Monthly Archives: November 2025

Using hand gestures can boost your powers of persuasion, suggests new research from UBC

Words matter when we are trying to make an impression. Still, new research from the University of British Columbia suggests that our hands may play an unexpectedly decisive role. The study, conducted at the Sauder School of Business, found that when speakers use meaningful, purposeful hand gestures, they tend to come across as more confident, more persuasive and more knowledgeable. This suggests that effective communication is not purely verbal; it occurs through the body as much as through speech. The findings encourage us to think of persuasion not simply as choosing the right words, but as presenting ideas in a way that feels vivid and engaging.

To investigate how gestures influence audiences, the researchers turned to a significant and familiar source of public speaking: TED Talks. These presentations, viewed by millions online, offer a broad range of speakers from diverse backgrounds and styles. Using artificial intelligence and automated video analysis, the research team examined more than two thousand of these talks. They identified and analysed over 200,000 hand gestures, grouping them into short 10-second clips. They then compared these gestures with measures of audience engagement, such as the number of ‘likes’ the videos received online, while accounting for factors such as speaker gender, field of work, language, and the length of each talk. This careful method allowed the researchers to focus on gestures themselves rather than letting other variables cloud the results.

The study did not stop there. To understand the impact of gestures in a more controlled environment, the researchers also conducted experiments in which participants watched sales-pitch videos. In these videos, the spoken script remained identical, but the speakers varied how much and how intentionally they moved their hands. After watching, viewers rated the speakers and the products being presented. The results supported the TED Talk analysis: speakers who used more deliberate and meaningful gestures were viewed more positively. However, it also became clear that not every kind of movement is helpful. Gesturing with purpose had benefits; gesturing randomly or without relation to the message did not.

A key distinction in the study was between different types of gestures. The researchers identified “illustrators,” which are gestures that visually represent the idea being explained. For instance, someone might show the width of an object with their hands or trace the shape of a path while describing it. These gestures reinforce meaning and give the listener a second channel of understanding. The study found that illustrators had the most potent positive effect on how speakers were perceived, making them seem more knowledgeable and increasing audience comprehension. On the other hand, “highlighters,” such as pointing to an object or emphasising a single word, and unrelated, aimless movements made little difference to how persuasive the speaker appeared.

Dr Mi Zhou, co-author of the study and an assistant professor at UBC Sauder, explains that audiences often interpret illustrative gestures as a sign of confidence and expertise. When a speaker can physically demonstrate what they are talking about, it suggests they have a firm grasp of their subject. There is also a cognitive benefit for the audience: seeing information expressed visually as well as verbally can make it easier to absorb. In this way, gestures do more than decorate speech; they become part of the explanation itself. Advances in artificial intelligence were crucial in making this insight possible, as previous research rarely had the tools to examine hand gestures on such a large scale. The technology enabled the team to map hand movements with precision and compare them directly with spoken language.

The implications of this research are wide-reaching. Marketers, educators, public speakers, and influencers may find that paying more attention to how they use their hands significantly improves how their message is received. It also opens the door to the design of digital avatars and virtual assistants, which often feel unnatural precisely because they lack the expressive movements humans use instinctively. The study suggests that even minor adjustments in how we gesture can change how others interpret our confidence and clarity. For many of us, hand movements happen without thought, but being more aware of how we use them may be a surprisingly simple way to communicate more effectively. The research reminds us that persuasion is not only about what we say, but also about how we embody the ideas we wish to share.

More information: Giovanni Luca Cascio Rizzo et al, Talking with Your Hands: How Hand Gestures Influence Communication, Journal of Marketing Research. DOI: 10.1177/00222437251385922

Journal information: Journal of Marketing Research Provided by University of British Columbia

How Dual Role Engagement Enhances Innovation Among Academic Entrepreneurs

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Academic entrepreneurs — scientists who start research-based companies while keeping their academic positions — are showing that science and business can enrich one another rather than exist in conflict. New research published in the Strategic Entrepreneurship Journal reveals that these individuals often find creative “cross-fertilising” effects between their academic and entrepreneurial work. By linking the two roles, they redefine their professional identities and expand the meaning of being both a scientist and an entrepreneur. The study suggests that universities and policymakers should support this integration not only through funding or intellectual property policies, but by creating flexible environments that allow scientists to combine their academic and commercial ambitions in meaningful ways.

The study was led by Marouane Bousfiha from the University of Gothenburg and Henrik Berglund from Chalmers University of Technology. Their interest developed through their work with scientists seeking to turn research discoveries into viable commercial ventures. They noticed that many scientists were able to remain dedicated academics while also running profitable start-ups. This observation challenged the long-held assumption that academic and entrepreneurial identities are incompatible. It prompted the researchers to examine how scientists practically manage and make sense of these dual roles.

