Author Archives: support

Boardroom Showdowns: How Corporate Alliances Shape Firms’ Allocation of Resources

Once organisations achieve their profitability and market performance targets, they frequently focus on additional objectives that may stretch beyond mere financial gains. Yet, these supplementary goals do not always align neatly; they can sometimes be in direct opposition. A prime example of this tension is the trade-off between prioritising shareholder returns and investing in social causes. Such divergence prompts a pivotal question: how do companies decide where to direct their surplus resources and which goals to prioritise when faced with these competing demands?

A recent study, published online in the Journal of Business Ethics on 9 May 2025, delves into this question by shedding light on the inner workings of the boardroom. Conducted by Professor Toru Yoshikawa of Waseda University’s School of Social Sciences, alongside Associate Professor Cyndi Man Zhang from Singapore Management University and Professor Helen Wei Hu of the University of Melbourne, the research investigates how internal political dynamics within corporate boards shape the distribution of resources between shareholder payouts and contributions to societal causes.

Professor Yoshikawa highlights the underlying curiosity driving their research: “We were intrigued by the notion that, although for-profit firms must prioritise financial goals to remain viable, there is still a measure of flexibility in how they allocate their resources once these goals are met. Boardrooms can function as political arenas, where different subgroups vie for influence. We sought to understand how these internal power struggles impact the way resources are allocated.”

To untangle this complex web of corporate decision-making, the study advances a theoretical framework that identifies two dominant coalitions within corporate boards. The first, termed the shareholder-value coalition, is usually composed of CEOs and directors with expertise in finance or accounting. This coalition champions the maximisation of shareholder value through measures like dividend payments. By contrast, the state-endorsement coalition is typically comprised of board members with prior experience in government or public policy who are more inclined to advocate for corporate donations and socially responsible initiatives.

The researchers applied this framework to an extensive dataset covering 2,071 Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges from 2008 to 2013. This period was especially significant, as these firms represented more than 84% of China’s GDP. By scrutinising financial performance, dividend payments, philanthropic contributions, and the professional backgrounds of board members, the team could determine which coalition held greater sway within each company.

Given the distinctive governance model in China—a system that interweaves market-driven capitalism with pronounced state involvement—these firms offered a unique vantage point. Many firms exhibited a dual boardroom structure, with shareholder-value and state-endorsement coalitions actively influencing decision-making. The shareholder-value coalition aimed squarely at boosting returns to investors, while the state-endorsement coalition lent its weight towards initiatives aligned with social welfare and public harmony.

The study’s findings reveal a nuanced picture. Once firms met their financial performance targets, they typically pursued both goals: satisfying shareholders and supporting social causes. However, the balance between these two objectives depended on which coalition held the upper hand. Firms dominated by the state-endorsement coalition allocated more funds towards corporate donations, yet this increased spending on social causes did not diminish dividend payments to shareholders. In firms with a more powerful shareholder-value alliance, dividends took centre stage. Notably, after achieving their primary objective, coalitions often became more receptive to the other goal. These insights offer a rare window into the internal boardroom politics that ultimately shape how companies distribute resources and navigate competing priorities. Professor Yoshikawa underscores the significance of these dynamics: “Shareholders should pay close attention to their invested firm’s board composition because there may be factions within the board, and each faction might champion distinct goals that do not always align perfectly with shareholders’ interests.”

More information: Cyndi Man Zhang et al, Shareholder Satisfaction or Societal Benefit? Coalition Support and Goal Prioritization, Journal of Business Ethics. DOI: 10.1007/s10551-025-06018-5

Journal information: Journal of Business Ethics Provided by Waseda University

Widening Income Gaps Weaken Support for Raising the Minimum Wage

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High levels of income inequality undermine public support for raising the minimum wage, potentially creating a self-perpetuating cycle in which inequality is tolerated and accepted as natural. This phenomenon, explored in research published by the American Psychological Association, suggests that as people observe the stark differences in income, they may believe such disparities are justified or inevitable. The study introduces the concept of the “is-to-ought” fallacy—where individuals draw moral conclusions from existing states of affairs—leading many to conclude that current income gaps reflect how things should be. This cognitive error could ultimately discourage support for redistributive policies that might otherwise help reduce inequality.

The research, led by M. Asher Lawson, PhD, of INSEAD in France, and Daniela Goya-Tocchetto, PhD, of SUNY Buffalo, examined real-world and experimental data. Analysing over 130,000 protests across the United States between 2017 and 2023, the researchers found that regions with higher economic inequality tended to see fewer and less well-attended protests concerning financial issues, such as demands for higher wages. This decline in civic mobilisation suggests that the very existence of inequality may sap the momentum needed to challenge it. In tandem with the protest data, eight controlled experiments were conducted in which participants were shown hypothetical economic distributions. Strikingly, when inequality was depicted as higher, participants were less inclined to support increases in the minimum wage and more likely to believe that low-income earners deserved less access to goods and services.

These findings underscore a psychological mechanism whereby inequality entrenches itself through material conditions and shifts in collective belief. “When the rich earn dramatically more than the poor, people often infer that the rich should earn more,” explained Lawson. This normalisation of inequality may erode the perceived legitimacy of policies that narrow economic gaps. The researchers argue that the visibility of extreme wealth disparities leads to a warped sense of fairness, where individuals assume that existing outcomes are the product of merit or necessity rather than structural imbalances. As a result, support wanes for policies like higher minimum wages specifically intended to alleviate economic hardship for low earners.

