2024
Thesis committee: Prof. Daniel Oyon (supervisor), Prof. Antonio Davila (internal expert), Giovanni-Battista Derchi, EHL (external expert), Prof. Michael Burkert, University of Fribourg (external expert)
Abstract: This dissertation analyzes three drivers of firms’ long-term performance: stakeholder management, resource management and artificial intelligence (AI) tools management. In the first chapter, we use an exogenous setting to analyze how stakeholders’ power and urgency of their claims influence the relationship between corporate social performance (CSP) and corporate financial performance (CFP). Our results indicate that firms following a stakeholder salience approach outperform their peers and contributes both theoretically and empirically to the advancement of the stakeholder salience theory. It has also practical contributions helping managers define effective and context-dependent CSR activities in order to maximize CFP.
In the second chapter, the study examines the relationship between the asymmetric adjustments of costs to revenue increases and decreases (i.e., cost stickiness), capital structure and profitability. It introduces a novel measure of cost stickiness and addresses endogeneity issues using instrumental variables. Results indicate that high-sticky-cost firms have lower financial leverage, shorter debt maturity, higher cash holdings, but also higher profitability, adding to both the accounting and corporate finance literatures.
In the third chapter, we conduct a randomized field experiment that examines the algorithm appreciation phenomenon, where humans tend to trust AI advice more than advice from human peers (as opposed to algorithm aversion). We randomly assign subjects to two experimental groups receiving advice either labeled to come from an AI system or from human peers. Our results are in line with recent laboratory experiments documenting algorithm appreciation. However, we find that this greatly varies with subject characteristics with both male and high-knowledge subjects placing considerably less weight on AI advice.
Thesis committee: Prof. Sandor Czellar (supervisor), Prof. Tobias Schlager (internal expert), Prof. Susan Clayton, The College of Wooster (external expert)
Abstract: Global warming is a pressing issue which poses a significant challenge for humanity. Human activities have played a substantial role in climate change, emphasizing the need for concerted efforts to mitigate the environmental impacts of individual behaviors. An essential component of this effort is understanding our relationship with the natural environment. Environmental identity refers to the sense of connection to the natural world and is conceptualized as a dynamic interaction between individuals and their environment, shaping how humans perceive and interact with their surroundings. This dissertation contributes to the field of consumer behavior through the lens of identity theory to comprehend the impacts of environmental identity on sustainable consumer behavior. The first essay explores the nuanced meanings individuals attribute to nature by establishing a typology of nature-related associations and a nomological framework, providing a foundation for future research in environmental psychology and marketing. The second essay proposes an efficient strategy to activate environmental identity, demonstrated through a series of online- and laboratory studies using both scenario-based stimuli and actual marketing material. The research findings show that inviting consumers to consider their relationship with nature is more likely to lead to stronger environmental identity salience effects than inviting them to think about nature alone. The third essay advances research on environmental identity by developing a concise measurement of environmental identity salience (how frequently individuals think about their relationship with nature) and demonstrates the applied value of the new measure for the prediction of both self-reported and actual behaviors.
Thesis committee: Prof. Jean-Philippe Bonardi (supervisor), Prof. Chirantan Chatterjee, University of Sussex (co-supervisor), Prof. Giorgio Zanarone (internal expert), Prof. Gary Dushnitsky, London Business School (external expert)
Abstract: New technological advances have brought renewed focus into the importance of reputation and trust in overcoming the imperfections in the markets for technology. It has inspired three chapters that explores the role of reputation in influencing the financing opportunities of innovative ventures and protection of upstream innovative technologies through trademarks.
The first chapter of my dissertation examines the effectiveness of a tough reputation in deterring future trademark infringement, focusing on pharmaceutical market in India. Our empirical analysis, supported by a stylized theoretical model, suggests that tough reputation by trademark-holding firms induces competitors to name their competing trademarks much more differently – especially in lucrative markets.
The second chapter delves into how misconduct allegations against startups influences the financing opportunities of technologically-similar, yet innocent, startups. We theorize that investors' exhibit both forced and strategic behavior to protect their reputation, thereby resulting in reduced financing opportunities for technologically similar startups. Our empirical evidence supports the same, highlighting the heterogeneity by type of misconduct allegations.
The final chapter examines how investors network evolve over time in the entrepreneurial ecosystem. Leveraging misconduct allegations against startups as an external shock to an investors' reputation, the research finds that co-investors reduce their investment amounts and deal sizes with tainted investors following the revelation of misconduct allegations.
