Monthly Archives: August 2025

Energy costs disproportionately impact minority households, study shows

Heating, cooling, and powering a home is rarely affordable, and new research reveals that some Americans are paying a far higher share of their income on energy than others. A national study co-authored by Associate Professor George Homsy at Binghamton University, State University of New York, highlights a troubling reality: minority communities, particularly Black Americans, face disproportionately higher energy costs compared to the broader population.

The study, published in Energy Research & Social Science, is the first to examine energy burden—the percentage of household income spent on essentials such as heating, lighting, cooking, and air conditioning—through the combined lenses of both race and income. Drawing on data from the U.S. Department of Energy and analysing 65,000 census tracts, the research found that the average American household devotes 3.2 per cent of income to energy bills. Yet in African American majority census tracts, families spend an average of 5.1 per cent, with Latin American households also experiencing slightly higher burdens.

This disparity has far-reaching consequences. For families already balancing tight budgets, an inflated energy bill is more than an inconvenience—it can mean choosing between paying for heat or buying medicine, between covering the electricity bill or affording nutritious food. Homsy emphasised that the disparity is not simply a reflection of lower income levels. “We often say that African Americans suffer more, but we often blame it just on income. And the reality is, there is something more there. It’s not just because they tend to be poor. There is something that’s putting them at a disadvantage,” he explained.

A closer look at housing sheds light on these disadvantages. Many minority households are located in older properties, which often lack insulation, rely on outdated appliances, and require greater energy to maintain. Compounding the issue, these homes are frequently rented rather than owned, leaving residents with little control over making upgrades that could reduce consumption. Without the ability to invest in energy efficiency, households remain locked into higher energy bills, reinforcing a cycle of financial strain.

Homsy noted that while other studies have explored energy burden, none have captured how race and income intersect to shape household experiences. A Black household with a middle-class salary, for example, may still encounter higher energy costs simply because of the condition or age of the housing stock in their neighbourhood. “All of these things combine to put extra burden on African Americans – that’s the bottom line of the paper,” he said.

For Homsy, the research has urgent policy implications. He called for targeted efforts to reduce inequities rooted in decades of housing discrimination and urban planning decisions that left minority communities at a disadvantage. He and a colleague are also studying how sustainability officials attempt to lower energy burdens for renters, a challenge given the limits of landlord-controlled properties. “It is harder to get to rental units where a lot of poor people live,” Homsy acknowledged. “We need to work harder to get into these communities of colour.”

More information: George Homsy et al, Energy burden: Exploring the intersection of race, income, and community characteristics across the United States, Energy Research & Social Science. DOI: 10.1016/j.erss.2025.104207

Journal information: Energy Research & Social Science Provided by Binghamton University

Study finds Medicare could cut $3.6 billion in costs without endangering seniors’ health

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The United States federal government’s Medicare programme, in partnership with older adults who share some out-of-pocket costs, currently spends an estimated $4.4 billion each year on medical services that provide little to no clinical benefit. A new study suggests that this spending not only fails to improve health outcomes but may also put patients at greater risk of harm. The analysis highlights a set of tests, scans, and procedures that are widely used despite strong evidence questioning their effectiveness.

The researchers focused on 47 services that prior studies have identified as low-value, meaning they rarely improve patient wellbeing in the populations to which they are often applied. They argue that reducing or eliminating the use of such interventions in patients who are unlikely to benefit would preserve scarce Medicare resources for treatments with real impact. By adopting a more targeted approach, policymakers could simultaneously protect patients and improve the efficiency of healthcare spending.

Among these services, five stand out for their outsized cost and lack of clinical justification. Concentrating reform efforts on these alone could save $2.6 billion annually for Medicare and its enrollees. All five have received a “D” rating from the U.S. Preventive Services Task Force (USPSTF), meaning the evidence shows they are either ineffective or pose greater risks than benefits. Crucially, under the Affordable Care Act, such a rating gives the Secretary of Health and Human Services the authority to withhold Medicare payment for these services.

The five procedures singled out are illustrative of the problem. They include screening all older adults for chronic obstructive pulmonary disease, testing symptom-free patients for bacteria in the urine, and prostate-specific antigen (PSA) screening in men over 70 with no relevant history. Also on the list are screening older adults with no symptoms for blockages in the carotid arteries and the use of electrocardiograms in those without any signs of heart rhythm disturbances. Each has become routine in some practices, yet the evidence shows that, in the absence of specific risk factors or symptoms, they provide no meaningful benefit.