Despite sporadic increases at the state and municipal levels, the federal minimum wage in the United States has remained stagnant at $7.25 per hour since 2009. Inflation and cost of living have risen sharply during that time, rendering the federal minimum wage insufficient to meet basic needs. A single adult working full-time at this rate earns just $15,080 per year, an income that falls below the federal poverty threshold and often disqualifies individuals from obtaining necessary government assistance. Yet, paradoxically, even as the inadequacy of the wage becomes more glaring, public support for raising it does not appear to rise in proportion—particularly in areas with more severe income stratification.

Political ideology also played an intriguing role in the study’s findings. Conservatives consistently opposed raising the minimum wage, regardless of the income distribution in the hypothetical scenarios. In contrast, liberal participants displayed greater variability: they were more supportive of higher minimum wages in egalitarian contexts. Still, they tended to reduce their support when inequality was higher. This suggests that liberals, while generally more sympathetic to economic justice, are also more susceptible to the is-to-ought fallacy. According to Goya-Tocchetto, this tendency to adjust views based on presented scenarios may come from a more reflective approach. Still, it inadvertently increases vulnerability to cognitive distortions reinforcing the status quo.

In response to these insights, the researchers emphasise that public campaigns aimed at raising the minimum wage may benefit from a shift in strategy. Rather than highlighting how high inequality has become, which risks normalising it further, advocates might instead focus on the potential for change—emphasising what a more equitable income distribution could look like. This idea was tested in a final experiment involving over 1,900 participants. One group was shown income distribution data and asked to consider it as-is, while another group was allowed to modify the distributions. The latter group demonstrated significantly less influence from existing inequality when making wage recommendations, suggesting that prompting individuals to imagine alternative economic realities can disrupt the default is-to-ought thinking. This finding offers a glimmer of hope: by engaging the public in envisioning how things could be rather than how they are, support for policies addressing inequality might be more effectively cultivated.

More information: Asher Lawson et al, Income inequality depresses support for higher minimum wages, Journal of Experimental Psychology. DOI: 10.1037/xge0001772

Journal information: Journal of Experimental Psychology Provided by American Psychological Association

Early Exposure to Complex Work Linked to Greater Career Success

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Early experiences in the workplace are crucial in shaping how employees adjust to their new organisational environments, particularly in terms of socialisation. While a substantial body of research has focused on the effectiveness of organisation-wide strategies to transform new hires into well-integrated “good citizens,” relatively little attention has been paid to the specific nature of individual early work experiences. A recent study aims to fill this gap by examining how the complexity of initial project team assignments influences the trajectory of employees’ careers. The findings suggest that the nature of early responsibilities plays a significant role in determining long-term success.

The study, conducted by researchers from Carnegie Mellon University and the University of Kentucky, was published in the Academy of Management Journal. It explored how early assignments to more intricate and demanding projects affect new employees’ career development and integration into an organisation. According to David Krackhardt, professor of organisations at Carnegie Mellon’s Heinz College and a co-author of the study, there is growing importance in identifying organisational socialisation methods that not only support the acquisition of job-specific knowledge but also contribute to upward mobility within the organisation. This is particularly relevant in fast-paced industries, such as the high-tech sector, where early experiences can impact performance and professional advancement.

Given that nearly one in four workers in the United States has been with their employer for less than a year, understanding the impact of the onboarding phase is increasingly pertinent. The researchers analysed data collected over three years from a private Chinese company involved in space technology. This firm randomly assigned more than 500 new hires to project teams during their initial two years of employment, providing a natural experimental setting to observe the outcomes of differing early experiences. The team sought to answer three central questions: What features of early job assignments confer long-term career benefits? How are these benefits realised? And which individuals are best positioned to take advantage of them?

The results were telling. Newcomers assigned to more complex projects demonstrated markedly higher levels of achievement across multiple metrics. They secured more professional certifications, reported increased learning, and received greater visibility in internal communications such as company newsletters. These intermediate gains translated into tangible career advancements, including faster promotions, increased compensation, and more favourable supervisor performance evaluations. The study thus highlights the direct correlation between early assignment complexity and downstream professional outcomes.

Moreover, the study found that the benefits of early complex assignments were not uniformly distributed. Employees who entered the organisation with prior industry experience appeared better equipped to reap the full benefits of demanding project work. Their existing knowledge base and familiarity with similar environments enhanced their capacity to navigate complexity and showcase their abilities. Interestingly, the researchers also discovered that learning gains and status attainment—two key facets of socialisation—occurred through distinct pathways. In other words, acquiring new knowledge and securing an elevated place within the organisation’s informal hierarchy are separate processes, each with its dynamics.

Despite its significant contributions, the study does come with limitations. The authors acknowledge that their operationalisation of “status” might not fully capture the complex and often subtle ways that informal hierarchies manifest in different organisational contexts. Additionally, variables such as intrinsic motivation or the personal meaningfulness of the work were not examined, which could also influence how newcomers experience and benefit from their early assignments. Nevertheless, the research offers valuable insights into the critical role of early project complexity in shaping both the immediate and long-term professional trajectories of employees, underscoring the need for deliberate assignment practices during onboarding.

