Contributions published at Department of Business Administration (Egon Franck)

We study whether outcome bias persists in markets with actors who are financially incentivized to make optimal decisions. We test whether inherently noisy match outcomes from European football are correctly incorporated into prices from a betting exchange market. We find that market prices overestimate (underestimate) the winning probability of teams that previously overperformed (underperformed) in terms of match outcomes compared to their performance based on “expected goals”. This pattern is mirrored in negative (positive) betting returns on overperforming (underperforming) teams. These results suggest that even competitive market mechanisms fail to completely erase outcome bias.

Workers’ occupational skill sets play a crucial role in successfully handling digital transformation. We investigate whether and how different types of occupational skill sets benefit from digital transformation. We theoretically and empirically analyze wage returns of workers in occupations with more or less specialized skill sets and with more or less social skills when IT increases in their industry. Applying natural language processing methods to the texts of occupational training curricula, we develop measures for occupational specialization and social skills. We use vocational education and training curricula from Switzerland because they cover approx. two-thirds of the working population. Using curricula, industry-level IT data and individual-level administrative wage data, our individual fixed-effects analyses show that IT progress leads to higher wage returns for workers in highly specialized occupations but not for workers in more general occupations. In addition, we find that high levels of social skills cannot make up for this difference when IT advances. However, our results indicate that for workers with high specialization, a combination with high social skills generates additional benefits when IT advances. Overall, our results suggest that, contrary to typical assumptions in educational policy debates, workers with specialized occupational skill sets - possibly in combination with high social skills - appear to be the ones who are particularly well prepared to cope with digital transformation.

In this paper, we aimed to compare the predictive validity of two models of temperament structure: the one proposed within Strelau's Regulative Theory of Temperament (RTT) and the other developed by Strus, Ponikiewska and Cieciuch as a reconceptualization of the RTT fundamental temperament dimensions based on the insights from the temperamental Big Two and the Circumplex of Personality Metatraits. Specifically, we compared the predictive validity of these two temperament models in relation to a set of external variables related to stress (well-being, stress, PTSD, and COVID stress). The study was conducted on a Polish sample (N = 336, age range 17–65). We found that the reconceptualized temperament dimensions allow for better predictions of well-being, stress, and PTSD than the RTT ones.

While second-tier stars lack popularity compared to superstars, their marginal contribution to team performance on the pitch relative to that of superstars is unknown. Relying on league-specific preseason market value distributions to define superstars and second-tier stars, we compare the marginal contributions of superstars and second-tier stars to team performance on the pitch in the top five European football leagues. Examining the impact of unexpected injury-related absences, we find that second-tier stars’ marginal contribution is at least equal to that of superstars. Thus, the players with arguably the highest costs for clubs do not contribute accordingly to short-run sportive success.

The literature on knowledge spillovers provides evidence that higher education institutions (HEIs) positively affect regional firm location (i.e., start-ups or firms located in a region). However, less is known about how HEIs in different fields of study impact regional firm location in different industries. To investigate this question, we exploit the establishment of universities of applied sciences (UASs)—bachelor’s degree-granting three-year HEIs in Switzerland. We find that the effects of UASs are heterogeneous across fields of study and industries. UASs specializing in “chemistry and the life sciences” and “business, management, and services” are the only UASs that positively affect regional firm location across several industries. Positive effects emerge in service industries characterized by radical service, incremental product, or process innovations. Thus, UASs are not a one-size-fits-all solution for increasing regional firm location. Instead, only UASs specializing in particular fields of study positively influence firm location in certain industries.

We replicate the finding of Lefgren et al. (2015) showing that professional basketball coaches in the NBA discontinuously change their starting lineup more often after narrow losses than after narrow wins. This result is consistent with outcome bias because such narrow outcomes are conditionally uninformative. As our paper shows, this pattern is not restricted to the NBA; we also find evidence of outcome bias in the top women’s professional basketball league and college basketball. Finally, we show that outcome bias in coaching decisions generalizes to the National Football League (NFL). We conclude that outcome bias is credible and robust, although it has weakened over time in some instances.