Beyond these five, the study catalogues 42 additional services judged low-value by professional societies and research organisations. Seventeen of these, combined with three of the USPSTF “D” rated interventions, accounted for an astonishing 94% of all the low-value care identified in the study. This concentration underscores the potential of focusing on a relatively small number of procedures to make significant progress in reducing wasteful spending.

The work was led by health economist David D. Kim of the University of Chicago and primary care physician A. Mark Fendrick of the University of Michigan Medical School’s Center for Value-Based Insurance Design. Their study, published in JAMA Health Forum, aligns with ongoing federal initiatives to control the rising costs of Medicare. Kim noted that while some patients may still benefit from these services under specific circumstances, avoiding them in those who cannot benefit would yield substantial savings. He also emphasised that his team did not include downstream costs caused by low-value interventions, such as the unnecessary follow-up procedures triggered by PSA screening. In that case, every $1 spent on screening can generate an additional $6 in subsequent, often needless care.

Fendrick highlighted that the study took a nuanced, evidence-driven approach rather than a blunt cost-cutting one. By carefully distinguishing between patient groups who could or could not benefit from these services, the researchers relied on objective clinical data rather than general assumptions. They examined anonymised Medicare claims from 2018 to 2020 and then extrapolated their findings to the broader Medicare population. “This research is highly policy relevant,” he explained, “because it offers a patient-focused framework for identifying unnecessary spending without compromising quality of care.” He added that the Affordable Care Act’s provisions for excluding USPSTF “D” rated services from coverage are an example of value-based insurance design at work, ensuring resources are directed towards care that truly improves health outcomes.

More information: David D. Kim et al, Projected Savings From Reducing Low-Value Services in Medicare, JAMA Health Forum. DOI: 10.1001/jamahealthforum.2025.3050

Journal information: JAMA Health Forum Provided by Michigan Medicine – University of Michigan

Study finds physical inactivity draining US economy of $192 billion each year

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A new study published in the American Journal of Health Promotion has revealed the enormous economic toll of physical inactivity in the United States. The researchers found that inadequate leisure-time aerobic physical activity accounts for roughly $192 billion in annual healthcare costs among U.S. adults, representing 12.6% of the country’s total healthcare expenditure. Drawing on data from over 76,000 adults collected between 2012 and 2019, the study highlights the far-reaching financial and health consequences of insufficient movement in daily life.

The findings paint a troubling picture of national activity patterns. Just over half of adults surveyed (52.4%) met the recommended aerobic activity guidelines, while 20.4% were classified as insufficiently active and 27.3% reported being completely inactive. On average, an adult incurred $6,566 in annual healthcare costs. Yet these costs rose significantly when linked to activity levels: adults who were insufficiently active incurred an additional $1,355 per year compared to their active peers. In contrast, inactive adults faced $2,025 more in annual healthcare spending. These disparities underscore the direct financial impact of sedentary behaviour.

Dr Adam Chen, co-author and professor at the University of Georgia’s College of Public Health, stressed the importance of seeing physical activity not as an optional pursuit but as a fundamental investment in health. “Aerobic physical activity is an investment in health—it strengthens the heart, reduces chronic disease burdens, and empowers us to live with energy and freedom,” he explained. Despite incremental national gains in activity levels, healthcare costs continue to escalate, largely due to preventable chronic conditions that could be mitigated through increased movement.

Other researchers involved in the study emphasised the role of healthcare providers and systems in addressing this crisis. Laurie Whitsel, PhD, National Vice President of Policy Research at the American Heart Association and Senior Advisor to the Physical Activity Alliance, noted that the results should encourage action across the health sector. “These findings provide further economic reasons for health systems, payers, and clinicians to integrate physical activity assessment, prescription, and referral into healthcare delivery. We need to inspire and support people to make physical activity a regular part of their day,” she said.

The CDC echoed this call to action, pointing to the simplicity of the solution. Co-author Jennifer Matjasko, PhD, of the CDC’s Division of Nutrition, Physical Activity, and Obesity, reminded the public that small steps can add up to meaningful change. “Moving more throughout the day can help improve health and reduce healthcare costs,” she explained. “Every step counts toward a healthier future.” The message reflects a broader effort to highlight physical activity as a low-cost, widely accessible tool for both preventing disease and reducing national health expenditure.