More information: Shihan Li et al, The Roles of Learning and Status Attainment in Successful Newcomer Socialization: Random Assignments to Complex Projects and Early Career Outcomes, Academy of Management Journal. DOI: 10.5465/amj.2023.1057

Journal information: Academy of Management Journal Provided by Carnegie Mellon University

Between Diffusion and Bottlenecks: Modelling the French Labour Market through Statistical Physics

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How long have you been doing your current job? Have you ever wondered whether it might be time for a change—perhaps even a bold leap into a different profession? For many workers today, change feels like an uphill struggle. Despite the growing need for adaptability in a rapidly evolving labour market, making professional transitions is often more difficult than one might expect. As technological advances, demographic shifts, and new economic demands reshape the employment landscape, workers and companies are under pressure. Workers may struggle to keep pace, while companies frequently cannot find qualified personnel for emerging roles. A recent study applying methods from statistical physics to the French labour market reveals why: over 90% of current occupations function as bottlenecks—relatively easy to enter, yet exceedingly difficult to leave, even when more promising opportunities exist elsewhere.

The study, carried out by Max Knicker, Karl Naumann-Woleske, and Michael Benzaquen of École Polytechnique in Paris and published in the Journal of Statistical Mechanics: Theory and Experiment, applies a novel analytical framework borrowed from the realm of statistical physics to understand labour dynamics. The researchers mapped out the structure of the French labour market using large-scale administrative data. They found that many professions, far from fluid stepping stones, act as occupational traps. Once inside, workers face significant obstacles in transitioning elsewhere, contributing to systemic rigidity. The study’s primary aim was to quantify how accessible and transferable various jobs are, shedding light on why certain professions become terminal destinations for large workforce segments.

This investigation draws from one of statistical physics’ great strengths: its capacity to handle and interpret massive datasets describing the evolution of complex systems. Using official data from France’s National Institute of Statistics and Economic Studies (INSEE), accessed via the Secure Data Access Center (CASD), the researchers followed approximately 30 million workers and employers over ten years. With these high-resolution longitudinal records, they assigned each job in the market two critical scores—accessibility and transferability. Accessibility reflects the diversity of previous occupations from which workers can enter a given job, while transferability indicates how many different future occupations people in that role typically move into. This dual-scoring system allowed the team to construct a detailed topography of the French employment system.

Their analysis revealed four main types of occupational roles: hubs, condensers, diffusers, and channels. Hub occupations, such as retail sellers, are easily accessible and highly transferable, acting as key junctions in the employment network. Condensers, by contrast, are jobs that admit people from various backgrounds—like caregiving roles—but offer few routes onward. Diffusers are the opposite: jobs like merchant navy specialists or technical flight managers are difficult to enter due to their specialised requirements, but they open doors to many other careers once attained. Finally, channel occupations are hard to enter and leave, often requiring highly specialised skills with limited applicability beyond their immediate context. Industrial welding machine operators are one such example. This classification scheme presents a more nuanced view of the barriers and conduits that structure occupational mobility.

Although the study is primarily descriptive and retrospective—focused on analysing historical data rather than projecting future trends—it offers significant implications for labour policy. The relative stability of occupational transition patterns over the past decade provides a reliable baseline against which future changes can be measured by highlighting where bottlenecks are most prevalent and which jobs serve as key transition nodes; policymakers and educators can better identify where to focus resources. For instance, investing in training programmes facilitating movement out of condenser occupations or improving access to diffusers could unlock new pathways for professional mobility. The methodology also offers an empirical framework that could be used to track the impact of reforms or economic shifts over time.

Knicker and his colleagues hope their model will serve as a springboard for further research and policy experimentation. They aim to expand their analysis to other European labour markets, though data standardisation across borders remains challenging. Some countries maintain administrative records comparable to those used in France, while others lack equivalent data depth. Nevertheless, this study represents a promising first step in reimagining how we analyse and address labour market inertia. Future projects may integrate vocational training data or track individuals’ career trajectories to enrich the understanding of job mobility further. In an era of unprecedented change, such tools are essential for economic efficiency and empowering individuals to navigate their working lives with greater agency and foresight.

More information: Max Sina Knicker et al, The Structure of Occupational Mobility in France, Journal of Statistical Mechanics Theory and Experiment. DOI: 10.48550/arXiv.2407.14179

Journal information: Journal of Statistical Mechanics Theory and Experiment Provided by Sissa Medialab

Energy-Harvesting Nanogenerators for Smart and Self-Governing Robotic Systems

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In the rapidly evolving domain of embodied intelligence, the convergence of artificial intelligence (AI) with physical robotics fosters machines that can think, learn, act, and interact within the physical world. This progression moves beyond mere automation—robots are now capable of nuanced perception and dexterous manipulation akin to human behaviour. However, achieving such sophistication is not solely dependent on advancements in AI algorithms. It necessitates the development of sensor systems that can effectively bridge the digital and physical realms. These systems must gather data from the environment, process it intelligently, and then actuate a response, forming the backbone of human-like robotic cognition and movement. The integration of AI with high-fidelity, responsive sensing is, therefore, a central challenge in current robotic research.

A compelling investigation into this intersection of sensing and intelligence has been conducted by Professor Wenbo Ding and his research team at Tsinghua University. In a recent review published in the International Journal of Extreme Manufacturing, the team examines the promising role of nanogenerators—specifically triboelectric and piezoelectric types—in advancing robotic autonomy. These devices convert ambient mechanical energy, such as motion or vibration, into electrical energy, making them ideal candidates for self-powered sensing systems. The researchers explore how these nanogenerators can significantly enhance robotic performance by facilitating more efficient energy usage and enabling decentralised, autonomous sensing capabilities.

The review article offers a methodical overview, starting with the fundamental physical principles underpinning triboelectric and piezoelectric effects. These mechanisms, based on surface charge transfer and crystalline lattice deformation, are instrumental in developing energy-harvesting devices. The team discusses the strategies for designing nanogenerators explicitly tailored for robotic applications, including flexibility, durability, and responsiveness considerations. By examining how these devices can be incorporated into robotic frameworks, the article establishes a strong conceptual foundation for their practical implementation.