Thesis committee: Prof. Ulrich Hoffrage (supervisor), Prof. Christian Zehnder (internal expert), Prof. Guido Palazzo (internal expert), Dr. Hugo Mercier, Institut Jean Nicod (external expert), Prof. Ryan McKay, Royal Holloway University of London (external expert)
Abstract: This dissertation is an attempt to understand human behavior and cognition by bringing together three concepts (identities, reasoning, and monetary incentives) that are usually not investigated together. In Chapter 1, I present the two most predominant theories of identity, both of which focus on how people behave when they feel their identities threatened or when they have the opportunity to feel better about them. However, in many social interactions our identities are neither threatened nor can they be enhanced. I develop a theory that provides a more realistic and general mechanism for the function of identities: identities primarily function as cognitive frames that reduce the effort needed to predict others' social behavior and facilitate behavior by providing a few readily available reactions. Only when necessary does mind resort to an identity-protective or enhancing mode. In Chapter 2, I discuss the Wason Selection Task, the most important experimental paradigm in the study of human reasoning and rationality. I present its rich history, I analyze its theoretical and practical confounds and I develop a new paradigm, the Repeated Selection Task, which is closer to reality and allows for more nuanced observations. I present the results from two online experiments based on the RST and discuss how it allows us to disentangle the evidence search stage from reasoning, as well as to explore the effect of monetary incentives on both processes. Finally, in Chapter 3, I focus on the relationship between trust and donating behaviors. Distrust is often mentioned as the primary reason for reduced donations but, based on recent literature on motivated cognition, I hypothesize that it may just be a convenient excuse to justify one's unwillingness to donate. I report the results of two online experiments in which we managed to manipulate donating behaviors but this was not accompanied by changes in stated trust levels, indicating that trust is not always the determining factor in the decision to donate or not.
Thesis committee: Prof. Jeffrey Petty (supervisor), Prof. Naomi Hausman, the Hebrew University of Jerusalem (co-supervisor), Prof. Christian Zhender (internal expert), Prof. Veronica Collewaert, Vlerick Business School (external expert)
Abstract: In this dissertation, I examine three strategic and financial dimensions of information problems in the venture capital (VC) market. First, I explore the subsidy market, where public authorities provide R&D support to emerging ventures to counteract the negative consequences of information as a public good with unique characteristics that lead to spillovers. This chapter studies how public incentives can mitigate the negative consequences of informational spillovers and stimulate innovation. Second, I investigate the deal market and the interaction between VC funds when pursuing a deal. This study focuses on how VC funds use their networks to obtain private, tacit information on prospects and leverage this information to reallocate resources across their portfolios. Finally, I analyze the international acquisition market, focusing on how high-profile acquisitions, such as Google’s acquisition of Waze, can act as quality signals that allow foreign acquirers to reduce the risk associated with cross-border acquisitions of ventures, thereby triggering further acquisitions.
Each chapter focuses on a different transaction type, yet all transactions are interconnected by the VC transaction cycle and the inherent information asymmetry in technology investments. Overall, this dissertation provides valuable insights into the strategic and financial dimensions of information problems in the VC market, highlighting their impact on market dynamics and offering mechanisms to address these challenges. The findings have important implications for policymakers, managers, and academics seeking to understand and stabilize the VC market.
Thesis committee: Prof. Charles Efferson (supervisor), Prof. Christian Zehnder (internal expert), Prof. Michael Muthukrishna, London School of Economics (external expert)
Abstract: This thesis examines the role of cultural evolution and social learning in shaping group and individual decision-making. Cultural evolution refers to how cultural traits—like beliefs, practices, and knowledge—change and adapt over long periods, like Darwinian biological evolution. The research is divided into three studies. The first study investigates the impact of cultural differences on health and fertility decisions by analyzing voting behaviors along the linguistic border between Switzerland's French and German-speaking regions. The results show the significant influence of culture on voting behaviors, independent of genetic, institutional, and environmental factors. The second study explores social learning, particularly the strategy of imitating successful individuals. The results highlight the complexity and heterogeneity of success-biased social learning strategies. Strategies even include the use of successful leaders as negative examples. Understanding social learning at the individual level is crucial for predicting group-level behavioral evolution. The third study addresses collective problem-solving and a paradox of social learning: the lack of exploration when team members are highly connected. In that context, the study explores the potential benefits of introducing new team members to foster innovation. This thesis aims to highlight the value of evolutionary and cultural perspectives for understanding human social dynamics.