In light of these findings, the Physical Activity Alliance—the nation’s largest coalition devoted to advancing physical activity policy—has called for coordinated action across multiple sectors. Their recommendations include making physical activity a standard element of medical care, redesigning workplaces to counter sedentary cultures, and transforming communities to ensure that physical activity is safe, accessible, and unavoidable in daily routines. As Michael Stack, ACSM-EP, President of the Alliance, put it: “We’re spending nearly one out of every eight health care dollars on something we can prevent. We need to view physical activity as an essential healthcare solution to inspire people to move across their day—in recreation, to and from work, in their jobs, at home and in schools.”

More information: Jennifer Matjasko et al, Inadequate Aerobic Physical Activity and Healthcare Expenditures in the United States: An Updated Cost Estimate, American Journal of Health Promotion. DOI: 10.1177/08901171251357128

Journal information: American Journal of Health Promotion Provided by Physical Activity Alliance

Track Record Isn’t a Guarantee for CEO Performance

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When a company changes its chief executive, the decision carries enormous consequences. Yet a recent study indicates that corporate boards are not necessarily getting better at the task, even when they have prior experience. In 2024, CEO turnover hit an all-time high, with over 2,220 leaders stepping down. This wave of leadership changes prompted researchers to investigate whether repeated exposure to CEO selection improves a board’s ability to choose high-performing leaders. Their findings, published in the Strategic Management Journal, suggest that this assumption does not hold.

Rich Gentry, chair and professor of management at the University of Mississippi, explained the surprising results: “Most people improve with practice, but we find that this doesn’t hold true when it comes to directors selecting new CEOs, despite the high stakes. Directors with more prior experience in CEO hiring do not consistently select better-performing leaders. In fact, there is some evidence they might actually perform slightly worse.” Gentry collaborated with Steven Boivie of Texas A&M University, Inn Hee Gee of the University of Oklahoma, and Scott Graffin of the University of Georgia to examine CEO appointments in S&P 1500 firms between 1999 and 2020, covering a broad range of company sizes and industries.

The researchers attribute the problem to the inherent complexity and rarity of CEO hiring. As Boivie noted, “Hiring a CEO is very difficult, and it is almost impossible to know in advance who would be the perfect fit. Because of that difficulty, it is easy for boards to overinterpret their prior experiences and to believe they should copy those same patterns.” This tendency, they argue, can lead to overgeneralisation, where boards rely too heavily on what worked in the past without recognising that each company’s circumstances are unique. By acknowledging the limitations of experience, directors may be able to avoid repeating mistakes.

The stakes are particularly high because CEOs are tasked with managing both short-term and long-term performance. Kodak’s history provides a cautionary example. Its CEO championed digital photography—a forward-looking move that would later prove strategically sound—but the decision was criticised at the time for damaging short-term profits. The company ultimately filed for bankruptcy despite its technological foresight. Conversely, Microsoft’s board saw strong returns after appointing Satya Nadella in 2014. His push into cloud computing revitalised the company, delivering both immediate profitability and sustained growth.

To evaluate hiring success, the team analysed CEO performance metrics adjusted for industry norms and the company’s condition at the time of the appointment. They found that having served on a previous CEO hiring committee was not a reliable indicator of better future outcomes. Gentry referred to this as “superstitious learning” — the belief that having done something before automatically translates into expertise. In reality, most directors face the task of hiring a CEO only once or twice in their careers, offering too little repetition to build meaningful skill in such a rare and complex decision.

According to Gee, the main takeaway is that boards should avoid relying too heavily on past hiring experience. Instead, they should treat each CEO succession as a unique, context-specific challenge, guided by structured evaluation processes and informed by multiple perspectives. Gentry added that boards might benefit from more systematic support—such as formalised assessment tools and external expertise—to reduce bias and avoid overconfidence. The study ultimately suggests that accumulated experience alone is not enough; thoughtful, evidence-based decision-making is essential for selecting leaders who can thrive in both the present and the future.

More information: Steven Boivie et al, Do boards learn to hire? The effect of board experience with CEO replacement on CEO performance, Strategic Management Journal. DOI: 10.1002/smj.3725

Journal information: Strategic Management Journal Provided by University of Mississippi

For Refugees from Ukraine, Employment Opportunities Outweigh Social Benefits

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A recent study conducted by the ifo Institute and LMU Munich reveals that Ukrainian refugees prioritise better job prospects over higher social benefits when choosing where to settle. Surveying more than 3,300 Ukrainian refugees across Europe, the researchers found that the promise of employment matching a refugee’s qualifications and the potential for higher wages had a far greater influence on their choice of destination than social assistance or child benefits. According to Panu Poutvaara, Director of the ifo Center for Migration and Development Economics and Professor at LMU’s Faculty of Economics, wage differences exert nearly four times the impact of variations in social benefits when refugees decide where to relocate.

