What did we learn from Bayes Business School research in 2022?

We can increase financial well-being by turning it into a game

Research by Professor Irene Scopelliti, Dr Janina Steinmetz and Dr Nethal Hashim discovered that consumers often find it difficult to save money due to the immediate pleasure of spending over saving, and that they were up to 20 per cent more likely to reach their saving goals if they are offered psychological rewards by banks and financial institutions.

‘Gamification Can Help Consumers Reach Their Saving Goals’ was published in Think Forward Initiative.

Accountants are better than investment banks when valuing M&A deals

Accounting firms leverage their auditing expertise to produce fairer target valuations on mergers and acquisitions (M&A) than investment banks, according to research from Professor Pawel Bilinski and Dr Andrew Yim.

The study found that acquirer announcement returns were higher when a deal is brokered with an accountancy firm, and that offer premiums were lower if audit specialists have industry knowledge.

‘Accounting Firms in the European M&A Advisory Market’ is published in the British Journal of Management.

Entrepreneurs can use Coco Chanel as a shining light of how to impact a marketplace

A study by Professor Simone Ferriani along with academics at Stern School of Business, and the University of Bologna, found traits that disadvantage individuals in their attempts to innovate are the same ones they need in pursuit of exceptional entrepreneurial achievement.

The study of Coco Chanel, the fashion designer, looked at how she entered Parisian society as an orphan – raised in extreme poverty and lacking formal education – but with her use of new materials in haute couture dressmaking built a lucrative fashion business which, within 15 years, grew to employ 2,400 women and grossed approximately €62 million each year.

The research showed that a lack of social, economic, and symbolic capital need not deter entrepreneurs from making a big impact in the business world.

‘From the Margins to the Core of Haute Couture: The Entrepreneurial Journey of Coco Chanel’  is published in Enterprise and Society.

Quitting smoking would not have immediate health benefits

The negative impact of smoking on health inequalities in the UK means even if smoking stopped tomorrow, the full health benefits would not be seen until 40 years down the line – according to a report from Professor Les Mayhew and the International Longevity Centre (ILC).

'Levelling Up – The Great Health Challenge’ highlighted that life expectancy had increased by more years than healthy years since 2001, with the time spent in ill health increasing as a result. Factors contributing to this include an ageing population, negative health behaviours such as smoking, and the success of the NHS in keeping people alive.

We choose healthier food from a menu in the company of those we don’t know

Being in the company of people with whom we are unfamiliar makes us more likely to choose healthy food options in a social setting, through fear of being judged negatively for our choices.

Dr Janina Steinmetz’ study explored food choices with those of a different race and from a different university among 1,000 students, and showed that they often self-categorised in terms of their race, university affiliation, and work affiliation when deciding on meal choices.

The research was published in the aftermath of Action on Sugar and Obesity Health Alliance’s call for action on the difference in sugar content and portion size of popular snacks.

‘Feeling Judged? How the Presence of Outgroup Members Promotes Healthier Food Choices’is published in Psychology & Marketing.

Strong appetite for new lending in the UK extended into the summer, despite international conflict

The latest Commercial Real Estate Lending Report from Dr Nicole Lux showed a new lending volume of £23.7 billion in the UK, indicating strong appetite for new business up until June 2022 before deal flow began to dry up amid growing interest rates.

The report used data collected from 79 major UK lenders, indicating a new increase in commercial development finance, with lenders confirming their financing support for transitioning assets, carbon zero assets and assets with clear improved Environmental, Social and Governance (ESG) credentials.

Social and governance factors affect investment in the Hospitality and Tourism sector more than environmental concerns

Research co-authored by Dr Danielle Lyssimachou and Professor Pawel Bilinski found that hospitality and tourism companies with high scores for social dimensions, through strong employee relations, workplace diversity and sense of community attract higher levels of institutional ownership – as well as those with strong corporate governance performance  such as board structure, board independence and business ethics.

Does corporate social responsibility affect the institutional ownership of firms in the hospitality and tourism industry?, published in Tourism Economics, examined four dimensions of corporate social responsibility (CSR) – social, environmental, corporate governance and product and service performance – and the impact they had on levels of institutional investment in the hospitality and tourism sector.

The UK is now the number one destination in Europe for inbound and domestic investment

The United Kingdom rose to top spot in Europe for Merger & Acquisition (M&A) attractiveness in the aftermath of the Covid pandemic, according the M&A Attractiveness Index Score 2022 compiled by Dr Naaguesh Appadu.

The annual report ranked 148 countries worldwide on their ability to command investment, both with and without the effects of Covid included for the first time.

Among the biggest movers were Fiji (up 12 places to 46th), Brunei (up 11 places to 30th), Australia (up 10 places to 11th) and Mauritius (up 10 places to 50th) – showing an emergence in South East Asia. All four nations plus New Zealand (15th) ranked significantly higher than they would have done without consideration for Covid – displaying robust investor confidence in the stricter national measures adopted by respective authorities.

Men from ethnic minorities earn less than white colleagues inside the same firm

First-of-its-kind research co-authored by Dr John Forth found significant differences in the earnings between white and ethnic minority workers who are colleagues in the same workplace.

The paper explored the scale of ethnic wage gaps among full-time employees after accounting for the segregation of white and ethnic minority employees into different types of workplaces, and encourages employers to place greater emphasis on ensuring fairness in pay setting in order to reduce pay equality in the workplace.

‘The Role of the Workplace in Ethnic Wage differentials’ is published in the British Journal of Industrial Relations.

Implementing fiduciary waivers on company managers stunts company growth and innovation

Professor Anh Tran’s research showed that larger public companies suffer from a loss of innovation and lower share price value when managers are permitted to take decisions in their own self-interest rather than that of the organisation.

Investment in research and development (R&D) falls by 19 per cent, firm patent value falls by 18 per cent and patent volume declines by nine per cent in the year after fiduciary waivers are adopted, and remain lower thereafter.

‘Disloyal Managers and Shareholder Wealth’ is published in The Review of Financial Studies.

Financial incentives may motivate staff to perform better at work

Research from Professor Hans Frankort suggests individuals who receive a financial reward for their performance in incentivised tasks temporarily put more effort into unincentivised tasks.

This is because of factors including workers being motivated to attend to the broader needs of the organisation, as an act of reciprocity, even if such tasks do not bring them immediate returns.

The paper was published shortly after one of the UK’s leading jobs and careers sites found that one in four UK workers are considering leaving their current job within the next 12 months, with 29 per cent citing the wish for an increased salary as a central reason for the decision.

‘Beyond Reward Expectancy: How Do Periodic Incentive Payments Influence the Temporal Dynamics of Performance?’ is published in the Journal of Management.

Digital mirrors do not replicate the real-life experience

Research co-authored by Khaled El-Shamandi Ahmed found that digital make-up mirrors, promoted by brands like Charlotte Tilbury, L’Oréal and Amazon enhance a sense of ‘fakeness’ and embarrassment, creating the desire for ‘real’ in-store experiences among consumers.

The authors discovered that people feel more comfortable wearing make-up when looking at themselves through a ‘real’ mirror than through a cosmetic app camera. This is because although it enhances their self-imagination, an augmented reality (AR) mirror creates a strong sense of self inauthenticity.

‘Augmented reality magic mirror in the service sector: experiential consumption and the self’ is published in the Journal of Service Management.

Read about more research from Bayes Business School academics.