As universities worldwide increasingly encourage entrepreneurship, many researchers face the challenge of balancing academic integrity with commercial opportunity. Traditionally, academia has been associated with theory, precision, and peer recognition, while business demands quick decision-making, risk-taking, and financial return. Bousfiha and Berglund’s study found that, rather than viewing these demands as purely conflicting, many academic entrepreneurs see them as complementary. Their research highlights how skills developed in academic life often are helpful in entrepreneurship — and vice versa — blurring the boundaries between the two domains.

The researchers conducted in-depth interviews with 27 Swedish academics who were actively involved in both research and start-ups. They found that the entrepreneurs didn’t speak about their identities in abstract terms but described how their daily activities connected the two worlds. Running a successful lab helped them build strong business teams. Competing for research grants prepared them to pitch to investors. Likewise, their start-up experience gave them real-world examples that enriched their teaching. Even concrete products — such as prototypes or published papers — carried meaning in both realms: new technologies generated new research ideas, and scientific credibility bolstered commercial trust.

Interestingly, the study found that these scientists didn’t prioritise their academic identity over their entrepreneurial one. Instead, they focused on which tasks were intellectually engaging or meaningful to them. Activities that involved creativity, problem-solving, and strategic thinking — whether in research or in business — were central to their sense of self. More routine tasks, such as grading or handling payroll, were delegated whenever possible. Their professional coherence came from engaging in work that inspired them, not from maintaining rigid divisions between academic and commercial life.

Still, many participants expressed uncertainty about what was acceptable within their institutions. Questions about dual affiliations, the use of university resources, and recognition for entrepreneurial achievements often created tension. The researchers suggest that universities, incubators, and policymakers can better support academic entrepreneurs by offering clear guidelines and flexible structures that legitimise these hybrid roles. Rather than eliminating tension, Bousfiha argues, institutions should make the relationship between science and entrepreneurship more transparent and productive. When supported effectively, academic entrepreneurs can thrive in both worlds — advancing knowledge while bringing innovative ideas to the marketplace.

More information: Marouane Bousfiha et al, Micro-transitions and work identity: The case ofacademic entrepreneurs, Strategic Entrepreneurship Journal. DOI: 10.1002/sej.1541

Journal information: Strategic Entrepreneurship Journal Provided by Strategic Management Society

When Stock Prices Peak: The Surge of Seasoned Equity Offerings in China

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The link between seasoned equity offering (SEO) filings and firms reaching new stock price highs in 2015 and 2016 shows a narrower fluctuation range compared with the 2005–2007 period. This suggests that market behaviour during those years was more stable, possibly because a strong bull market and widespread investor optimism marked 2015. During this time, fund accounts and securities firms backed by bank capital became major players in the private placement market, fuelling a rise in new equity issuances. To better understand this relationship, the researchers ran time-series regressions comparing the number of companies reaching new highs with the total number of share issuances.

This work was led by Yu Xia from Sichuan Tourism University and Shuxin Guo from Southwest Jiaotong University. Their study, published in China Finance Review International under the title “Historical High Prices and Seasoned Equity Offerings: Evidence from China”, offers an in-depth look at how firms in China time their share issuances in relation to past stock price peaks. The research sheds light on behavioural aspects of financial decision-making, showing that market timing is not always a product of rational analysis but can also be driven by psychological anchors.

The study introduces a unique metric, the anchoring-high-price ratio, that measures how close a stock’s current price is to its previous high. This allows the researchers to explore whether company managers are influenced by past price levels when deciding to issue additional shares. By focusing on this ratio, the study moves beyond traditional market efficiency theories and highlights how behavioural biases can influence corporate financing strategies, particularly in emerging markets like China.

Using data from China’s A-share market between 1998 and 2020, the authors combine monthly and annual analyses with a range of statistical tools, including probit regressions and robustness tests. They control for key firm characteristics, such as leverage, profitability, size, and market-to-book ratio, to ensure their findings reflect genuine behavioural effects rather than other financial factors. This comprehensive approach strengthens the evidence for the anchoring effect in Chinese equity markets.

The findings reveal that firms are far more likely to issue new shares when stock prices approach historical highs. However, unlike the pattern often observed in the United States, the Chinese market tends to react negatively to these announcements, leading to deeper discounting of offerings and weaker long-term performance. The research also shows that firms issuing shares near price peaks tend to lower their leverage ratios over time, suggesting that such equity financing decisions can reshape capital structures in lasting ways.

