Contributions in Merlin

Search engines serve as information gatekeepers on a multitude of topics that are prone to gender, ethnicity, and race misrepresentations. In this paper, we specifically look at the image search representation of migrant population groups that are often subjected to discrimination and biased representation in mainstream media, increasingly so with the rise of right-wing populist actors in the Western countries. Using multiple (n = 200) virtual agents to simulate human browsing behavior in a controlled environment, we collect image search results related to various terms referring to migrants (e.g., expats, immigrants, and refugees, seven queries in English and German used in total) from the six most popular search engines. Then, with the aid of manual coding, we investigate which features are used to represent these groups and whether the representations are subjected to bias. Our findings indicate that search engines reproduce ethnic and gender biases common for mainstream media representations of different subgroups of migrant population. For instance, migrant representations tend to be highly racialized, and female migrants as well as migrants at work tend to be underrepresented in the results. Our findings highlight the need for further algorithmic impact auditing studies in the context of representation of potentially vulnerable groups in web search results.

Code review consists of manual inspection, discussion, and judgment of source code by developers other than the code's author. Due to discussions around competing ideas and group decision-making processes, interpersonal conflicts during code reviews are expected. This study systematically investigates how developers perceive code review conflicts and addresses interpersonal conflicts during code reviews as a theoretical construct. Through the thematic analysis of interviews conducted with 22 developers, we confirm that conflicts during code reviews are commonplace, anticipated and seen as normal by developers. Even though conflicts do happen and carry a negative impact for the review, conflicts-if resolved constructively-can also create value and bring improvement. Moreover, the analysis provided insights on how strongly conflicts during code review and its context (i.e., code, developer, team, organization) are intertwined. Finally, there are aspects specific to code review conflicts that call for the research and application of customized conflict resolution and management techniques, some of which are discussed in this paper. Data and material: https://doi.org/10.5281/zenodo.5848794

We add to the emerging literature on empirical asset pricing in the Chinese stock market by building and analyzing a comprehensive set of factors with 1,160 signals for return prediction. Using various machine learning algorithms, we investigate which signals dominate in the Chinese market, a market characterized by a large proportion of retail investors with speculative motives, state-owned firms, and short-sales restrictions. Contrary to studies for the U.S. market, liquidity and fundamental factors emerge as the most important predictors, while price trend signals are less significant. We find that retail investors' dominating presence positively affects short-term predictability, particularly for small stocks. Another feature that distinguishes the Chinese from the U.S. market is the high predictability of large stocks and state-owned enterprises over longer horizons. Our portfolio analysis shows that this overall increased predictability leads to significantly higher out-of-sample performance than in other markets, which remains economically significant after transaction costs.

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"Zombie lending" remains a widespread practice by banks around the world. In this paper, we exploit a series of large-scale on-site inspections made on the credit portfolios of several Portuguese banks to investigate how these inspections affect banks’ future lending decisions. We find that an inspected bank becomes 20% less likely to refinance zombie firms, immediately spurring their default. Overall, banks seemingly reduce zombie lending because the incentives to hold these loans disappear once they are forced to recognize losses.

This paper empirically assesses peer effects of high performing team members in reciprocally interdependent team production. Using data from the National Basketball Association (NBA), we identify peer effects by exploiting unforeseen in-game injuries of high performing players. Results indicate that without a high performing player, other team members maintain efficiency and the division of tasks among each other. However, they slightly increase risk taking and decrease their individual output, resulting in an inferior overall outcome. These effects depend on whether a high performing player has a team-oriented or a self-oriented role in the team. Additionally, we observe that relatively skilled players try to step in for the absent high performing player.

Researchers around the world are applying the recently revised Portrait Value Questionnaire (PVQ-RR) to measure the 19 values in Schwartz’s refined values theory. We assessed the internal reliability, circular structure, measurement model, and measurement invariance of values measured by this questionnaire across 49 cultural groups (N = 53,472) and 32 language versions. The PVQ-RR reliably measured 15 of the 19 values in the vast majority of groups and two others in most groups. The fit of the theory-based measurement models supported the differentiation of almost all values in every cultural group. Almost all values were measured invariantly across groups at the configural and metric level. A multidimensional scaling analysis revealed that the PVQ-RR perfectly reproduced the theorized order of the 19 values around the circle across groups. The current study established the PVQ-RR as a sound instrument to measure and to compare the hierarchies and correlates of values across cultures.

BACKGROUND: The effect of psychological health on cardiovascular disease is an underappreciated yet important area of study. Understanding the relationship between these two entities may allow for more comprehensive care of those with cardiovascular disease. The primary objective of this meta-analysis is to evaluate the relationship between optimism and risk of developing adverse events such as all-cause mortality or fatal and non-fatal cardiovascular disease in community-based populations. METHOD: A systematic search of electronic databases was conducted from inception through November 2021 for prospective studies evaluating optimism and adverse outcomes. Two reviewers independently selected prospective cohort studies that evaluated optimism and either all-cause mortality or cardiovascular disease and reported hazard ratios of these outcomes between optimistic and non-optimistic groups. Studies that reported odds ratio or other risk assessments were excluded. Pooled hazard ratios were calculated in random-effects meta-analyses. RESULTS: Pooled analysis of six studies (n = 181,709) showed a pooled hazard ratio of 0.87 (95% confidence interval [CI], 0.82-0.92) for all-cause mortality among those with more optimistic mindset. Analysis of seven studies (n = 201,210) showed a pooled hazard ratio of 0.59 (95% CI, 0.37-0.93) for cardiovascular disease and pooled hazard ratio of 0.57 (95% CI, 0.07-4.56) for stroke. CONCLUSIONS: In this pooled meta-analysis, optimism was associated with a reduced risk of all-cause mortality and of cardiovascular disease. These results suggest an important relationship between psychological health and cardiovascular disease that may serve as an area for intervention by clinicians.

What is the role market- and bank-based debt play in the climate transition process? We present evidence that bond markets price the risk that assets held by fossil fuel firms strand, while banks in the syndicated loan market seemingly do not price this risk much. Consequently, to fulfill their financing needs fossil fuel firms increasingly rely less on bonds and more on loans. We can interpret the within-firm bond-to-loan substitution along stranding risk as a contraction in the supply of bond versus bank funding. Within the banking sector especially the big banks are willing to provide cheaper and more financing to fossil fuel firms.

Existing literature has argued that firms benefit from confusing consumers of homogeneous goods. This paper shows that this insight generally breaks down with differentiated goods and heterogeneous preferences: with polarised taste distributions, firms fully educate consumers. In cases where firms nevertheless confuse consumers, the welfare consequences are worse than for homogeneous goods, as consumers choose dominated options. Similar insights are also obtained for political contests, in which candidates compete for voters with heterogeneous preferences: parties choose ambiguous platforms only when preferences are ‘indecisive’, featuring a concentration of indifferent voters.