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Digital Finance Platforms Offer New Opportunities for Small Businesses

A new study suggests that simple digital finance tools, including mobile money services, may help small businesses strengthen their long-term competitiveness rather than simply improving access to banking services. Led by researchers at the University of East London, the study examined 113 micro, small and medium-sized enterprises (MSMEs) in Ghana and found that businesses gained the greatest benefits when digital finance tools became integrated into everyday operations rather than being used only for transactions. Firms reported improvements in efficiency, customer service and flexibility.

Mobile money services allow people and businesses to send, receive and store money using mobile phones without requiring a traditional bank account. The researchers say mobile phones are increasingly becoming strategic business tools for many small firms, helping them manage finances, reach customers and compete in rapidly changing markets. The study was conducted by researchers from the Royal Docks School of Business and Law together with partners in Ghana.

The findings could have implications beyond the African case study. Across many developing economies, millions of small businesses still face barriers related to banking, credit and digital infrastructure. The researchers suggest that accessible financial technology could help smaller firms compete more effectively, strengthen local economies and improve resilience during economic shocks and periods of uncertainty.

Lead author Godfried Adaba, Lecturer in Business Analytics, said, “Our findings show that digital finance can also become a strategic tool that helps small businesses compete and innovate. The wider lesson is that digital finance works best when it is simple enough for everyday use and deeply embedded into how businesses operate.” The research, published in Global Business Review, also found that ease of use mattered more than many experts had expected, with businesses far more likely to adopt tools they viewed as simple and reliable.

Co-author Francis Frimpong said, “Ease of use is not a minor issue for small businesses. Indeed, it is often the deciding factor. If digital finance systems are too complex or difficult to trust, many firms simply will not use them. That matters globally because it shows that successful FinTech innovation must be about creating tools ordinary businesses can use confidently every day.” The researchers added that policymakers, banks and technology companies should focus not only on expanding digital access, but also on improving usability, trust and digital skills among small business owners.

More information: Godfried Adaba et al, From Inclusion to Advantage: FinTech Adoption and Competitive Strategy Among MSMEs in Ghana, Global Business Review. DOI: 10.1177/09721509261428912

Journal information: Global Business Review Provided by University of East London

Research Suggests Long-Term CEOs Could Hinder Corporate Innovation

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A new study from the University of East London suggests that companies led by long-serving chief executives may become less innovative over time unless strong independent boards balance their leadership.

The research examined 215 FTSE 350 companies over 11 years between 2010 and 2021. Researchers explored how CEO tenure and independent directors influence a company’s “R&D knowledge stock” — the expertise, research capability and technological strength built through sustained investment in innovation.

Published in the journal Corporate Governance, the study found that CEOs who remain in office for many years often become more cautious and less willing to support risky research and development projects. These firms were more likely to reduce investment in innovation and long-term technological growth. However, companies with higher numbers of independent directors were better able to maintain innovation capacity, combining experienced leadership with external challenge and oversight.

The study also found that both experienced CEOs and independent directors became more risk-averse when firms failed to meet performance expectations, suggesting that independent directors do not maintain stable risk preferences during periods of weaker corporate performance. The researchers argue that innovation is shaped not only by technology and finance, but also by leadership culture and corporate governance structures.

Lead author Igbekele Sunday Osinubi, of the Royal Docks School of Business and Law, said long-serving CEOs can bring valuable experience and stability, but may also become overly cautious or too attached to established ways of thinking. He said the findings show that independent directors play an important role in encouraging companies to continue investing in innovation, particularly during difficult periods when firms may otherwise retreat from long-term research and development.

He added that the implications extend beyond individual companies because innovation drives productivity, competitiveness and economic growth. The paper concludes that regulators and policymakers should consider governance reforms and incentives that encourage long-term innovation strategies, particularly in firms led by long-serving executives. The findings may also influence how boards approach CEO succession planning, oversight and the balance between short-term financial pressures and long-term investment.