In an experimental scenario, participants were asked to select between two hypothetical countries with differing economic and social characteristics. When presented with a country offering better employment opportunities, respondents were 15 percentage points more likely to choose it over the alternative. Similarly, a country with an average wage of €500 (US$570) higher attracted a preference that was nine percentage points greater. These factors were decisive even among unemployed refugees, many of whom indicated an intention to join the labour market in the future. The presence of friends or family in the destination country also influenced decisions, increasing its attractiveness by 8.5 percentage points, although this was less important than economic incentives. Interestingly, geographical proximity to Ukraine was less of a draw, particularly for those who envisioned a long-term future abroad. For these individuals, economic opportunities outweighed closeness to family and friends.

The study underscores that understanding the motivations behind refugees’ choice of destination is critical for shaping effective national and international policies. Yvonne Giesing, Deputy Director of the ifo Center for Migration and Development Economics, notes that such insights can inform debates on policy measures, such as reducing social benefits in an attempt to deter refugee arrivals. However, the findings suggest that lowering social assistance is unlikely to have a significant impact, given that job opportunities and wage levels are far more influential in attracting refugees. On the contrary, Giesing warns that cutting state aid could hinder long-term integration, as financial support during the early stages of resettlement can play a vital role in helping newcomers adapt and contribute to their host societies.

Overall, the research highlights that economic factors—particularly the availability of suitable employment and competitive wages—are central to the settlement choices of Ukrainian refugees. While social benefits may provide critical support, they are secondary to the prospects of achieving economic independence and professional fulfilment in the host country. This suggests that policies aimed at integrating refugees into the labour market, such as streamlined credential recognition, targeted language training, and job placement programmes, may be far more effective in influencing settlement patterns than adjustments to welfare systems. By aligning policies with these preferences, host nations can not only attract skilled and motivated newcomers but also foster their successful integration into society.

More information: Panu Poutvaara et al, Refugees from Ukraine value job opportunities over welfare, Proceedings of the National Academy of Sciences. DOI: 10.1073/pnas.2502420122

Journal information: Proceedings of the National Academy of Sciences Provided by Ludwig-Maximilians-Universität München

Study warns that personalised pricing strategies may harm businesses

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Personalised pricing, where businesses tailor the cost of goods or services to individual consumers based on detailed data about their willingness to pay, is often criticised for potentially pushing up prices for specific customers. However, new research suggests the practice may also undermine companies’ profits.

Consumers encounter personalised pricing in many forms, from targeted digital coupons and loyalty offers to “Buy Now, Pay Later” schemes that bundle sales with subsidised loans. Airlines, for example, increasingly use artificial intelligence to adjust fares for individual travellers. Such strategies rely on analysing a customer’s digital footprint—including purchase history, location, lifestyle, and even device type—to extract the highest possible payment from each buyer.

The drawback, according to Professor Liyan Yang of the University of Toronto’s Rotman School of Management, is that concealing prices from other customers removes a crucial source of market information. When prices are visible and competitive, consumers are reassured that more people will buy—a factor that boosts the appeal of products whose value grows with wider adoption, such as social media platforms or online marketplaces. Hidden prices, by contrast, create uncertainty and can lead to lower overall spending.

To explore this effect, Prof. Yang and Yan Xiong, now an associate professor at the University of Hong Kong Business School, used mathematical and game-theoretic modelling to examine network-based products. They found that when prices were hidden, companies tended to charge more per customer but ultimately made less profit compared with situations where prices were transparent.

The researchers also identified ways to avoid this pitfall. Businesses could commit to keeping prices within a set range, launch corporate social responsibility programmes to lower prices, build reputations for fairness, or start with low, transparent pricing to attract more users. Voluntary or government-imposed price caps could also help, with some jurisdictions such as China, the European Union, and the United States already exploring or implementing such measures.

While companies often resist regulation, Prof. Yang notes that certain price restrictions could, in theory, lead to better profitability in the long run. “There are trade-offs,” he says, adding that policymakers would need to “gauge precisely” where limits should be set to protect consumers while allowing businesses to find the pricing sweet spot that maximises both transparency and profit.