As the authors describe, nanogenerators represent a transformative step towards sustainable and intelligent robotic systems. “The essence of nanogenerators is harnessing the subtle energies of everyday mechanical interactions and converting these into usable electrical energy,” the researchers note. This self-sufficiency in energy production eliminates the need for bulky and often impractical external power supplies, paving the way for robots that are lighter, more adaptable, and capable of extended operation in the field. Such self-powered sensing is a key enabler of genuine robotic autonomy, particularly in remote or unpredictable environments.

To further advance this technology, the research community focuses on enhancing the materials and structures used in nanogenerators. Efforts are being made to incorporate flexible and stretchable materials, allowing sensors to conform to various robotic forms and surfaces without compromising function. “By integrating flexible and stretchable materials, we can not only enhance the performance of these devices but also expand their use to a wider range of robotic motions and surfaces,” the researchers explain. This adaptability is vital for applications in soft robotics, wearable systems, and other contexts where traditional rigid sensors fall short.

Nonetheless, the implementation of triboelectric and piezoelectric nanogenerators is not without challenges. Their performance can be susceptible to environmental variables such as humidity and temperature, influencing charge generation and system reliability. Additionally, integrating these devices into existing robotic architectures requires careful alignment of mechanical design with electronic function. As the researchers note, “One of the primary issues is the variability in performance due to environmental factors such as humidity and temperature.” To address these concerns, ongoing research aims to develop more robust materials and simplify system integration. Looking ahead, the seamless incorporation of nanogenerators with AI and machine learning technologies could create robotic systems that are more autonomous and capable of real-time adaptation and decision-making, ushering in a new era of intelligent machines.

More information: Wenbo Ding et al, Flexible nanogenerators for intelligent robotics: design, manufacturing, and applications, International Journal of Extreme Manufacturing. DOI: 10.1088/2631-7990/ad94b8

Journal information: International Journal of Extreme Manufacturing

State Ownership Enhances Corporate Commitment to Environmental Responsibility in China

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In an era marked by intensifying environmental degradation and the mounting urgency of sustainable development, the role of corporate actors in environmental protection has garnered growing attention. Nowhere is this dynamic more consequential than in China, where decades of rapid industrialisation have left a significant ecological footprint. Against this backdrop, this study investigates how state capital participation (SCP) influences the environmental engagement of privately controlled listed firms in China. While extensive research has examined environmental practices among state-owned enterprises or large multinational corporations, the nuanced effects of minority state ownership in private firms remain underexplored. Understanding this dimension is crucial for developing theoretical perspectives on corporate governance and informing policies to align private sector incentives with public environmental objectives.

The study adopts a methodologically rigorous approach to explore this relationship, drawing on an expansive dataset comprising 20,133 firm-year observations between 2009 and 2021. Three distinct indicators are employed to capture the multifaceted nature of corporate environmental engagement (CEE), along with two separate measures of SCP. This multidimensional design ensures that the analysis is both comprehensive and granular. A difference-in-difference (DiD) regression framework is the backbone of the empirical strategy, allowing the researchers to isolate the causal effects of SCP while accounting for broader trends and firm-specific factors. Incorporating fixed effects and a range of control variables strengthens the robustness of the findings and mitigates endogeneity concerns. By doing so, the study ensures that its conclusions are not merely correlational but point toward a meaningful causal relationship.

The findings reveal that SCP significantly enhances corporate environmental engagement. Firms with state capital involvement are more likely to increase their environmental expenditure, report better environmental performance, and achieve higher ratings of ESG (Environmental, Social, and Governance). Furthermore, these firms exhibit greater capacity to undertake environmental investments, partly driven by increased media visibility, online attention, and analyst scrutiny. These external factors may create a reputational incentive that encourages sustained environmental commitment. The positive effects of SCP are particularly salient in firms that are partially owned by local governments, have a larger number of state shareholders, or maintain long-term relationships with state investors. Additionally, the absence of politically connected managers amplifies SCP’s impact, suggesting that technocratic management better align with environmental objectives than politically motivated leadership.

Another striking dimension of the study is its focus on firms operating within heavily polluting industries. In these contexts, minority state ownership has an especially pronounced effect, reducing toxic emissions and enhancing financial performance. This finding contradicts the often-assumed trade-off between environmental responsibility and profitability, indicating that strategic environmental engagement can yield dual dividends. Moreover, the study challenges the traditional binary framework that contrasts state-owned and private enterprises by showing that even minority state involvement can reshape corporate priorities. By providing access to resources and attracting public and financial scrutiny, SCP acts as a lever to raise environmental standards, particularly in firms that might otherwise lack the motivation or capacity to pursue such goals independently.

The implications of these findings are multifaceted. For policymakers, the research highlights the potential of using state capital as a strategic tool to drive sustainability in the private sector. Rather than relying solely on regulations or subsidies, governments can adopt more subtle yet effective mechanisms—such as acquiring minority stakes—to influence corporate behaviour. This approach may prove especially valuable in sectors resistant to traditional forms of regulation or where enforcement is difficult. Local governments, in particular, appear well-positioned to implement such strategies given their proximity to regional environmental issues and economic conditions. For business leaders, the study suggests that partnering with state investors can enhance a firm’s environmental credentials and contribute to financial success, thus creating a mutually reinforcing cycle of responsible and profitable behaviour.