Emotion regulation is important for psychological health and can be achieved by implementing various strategies. How one regulates emotions is critical for maximizing psychological health. Few studies, however, tested the psychological correlates of different emotion regulation strategies across multiple cultures. In a preregistered cross-cultural study (N = 3,960, 19 countries), conducted during the COVID-19 pandemic, we assessed associations between the use of seven emotion regulation strategies (situation selection, distraction, rumination, cognitive reappraisal, acceptance, expressive suppression, and emotional support seeking) and four indices of psychological health (life satisfaction, depressive symptoms, perceived stress, and loneliness). Model comparisons based on Bayesian information criteria provided support for cultural differences in 36% of associations, with very strong support for differences in 18% of associations. Strategies that were linked to worse psychological health in individualist countries (e.g., rumination, expressive suppression) were unrelated or linked to better psychological health in collectivist countries. Cultural differences in associations with psychological health were most prominent for expressive suppression and rumination and also found for distraction and acceptance. In addition, we found evidence for cultural similarities in 46% of associations between strategies and psychological health, but none of this evidence was very strong. Cultural similarities were most prominent in associations of psychological health with emotional support seeking. These findings highlight the importance of considering the cultural context to understand how individuals from diverse backgrounds manage unpleasant emotions. (PsycInfo Database Record (c) 2023 APA, all rights reserved)

Die Hinterziehung von Steuern soll durch den international eingeführten automatischen Informationsaustausch (AIA) aufgedeckt und eingedämmt werden. Zudem besteht in der Schweiz seit 2010 die straflose Selbstanzeige. Im Zusammenhang mit der internationalen Einführung des AIA ist ein deutlicher Anstieg der straflosen Selbstanzeigen zu beobachten. Dabei werden erhebliche kantonale Unterschiede sichtbar. So ist die Anzahl strafloser Selbstanzeigen pro zehntausend Steuerpflichtige in Kantonen mit hohen Vermögensteuern, getrieben durch die bevölkerungsstarken Genferseekantone, nach der Einführung des AIA tendenziell höher. Da das Selbstanzeigeverhalten im Zuge des AIA vorwiegend ausländisches Vermögen und Einkommen betrifft, könnte auch der Anteil der zugewanderten Wohnbevölkerung eine Rolle spielen.

To remain competitive, organizations tend to change their established ways of working, their strategy, the core values, and the organizational structure. Such thorough changes are referred to as transformational change. Unfortunately, transformational change is often unsuccessful because organizational members do not always welcome the change. Although organizations often expect their supervisors to be successful role-models and change-agents during the transformational change process, we argue that initiating transformational change could increase supervisors' hindrance stress levels, which may result in abusive behaviors towards employees. More specifically, in a multi-source survey and an experimental study, we find evidence that transformational change is associated with supervisors' experienced hindrance stress, which subsequently led to more abusive behaviors towards employees.

In this paper we examine middle managers’ struggle over their subject position as strategists in the context of participative strategy processes. Based on a longitudinal case study of a company undertaking an Open Strategy process, we show how the wider inclusion of front-line employees in developing new strategy undermines the traditional subject position of middle managers. Based on these findings, we develop a process model depicting the recursive dynamics of middle managers’ struggles to maintain their subject positions in the face of employee participation. With these findings we contribute to the literature on middle managers by advancing our understanding of the implications of employee participation for middle managers’ subject position as strategists and their different ways of reclaiming their subject position. We also contribute to the literature on Open Strategy by revealing the implications for traditional strategy actors as well as by explaining the processual dynamics of participation over time.

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Männliche Jugendliche in Regionen mit traditionelleren Geschlechternormen (die sich über Abstimmungsergebnisse feststellen lassen) bewerben sich eher für typische Männerberufe und weniger für typische Frauenberufe. Bei weiblichen Jugendlichen ist dieser Zusammenhang nicht gegeben. Das zeigen die Ergebnisse einer Studie des Swiss Leading House VPET-ECON; diese bleiben robust, wenn die regionale Arbeitsmarktsituation der Individuen und andere denkbare Einflüsse berücksichtigt werden. Die Studie steht im Einklang mit anderen Untersuchungen, die zeigen, dass sich Männer heutzutage im Durchschnitt stärker an Geschlechternormen orientieren als Frauen. Das könnte ein Hinweis auf den Erfolg langjähriger Massnahmen sein, die darauf abzielen, das Interesse von Mädchen an MINT-Berufen und das Bewusstsein für Geschlechterstereotypen zu erhöhen. Für Jungen fehlen ähnliche Massnahmen bisher weitgehend.