More information: Yan Xiong et al, Personalized pricing, network effects, and commitment, Journal of Economic Theory. DOI: 10.1016/j.jet.2025.106036

Journal information: Journal of Economic Theory Provided by University of Toronto, Rotman School of Management

Research shows team leaders’ listening styles shape how well high-tech teams listen

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Does the way a team manager listens shape how the entire team listens? A new study led by Dr Osnat Bouskila-Yam of the Baruch Ivcher School of Psychology and the Arison School of Business at Reichman University, in collaboration with Prof Nurit Zaidman of the Department of Business Administration at Ben-Gurion University of the Negev, reveals a clear and significant link. The findings show that a manager’s listening style directly determines the listening climate in team meetings. When managers provide uninterrupted opportunities for each member to speak, avoid cutting them off, and display genuine emotional attentiveness, they create the conditions for open, deeper, and more effective dialogue. Conversely, partial listening, a lack of authenticity, or frequent interruptions undermine the overall quality of the team’s listening.

Unlike many previous studies conducted in controlled laboratory environments, this research was carried out in real organisational settings. The researchers observed how managers’ listening habits played out in actual workplace interactions, providing a more authentic picture of their impact. Data were gathered through 29 direct observations of team meetings, 18 in-depth interviews, and 10 focus groups, involving eight high-tech teams from two Israeli companies. This approach allowed the researchers to capture not only what was said but also how the communicative atmosphere evolved in response to different listening styles.

The study identified six distinct types of listening, ranging from disruptive listening to deep listening, as well as forms of listening that prompt speakers to understand themselves better. The most striking finding concerned the central role of team leaders: only managers who listened with empathy, inclusivity, and without judgment were able to foster a consistently positive listening environment. Crucially, this climate of attentiveness and respect was mirrored in the behaviour of team members, creating a shared culture of high-quality listening.

Dr Bouskila-Yam highlighted the distinction between functional management and what she terms “listening-based management.” She explained, “A manager who truly listens not only gains a better understanding of their employees but also creates a space where others can better understand themselves. This is the essential difference between operational management and listening-based management. It is not enough to acquire emotional listening skills — they must be actively applied in meetings, including by giving quieter voices the chance to contribute.”

Prof Zaidman stressed the broader implications for leadership training and organisational culture. “Our findings point to the need for both managers and employees to be trained in authentic listening, not just in how to deliver messages persuasively,” she noted. This shift in emphasis reframes listening as a core professional competency, essential not only for effective communication but also for trust-building and collaboration within teams.

By grounding their research in the lived experiences of high-tech teams, the authors have provided compelling evidence that listening is far more than a polite gesture — it is a powerful driver of communication quality and team performance. Their work suggests that fostering empathetic, attentive, and non-judgmental listening could be one of the most effective ways to strengthen cohesion, engagement, and innovation in the workplace. In short, when leaders listen well, their teams learn to listen well too.

More information: Osnat Bouskila-Yam et al, Listening in team meetings – what is the team leader’s influence? Journal of Communication Management. DOI: 10.1108/JCOM-02-2024-0032

Journal information: Journal of Communication Management Provided by Reichman University

When offensive advertising backfires—or does it? Why you might still reach for the product

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Time plays a decisive role in shaping consumer behaviour, particularly among socially vulnerable groups targeted by offensive or discriminatory advertising. New research led by Dr Enav Friedmann of Ben-Gurion University of the Negev has examined how such groups respond over time to marketing that demeans or excludes them. The study sheds light on a paradoxical effect in which some individuals, over time, become more likely to favour the very brands that insulted them.

Published in Psychology & Marketing, the research addresses a largely unexplored intersection of social identity and consumer decision-making. Offensive advertising—whether in the form of sexist jokes or racial stereotypes—can normalise prejudice, reinforce harmful norms, and undermine equality. “We wanted to explore how conflicts between social identity and consumer choices evolve over time,” says Dr Friedmann, who heads the LBM research lab in the Department of Business Administration.

The study involved three experiments testing reactions to advertisements targeting women and people of colour. Participants were assessed immediately after exposure and again either 10 days or a month later. The offensive ads were based on real-world campaigns, with discriminatory messages adapted to fit fictional or real brands. Across all studies, 640 participants of varying gender and skin tone shared their reactions to the brands and the content.

In one experiment, participants viewed a fictional body soap advert depicting a dark-skinned family in the “before” image and a light-skinned family in the “after” image. Ten days later, dark-skinned participants who perceived high discrimination against their ethnic group, but identified less strongly with it, expressed greater purchase intentions toward the brand.