Ultimately, this research provides a timely and compelling contribution to environmental governance and corporate responsibility literature. It reveals how state involvement in private enterprise can catalyse meaningful environmental change when carefully designed and implemented. Moving beyond simplistic dichotomies of public versus private ownership, the study opens the door to more nuanced understandings of how hybrid ownership models can support the transition towards sustainability. For scholars, it offers a robust empirical framework to explore these dynamics further; for practitioners and advocates, it presents a promising mechanism to reconcile economic growth with environmental stewardship in one of the world’s most pivotal economies.

More information: Shaojie Lai et al, State capital participation and corporate environmental engagement: evidence from privately-controlled listed firms in China, China Finance Review International. DOI: 10.1108/CFRI-06-2024-0350

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

Subsidising Vital Industries Endangers Global Biodiversity

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Government subsidies directed towards major economic sectors—such as agriculture, fossil fuels, fisheries, and mining—play a significant role in the accelerating degradation of ecosystems and the erosion of global biodiversity. This is the central finding of a recent study conducted by the Institute of Environmental Science and Technology at the Universitat Autònoma de Barcelona (ICTA-UAB). The research exposes a stark contradiction: vast public funds are being channelled into activities that directly contribute to environmental harm, thus undermining global efforts to combat climate change and halt biodiversity loss. As financial support perpetuates these destructive practices, the ecological foundations of human society are increasingly at risk.

Nature is the bedrock of human life, providing essential services such as food production, climate regulation, water purification, and carbon cycling. These ecological functions sustain public health and livelihoods and the wider economic system. It is estimated that over half of the global economy depends to some degree on these natural systems. Despite this, human activity continues to drive widespread ecological degradation. Unsustainable industrial practices, fuelled in part by public subsidies, are placing immense strain on planetary systems and exacerbating biodiversity loss at a pace unprecedented in human history.

The ICTA-UAB study, led by researcher Victoria Reyes-García and published in the journal Ambio, analysed the flow of public financial aid to six crucial sectors: agriculture, fossil fuels, forestry, infrastructure, fisheries and aquaculture, and mining. The study found that these sectors collectively receive subsidies between US$1.7 trillion and US$3.2 trillion annually. However, the indirect environmental damage caused by their activities is vastly more costly, estimated at between US$10.5 trillion and US$22.6 trillion each year. This imbalance illustrates the unsustainable nature of current economic systems, where short-term economic benefits are prioritised over long-term ecological and financial stability.

Moreover, the environmental consequences of these subsidies are not abstract projections but tangible harms with real economic implications. The World Bank warns that the continued loss of ecosystem services—such as pollination, fish stocks, and timber—could reduce global GDP by US$2.7 trillion by 2030. In the UK alone, biodiversity loss could diminish GDP by 6% to 12% in the same period. These figures highlight the economic folly of funding environmentally damaging industries, whose degradation of natural capital threatens to undermine future prosperity and societal resilience.

Sector-specific data offers further insight into the scale of the problem. In 2022, fossil fuel subsidies totalled a staggering US$7 trillion. Eliminating such subsidies could reduce global carbon emissions by 43% and prevent up to 1.6 million premature deaths annually due to improved air quality. Agriculture, while essential, contributes significantly to greenhouse gas emissions, soil degradation, and water pollution due to intensive farming methods incentivised by current subsidy schemes. Forestry activities, supported by US$175 billion in 2024, continue to drive deforestation, with over 6 million hectares of forest lost in 2023 alone. Infrastructure projects, which received US$2.3 trillion in 2015, frequently destroy habitats and deplete water resources. Similarly, subsidies for fisheries and aquaculture (US$55 billion in 2023) often encourage overfishing and illegal practices. Mining, which received at least US$40 billion, has its most damaging operations in biodiversity-rich areas yet suffers from serious transparency issues regarding subsidy reporting.

A primary concern highlighted by the study is the lack of transparency in subsidy allocation. According to Reyes-García, one of the most troubling findings is the absence of a systematic method to monitor which industries receive public funds and for what purposes. This opacity makes it difficult to assess the accurate scale of environmentally harmful subsidies and limits the ability of governments and civil society to hold stakeholders accountable. Given the severe ecological consequences of these subsidies, greater transparency and accountability are essential if public finances are to be aligned with environmental objectives. Without such oversight, public money will continue to be used to undermine climate and conservation goals.

Yet, promising examples of reform illustrate how change is possible. In New Zealand, the government has eliminated fishing subsidies and replaced them with incentives focused on sustainable practices. Zambia has begun redirecting agricultural subsidies towards approaches that benefit biodiversity and climate resilience. England, meanwhile, has introduced a payment system for ecosystem services in agriculture, rewarding farmers for environmentally responsible stewardship. These initiatives demonstrate that reallocating public funds is feasible and can support both ecological integrity and human well-being. The ICTA-UAB study ultimately calls for a transformation of the global economic model that prioritises sustainability, transparency, and the long-term viability of natural systems on which all life depends.

More information: Victoria Reyes-García et al, The costs of subsidies and externalities of economic activities driving nature decline, AMBIO. DOI: 10.1007/s13280-025-02147-3

Journal information: AMBIO Provided by Universitat Autonoma de Barcelona

Brains on the Move: How Skilled Migrants are Shaping the Future of the Global Economy

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As the immigration debate intensifies across the United States, a new academic study from the University of California’s School of Global Policy and Strategy critically examines the long-standing notion of “brain drain.” This idea — that when highly skilled professionals leave developing nations, their home countries suffer economic and developmental losses — has shaped policy and public opinion for decades. However, the researchers challenge this view, offering evidence that the emigration of skilled workers may, in fact, foster economic growth, innovation, and human capital development in the countries they leave behind.

