Junior Management Science (E-Journal - LMÜ München)
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Value Creation Opportunities of Generative AI – A Case Study
Full text linkThe transformative potential of Generative AI promises novel capabilities within business environments. This study examines the value creation potential of Generative AI within a large multinational corporation. A single case study approach at Siemens was employed, combining extensive observations, interviews, and the application of existing AI frameworks. Findings reveal diverse use cases demonstrating value creation potential, particularly through smart assistants and lighthouse projects. This thesis proposes a novel framework for Generative AI adoption, emphasizing the distinctive exploration phase made possible by the technology’s accessibility to non-technical domain experts, while also outlining essential scaling strategies. This study offers valuable insights into a company’s approach to Generative AI, provides practical implications, and expands ongoing research on AI-driven value creation.
Keywords: artificial intelligence; exploration; generative AI; scaling; technology adoption; use cases; value creationThe transformative potential of Generative AI promises novel capabilities within business environments. This study examines the value creation potential of Generative AI within a large multinational corporation. A single case study approach at Siemens was employed, combining extensive observations, interviews, and the application of existing AI frameworks. Findings reveal diverse use cases demonstrating value creation potential, particularly through smart assistants and lighthouse projects. This thesis proposes a novel framework for Generative AI adoption, emphasizing the distinctive exploration phase made possible by the technology’s accessibility to non-technical domain experts, while also outlining essential scaling strategies. This study offers valuable insights into a company’s approach to Generative AI, provides practical implications, and expands ongoing research on AI-driven value creation.
Keywords: artificial intelligence; exploration; generative AI; scaling; technology adoption; use cases; value creatio
Implicit Measurement of the Moral Self-Image Using the Go/No-Go Association Task (GNAT) - An Empirical Investigation of the Convergent Validity Between Explicit and Implicit Measures
Full text linkWhile people are increasingly aware of climate change, many still resist lifestyle changes. Research now focuses on understanding conscious (explicit) and unconscious (implicit) attitudes to encourage sustainable behavior. This thesis used the Go/No-Go Association Task (GNAT) to measure participants’ implicit moral self-image and examine its correlation with an explicit moral self-image questionnaire, indicating convergent validity and effective application of the GNAT as an implicit measure of the moral self-image. After applying exclusion criteria, 68 participants were randomly assigned to two groups with different word lists. Results showed that repeated exposure to fewer words in group A led to little or no correlation, while group B, using more varied words, showed higher correlation and good convergent validity. This demonstrates that the GNAT effectively measures moral self-image when learning effects are avoided. The findings offer insights into implicit attitudes that influence decisions and yield practical implications for different stakeholders. This thesis contributes through its experimental design, adapted exclusion criteria, and sample correction of all perfect responses, validating the GNAT as an implicit measure and offering a foundation for future research.
Keywords: convergent validity; explicit measures; go/no-go association task (GNAT); implicit measures; moral self-imageWhile people are increasingly aware of climate change, many still resist lifestyle changes. Research now focuses on understanding conscious (explicit) and unconscious (implicit) attitudes to encourage sustainable behavior. This thesis used the Go/No-Go Association Task (GNAT) to measure participants’ implicit moral self-image and examine its correlation with an explicit moral self-image questionnaire, indicating convergent validity and effective application of the GNAT as an implicit measure of the moral self-image. After applying exclusion criteria, 68 participants were randomly assigned to two groups with different word lists. Results showed that repeated exposure to fewer words in group A led to little or no correlation, while group B, using more varied words, showed higher correlation and good convergent validity. This demonstrates that the GNAT effectively measures moral self-image when learning effects are avoided. The findings offer insights into implicit attitudes that influence decisions and yield practical implications for different stakeholders. This thesis contributes through its experimental design, adapted exclusion criteria, and sample correction of all perfect responses, validating the GNAT as an implicit measure and offering a foundation for future research.