Another experiment presented women with either neutral or sexist versions of a real chocolate brand advert. The offensive version read: “Women, I’m sick of you! I get tired of all of you so quickly,” followed by the brand’s familiar tagline. A month later, women who felt their gender was highly discriminated against, yet distanced themselves from that identity, were more likely to choose the offending brand over alternatives.

A third study used EEG measurements to record brain activity while participants viewed adverts for a construction company. Women who reported high discrimination but lower gender identification showed greater activation in brain areas linked to approach motivation when exposed to the offensive ad—an effect observed 10 days after the initial exposure.

These results reveal a paradox: among specific individuals from marginalised groups, perceived discrimination combined with reduced group identification can increase attraction to brands that demean them. This behaviour aligns with “disidentification” theory, where distancing from a stigmatised identity serves as a coping strategy to protect self-esteem, sometimes leading to unexpected brand loyalty.

Dr Friedmann stresses that these findings should not be seen as endorsing offensive advertising. Most participants did not respond positively, and the psychological harm to targeted groups can be significant. The research highlights the need for ethical marketing practices and stronger regulatory measures, including clear criteria for banning discriminatory adverts and imposing substantial penalties on violators. “Enforcement is essential to protect well-being and build a more equal society,” she concludes.

More information: Enav Friedmann et al, Disidentification: The Long-Term Effects of Offensive-Discriminatory Advertising, Psychology and Marketing. DOI: 10.1002/mar.70010

Journal information: Psychology and Marketing Provided by Ben-Gurion University of the Negev

New study reveals strong board oversight is key to harnessing overseas intangible asset value

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As global competition increasingly turns on technology, brand reputation, and specialised knowledge, a new study has found that corporate boards are pivotal in unlocking the full value of intangible assets, particularly during international expansion through acquisitions. Published in the Global Strategy Journal, the research by Xavier Martin of Tilburg University and Tao Han of emlyon business school examined 675 cross-border acquisitions by U.S. public companies to understand how intangible assets influence overseas performance and under what conditions their impact is maximised.

The study reveals that while firms with high levels of R&D and advertising intensity tend to experience stronger market reactions to foreign acquisitions, these benefits are significantly amplified when the board is structured for effective governance. “Intangible assets such as proprietary technologies and strong brands are central to global competitiveness,” said Professor Martin. “Yet they often lose some of their value when transferred across borders. Without the right strategic oversight at board level, companies risk leaving substantial gains unrealised.”

Using event-study methodology, the researchers focused on two key types of intangibles—technology, measured by R&D intensity, and marketing, measured by advertising intensity. Each acquisition was assessed across four dimensions of board effectiveness: independence (greater non-executive representation and separation of CEO and chair roles), expertise (directors with international management experience), bandwidth (fewer overcommitted directors serving on multiple boards), and motivation (higher director share ownership to align interests with shareholders).

The findings show that companies whose boards score highly across these measures enjoy greater abnormal stock returns following acquisition announcements, especially when deploying technology-intensive strategies abroad. Effective governance, the study suggests, equips firms to overcome the inherent challenges of internationalising intangible assets, including bridging information gaps, adapting to unfamiliar markets, and making informed disclosure and strategy decisions.

These insights are particularly timely in an era marked by fierce global competition for innovation leadership, notably in fast-moving sectors such as artificial intelligence. As firms devote increasing investment to intangibles, the ability of boards to provide oversight, expertise, and incentive alignment will be critical in turning those assets into sustained competitive advantage. For corporate leaders, investors, and policymakers, the message is clear: strong board governance is itself a strategic asset—one that can determine whether intangible investments abroad fulfil their potential.

More information: Xavier Martin et al, Board effectiveness and internalization benefits: Theory and evidence from value creation in cross-border acquisitions, Global Strategy Journal. DOI: 10.1002/gsj.1524

Journal information: Global Strategy Journal Provided by Strategic Management Society

Research shows big crowds dampen live-stream participation

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Most online content platforms thrive on active user participation. However, new research from the University of Miami’s Patti and Allan Herbert Business School suggests that, in some cases, too much engagement can be detrimental.

Kevin Hong, associate dean for research, Centennial Endowed Chair, and professor of business technology, has found that on synchronous content platforms such as Twitch and YouTube Live, larger audiences may discourage rather than encourage interaction.

“When there are a lot of people participating, conversations often fragment, with multiple discussions happening at once,” Hong explained. “This creates a chaotic environment that can drive viewers away. Imagine an online class where every student is shouting questions in the Zoom chat at the same time—it quickly becomes unmanageable.”