While there has been significant study of both individuals and teams of knowledge workers, research has focused largely on one or the other, with less focus on the interaction between the two. In this paper, we explore the tensions between the individual and their team, focusing on the choices an individual makes towards their own productivity versus their team's productivity. We developed a technology probe with a team nudge that fosters recurring reflection and prompts individuals to consider how their team helps them to be productive. We examined its impact through a longitudinal field study with 48 participants. We chose to undertake this study with software development teams as they are examples of knowledge workers who collaborate on a shared set of tasks with specific goals. Our exploration took place with hybrid development teams, which have increasingly become the norm. Our analysis of a total of 8338 hourly self-reports and 1389 daily diary entries found that the team nudge increased participants' productivity ratings and team awareness, led to participants spending more time on their own tasks, reshaped their perceptions of themselves and their team, yet, in general, did not increase team cohesion or affect well-being.

Aim. The study aimed to assess the role of temperament and attachment dimensions for personality pathology defined as impairments in self– and interpersonal functioning according to Criterion A of Section III of the DSM-5. Method. The study was conducted in Poland with a group of 391 participants. The following measurement instruments were used: The Level of Personality Functioning Scale – Brief Form 2.0 (LPFS-BF 2.0), the Temperament Metadimensions Questionnaire (TMQ), the Attachment Style Questionnaire (ASQ), and the Experiences in Close Relationships – Revised (ECR-R). Results. The joint estimation of temperament and attachment role in explaining impairments of personality functioning led to the following conclusions: (1) temperament explained impairments of self-functioning to a greater extent than impairments of interpersonal functioning; (2) temperamental “Reactivity” was more of a predictor of personality pathology than “Activity”; (3) adding attachment increased the magnitude of the explained variance of personality pathology; (4) attachment “Avoidance” explained impairments in interpersonal functioning to a greater extent, while attachment “Anxiety” explained impairments in selffunctioning to a greater extent. Conclusions. The impairments in personality functioning included in DSM-5 Criterion A are largely explained by two sets of variables: the more enduring and innate temperament and the attachment acquired through early interactions. Such a distinction is important from a clinical perspective, in which effective interactions can target those properties that can be modified and take into account those that are difficult or impossible to modify.

We use three natural field experiments to examine anti-Semitism in Italy by sending email inquiries to amateur football clubs, landlords, and employers and comparing the response rates to emails sent with Jewish- and non-Jewish-sounding names. Italy is an interesting country as discrimination was heterogeneous and geographically unevenly distributed during World War II. We analyze if today's anti-Semitism in Italy is geographically correlated to the deportations and killings of Jews during the Holocaust. The results show significant discrimination when looking for football club and an apartment, but not when seeking a job. We find markedly different results for women. Comparing areas with different societal and economic implications provides us with a more informed perspective about the extent of discrimination.

We analyze the relationship between social gender norms and adolescents' occupational choices by combining regional votes on constitutional amendments on gender equality with job application data from a large job board for apprenticeships. The results show that adolescent males in regions with stronger traditional social gender norms are more likely to apply for typically male occupations. This finding does not hold for females, suggesting that incentivizing men to break the norms and choose gender-atypical occupations (e.g., in healthcare) can be even more effective in accelerating advancement toward gender equality in the labor market than incentivizing women to choose STEM occupations.

Research suggests that firms with family CEOs differ from other types of businesses, yet surprisingly little is known about how employees in these firms feel and behave compared to those working in other firms. We draw from family science and management research to suggest that family CEOs, because of their emotion-evoking double role as family members and business leaders, are, on average, more likely to infuse employees with positive emotions, such as enthusiasm and excitement, than hired professional CEOs. We suggest that these emotions spread through firms by way of emotional contagion during interactions with employees, thereby setting the organizational affective tone. In turn, we hypothesize that in firms with family CEOs the voluntary turnover rate is lower. In considering structural features as boundary conditions, we propose that family CEOs have stronger effects in smaller and centralized firms, and weaker effects in formalized firms. Multilevel data from 41,200 employees and 2,246 direct reports of CEOs from 497 firms with and without family CEOs provide support for our model. This research suggests that firms managed by family CEOs, despite often being criticized as nepotistic relics of the past, tend to offer pleasant work environments.