Keywords: convergent validity; explicit measures; go/no-go association task (GNAT); implicit measures; moral self-imag
The Role of Hierarchical Differentiation for the Effectiveness of Soccer Teams
Full text linkThe impact of hierarchical differentiation on team effectiveness is heavily discussed in scientific research with strong arguments lined up on both the pro and the contra sides. To contribute to this debate, I investigated the relationship between a specific facet of hierarchical differentiation, pay dispersion, and team effectiveness. I collected data from five seasons of Premier League and conducted a regression analysis to study the effect of pay dispersion on team performance, cooperation and aggressivity. The empirical results show that pay dispersion is positively and directly associated with aggressivity, whilst its relation with team performance and cooperation is moderated through the financial might of teams. The significant interaction effect for team performance means that pay dispersion has a significant negative effect for high financial might teams, and a weak positive effect for low financial might teams. For cooperation the interaction shows a significant positive effect for the low financial might teams and a weak negative effect for the high financial might teams. Thus, I conclude that pay dispersion indeed affects team effectiveness, however the economic power standing behind the teams needs to be considered.
Keywords: hierarchical differentiation; pay dispersion; Premier League; sports data; team performanceThe impact of hierarchical differentiation on team effectiveness is heavily discussed in scientific research with strong arguments lined up on both the pro and the contra sides. To contribute to this debate, I investigated the relationship between a specific facet of hierarchical differentiation, pay dispersion, and team effectiveness. I collected data from five seasons of Premier League and conducted a regression analysis to study the effect of pay dispersion on team performance, cooperation and aggressivity. The empirical results show that pay dispersion is positively and directly associated with aggressivity, whilst its relation with team performance and cooperation is moderated through the financial might of teams. The significant interaction effect for team performance means that pay dispersion has a significant negative effect for high financial might teams, and a weak positive effect for low financial might teams. For cooperation the interaction shows a significant positive effect for the low financial might teams and a weak negative effect for the high financial might teams. Thus, I conclude that pay dispersion indeed affects team effectiveness, however the economic power standing behind the teams needs to be considered.
Keywords: hierarchical differentiation; pay dispersion; Premier League; sports data; team performanc
Determinants of Corporate Bond Mutual Fund Flows
Full text linkThis paper examines the determinants of investor flows into U.S. corporate bond mutual funds, with a focus on monetary policy and fund-specific characteristics during the COVID-19 crisis. These funds, as non-bank financial intermediaries, are vulnerable to sudden investor redemptions due to liquidity mismatches. Using monthly data from 2001 to 2021, the analysis applies panel regressions with fund style and time fixed effects to assess how monetary policy, fund characteristics, and market conditions influence investor behavior. Results show that higher effective federal funds rates are significantly associated with reduced fund flows. Past flows and performance rankings are strong predictors of current flows, while fund cash holdings matter mainly in riskier fund types. During the COVID-19 crisis, flow sensitivity to interest rate changes intensified. Although Federal Reserve policy announcements in spring 2020 coincided with a quick return of inflows, the findings emphasize ongoing structural fragility. By analyzing flow dynamics alongside macroeconomic factors and policy responses, this research contributes to understanding the determinants of corporate bond mutual fund flows and the complex role of central bank actions during periods of systemic stress.
Keywords: corporate bond mutual funds; COVID-19 crisis; federal reserve policy; fund flows; liquidity riskThis paper examines the determinants of investor flows into U.S. corporate bond mutual funds, with a focus on monetary policy and fund-specific characteristics during the COVID-19 crisis. These funds, as non-bank financial intermediaries, are vulnerable to sudden investor redemptions due to liquidity mismatches. Using monthly data from 2001 to 2021, the analysis applies panel regressions with fund style and time fixed effects to assess how monetary policy, fund characteristics, and market conditions influence investor behavior. Results show that higher effective federal funds rates are significantly associated with reduced fund flows. Past flows and performance rankings are strong predictors of current flows, while fund cash holdings matter mainly in riskier fund types. During the COVID-19 crisis, flow sensitivity to interest rate changes intensified. Although Federal Reserve policy announcements in spring 2020 coincided with a quick return of inflows, the findings emphasize ongoing structural fragility. By analyzing flow dynamics alongside macroeconomic factors and policy responses, this research contributes to understanding the determinants of corporate bond mutual fund flows and the complex role of central bank actions during periods of systemic stress.