Thesis committee: Prof. Marianne Schmid Mast (supervisor), Prof. John Antonakis (co-supervisor), Prof. Christian Zehnder (internal expert), Prof. George Banks, University of North Carolina (external expert), Prof. Gwendolyn Sajons, ESCP Berlin (external expert)
Abstract: Persuasive communication, defined as providing a message with a potential interest in changing the behavior of the recipient, is a central tenant of everyday interactions. This thesis discusses and tests determinants as well as the effectiveness of persuasive communication in various scenarios. Chapter 1 examines whether one type of persuasive communication, charismatic communication, may influence COVID-19 vaccination uptake. The findings indicate that charismatic communication influences social norms but not behavior. In Chapter 2, we investigate whether the underrepresentation of women in leadership position stems from (a) actual behavioral differences between how women and men persuade recipients, or (b) differences in how women and men are perceived when they persuade recipients, which ultimately influences how others may treat them differently. Using a novel Virtual Reality paradigm, we find that women and men did not differ in their ability to exert influence, and we did not observe gender biases in decisions taken towards women or men. Chapter 3 explores how the tone of voice and charismatic communication impacts trust and cooperation. Across four studies, I consistently found that the tone of voice did not influence trust nor cooperation. However, charismatic communication did influence cooperation. Overall, the thesis contributes to research by emphasizing robust methodologies, using behavioral measures, and integrating new technologies like Virtual Reality. It highlights the importance of evidence-based approaches in both science and practice, offering insights for leadership and public health.
Thesis committee: Prof. Gaia Melloni (supervisor), Prof. Guido Palazzo (internal expert), Prof. Massimiliano Bonacchi, Free University of Bolzano (external expert)
Abstract: The objective of this Thesis is to investigate under which circumstances Environmental, Social, and Governance (ESG) corporate disclosures and regulations on sustainability issues can help companies become sustainable actors in tackling Grand challenges, defined as complex problems regarding the population at large and extending beyond a single discipline and institutional context. Grand challenges have been recently represented by the United Nations’ (UN) Sustainable Development Goals (SDGs), a global impact framework developed by the UN to guide countries and firms toward a sustainable world by 2030. Considering the complexity and dynamicity of ESG issues, this Thesis unpacks and investigates each ESG dimension in three distinct but interconnected chapters. Chapter 1 focuses on the environmental (E) dimension, represented by SDG n. 12 about “Responsible consumption and production patterns”, and investigates the role of SDGs sustainability reporting practices on European firms’ environmental impacts. Chapter 2 is a systematic literature review concerned with the social (S) dimension expressed by SDG n. 3 about “Good health and wellbeing” and SDG n. 10 about “Reducing inequalities”. Chapter 3 focuses on the governance dimension (G), specifically on SDG n. 5 about “Gender equality” in managerial and leadership roles among European firms. The empirical findings show that SDGs reporting, and sustainability related mandates can be useful tools to help companies addressing and monitoring their sustainable behavior. This study contributes to the literature studying how firms engage with SDGs in their reporting practices and on the role of ESG disclosure and regulations in addressing Grand challenges.
Thesis committee: Prof. Sonja Vogt (supervisor), Prof. Charles Jefferson (co-supervisor), Prof. Christian Zehnder (internal expert), Prof. Heinrich Nax, University of Zurich (external expert)
Abstract: This thesis examines the diversity of individual preferences and the psychological foundations that structure our reactions to the behaviour of others. One focus is on how individual heterogeneity in decision-making influences the evolution of social norms. The first project is a behavioural experiment investigating various factors that influence people's tendency to conform to the behaviour of the majority. The results show that people are strongly influenced by those who share their group identity, which is something that has been shown to hinder a change in norms. In the second project, a game-theoretical model is used to investigate the outcomes that arise when consumers and producers have different normative values regarding sustainability. The research shows that it is not enough to simply promote environmentally friendly values. When consumers lack sufficient information, companies can exploit consumer concern about sustainability through greenwashing by falsely portraying themselves as environmentally friendly. The third project uses an agent-based simulation model to investigate how variation in individual social learning behaviour affects social norm change. It also examines how this understanding can be used to design effective interventions to initiate positive cultural change. The results suggest that intervention strategies are most effective when they are based on an understanding of the different social influences and preferences within the population.