II misclassifications when clients have aggressive tax positions, which is consistent with signalling theory. Taken together, my findings suggest that auditors obtain incremental information from tax-related accounts for going-concern decisions, but they do not succumb to pressure from tax aggressive clients. Overall, the results from this thesis provide coherent evidence supporting the argument that accounting firms have incentives to constrain their clients’ aggressive tax activities and that aggressive tax positions provide incremental information to auditors.

  • (2021) Burton, Kelsey
    Thesis
    The enduring prevalence of dark personalities in the workplace has warranted recent research on narcissists, psychopaths, and Machiavellians and their adverse effects on the workplace. However, little effort has been made to investigate the individuals who favor dark personalities, enabling them to flourish within organizations. To better understand “when” and “how” exactly dark personalities are favored, Study 1 used an experimental design to investigate different strategies by which leaders favor narcissists, psychopaths, and Machiavellians. An actor role-played these three dark personality types within teams. Narcissists and psychopaths were favored by leaders through resource allocation, both covertly (i.e., when the decision is confidential) and overtly (i.e., when the decision is not confidential). In contrast, Machiavellians were only favored through overt resource allocation. This study also showed that narcissists were favored through interpersonal influence and promotion recommendations, while psychopaths were favored through task influence. The first study provided insight into the different ways by which leaders favor the three dark personalities and found narcissists, as compared to psychopaths and Machiavellians, to be favored through multiple mediums. Building on the premise that narcissists successfully obtain additional resources and attain favored status through interpersonal influence and promotion recommendations, further research was needed to investigate the motivational factors associated with favoring narcissists. In Study 2 and Study 3, we used a 2x2 experimental design to test a three-way interaction to determine the motivational factors that drive leaders to favor narcissists. Study 2 employed a design in which leaders watched videos of teams containing a narcissist. Study 3 employed a design in which an actor role-played the narcissist within a team. Both experiments supported the hypothesis that high dominant leaders will favor low status, narcissists through resource allocation. Thus, high dominance motivated leaders have a heightened awareness of potential threats to power and strategically choose to favor less threatening narcissists even though such narcissists negatively affect team coordination and performance. Additionally, Studies 2 and 3 supported the hypothesis that low dominant leaders favor high status narcissists through resource allocation. Leaders low in dominance motivation have a greater concern for the overall team well-being and performance while also being less assertive. Therefore, low dominant leaders are more susceptible to a narcissist’s demands and will favor the high status ‘bad apple’ to maintain high team performance. Our studies further expand the research on narcissists in the workplace and provide key insights into the leaders who favor narcissism in a manner that promulgates the prevalence of narcissists throughout organizations.