More information: Igbekele Sunday Osinubi, Long CEO tenure, independent directors and R&D knowledge stock: the moderating effect of performance shortfalls, Corporate Governance. DOI: 10.1108/CG-03-2025-0173

Journal information: Corporate Governance Provided by University of East London

Study Highlights Product-Category Differences in Language Associated with Engagement in Japanese Instagram Advertising

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Research on social media advertising has expanded rapidly in recent years, with much of the existing literature focusing on visual content such as images and videos, as well as platform algorithms that shape advertisement delivery and audience targeting. By contrast, the language used in advertisement copy has received comparatively limited scholarly attention, despite its potential influence on user behaviour and engagement. This gap in knowledge is particularly evident in non-English contexts, including Japan, where linguistic structures, cultural meanings, and communication styles may differ substantially from those examined in English-language studies. Researchers also noted that the same word or phrase may carry different meanings and emotional associations depending on the type of product being advertised, suggesting that the effectiveness of ad copy may vary across product categories.

To explore these issues, the researchers conducted a large-scale analysis of Instagram advertisements posted in Japan between July 2021 and June 2023. The study examined two major product categories commonly promoted on social media platforms: dietary supplements and cosmetics. The final dataset included 12,206 supplement advertisements and 9,486 cosmetic advertisements, providing a substantial sample for examining linguistic trends in digital advertising. By focusing on Instagram, the researchers were able to investigate language use within a highly visual and engagement-driven social media environment where short-form advertising copy plays an important role in attracting user attention and encouraging interaction.

The text from the advertisements was analysed using J-LIWC2015, a psycholinguistic dictionary specifically designed for the Japanese language. J-LIWC2015 categorises words according to psychological, emotional, and semantic characteristics, allowing researchers to quantify linguistic patterns in a systematic manner. Using this approach, the study examined how different language features were statistically associated with click-through rate (CTR), a widely used measure of online advertising performance that reflects the proportion of users who click on an advertisement after viewing it. This methodology enabled the researchers to identify not only which linguistic features were associated with higher engagement, but also how these relationships differed according to product category.

The analysis revealed several notable differences between supplement and cosmetic advertisements. In supplement advertisements, words associated with risk, discrepancies, or problem awareness were positively related to CTR. This finding suggests that supplement advertisements may be more effective when they highlight concerns, deficiencies, or unmet health needs that consumers may wish to address. In contrast, cosmetic advertisements showed a different pattern. Words related to visual perception and appearance, along with language associated with positive emotions and motion, were positively linked to higher CTR. These findings indicate that cosmetic advertising may benefit from language that evokes attractiveness, emotional appeal, and a sense of dynamism or transformation.

Importantly, some linguistic features appeared to function differently depending on the product category being advertised. Motion-related language, for example, was associated with lower CTR in supplement advertisements but higher CTR in cosmetic advertisements. This contrast highlights the importance of considering the broader advertising context when designing social media campaigns. A word or expression that performs effectively in one category may not have the same effect in another. The researchers therefore argue that advertising language should not be treated as universally effective across all products, but rather tailored to the expectations, motivations, and psychological associations linked to specific consumer markets.

Overall, the findings provide large-scale empirical evidence that the relationship between the linguistic features of advertisement copy and CTR varies across product categories in Japanese Instagram advertising. The study contributes to a growing body of research examining how language influences user engagement in digital environments, particularly in non-English contexts that remain underrepresented in social media research. In addition to its academic contribution, the study offers practical insights for marketers and advertisers seeking to improve the effectiveness of social media campaigns. By identifying category-specific linguistic patterns associated with higher engagement, the findings may help organisations develop more targeted and strategically designed advertisement copy for digital audiences.

More information: Kenjiro Inoue et al, The impact of linguistic features on CTR in Instagram ads: A study of supplement and cosmetic products, PLOS One. DOI: 10.1371/journal.pone.0338313

Journal information: PLOS One Provided by University of Tsukuba

Electric Vehicles Offer Financial and Environmental Benefits for Most U.S. Drivers

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Despite regional differences in climate, electricity generation, traffic congestion, and driving habits, electric vehicles generally produce fewer greenhouse gas emissions and do not cost more to own than comparable gasoline-powered vehicles across most of the United States, according to a new study led by researchers at Massachusetts Institute of Technology. The research provides one of the most comprehensive assessments to date of how local conditions and individual driving patterns influence the environmental and financial performance of electric vehicles. By integrating meteorological data, travel behaviour, fuel prices, electricity costs, and regional electricity mixes, the study offers a detailed picture of how electric vehicles perform under real-world conditions.