Keywords: corporate bond mutual funds; COVID-19 crisis; federal reserve policy; fund flows; liquidity ris
Board Gender Diversity: Evidence From Indonesia
Full text linkBoard gender diversity continues to gain global attention, alongside a growing percentage of female board members in public companies. While board gender quotas have played a role in this increase, countries without such mandates have also experienced similar growth. This raises an important question: What drives companies to appoint women to corporate boards in the absence of compulsory regulations? Primarily, this paper examines the relationship between foreign institutional investors and female board members in supervisory and management boards within Indonesian public firms. This study analyzes data from 147 companies between 2019 and 2022 using OLS regression with lead and control variables. In contrast to the belief, the findings show that foreign institutional investors have a relatively low to no influence in shaping board gender diversity on each board. This lack of influence suggests that other factors may significantly affect companies’ decisions to hire women on boards, highlighting the necessity to investigate these additional factors.
Keywords: board gender diversity; corporate boards; foreign investorsBoard gender diversity continues to gain global attention, alongside a growing percentage of female board members in public companies. While board gender quotas have played a role in this increase, countries without such mandates have also experienced similar growth. This raises an important question: What drives companies to appoint women to corporate boards in the absence of compulsory regulations? Primarily, this paper examines the relationship between foreign institutional investors and female board members in supervisory and management boards within Indonesian public firms. This study analyzes data from 147 companies between 2019 and 2022 using OLS regression with lead and control variables. In contrast to the belief, the findings show that foreign institutional investors have a relatively low to no influence in shaping board gender diversity on each board. This lack of influence suggests that other factors may significantly affect companies’ decisions to hire women on boards, highlighting the necessity to investigate these additional factors.
Keywords: board gender diversity; corporate boards; foreign investor
Modeling the Impact of Emission Credit Systems on Automotive Product Portfolios: A Mathematical Analysis of Policy Effects in Europe, China, and the U.S. Under Different Demand Scenarios
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In the midst of the global climate crisis, governments worldwide have implemented a range of emission policies aimed at encouraging more production of the environmentally friendly vehicle. However, the exact impact of these policies on automakers’ production portfolios and profitability remains uncertain and challenging to anticipate. This paper presents a comprehensive analysis of three major emission regulation policies enacted by the European Union (EU), China, and the United States (U.S.), evaluating their influence on car manufacturers. Leveraging a mathematical model, this paper adopt the perspective of individual manufacturers seeking to maximize revenue, delving into the intricacies of these policies. Furthermore, this article conduct sensitivity and factorial analyses to assess the impact of policy parameters. The findings reveal that all three major emission policies contribute to an increase in the production of low-emission vehicles. However, China’s policy has the least impact on manufacturers’ profits and relies more on market demand to reduce the average carbon fleet emissions compared to the policies in the EU and the U.S. In conclusion, this paper underscores that different policy systems yield varying profit outcomes for manufacturers, necessitating adjustments to production portfolios for sustained profitability and the significance of mathematical models in aiding manufacturers’ understanding of evolving policies and making informed predictions in a dynamic regulatory landscape.
Keywords: automotive production; green transition; international emission policies; regulatory impact; sustainabilityIn the midst of the global climate crisis, governments worldwide have implemented a range of emission policies aimed at encouraging more production of the environmentally friendly vehicle. However, the exact impact of these policies on automakers’ production portfolios and profitability remains uncertain and challenging to anticipate. This paper presents a comprehensive analysis of three major emission regulation policies enacted by the European Union (EU), China, and the United States (U.S.), evaluating their influence on car manufacturers. Leveraging a mathematical model, this paper adopt the perspective of individual manufacturers seeking to maximize revenue, delving into the intricacies of these policies. Furthermore, this article conduct sensitivity and factorial analyses to assess the impact of policy parameters. The findings reveal that all three major emission policies contribute to an increase in the production of low-emission vehicles. However, China’s policy has the least impact on manufacturers’ profits and relies more on market demand to reduce the average carbon fleet emissions compared to the policies in the EU and the U.S. In conclusion, this paper underscores that different policy systems yield varying profit outcomes for manufacturers, necessitating adjustments to production portfolios for sustained profitability and the significance of mathematical models in aiding manufacturers’ understanding of evolving policies and making informed predictions in a dynamic regulatory landscape.