Published in Science, the study reveals a far more nuanced reality. Drawing on a broad array of empirical data, the researchers argue that high-skilled emigration often stimulates education and professional development in sending countries rather than depleting them. By creating opportunities abroad, especially in high-income nations such as the United States, migration incentivises individuals in developing countries to pursue advanced training and qualifications. These educational investments benefit their home economies, even if many of those who train do not ultimately emigrate. Furthermore, those who move abroad frequently maintain transnational links, using their new positions to facilitate trade, investment, and knowledge exchange between host and home nations.

The study’s release comes at a pivotal moment, as the U.S. introduces stricter immigration controls, including more rigid work visa requirements, limitations on student entry, and barriers to return migration. These changes, the researchers warn, could have far-reaching consequences. Not only might they constrict the U.S. labour market and limit access to global talent, but they may also disrupt beneficial economic feedback loops that have supported development across much of the Global South. According to co-author Dr Gaurav Khanna, associate professor at UC San Diego, “Global prosperity rises when countries have access to U.S. labour markets. The U.S. also gains enormously by welcoming the world’s top talent. If that access is denied, the global system suffers.”

As the researchers contend, migration creates shared prosperity that transcends national borders. Migrants who move abroad often remit funds to family members, invest in local enterprises, or return to their home countries with new skills and professional networks. These migrants become development agents, connecting their home economies with global markets. In the case of returnees, their familiarity with international standards and systems enables them to integrate local industries into global supply chains, establish research collaborations, and foster innovation. “A lot of trade works through human networks,” said Khanna. “Someone who’s worked in the U.S. understands the markets, the expectations, and the infrastructure. That knowledge creates lasting value when brought back home.”

One of the most striking examples cited in the study concerns Filipino nurses. When the United States expanded visa access for foreign-trained nurses, enrolment in nursing schools in the Philippines surged dramatically. For each nurse who migrated, nine new nurses were trained domestically. This expansion of human capital met overseas demand and bolstered the local healthcare workforce. A similar trend emerged in India, where an increase in access to H-1B visas led to a measurable 10% rise in the earnings of Indian professionals in the U.S. and a 5.8% growth in IT employment in India itself. These statistics underscore a crucial insight: migration policies in destination countries have powerful ripple effects that influence economic and professional landscapes far beyond their borders.

To reach these conclusions, the study’s authors analysed various natural experiments — unplanned events such as sudden changes in immigration policy, international visa lotteries, and other real-world disruptions. By comparing groups affected by these changes with those who were not, they could isolate the causal effects of migration opportunities. The results consistently indicated a more complex and positive narrative than the conventional brain drain model suggests. Rather than being a one-way exit of talent, skilled migration emerges as a dynamic exchange that can enrich sending and receiving countries. The study reframes the global migration debate and calls for policies that recognise the mutual benefits of open and inclusive labour markets.

More information: Gaurav Khanna et al, Brain drain or brain gain? Effects of high-skilled international emigration on origin countries, Science. DOI: 10.1126/science.adr8861

Journal information: Science Provided by University of California – San Diego

Dodging the Red Zone: How Automated Bank Alerts Help Prevent Expensive Overdrafts

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Automatic bank alerts have emerged as a remarkably effective tool in reducing the financial strain overdraft charges impose on consumers. According to new research conducted in the United Kingdom, customers who automatically sign up to receive alerts warning them that their bank balance is approaching zero—or has just dipped below it—experience significantly fewer overdraft fees and associated charges. The impact is substantial and widespread: analysts estimate that the charge reduction could lead to annual savings of between £170 million and £240 million across the country. Notably, the most significant benefits are seen among low-income customers, who are often the most heavily penalised by overdraft structures and least able to afford the fees.

The policy underpinning these alerts dates back to 2018 when the UK government mandated that major banks must automatically issue warnings to customers without arranged overdraft agreements when their accounts move into deficit. This came in response to the staggering £2.6 billion in annual overdraft fees consumers were collectively paying—many unaware that they had even entered overdraft. Financial regulators enlisted a team of researchers to study how customers at two large banks responded to early versions of the alerts to optimise the initiative. These banks had begun trialling the system before the nationwide policy took effect, offering a valuable opportunity to track behavioural changes over time.

The researchers found a significant reduction—up to 19 per cent—in fees related to overdrafts and insufficient funds once the alerts were introduced. Notably, the timing of the alert played a crucial role in its effectiveness. Notifications that arrived just as customers slipped into overdraft proved more successful than those sent hours or days in advance. The immediacy of the message seemed to trigger a stronger behavioural response, prompting customers to take quick action to avoid or minimise fees. This insight highlights the value of precision in financial communication: alerts must be timely and relevant to influence consumer behaviour meaningfully.

One of the key voices behind the study was Professor Matthew Osborne, an associate professor of marketing at the University of Toronto Mississauga, who is also affiliated with the Rotman School of Management. He noted that banks have long profited from customers’ lack of awareness regarding overdraft fees, with many consumers only discovering the existence of such charges once they appear on their statements. Before the introduction of automatic alerts, these fees comprised an estimated 15 to 20 per cent of bank revenue. Even more striking is that around half of those fees were paid by fewer than five per cent of customers—many of whom lived in deprived areas and paid as much as £380 annually in overdraft charges, roughly equivalent to two per cent of their income.