To capture these variations, the researchers compiled and analysed data from thousands of U.S. zip codes and examined vehicle use at the level of individual drivers. Their analysis incorporated factors such as trip distance, driving frequency, traffic conditions, and acceleration patterns, along with local fuel and electricity prices. Rather than relying on short-term fluctuations in energy costs, the study used time-averaged fuel prices to provide a more stable assessment of long-term ownership costs. The analysis was completed in late 2024 and early 2025 and forms the basis for an updated version of carboncounter.com. This public tool compares vehicle life-cycle emissions and ownership costs for nearly every vehicle model on the market.

The findings show that driving behaviour can influence the emissions benefits of electric vehicles as much as regional factors such as the local electricity grid. In most parts of the country, battery-electric vehicles reduce greenhouse gas emissions by approximately 40 to 60 percent compared to similar gasoline-powered vehicles, with the largest reductions occurring in urban areas. The researchers also found that some common assumptions about electric vehicles in cold climates may be overstated. Although extremely low temperatures can temporarily reduce battery efficiency and driving range, colder weather has only a modest effect on annual emissions benefits. Even under unfavourable winter conditions, electric vehicles still produced substantially lower emissions than comparable combustion-engine vehicles.

The study was led by Marco Miotti, who conducted the work while a graduate student at MIT’s Institute for Data, Systems, and Society, together with senior author Jessika Trancik. According to Miotti, the research was designed to address broad claims often made about electric vehicles, particularly regarding their performance in cooler climates. Rather than asking whether electric vehicles are universally better, the researchers aimed to determine under which conditions and for which drivers electric vehicles offer the greatest advantages. Their results suggest that factors such as local electricity generation, annual travel distance, traffic density, vehicle size, and driving frequency all contribute in roughly equal measure to the emissions-reduction potential of electric vehicles.

The researchers examined both battery-electric vehicles, which operate solely on electricity, and plug-in hybrid electric vehicles, which combine electric batteries with conventional combustion engines. To support the analysis, the team refined existing models that estimate fuel economy and energy use so they could better account for regional climate variability and real-world driving conditions. They also combined national travel survey data with detailed GPS-based driving information using probabilistic matching techniques, allowing them to estimate how drivers behave across different locations and traffic conditions. This integrated modelling approach enabled the researchers to evaluate emissions and ownership costs while accounting for both regional differences and the characteristics of specific vehicle models.

On the financial side, the study found that electric vehicles are cost-competitive with gasoline-powered vehicles in most parts of the United States, even without government tax incentives. In regions where electricity prices are relatively low, battery-electric vehicles often cost less to own over their lifetime than either plug-in hybrid or conventional gasoline vehicles. Looking ahead, the researchers plan to expand their framework to analyse how changing vehicle prices, fuel costs, and electricity systems influence emissions and affordability over time. As electricity grids continue to shift toward cleaner energy sources, they expect regional differences in emissions savings to narrow further, while variations linked to individual driving patterns will remain important.

More information: Marco Miotti et al, Determinants of electric vehicle emissions savings and costs across locations and individuals, Environmental Research Letters. DOI: 10.1088/1748-9326/ae0c23

Journal information: Environmental Research Letters Provided by Massachusetts Institute of Technology

Private School Backgrounds Boost CEO Appeal Without Supporting Evidence

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Investors may be placing too much weight on privilege when judging corporate leadership, according to new research from the University of Surrey. The study, published in the journal European Financial Management, found that companies led by privately educated chief executives tend to experience lower stock market volatility, even though there is no evidence that those leaders perform differently from their publicly educated peers. The findings suggest that investors may interpret elite educational backgrounds as a signal of competence, stability and reduced risk, despite little evidence that such assumptions are justified. Researchers argue that perceptions surrounding socioeconomic status may continue to shape financial markets in subtle but powerful ways.

The study showed that firms run by privately educated CEOs experienced approximately 5 per cent lower stock market volatility on average. However, researchers found no meaningful differences in corporate performance, strategic decision-making, risk-taking behaviour or crisis management between privately and publicly educated executives. In other words, the lower perceived risk associated with privately educated CEOs did not appear to reflect stronger leadership or more effective business practices. Instead, the results suggest that investors may be responding to social and cultural signals linked to elite education and privilege, rather than objective indicators of managerial ability or company fundamentals.