Hong’s study, Lost in the Crowd: How Group Size and Content Moderation Shape User Engagement in Live Streaming, analysed data from 7,074 Twitch playbacks and their associated chat histories, a project that took years to complete. The research, recently published in Information Systems Research, was co-authored with scholars from Pennsylvania State University, the University of South Florida, the University of Illinois at Chicago, and Ohio State University.

The findings suggest that large live-stream audiences not only create cognitive overload but also foster emotional polarisation, which further reduces the willingness of viewers to participate. This contrasts sharply with earlier studies on asynchronous platforms such as Yelp, Reddit, and Wikipedia, where a larger number of participants typically correlates with increased engagement.

“Researchers have studied asynchronous platforms for decades, where one person’s activity rarely affects another’s experience,” Hong noted. “Synchronous platforms are relatively new, and the evidence indicates that big crowds can have a negative impact. The question is: how do we mitigate that?”

One promising solution is the use of AI-powered moderation tools. While human moderators can handle smaller surges in participation, they struggle when hundreds of people are speaking at once. “Bots, particularly those using artificial intelligence, can scale rapidly and maintain lower costs,” Hong said. “Although their capabilities are still limited, AI moderators are improving every day. They have significant potential to organise conversations and make them more coherent.”

More information: Keran Zhao et al, Lost in the Crowd: How Group Size and Content Moderation Shape User Engagement in Live Streaming, Information Systems Research. DOI: 10.1287/isre.2022.0086

Journal information: Information Systems Research Provided by University of Miami

Tariffs May Boost U.S. Economy, but Global Trade Dynamics and Retaliation Pose Risks

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The United States may realise modest economic benefits through the implementation of uniform tariffs across all trade partners, according to new research led by Ina Simonovska, an economist at the University of California, Davis. However, the study also highlights that the intricate realities of global supply chains, international trade networks, and downstream economic repercussions could significantly undercut those benefits—and in some scenarios, result in considerable economic losses.

Simonovska, who also holds a senior associate position at the Center for Strategic and International Studies, describes recent U.S. tariff policies—most notably those introduced during the Trump administration—as a bold experiment in economic strategy. Her paper, titled “Making America Great Again? The Economic Impacts of Liberation Day Tariffs,” was published this week in the Journal of International Economics. The research analyses the proposed “Liberation Day” tariff schedule, announced in April, along with multiple trade war scenarios involving key global partners. It also evaluates the outcomes of a theoretically optimal unilateral tariff regime, with particular focus on effects on consumer welfare, trade balances, employment, and pricing.

Using a global economic model that accounts for trade and supply chain interdependencies, the authors found that a flat tariff of 12.5% on all imports could, in the best-case scenario, reduce the U.S. trade deficit by 13% and improve overall economic welfare by up to 2.15%. Yet, these projected gains rest on the assumption that trade partners do not retaliate. In reality, Simonovska warns, retaliation would nullify any improvements and potentially trigger broader economic harm. The complexity of modern supply chains—where production, assembly, and sourcing are spread across numerous countries—means that tariffs can easily disrupt entire industries.

The study emphasises that these kinds of tariffs often yield gains through what economists call a “beggar thy neighbour” strategy—achieving domestic gains at the expense of foreign economies. Smaller trade partners such as Mexico, Canada, Ireland, and certain Southeast Asian nations are particularly vulnerable, as their economic output is more heavily dependent on exports to the United States. Such imbalanced consequences may also strain diplomatic relations, with trading partners exploring ways to diversify away from U.S. markets and forge new alliances elsewhere.

Although the U.S. administration has framed tariffs as a fiscal tool capable of funding government initiatives and addressing deficits, researchers caution that the reality is less promising. While tariff revenue could constitute up to 5% of the federal budget, these revenues would only deliver long-term benefits if strategically reinvested, for example, by replacing economically inefficient labour income taxes. However, the paper warns that policies involving direct cash transfers to households, which the administration has floated, would neutralise these potential benefits.

Finally, the research underscores the regressive impact of tariffs, particularly on low-income households that allocate a higher proportion of their earnings to tradable goods. These groups bear the brunt of price increases, undermining policy narratives aimed at protecting working-class Americans. In addition, sectors heavily reliant on imports—especially those where domestic alternatives are limited—are likely to struggle. Small and medium-sized businesses, in particular, lack the financial flexibility and logistical capacity to absorb rising costs, placing them at a disadvantage compared to larger, more resilient competitors.