Keywords: automotive production; green transition; international emission policies; regulatory impact; sustainabilit
Analyzing the Retail Gasoline Market in Germany: Impact of Spatial Competition and Market Concentration on Prices
Full text linkGiven the changing landscape of fuel retailing, this study explores the impact of spatial competition and market concentration on diesel prices in Germany. The question of how population density and gas station density, i.e. the equilibrium pattern of locations of firms, are related is examined. In addition, the impact of gas station density, as a spatial measure of competition, and market concentration on diesel prices is investigated. Based on theory, population density should have a positive impact on gas station density. Gas station density should have a negative and market concentration a positive influence on the diesel price in a district. Using 2022 data on German gas stations and diesel prices, a positive effect of population density and on gas station density, a negative effect of gas station density on diesel price, and a positive effect of market concentration on diesel price were each found at the district level. The effects of gas station density and market concentration, however, were relatively small. The results show that fuel prices at gas stations are influenced by spatial competition and market concentration.
Keywords: diesel prices; gas station density; market concentration; retail gasoline market; spatial competitionGiven the changing landscape of fuel retailing, this study explores the impact of spatial competition and market concentration on diesel prices in Germany. The question of how population density and gas station density, i.e. the equilibrium pattern of locations of firms, are related is examined. In addition, the impact of gas station density, as a spatial measure of competition, and market concentration on diesel prices is investigated. Based on theory, population density should have a positive impact on gas station density. Gas station density should have a negative and market concentration a positive influence on the diesel price in a district. Using 2022 data on German gas stations and diesel prices, a positive effect of population density and on gas station density, a negative effect of gas station density on diesel price, and a positive effect of market concentration on diesel price were each found at the district level. The effects of gas station density and market concentration, however, were relatively small. The results show that fuel prices at gas stations are influenced by spatial competition and market concentration.
Keywords: diesel prices; gas station density; market concentration; retail gasoline market; spatial competitio
Understanding the Effect of Hedge Fund Activism on the Target Firm – A Qualitative Study on Shareholder Value
Full text linkThis thesis represents a qualitative study analyzing a comprehensive interview dataset of long-standing target executives, investment bankers, and activist specialists to improve our understanding of the effects of hedge fund activism on target firms. Hedge funds possess a broad set of tools to alter the firm’s trajectory for long-term value creation or short-term gains that may compromise long-term growth. As such, engagement is shaped by several factors, including the fund’s incentives, fund size, credibility, and geography. Understanding these drivers is vital in comprehending the dynamics of hedge fund activism to increase shareholder value. However, understanding engagement does not directly translate into understanding the consequences for the target firm. Therefore, this thesis provides a theoretical model grounded in shareholder theory that conceptualizes the impact of measures based on their effectiveness to unlock value in the short - or long-term horizon. This research reveals that different measures have distinct temporal implications for value creation, showing that hedge fund activists often advocate for measures aimed at unlocking immediate shareholder value, while the long-term consequences depend upon the alignment with the target firm’s overarching strategy.
Keywords: hedge fund activism; shareholder theoryThis thesis represents a qualitative study analyzing a comprehensive interview dataset of long-standing target executives, investment bankers, and activist specialists to improve our understanding of the effects of hedge fund activism on target firms. Hedge funds possess a broad set of tools to alter the firm’s trajectory for long-term value creation or short-term gains that may compromise long-term growth. As such, engagement is shaped by several factors, including the fund’s incentives, fund size, credibility, and geography. Understanding these drivers is vital in comprehending the dynamics of hedge fund activism to increase shareholder value. However, understanding engagement does not directly translate into understanding the consequences for the target firm. Therefore, this thesis provides a theoretical model grounded in shareholder theory that conceptualizes the impact of measures based on their effectiveness to unlock value in the short - or long-term horizon. This research reveals that different measures have distinct temporal implications for value creation, showing that hedge fund activists often advocate for measures aimed at unlocking immediate shareholder value, while the long-term consequences depend upon the alignment with the target firm’s overarching strategy.