To investigate the relationship between background and investor perceptions, researchers analysed decades of data from publicly traded firms in the United States. Private school attendance was used as an indicator of a CEO’s socioeconomic background, allowing the team to compare companies led by executives from different educational pathways. They examined stock market volatility alongside company performance and key corporate decisions to determine whether privately educated CEOs actually behaved differently. Despite longstanding assumptions that upbringing and social status influence leadership style and risk management, the analysis found little evidence to support those beliefs. Instead, the research points to a disconnect between how investors perceive executives and how those executives actually operate within organisations.

The findings also suggest that investor reliance on social signals becomes especially pronounced during periods of uncertainty. Researchers noted that when markets face higher levels of unpredictability, investors may look for cues such as education, upbringing and social background to guide their judgment. In this context, elite educational credentials may serve as a psychological shortcut, creating an impression of competence and reliability even when there is no measurable difference in outcomes. Importantly, the effect weakened over time as more information became available about a CEO’s actual performance. It also became less pronounced in firms subject to greater analyst scrutiny or higher levels of institutional investment, indicating that better-informed investors rely less heavily on assumptions tied to social background.

Dr Christos Mavrovitis, Senior Lecturer in Finance and Accounting and co-author of the study, said the findings challenge the idea that financial markets operate purely on rational assessments of data and performance. He explained that a CEO’s socioeconomic background can shape how investors feel about a company, even when it has little or no impact on how that company is actually managed. According to Dr Mavrovitis, the study highlights how perceptions of privilege and status continue to influence investor behaviour and market reactions. The researchers argue that the findings provide an important reminder that financial markets are shaped not only by economic fundamentals, but also by human judgment, social assumptions and cultural perceptions of leadership.

More information: Yifei Bi et al, Rich Dad Poor Dad? CEO Private School Background and Firm Risk, European Financial Management. DOI: 10.1111/eufm.70043

Journal information: European Financial Management Provided by University of Surrey

Consumers Value Environmentally Friendly Lobster Harvesting, UMaine Study Finds

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U.S. consumers are willing to pay more for lobster harvested using ropeless fishing technology designed to reduce whale entanglement risks, according to new research from the University of Maine.

The study, led by Qiujie “Angie” Zheng, an associate professor of business analytics in the university’s Maine Business School, found that consumers would pay an average of $3.42 more for a lobster roll made with lobster harvested using ropeless technology when presented with information about animal welfare. Researchers said the findings are intended to explore how consumers might respond if the technology were adopted more broadly in the future, not to suggest Maine’s lobster industry should change its current practices.

Maine’s lobster fishery, which supplies roughly 90% of the nation’s lobster, has already adopted several whale-protection measures over the years, including weak links, sinking lines and reduced vertical line requirements aimed at lowering entanglement risks. The industry remains one of Maine’s most important economic and cultural sectors.

The research comes amid ongoing concern over the endangered North Atlantic right whale, whose population is estimated at 356 whales, including fewer than 100 reproductive-age females. Traditional lobster gear uses vertical lines connecting traps to surface buoys, and regulators and environmental groups have continued debating the extent to which such gear contributes to whale entanglements and deaths.

Zheng collaborated with Kanae Tokunaga, Rodolfo Nayga and Wei Yang to examine consumer demand for ropeless technology and how different messaging strategies influence public support. Researchers found that messages focused on whale welfare and entanglement impacts were most effective at increasing willingness to pay more for lobster harvested using the technology. However, responses varied depending on consumers’ environmental attitudes, animal welfare views and prior knowledge of right whale conservation.

“Right whale conservation is a collective effort,” Zheng said. “In addition to the fishermen, regulators and scientists, consumers play a role, so we hope this research helps understand consumer preferences and evaluations.” She added that the findings provide a foundation for assessing the economic feasibility of ropeless technology and may help Maine’s seafood sector better understand how sustainability messaging shapes consumer purchasing decisions.