Although banks had technically been required since 2012 to offer alerts on an opt-in basis, the uptake was minimal, with fewer than one in ten customers signing up. The switch to automatic alerts reversed this dynamic, with the overwhelming majority choosing not to opt-out. A follow-up survey revealed that most recipients found the alerts helpful, and over two-thirds reported taking action in response. These actions typically involved moving funds from savings, cutting discretionary spending, or borrowing small sums from family or friends. Surprisingly, relatively few customers transferred their debt to lower-interest credit cards—a behaviour the researchers suggest warrants further study, as it could offer another route to reducing personal financial strain.

In light of the findings, the British government has broadened the scope of the alert programme. More banks and types of overdrafts are now covered, new caps have been introduced on the charges that can be levied, and there are stronger requirements for clear, transparent communication of fees. While personal responsibility remains vital to financial management, the research illustrates that well-designed tools can dramatically improve outcomes for individuals who might otherwise be repeatedly penalised. As Professor Osborne observed, keeping track of one’s money is essential—but without the right tools, even the most diligent customers can stumble. In this case, a simple nudge delivered at the right moment has proven to be a powerful mechanism for financial well-being.

More information: Matthew Osborne et al, Sending Out an SMS: Automatic Enrollment Experiments for Overdraft Alerts, Journal of Finance. DOI: 10.1111/jofi.13404

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

Workplace Help is Filtered Through Emotional Expression

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New research from Washington State University’s Carson College of Business highlights emotional expression’s decisive role in how help is perceived in the workplace. While helping behaviour is generally viewed as a positive and commendable act, the emotional context surrounding that help can significantly alter how it is received. The study, led by Assistant Professor Stephen Lee, reveals that when individuals offer assistance with expressions of gratitude or sympathy, they are more likely to be seen as sincere and benevolent. In contrast, when help is accompanied by emotions such as pride or contempt, recipients often question the helper’s motives, leading to weakened interpersonal bonds and a lower likelihood of reciprocation.

This insight challenges the long-standing assumption that help is inherently good or always strengthens workplace relationships. Instead, Lee and his coauthor, Michael D. Johnson of the University of Washington, argue that recipients are not passive help recipients. Instead, they actively interpret emotional cues to assess why someone is helping. If the emotional expression suggests genuine concern, trust is fostered. If, however, the helper appears self-congratulatory or disdainful, the recipient may suspect ulterior motives—such as a desire to appear superior or to gain favour—thus undermining the social value of the gesture.

The research, published in the Academy of Management Journal, involved three primary studies and a preliminary pilot project. These included working professionals and student participants, who were asked to recall real-life experiences of helping, participate in behavioural lab experiments, or respond to carefully crafted vignettes simulating coworker interactions. Across all formats, the studies consistently showed that socially engaging emotions—those that signal care and connectedness—led to more positive perceptions of the helper, closer relational bonds, and an increased willingness to return the favour.

Lee points out that this emotional dimension is often overlooked in workplace settings where help is encouraged as a general value or metric of performance. He argues that organisations should pay more attention to how employees usually help one another and how they do so emotionally. Help that stems from authentic gratitude or empathy tends to generate stronger, longer-lasting collaboration. On the other hand, help offered out of obligation or in an emotionally detached or patronising manner may do more harm than good, creating resentment or mistrust rather than solidarity.

For leaders and managers, these findings offer an essential blueprint for fostering a more supportive and resilient work culture. Rather than incentivising helping behaviour in a purely transactional way, they should model emotionally engaging responses themselves. By showing authentic concern and appreciation when helping others, leaders can set a tone that encourages similar expressions among team members. This emotional authenticity can reinforce mutual trust and inspire a more profound commitment to teamwork, beyond the formal requirements of the job.

On an individual level, employees can benefit from developing greater emotional awareness in their interactions. By reflecting on their experiences, when they felt genuinely supported versus patronised, they can recognise the emotional signals that build or erode trust. Practices like perspective-taking can further strengthen emotional intelligence, making expressions of sympathy and gratitude more natural and effective. As Lee notes, when emotional expressions are genuine, they do more than enhance the immediate interaction—they contribute to a culture of collaboration that supports long-term professional relationships and organisational health.

More information: Stephen Lee et al, Emotional Signaling: How Helpers’ Emotional Expressions Affect Attributions of Motives, Relationship Quality, and Reciprocation, Academy of Management Journal. DOI: 10.5465/amj.2023.0313

Journal information: Academy of Management Journal Provided by Washington State University

Beyond Tech: Culture’s Quiet Role in Mobile Payment Hesitancy

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A recent academic study from the University of Surrey has cast new light on the cultural dimensions influencing the adoption of mobile payment technologies. Contrary to common assumptions in tech marketing, which often emphasise functionality, convenience, and innovation, this research suggests that individual cultural values are a decisive yet frequently overlooked factor in consumers’ decisions to adopt or reject mobile payment systems. While mobile wallets like Apple Pay, Google Pay, and AliPay have gained popularity globally, the adoption rate varies significantly between countries, and this disparity, the researchers argue, cannot be fully explained by technological infrastructure or economic development alone.

Mobile payments are defined in the study as the digital transfer of funds via a mobile device to purchase goods or services, where the transaction is both initiated and confirmed on the device itself. Although smartphones are widely available in the United States, and many financial institutions support mobile wallet integration, adoption remains comparatively low. In 2022, only 25% of users in the US reported using mobile payments, a figure dwarfed by adoption rates in several Asian nations, such as China (72%), Thailand (65%), and India (63%). These contrasts highlight a fundamental puzzle: why do some societies take up mobile payments enthusiastically, while others remain hesitant?