Keywords: hedge fund activism; shareholder theor
Work Less, Live More? The Impact of an Introduction of the Four-Day Working Week on Happiness in the Context of the Icelandic Four-Day Working Week Experiment
Full text linkIn our current age, the quest for a better work-life balance is becoming paramount to increasing numbers of people. The concept of the Four-Day Working Week (FDWW) therefore emerges as a potential solution, promising to revolutionise our traditional understanding of worktime and well-being. By focusing on the world’s largest FDWW trial at the time, Iceland’s FDWW experiment from 2015 to 2019, and using data from the European Social Survey, the FDWW’s impact on happiness is critically examined. Ordinary Least Squares regressions are employed to analyse the association of working hours with happiness amongst Icelandic workers and to conduct an evidence-based policy evaluation. Contrary to widespread expectations and existing media narratives, the findings reveal no significant impact of working hours on employees’ happiness scores. This outcome challenges the conventional wisdom that less work leads directly to more happiness. The findings thereby contribute significantly to debates on the future of work, suggesting that the FDWW should be viewed with caution until more conclusive evidence is available. This absence of definitive proof calls into question the notion of the FDWW as a universally effective solution to the economic and social challenges faced by contemporary society.
Keywords: employee well-being; four-day working week; future of work; workplace happiness; work time reductionIn our current age, the quest for a better work-life balance is becoming paramount to increasing numbers of people. The concept of the Four-Day Working Week (FDWW) therefore emerges as a potential solution, promising to revolutionise our traditional understanding of worktime and well-being. By focusing on the world’s largest FDWW trial at the time, Iceland’s FDWW experiment from 2015 to 2019, and using data from the European Social Survey, the FDWW’s impact on happiness is critically examined. Ordinary Least Squares regressions are employed to analyse the association of working hours with happiness amongst Icelandic workers and to conduct an evidence-based policy evaluation. Contrary to widespread expectations and existing media narratives, the findings reveal no significant impact of working hours on employees’ happiness scores. This outcome challenges the conventional wisdom that less work leads directly to more happiness. The findings thereby contribute significantly to debates on the future of work, suggesting that the FDWW should be viewed with caution until more conclusive evidence is available. This absence of definitive proof calls into question the notion of the FDWW as a universally effective solution to the economic and social challenges faced by contemporary society.
Keywords: employee well-being; four-day working week; future of work; workplace happiness; work time reductio
Integrating Sustainability in Risk Management and Internal Control Systems: An Empirical Assessment of ESG Reporting of German DAX40 Firms
Full text linkIntegrating sustainability into enterprise risk management (ERM) and internal control system (ICS) and the corresponding reporting is gaining importance for organizations due to increasing pressure from regulators and stakeholders. The objective of this paper is to analyze corporate disclosures on the integration of sustainability into the ERM and the ICS. Based on stakeholder agency theory, this study applies a self-developed disclosure index on the ESG reports of 29 German DAX40 companies for 2022 and 2023. The index evaluates from an organizational, regulatory, and, with a focus on environmental issues, business practice perspective. Overall, companies report with restrained quality. The study found varying results across the index sections and a minor positive trend from 2022 to 2023. A sub analysis to identify potential differences in reporting behavior according to the affiliation to environmentally sensitive sectors revealed mixed findings. This paper holds different methodological limitations. However, it contributes to scarce qualitative research and provides deep insights into corporate sustainability reporting of German DAX40 companies. The results are of practical importance for businesses and regulatory bodies, as they reveal weaknesses in corporate reporting.
Keywords: disclosure index; ESG reporting; internal control system; risk management; sustainable corporate governanceIntegrating sustainability into enterprise risk management (ERM) and internal control system (ICS) and the corresponding reporting is gaining importance for organizations due to increasing pressure from regulators and stakeholders. The objective of this paper is to analyze corporate disclosures on the integration of sustainability into the ERM and the ICS. Based on stakeholder agency theory, this study applies a self-developed disclosure index on the ESG reports of 29 German DAX40 companies for 2022 and 2023. The index evaluates from an organizational, regulatory, and, with a focus on environmental issues, business practice perspective. Overall, companies report with restrained quality. The study found varying results across the index sections and a minor positive trend from 2022 to 2023. A sub analysis to identify potential differences in reporting behavior according to the affiliation to environmentally sensitive sectors revealed mixed findings. This paper holds different methodological limitations. However, it contributes to scarce qualitative research and provides deep insights into corporate sustainability reporting of German DAX40 companies. The results are of practical importance for businesses and regulatory bodies, as they reveal weaknesses in corporate reporting.
Keywords: disclosure index; ESG reporting; internal control system; risk management; sustainable corporate governanc