More information: Qiujie Zheng et al, Valuation for Lobster Harvested Using Ropeless Technology to Reduce Right Whale Entanglement and Extinction, Marine Resource Economics. DOI: 10.1086/740800

Journal information: Marine Resource Economics Provided by University of Maine

How Financial Shocks Travel Through Production Chains

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A new study published in the May 2026 issue of the American Economic Review offers fresh insight into how financial and production networks interact during periods of economic stress. Conducted by an international team of researchers, the study examines how supply chain relationships between firms combine with financial ties to banks to shape the spread of economic shocks throughout the wider economy.

The researchers developed a framework that brings together two critical features of modern economies: the network of production relationships linking firms to suppliers and customers, and the network of financial relationships connecting firms to banks. While these systems are often analysed separately, the study shows that understanding their interaction is essential for explaining how financial disturbances spread beyond the banking sector.

The findings suggest that the combined effects of production and financial networks significantly magnify the impact of banking shocks. Rather than remaining confined to directly affected firms, disruptions can spread across interconnected supply chains, intensifying economic instability. According to the researchers, failing to account for this interaction may lead to a substantial underestimation of systemic risk and the broader consequences of financial crises.

“We show that when borrowing from banks becomes more difficult and expensive during a financial crisis, the impact does not stop at the directly affected firms — it propagates through supply chains,” said Kenan Huremovic, one of the study’s authors. “Bank shocks ripple through the production network, travelling both downstream to customers and upstream to suppliers. We find that these network effects amplify the impact of bank shocks on GDP by nearly 50%.”

The study also found that disruptions affecting distant suppliers and customers can be just as important as shocks hitting firms’ immediate business partners. This highlights how deeply interconnected modern economies have become, with financial strain capable of travelling through multiple layers of production networks before ultimately affecting economic growth and stability.

The researchers argue that many traditional macroeconomic models may underestimate vulnerability during financial crises because they fail to capture the interaction between production and financial linkages. They suggest that policymakers should adopt more integrated approaches to financial regulation and economic stabilisation that take these interconnected networks into account. “Understanding economic crises, and designing effective policies to prevent and respond to them, requires thinking in terms of interconnected networks rather than isolated firms and banks,” Huremovic said.

More information: Kenan Huremović et al, Production and Financial Networks in Interplay, American Economic Review. DOI: 10.1257/aer.20201088

Journal information: American Economic Review Provided by IMT School for Advanced Studies Lucca

Reading the Room Is the First Step to Leading Change

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When Ted Lasso stepped in as coach of struggling AFC Richmond in the hit television series Ted Lasso, he brought an upbeat, hands-on leadership style that inspired a team desperate for change. New research suggests that this kind of leadership can indeed boost motivation and performance — but only when employees already believe change is necessary. If people are content with the way things are, the same approach may fail or even create resistance.

The study was led by David Harrison, associate dean for research and Charles and Elizabeth Prothro Regents Distinguished University Chair in Business Administration at the University of Texas at Austin McCombs School of Business. Harrison and his colleagues found that new leaders are far more likely than existing leaders to influence organisational change. Still, success depends heavily on whether their leadership style matches what employees feel the organisation needs.

“Leaders who come into a position with their own agenda or prior style will only succeed if that style happens to be a fit with the top manager behaviors the employees want to see,” Harrison said. According to the researchers, employees are much more attentive to new leaders because leadership transitions naturally create uncertainty and expectation. Staff members look to incoming leaders for signals about priorities, behaviours, and future direction in ways they typically do not with long-standing leaders.

To examine this dynamic, the researchers studied leadership changes in 112 elementary schools across the United States between 2014 and 2017. Half of the schools replaced their principals during the study period, while the other half retained their existing principals. The schools were carefully matched according to factors such as size, age, district characteristics, and local income levels. Teachers completed surveys before and after leadership transitions, rating their agreement with the principal’s vision, their own level of engagement, and whether they believed change was needed within the school.

The findings revealed that teachers who felt dissatisfied with existing conditions were far more receptive to a new principal’s coaching-oriented leadership style. In schools where teachers already believed improvement was necessary, the incoming leader’s active involvement and encouragement aligned with staff expectations. “In that condition, the leader’s style matched the teachers’ relative dissatisfaction with the status quo,” Harrison explained. By contrast, when teachers were generally satisfied with the existing environment, intensive coaching and intervention were more likely to be seen as disruptive or unnecessary.

