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Browsing by Author "Wang, Xiaojia"

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    Are performance explanations credible or strategic? Evidence from a large sample of MD&As1
    (2024) Gong, Sabrina; Hao, Yamin; Wang, Xiaojia
    This paper examines managers’ explanations of firm performance (i.e., management attributions) in a large sample of the Management's Discussion and Analysis (MD&A) section of annual reports. We find that managers of poorly performing firms tend to attribute firm performance to external factors. We further propose a prediction model to decompose management external attributions into a credible part and a strategic part and find that both components are negatively related to firm performance. This evidence suggests that management external attributions partially reflect the actual impact of external conditions on firm performance and are not entirely subject to managerial opportunism. Additionally, we find that investors react more strongly to firm performance when managers provide credible external attributions, especially for firms without a bad reputation for strategic external attributions. We also show that executive compensation is less sensitive to firm performance when managers make more strategic external attributions.
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    Externalities of sales information along the supply chain
    (2024) Hao, Yamin; Wang, Xiaojia
    Prior studies have shown that earnings information of customer firms is value relevant to the investors of their suppliers, but it remains unclear whether sales information has similar effects. In this study, we investigate the value relevance of customer firms’ sales information to suppliers’ investors using a large sample of monthly sales disclosures from U.S. retailers. We find that within the narrow window of retailers’ monthly sales disclosures, suppliers’ abnormal stock returns are positively related to retailers’ sales growth in both same-store sales and store numbers. This finding suggests that sales information has spillover effects, or externalities, along the supply chain. We further conduct cross-sectional tests and find that the externalities of sales information vary with a supplier’s dependence on the retailer. We also develop a prediction model to separate the expected and unexpected components of retailers’ sales information and find that the unexpected component of sales growth is the primary source of externalities. Overall, this study provides new insights into the value relevance of sales disclosures.
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    An option-based capacity control mechanism for code-sharing alliances
    (2023) Wang, Xiaojia; Fung, Richard Y. K.
    This study addresses capacity control problems in code-sharing alliances, which deal with the determination of member airlines' booking limits. We propose an innovative option-based capacity control mechanism to overcome the drawback of inflexibility in blocked seat allotment for a two-airline code-sharing alliance. The mechanism incorporates the concept of a straddle, an advanced option strategy in finance, to allow member airlines the flexibility to tackle not only downward but also upward demand variations during the booking process. We design simulation experiments and use a case illustration to show scenarios when the code-sharing alliance can benefit from the proposed mechanism.
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    Service 4.0: Technology-enabled customer-centric supply chains
    (2024) Kang, Parminder Singh; Wang, Xiaojia; Son, Joong Y.; Jat, Mohsin
    This book presents a systematic framework for Service 4.0, including service digitization, digitalization, and digital transformation, which is an integral part of Supply Chain 4.0 in coping with complex, dynamic, and interdependent systems. It provides a comprehensive state-of-the-art review of digital technologies to support Service 4.0 and Supply Chain 4.0, and discusses important pillars of customer-centric supply chain models. It then explains the role of big data in customer-centric service-based supply chains and links the different types of data needed to promote end-to-end transparency and value co-creation activities to promote these key pillars. Moreover, the book introduces practical models to support analytics for customer-centric supply chains and sheds light on how the industry practically uses existing models to promote service co-creation. A chapter of a case study on women's clothing e-commerce reviews and demonstrates how various data visualization and text mining methods can be used to uncover meaningful insights within the review data. The book is intended to help students and researchers quickly navigate through various technologies and future research directions in the areas of Service 4.0 and Supply Chain 4.0. It is also a valuable read for practitioners in this field.
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    Strategic analyses of applying an option-based hedging mechanism in parallel airline alliances
    (2023) Wang, Xiaojia; Fung, Richard Y. K.
    The extant literature proposes an option-based hedging mechanism for airlines in a parallel alliance to transfer bumped passengers to their alliance partner’s flight. This paper extends this literature by conducting strategic analyses and developing a two-stage simulation-based algorithm to identify the best strategy for applying the hedging mechanism. Specifically, the best strategy refers to the best number of options for the allied carriers to transact. The authors show that there exists a robust result of the best number of options, and it is obtained under the objective of maximizing alliance-wide revenue. The result of this paper can provide direct guidance to the management of airlines on the best practice of hedging ex-post overbooking risks and matching supply with demand.
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    Teaching information flow in supply chains: a role-playing game using TagScan
    (2024) Wang, Xiaojia; Enstroem, Rickard
    Information flow is one of the three main flows of supply chains. It is an abstract concept that can be challenging for students to grasp in its entirety. This article describes a role-playing game for teaching the topic of information flow in an undergraduate supply chain management course. The game allows students to simulate receiving and fulfilling customer orders by playing five roles within a manufacturing company. Students use TagScan, an augmented reality barcoding and logistics system launched by a technology company in western Canada, to track information throughout the game. Pre- and postsurvey results demonstrate the effectiveness of the proposed game in helping students visualize abstract course concepts and understand the types of information being tracked, the available information transmission technology, and the dynamics of information flow in a supply chain. Students were actively engaged in this in-class activity and responded positively to the learning-by-gaming experience.