More information: Anna Ignatenko et al, Making America great again? The economic impacts of liberation day tariffs, Journal of International Economics. DOI: 10.1016/j.jinteco.2025.104138

Journal information: Journal of International Economics Provided by University of California – Davis

EU organic label: Better when it says ‘organic’

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To effectively guide consumer purchasing behaviour, sustainability labels must deliver an unambiguous message, rather than remaining vague or abstract. In a new study that highlights the power of subtle design improvements, researchers from the Universities of Bonn, Newcastle (UK), and Corvinus (Hungary) examine the impact of minor visual modifications to the European Union’s organic label—commonly known as the “Green Leaf”. Their findings suggest that relatively minor changes can reduce consumer uncertainty, build trust in certified products, and ultimately enhance willingness to purchase. The results, now published online in the journal Agribusiness, offer practical insights into how more explicit signalling can support more sustainable food choices.

Sustainability certifications—such as organic, fair-trade, or animal welfare labels—are intended to assure buyers that a product adheres to specific ethical or environmental standards. However, many such labels fall short of this goal. According to Professor Dr Monika Hartmann, who leads the Department of Agricultural and Food Market Research at the University of Bonn, this is often because labels fail to attract sufficient attention, are too ambiguous, or even sow confusion. “Many labels fail to do so because they either don’t attract attention, aren’t clear enough, or even confuse,” Hartmann notes. The EU’s organic label, introduced in 2010 to unify the organic market across member states, serves as a case in point. Despite its mandatory status, a 2024 survey revealed that only 56 per cent of EU citizens recognise the Green Leaf logo, and fewer still (just 45 per cent) understand that it certifies compliance with EU organic regulations.

To investigate whether the EU logo’s communicative effectiveness could be improved, the researchers carried out a large-scale experiment spanning seven countries. The team tested two slight modifications to the Green Leaf design: in the first, they added the word “BIO” or “ECO” (depending on the local language) inside the star-bordered leaf symbol; in the second, they included both the language-specific term and the phrase “EU-certified”. More than 9,500 participants, grouped across the seven countries, were shown either the original label or one of the two altered versions. They were then asked to evaluate the labels in terms of clarity, trustworthiness, and perceived usefulness in supporting informed choices.

Across all participating countries, the results were consistent: both modified versions outperformed the original logo on every metric. Participants rated the revised labels as clearer, more trustworthy, and more helpful in identifying organic products. Surprisingly, the addition of the phrase “EU-certified” did not confer any added advantage. As Hartmann explains, “Interestingly, adding ‘EU‑certified’ had no extra effect. Apparently, the original logo mainly lacks the unmistakable signal that it denotes organic.” The key shortcoming, it seems, lies not in the absence of regulatory information, but in the lack of a recognisable, easily understood cue that a product is indeed organic.

A second study focused on Germany, involving around 500 participants, delved deeper into the psychological mechanisms behind these improved evaluations. This follow-up explored how design modifications influenced clarity, perceived uncertainty, trust, and behavioural intention. Hartmann, who is also affiliated with the University of Bonn’s Transdisciplinary Research Area “Sustainable Futures”, reported a marked increase in signal clarity. In this German sample, nearly 90 per cent of respondents correctly identified the modified label (with “BIO” or “ECO”) as denoting organic content, compared with fewer than 70 per cent for the original EU logo. While the direct impact of these changes on purchase intentions was not statistically significant, the study uncovered a crucial indirect effect: reduced uncertainty and heightened trust led to an increased likelihood of purchase, even if not consciously recognised as such by participants.

Taken together, the two studies present a compelling case for rethinking how sustainability labels are designed. The researchers emphasise that for labels to serve their intended purpose—helping consumers identify and choose sustainable products—they must be immediately recognisable and convey a clear, unambiguous message. When they fail to do so, even modest design interventions can yield substantial benefits. In this context, adding simple textual cues to an existing logo represents a low-cost, high-impact strategy to enhance transparency and improve consumer confidence. Given the urgent need to support sustainable consumption habits, these findings offer valuable guidance to policymakers, retailers, and certification bodies across Europe.

More information: Monika Hartmann et al, Enhancing Sustainability Label Effectiveness Through Logo Design Modification: An Analysis of the EU Green Leaf Logo, Agribusiness. DOI: 10.1002/agr.70013

Journal information: Agribusiness Provided by University of Bonn