The study, which appears in International Marketing Review, draws on a survey of 679 US-based respondents and explores the role of individual-level cultural orientations in shaping attitudes toward technology adoption. The authors contend that traditional models that focus on national cultural averages are too blunt an instrument to capture the nuances of consumer behaviour fully. Instead, by examining cultural values at the individual level, the research offers a more refined understanding of what drives or inhibits the use of mobile payment technologies. This shift in analytical perspective is crucial, as it allows marketers to move beyond generalisations and engage with the cultural traits that genuinely shape user decisions.

To support their thesis, the researchers tested two models: one measuring the direct influence of individual cultural values on technology acceptance, and the other exploring how these values moderate established technology acceptance variables, such as perceived usefulness or ease of use. Five key cultural orientations were identified as particularly significant: power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation. For example, individuals high in power distance are more likely to accept mobile payments if they perceive them as standard or socially endorsed practices. In contrast, those who score high in uncertainty avoidance tend to prioritise system trust and reliability, suggesting that for them, risk mitigation plays a dominant role in shaping behaviour.

Dr Nima Heirati, Associate Professor of Marketing at the University of Surrey and co-author of the study, emphasises that these findings should prompt a re-evaluation of current marketing strategies. He argues that businesses must move beyond demographic profiling or assumptions based solely on national culture and instead adopt a more granular understanding of their customers’ cultural orientations. In this view, marketing messages should be carefully tailored to resonate with these values, ensuring that concerns around security, social conformity, or long-term benefit are addressed in culturally appropriate ways. Failure to do so, Dr Heirati warns, risks alienating significant portions of the market and slowing the broader adoption of digital financial technologies.

The broader implications of this research are clear: cultural identity is not merely a background variable but an active, shaping force in consumer decision-making. As mobile payment systems continue to proliferate and become more deeply integrated into daily life, companies that acknowledge and respond to cultural variability at the individual level will likely see higher adoption rates and stronger consumer loyalty. Ignoring these cultural dynamics, on the other hand, means missing key opportunities in an increasingly competitive and globalised financial landscape. By reframing how culture is understood and integrated into marketing strategies, this study encourages businesses to think more deeply and respectfully about the diverse people they seek to serve.

More information: Nima Heirati et al, An investigation of culture’s influence on new technology adoption: the case of mobile payment, International Marketing Review. DOI: 10.1108/IMR-09-2023-0223

Journal information: International Marketing Review Provided by University of Surrey

Stars, Numbers, and the Psychology of Choice

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When evaluating a product, the way its rating is presented can significantly shape consumer perception. For instance, a 3.5 rating displayed as stars versus numerals can evoke different impressions, making a product seem better or worse than it is. Recent research from the Cornell SC Johnson College of Business reveals that this seemingly small design choice can influence how potential buyers interpret quality, sometimes transforming a 3.5 rating into a psychological 4 or a disappointing 3, depending on the format. This subtle but impactful difference underscores the power of visual cues in shaping our understanding of product value.

In six experiments, researchers found that consumers overestimate fractional star ratings while underestimating equivalent numeric scores. This discrepancy arises from how our brains process images versus numerals. The study, published on May 15 in the Journal of Marketing Research under “Overestimating Stars, Underestimating Numbers: The Hidden Impact of Rating Formats,” highlights this cognitive bias. According to first author Deepak Sirwani, now an assistant professor at the University of British Columbia, our minds tend to “complete” visual patterns like partially filled stars, creating a more optimistic rating interpretation. In contrast, when the exact value is communicated as a number, our focus shifts to the leftmost digit, making 3.5 feel more like a 3 than a 4.

This distinction is not merely a quirk of perception but a fundamental difference in cognitive processing. Manoj Thomas, a professor of management at Cornell, described this as a critical breakthrough in their research. He explained, “Our results suggest that the brain representations activated when you process stars are entirely different from those triggered by Arabic numerals. This realisation — that our brains process these formats differently — was a significant a-ha! moment.” The visual nature of stars seems to trigger a more holistic and optimistic assessment, while numerals prompt a more analytical and, often, more conservative judgment.

The researchers tested this effect through a range of scenarios. In one key study, 616 participants were randomly assigned to one of three groups, each exposed to different rating formats: stars, numerals, or a combination of both. They were asked to estimate the value of 17 fractional ratings, ranging from 1 to 5 in 0.25 increments, on a blank horizontal line. Consistently, participants perceived star ratings as being higher than their numeric equivalents, suggesting a widespread and reliable cognitive bias.

These findings have significant implications for businesses that rely on ratings to communicate product quality. Understanding the psychological effects of rating formats is crucial in an era when consumers rarely purchase without first checking reviews. Sirwani noted, “Most of us do not buy anything without checking its rating nowadays, and ratings have become as powerful a predictor of purchase as price, brand, or even recommendations from friends and family.” This means that companies might inadvertently overpromise and underdeliver if they rely heavily on star ratings, or conversely, they might sell their products short by sticking to purely numeric evaluations.

Given the clear evidence that rating formats can skew consumer perceptions, the researchers argue for reevaluating industry standards. Consistent and intuitive formats could reduce the risk of miscommunication and better align consumer expectations with reality, potentially boosting customer satisfaction and loyalty. As digital marketplaces continue to dominate the retail landscape, the need for accurate, psychologically sound rating systems has never been more pressing.

More information: Deepak Sirwani et al, Overestimating Stars, Underestimating Numbers: The Hidden Impact of Rating Formats, Journal of Marketing Research. DOI: 10.1177/00222437251322425

Journal information: Journal of Marketing Research Provided by Cornell University