The researchers then examined whether these attitudes translated into measurable outcomes. They tracked school-level standardised test scores over the following two years and found significant improvements in schools where the new principal’s leadership style matched teachers’ appetite for change. Harrison said the results were striking because improving public school test scores is notoriously difficult without major increases in funding or resources. “I was gobsmacked,” he said. “This wholesale change was in top leadership instead.”

The study concludes that successful organisational change depends on a delicate combination of factors: a leader’s newcomer status, employees’ readiness for change, and the leader’s day-to-day coaching behaviour. While leadership research often celebrates grand visions and inspirational speeches, Harrison argues that in workplaces where leaders interact directly with employees, practical coaching matters far more. Employees may feel energised when guidance is welcomed, but frustrated when it feels intrusive. “Coaching doesn’t always work,” Harrison said. “Sometimes it is unwanted and interferes with employee effort. But other times, it helps to light a motivational fire.”

More information: Katherine Klein et al, For Good and for Bad: The Distinctive Effects of Successors’ Leadership Behavior on Collective Engagement and Organizational Performance, Journal of Applied Psychology. DOI: 10.1037/apl0001359

Journal information: Journal of Applied Psychology Provided by University of Texas at Austin

Study Suggests Low-Performing Organisations Rely More on Outside Sources of Knowledge

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People working in low-performing organisations are more likely to seek ideas, expertise, and new practices from outside their own workplace, according to a new study examining how organisations respond to performance feedback. In contrast, high-performing organisations are more likely to rely on internal collaboration and existing routines when solving problems or improving performance. The findings suggest that organisational success or failure shapes where people search for knowledge, with struggling organisations looking outward for innovation while stronger performers focus inward on refinement and stability.

The research was led by Taek Kyu Kim from the University of Exeter and tested these ideas using data from public schools in New York City. Researchers analysed how schools reacted to academic performance feedback and whether this influenced collaboration patterns among teachers. The study found that schools receiving lower performance grades were significantly more likely to encourage staff to collaborate with teachers from other schools. By comparison, schools with stronger performance ratings focused more heavily on collaboration within their own institutions and showed less interest in seeking expertise across organisational boundaries.

The researchers examined participation in the Learning Partners Program, a collaboration initiative that grouped between five and seven schools into networks so educators could learn from exemplary schools with recognised strengths in particular areas. These areas included specialised support for students with disabilities and other teaching practices linked to improved academic outcomes. The analysis showed that schools with lower performance ratings were much more likely to participate in the programme, demonstrating a willingness to search beyond their own organisations for solutions to performance challenges.

According to Dr Kim, the findings reveal that organisational search patterns are shaped by performance signals rather than by a universal tendency to solve problems internally. Teachers in lower-performing schools reported greater opportunities to work productively with colleagues from other schools, while teachers in higher-performing schools experienced stronger collaboration within their own institutions. The study argues that low-performing organisations may benefit more from directly pursuing outside knowledge instead of relying first on local problem-solving approaches that could consume valuable time and resources without generating meaningful innovation.

The research also challenges the common assumption that organisations should always begin by looking internally before searching elsewhere for solutions. For organisations already struggling with poor performance, the researchers argue that local search may reinforce ineffective routines and delay necessary change. Looking outside organisational boundaries, however, may expose staff and managers to new ideas, practices, and strategies that are more capable of addressing persistent performance problems. The study suggests this outward search can be especially valuable in organisations that are more open to risk-taking and experimentation.

At the same time, the researchers note that high-performing organisations may become vulnerable to what is known as a “competency trap”. Positive performance feedback can reinforce confidence in existing routines, narrowing attention towards internal operations and reducing awareness of external changes. While this inward focus can create efficiency and stability, it may also make successful organisations less adaptable over time. The study concludes that performance feedback acts as a powerful mechanism directing managerial attention, pushing struggling organisations to search outward for improvement while encouraging successful organisations to deepen reliance on established internal practices.