Overall, the study offers valuable insights into how behavioural factors influence corporate finance in China’s dynamic market. For investors, tracking how close share prices are to their historical highs can offer early signals of potential equity issuances. For managers, it serves as a reminder that psychological biases, such as anchoring, can lead to costly timing mistakes. And for regulators, it highlights the need to account for behavioural tendencies when shaping policies to improve transparency, protect investors, and enhance market stability.

More information: Yu Xia et al, Historical high prices and seasoned equity offerings: evidence from China, China Finance Review International. DOI: 10.1108/CFRI-10-2023-0259

Journal information: China Finance Review International Provided by Shanghai Jiao Tong University Journal Center

The Market Sees Past Adjusted Profits

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When companies adjust their earnings reports to make profits look better than they really are, investors usually see through it. That’s the main takeaway from research by John McInnis, an accounting professor at the University of Texas at Austin’s McCombs School of Business. His findings suggest that existing accounting rules already give investors enough information to make sound decisions, even when firms try to put a positive spin on their results.

McInnis examined how firms often release two versions of their earnings. The first, based on generally accepted accounting principles (GAAP), is filed with regulators and includes all expenses. The second, known as non-GAAP earnings, appears in press releases and investor calls and often excludes certain costs. These adjustments make profits look stronger, but they can also obscure the accurate financial picture. A 2024 report found that 80% of companies in the Dow Jones Industrial Average used non-GAAP reporting, showing profits about 31% higher than under GAAP.

GAAP standards, established by the Financial Accounting Standards Board, ensure that all companies report earnings in a consistent, transparent way. They require that every expense — from depreciation to stock-based pay — be included. However, companies argue that some of these costs are temporary or unusual. By excluding one-off items such as restructuring costs, executives say they can better show the business’s underlying strength. McInnis notes that most non-GAAP reporting isn’t meant to mislead but to provide context.

The more contentious issue arises with recurring costs, especially stock-based compensation (SBC), which includes bonuses paid in shares or stock options. SBC can be huge — Alphabet, Google’s parent company, reported $23 billion in 2024 alone. Although GAAP rules require companies to recognise these costs, many firms still exclude them from their non-GAAP figures, effectively boosting their reported earnings. This practice raises the question: Do investors notice?

To find out, McInnis and co-author Laura Griffin analysed more than 70,000 quarterly earnings announcements by U.S. public companies between 2003 and 2021. They used automated text analysis to identify when companies excluded SBC from their reports and studied how their stock prices responded. The results showed that firms with unexpected increases in SBC experienced slightly lower short-term stock returns — about 1 to 2 percentage points — whether or not they excluded those expenses.

The study concluded that adjusted numbers don’t fool investors. They factor in recurring costs such as SBC and amortisation, even when companies exclude them from non-GAAP earnings. McInnis argues this is encouraging for regulators and accounting standard-setters: investors appear to understand what really drives a firm’s profitability. “The belief that excluding these costs earns a higher valuation,” he says, “is a myth.”

More information: Laura Griffin et al, Gone but not forgotten: Investor reaction to “excluded” recurring expenses, Journal of Accounting and Economics. DOI: 10.1016/j.jacceco.2025.101799

Journal information: Journal of Accounting and Economics Provided by University of Texas at Austin

Surprising research finds tipping fails to boost service quality

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A new study has examined the real reasons people tip and questioned whether the practice genuinely improves service quality. Researchers identified two main motives behind tipping: sincere appreciation for good service and the desire to conform to social norms. Those who tip out of gratitude often leave larger tips, while conformists follow the prevailing custom. Over time, this dynamic has led to rising average tipping rates, as seen in countries like the United States, where tips once averaged around 10% but now hover closer to 20%.

The study, published in Management Science, was conducted by Dr Ran Snitkovsky of Tel Aviv University and Prof. Laurens Debo of Dartmouth College. Their theoretical model explores how both personal feelings and social behaviour influence tipping. Dr Snitkovsky explained that traditional economics cannot fully explain tipping, since a purely self-interested person has no reason to tip after receiving a service. Past theories suggested that people tip to ensure better service next time, yet this fails to explain why customers still tip workers they will never meet again, such as taxi drivers or hotel staff in other cities. The researchers argue that psychological and social factors play a much stronger role than financial logic.

Using tools from game theory and behavioural economics, the researchers divided tippers into two categories: “appreciators,” who tip out of gratitude or empathy, and “conformists,” who do so to meet social expectations. Their model showed that in societies with stronger social pressure, tipping rates tend to rise because conformists emulate the behaviour of generous appreciators. This process naturally drives up the average tip over time. The findings also suggest a link between higher tipping rates and rising income inequality, as wealthier customers can set higher norms that others feel pressured to follow.

