Insights

News about faculty and their research

Rising inequality is making Americans less likely to support a higher minimum wage

Boulder, Colorado, USA - February 19, 2014: Two young people explain why Americans can't survive on $7.25 minimum wager per hour in downtown Boulder.

“The way we see things affects what we think is fair. Through our study, we discovered that as inequality increases and people see low-income workers earning less, they often conclude that they should earn less, contributing to a cycle that makes inequality harder to fix. ”

— Daniela Goya-Tocchetto, assistant professor of organization and human resources, on her study that found support for raising the minimum wage has declined as the gap between rich and poor has increased due to “is-to-ought” reasoning — a philosophical distinction between statements about what is (facts) and what ought to be (values, morals, norms). The study appeared in the Journal of Experimental Psychology General. Read more at bit.ly/minimum-wage-research

Blue icon with hands lifting upwards that represents Social Impact of Management and links to information about the Social Impact of Management strategic initiative.

Businesses face hidden loan costs after going public

Balancing tiles spelling "risk" and money.

“Firms want to escape the grip of existing lenders and diversify their financing sources, but doing so requires extra concessions, even after they’ve opened up their books to the public. Our findings show that post-IPO companies see the value in working with new lenders, despite the need to commit to performance-sensitive debt.”

— Luca Lin, assistant professor of finance, on his research that found going public can help a company get better loan terms and more easily borrow from different banks, but the firms can also face hidden loan costs. The study appeared in the Journal of Corporate Finance. Read more at bit.ly/ubmgt-ipo-loans.

Orange icon with upward trending arrow that represents Business Analytics and links to information about the Business Analytics strategic initiative.

How to best support medical patients without homes

Patient talking to nurse while smiling in hospital bed.

“Respite programs vary widely since no federal standard exists. We found that the most effective systems have partnerships that are built on strong relationships between administrators and frontline staff, and that regular, structured meetings are the glue that holds those relationships together.”

— Sanjukta Das Smith, associate professor of management science and systems, on her research revealing that after unhoused people leave the hospital, they achieve the best outcomes when leaders and frontline staff at health and social service agencies work together to provide care. Smith collaborated on the study with researchers from the UB School of Nursing and UB School of Public Health and Health Professions, and it appeared in the Journal of Interprofessional Care. Read more at bit.ly/unhoused-care.

Federal regulation makes companies more honest

“Our findings should ease regulators’ fears about costly side effects. And, we found that some firms tied more of CEO pay to performance-based measures subject to clawback — directly challenging the narrative that regulation always pushes executive pay higher.”

— Michael Dambra, associate professor and Kenneth W. Colwell Chair of Accounting and Law, on research about how a new U.S. Securities and Exchange Commission regulation aimed at curbing CEO pay is prompting companies to strengthen their financial reporting by improving transparency, hiring more accountants and paying higher audit fees to ensure accuracy, while resisting the urge to inflate executive pay. Read more at bit.ly/ubmgt-ceopay.

Why workaholics can’t switch off

“Workaholics have a deep attachment to work goals that makes it harder for them to mentally step away, limiting the intervention’s effectiveness and flagging these employees as a priority group for tailored recovery support.”

— Min-Hsuan Tu, associate professor of organization and human resources, on her research addressing the persistent difficulty most employees face in getting work off their minds. Reflecting on personal, nonwork goals in the evening can support well-being and help many people feel better, though workaholics remain a notable exception. The study appeared in the Journal of Applied Psychology. Read more at bit.ly/ubmgt-workaholics.

Blue icon with lightbulb that represents Innovation, Entrepreneurship and Leadership and links to information about the Innovation, Entrepreneurship and Leadership strategic initiative.

Corporate culture can reduce disparities in financial services

Person holding credit card and mobile device.

“By prioritizing fair promotion practices and transparent lending, firms can build more equitable financial systems, especially during times of crisis. For banks, these efforts aren’t just good for reputation, they can directly reduce complaints and build trust.”

— Feng (Jack) Jiang, associate professor of finance, on his research that found consumers in communities of color receive significantly poorer financial services than those in low-minority communities, but stronger competition among banks and specific practices within them can help level the playing field. The study appeared in the Journal of Accounting Research. Read more at bit.ly/ubmgt-financial-equity.

New studies reveal two factors that mask economic inequality

Individuals having a team discussion in a work office.

“Humans have had millions of years to evolve the ability to work in teams and develop group work skills, but now that artificial intelligence is public and common, teams are no longer just people. As AI becomes an integral part of our technological environment, we must quickly and carefully reengineer our theories and methods to reevaluate group boundaries, dynamics and the very nature of teams.”

— Kate Bezrukova, associate professor of organization and human resources, on her paper that proposes setting a clear boundary for researchers between “pre-public AI” and “post-public AI” after the release of ChatGPT in 2022. Her paper appeared in a special issue of Small Group Research. Read more at bit.ly/ub-public-ai.

Decision making society names award in honor of Zionts

The International Society on Multiple Criteria Decision Making has renamed its annual Presidential Service Award in honor of Stanley Zionts, Alumni Professor Emeritus of Decision Support Systems, and UB Distinguished Professor Emeritus. The honor will now be known as the Stan Zionts Presidential Service Award, honoring Zionts’ unique contributions to the society and its research.

Zionts founded and served as the first president of the society from 1975-1992, and was awarded its Gold Medal Award and the Presidential Service Award. In addition to teaching on campus, he taught in the school’s programs in Riga, Latvia; Montpellier, France; Dalian, China; and Beijing, China. Zionts retired from the School of Management in 2005 after 38 years of service.

When auditors walk, clients pay

Illustration of people walking up to an illuminated doorway.

“When firms lose employees, particularly experienced personnel, it’s more than a human resources issue. Turnover can disrupt operations and result in loss of accumulated knowledge and talent, which may damage performance outcomes and weaken firm reputations.”

Szerwo

Khavis

— Joshua Khavis, assistant professor of accounting and law, on his study about auditor turnover with co-author Brandon Szerwo, assistant professor of accounting and law. The study finds that as auditor turnover increases, an accounting firm’s ability to deliver timely, accurate and effective audits declines — and so does overall client service. The study appeared in The Accounting Review. Read more at bit.ly/ubmgt-auditor-turnover.