More information: Taek Kyu Kim et al, Beyond problemistic search: a contingency perspective on organizational response to performance feedback, Public Management Review. DOI: 10.1080/14719037.2026.2645327

Journal information: Public Management Review Provided by University of Exeter

Higher Board Interpersonal Diversity Correlates with Reduced Tax Avoidance Practices

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New research analysing two decades of corporate data suggests that greater board interpersonal diversity is associated with lower levels of aggressive tax avoidance. The findings indicate that diversity among board members can strengthen oversight and introduce a broader range of perspectives into corporate decision-making, highlighting the importance of appointing directors from varied genetic and interpersonal backgrounds.

Eric Boahen and his co-authors examined thousands of UK-listed firms between 1999 and 2019 using a broader measure of diversity designed to capture differences in background, communication styles, interpersonal behaviour and approaches to problem-solving among board members. The researchers then compared this diversity measure with levels of corporate tax avoidance across companies.

Across multiple statistical models and robustness checks, the results remained consistent: firms with more interpersonally diverse boards tended to engage in less aggressive tax avoidance. Published in the International Journal of Finance & Economics, the study suggests that boards with wider-ranging perspectives are less likely to rely on shared assumptions when making strategic decisions.

The researchers argue that interpersonal diversity encourages greater discussion, questioning and scrutiny of management decisions, including those related to tax planning. As a result, aggressive or questionable tax strategies may be more likely to face challenge and resistance. Board interpersonal diversity may include differences in how people communicate, assess risk, solve problems and draw on their personal and professional experiences.

The study, which was co-authored with academics from Birkbeck Business School and University of Greenwich, also found that although companies may continue to use accounting techniques to manage profits, interpersonal diversity on boards may help limit excessive tax avoidance overall. The findings suggest that diverse boards can contribute to stronger governance and more balanced decision-making processes.

“Tax decisions often involve judgement and risk,” said Dr Boahen. “While we do not claim a direct causal relationship, our findings show that boards made up of people with different perspectives and ways of thinking are better equipped to challenge management and strengthen oversight. This can lead to more responsible tax behaviour.” The researchers say the findings have important implications for policymakers and businesses, suggesting that board composition is not only a matter of representation but also a practical tool for improving corporate governance and accountability.

More information: Eric Boahen et al, Mitigating Tax Avoidance: The Role of Board Interpersonal Diversity in the United Kingdom, International Journal of Finance & Economics. DOI: 10.1002/ijfe.70213

Journal information: International Journal of Finance & Economics Provided by University of East London

When Profit Misleads: Research Highlights Environmental Trade-Offs Behind Corporate Performance

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Companies praised for strong financial performance may not be as efficient as they appear once their environmental impact is considered, according to new research from the University of Surrey. The study, published in the European Journal of Operational Research, found that businesses generating high revenues can still perform poorly when factors such as carbon emissions and energy use are included in assessments of corporate efficiency.

To better capture this broader picture, researchers developed a new way of measuring “sustainable corporate efficiency.” Instead of focusing solely on traditional financial indicators, the approach also incorporates environmental measures, including greenhouse gas emissions, energy consumption and revenues generated from environmentally friendly products and services. The goal was to determine how effectively companies create value while minimising environmental harm.

Dr Menelaos Tasiou, co-author of the study and Senior Lecturer in Finance at the University of Surrey, said businesses have traditionally been judged by how efficiently they convert resources into profits. Still, that perspective changes when environmental costs are taken into account. He explained that true efficiency means generating revenue while reducing the environmental damage associated with production, adding that profitability alone can hide how wasteful a company may actually be.

The research analysed more than 2,800 publicly listed companies across 61 countries between 2010 and 2022, creating one of the largest international datasets examining both financial and environmental performance together. Researchers combined corporate financial records aligned with the green economy — defined as low carbon, resource efficient and socially inclusive — with environmental disclosures such as energy use and greenhouse gas emissions. They then applied a machine learning method known as Convexified Efficiency Analysis Trees (CEAT) to estimate how efficiently companies convert resources into revenue while limiting pollution.

Unlike conventional approaches, the method recognises that production generates both desirable outputs, such as profits, and undesirable ones, such as emissions. This allowed researchers to compare companies on how successfully they balance financial returns with environmental responsibility. The findings revealed only a moderate relationship between financial efficiency and environmental efficiency, suggesting that companies performing well financially are not necessarily managing their environmental impact effectively. Significant differences also emerged across industries and countries, with high-emission sectors such as manufacturing and energy often lagging behind firms that were better able to reduce carbon intensity while maintaining revenue.