The study further explored whether tipping truly motivates servers to provide better service. The researchers found that while tips can slightly encourage effort, the effect is weak when most customers are conformists who tip the same amount regardless of service quality. In the United States, where tipping is widespread, this means many servers have little incentive to go beyond the norm, as they can expect roughly the same tips regardless of their performance. In a society made up entirely of appreciators, tips would be a stronger motivator, but this scenario is unrealistic. Moreover, in such a world, businesses might interpret higher tips as a willingness to pay more overall and raise prices, which would likely reduce tipping again.

The researchers also looked at the controversial “tip credit” system in the U.S., which allows employers to pay servers below the minimum wage, assuming tips will make up the difference. For example, if the minimum wage is $8 per hour, employers in some states can pay as little as $3, expecting tips to cover the rest. Dr Snitkovsky noted that while this system can lower menu prices and make businesses more efficient, it often reduces servers’ actual earnings. Essentially, it allows employers to use customer tips to subsidise wages, shifting part of the labour cost from the business to the customer.

Despite recognising some advantages to tipping, Dr Snitkovsky admits he personally dislikes the practice. He argues that tipping creates social discomfort and can reinforce discrimination, as studies have shown that female servers and those from minority backgrounds are often mistreated. Tipping can also foster inequality between customers, rewarding those who can afford to give more. However, he acknowledges that tipping has some redeeming qualities, such as allowing people who value good service to contribute more and indirectly subsidising others. Still, he believes that in the modern era, businesses have better ways to measure performance—through reviews, ratings, and direct feedback—making the traditional tipping system an outdated and inefficient form of incentive.

More information: Ran Snitkovsky et al, A Modeling Framework for Tipping in the Presence of a Social Norm, Management Science. DOI: 10.1287/mnsc.2021.03422

Journal information: Management Science Provided by Tel-Aviv University

Managing Humanity: Can Artificial Intelligence Do It Humanely?

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A new study published in the Annals of Tourism Research suggests that Artificial Intelligence (AI)–driven management systems can become more human-centred—if organisations reintroduce human judgement, openness, and flexibility into the way algorithms are built and applied. Rather than replacing human managers, the research argues that AI should work alongside them, supporting better decisions while keeping empathy and fairness at the heart of management. The findings highlight that technology itself is not the problem; rather, the challenge lies in how organisations choose to design and use it.

The research team conducted interviews with thirty hospitality professionals and developers, alongside an analysis of sixty-one algorithmic management systems used in hotels, restaurants, and call centres. Their results show that AI does not remove managers from the picture; instead, it redistributes their authority. Algorithms now play a key role in assigning tasks, measuring performance, and scheduling shifts. Yet the human managers who interpret, adapt, or question these algorithmic outputs determine whether workplaces become more empowering or more controlling. In other words, AI sets the framework, but people still define how it feels to work within it.

Dr Brana Jianu, a Research Fellow at the University of Surrey and co-author of the study, explained that algorithmic management need not strip the workplace of its humanity. “When managers use algorithms as tools for collaboration rather than control, they can protect employee dignity while still improving efficiency,” she said. Dr Jianu stressed that people must remain involved at every stage—understanding how the systems work, using their own discretion, and questioning automated decisions when they seem unfair or inaccurate. Keeping people “in the loop” helps balance technological precision with moral responsibility.

The study also introduces the concept of Modalities of (In)Visibility, describing how algorithms influence what is seen, measured, and valued at work. When algorithmic systems make their reasoning clear and invite human interpretation, employees tend to feel respected and trusted. But when their inner workings are hidden—reducing workers to data points—the result is often a sense of surveillance and powerlessness. This concept captures how design choices in AI can directly affect the emotional and ethical climate of a workplace.

Professor Iis Tussyadiah, Dean of Surrey Business School and co-author of the study, emphasised the importance of designing for transparency and participation. “We need dashboards that display teamwork as well as individual productivity, allow staff to challenge automated decisions, and hold regular sessions explaining how data is used for scheduling or evaluation,” she said. These practical steps can help shift AI management from a model of control towards one of collaboration, where technology supports communication and fairness rather than undermining them.

The researchers conclude that making AI more human is less about the technology itself and more about organisational values. When managers remain engaged, transparent, and open to discussion, algorithmic systems can make work more efficient without dehumanising it. As the hospitality industry becomes an early testing ground for AI in management, the lessons it offers—about trust, accountability, and empathy—could influence the future of workplaces far beyond hotels and restaurants. By putting people before processes, organisations can ensure that intelligent systems serve human wellbeing, not the other way around.

More information: Brana Jianu et al, Humanising algorithmic management systems, Annals of Tourism Research. DOI: 10.1016/j.annals.2025.104021

Journal information: Annals of Tourism Research Provided by University of Surrey