The researchers say the findings could help investors, regulators and policymakers identify businesses that are genuinely prepared for a low-carbon economy. The study also highlighted the importance of management quality, finding that companies with stronger leadership teams were more likely to balance profitability with environmental responsibility. As governments intensify efforts to reach net-zero targets and investors place greater scrutiny on sustainability performance, the researchers warn that companies failing to integrate environmental considerations into their operations risk losing their competitive edge in the years ahead.

More information: Chrysovalantis Gaganis et al, Beyond profit: Rethinking corporate efficiency frameworks through a sustainability lens, European Journal of Operational Research. DOI: 10.1016/j.ejor.2026.02.019

Journal information: European Journal of Operational Research Provided by University of Surrey

Study Shows Immigrants Continue to Face Significant Employment Hurdles

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Immigrant workers play a vital role in industries across Canada and around the world, from agriculture and healthcare to technology and finance. Yet despite bringing valuable knowledge, skills and experience, many immigrants continue to face significant employment hurdles when trying to establish careers in a new country. A new study by researchers from the UBC Sauder School of Business examines why immigrants often struggle to have their qualifications recognized — and how employers, policymakers and immigrants themselves can help bridge that gap.

In the paper, researchers Snehal Hora, Emily Campion, Sima Sajjadiani and Diana Lee reviewed decades of academic literature on first-generation adult immigrants and their workplace experiences. Using advanced machine learning models, the team analyzed more than 13,000 research papers published between 1888 and 2022. The technology helped narrow the papers to about 5,000 highly relevant studies before identifying major themes across the research. The team eventually focused on 833 papers covering 32 employment-related topics, including hiring discrimination, skill transferability and workplace integration.

The researchers found that one of the biggest challenges immigrants face is translating their human capital — including education, credentials and professional experience — into forms that employers recognize and trust. Degrees, licences and certificates earned abroad are often undervalued because employers may not be familiar with institutions outside their own countries. Immigrants can also struggle with unfamiliar workplace norms, from resume formats to interview expectations, which may unintentionally create barriers during hiring processes. As a result, many highly skilled immigrants end up underemployed or working in positions far below their qualifications, limiting income, career growth and wellbeing while also depriving organizations of valuable talent.

The study found that immigrants who adapt their resumes and professional presentations to align with local expectations can improve their chances of securing jobs that better match their qualifications. According to Dr. Campion, reframing skills and experiences in ways recruiters can easily understand helps legitimize immigrants’ expertise in the eyes of employers. The researchers argue that organizations can also make meaningful improvements by focusing hiring assessments on core competencies rather than assumptions tied to unfamiliar credentials or communication styles. Better systems for recognizing foreign education and professional certifications could help address labour shortages in critical sectors such as healthcare while allowing immigrants to contribute more fully to their new communities.

The research also highlights the important role of social networks in shaping employment outcomes. Immigrants often rely on connections within their own cultural or immigrant communities to find work quickly. Still, those networks may not always provide access to opportunities that match their education or skills. Building broader professional relationships outside familiar social circles can improve access to higher-quality employment and career advancement, particularly for immigrants intending to settle permanently. The researchers note that immigrants’ long-term intentions can also change depending on their experiences: people who initially planned to stay temporarily may decide to remain if they feel welcomed and valued. In contrast, others who hoped to build permanent lives may choose to leave if barriers persist.

The researchers say governments, employers and institutions already have many of the tools needed to create clearer pathways for immigrant workers, but meaningful change requires commitment and resources. At a time when anti-immigrant rhetoric has become increasingly visible in parts of the world, the team warns that countries risk harming their own economies if they fail to recognize the value immigrants bring. Immigrants contribute expertise, innovation, cultural knowledge and international connections that strengthen industries and communities alike. The researchers argue that improving how immigrant talent is recognized and supported is not only beneficial for newcomers themselves, but also essential for countries competing globally for skilled workers and long-term economic growth.

More information: Snehal Hora et al, Translating human capital amid varying intentions to stay: An integrative conceptual review of the immigrant employment attainment process, Applied Psychology. DOI: 10.1037/apl0001343

Journal information: Applied Psychology Provided by University of British Columbia