Research INSIGHTS
Robots with a Human Partner: The Secret to Winning Consumers Over?
Which Auditor Should You Hire in the Year of the Snake?
Robots in the Workplace: HKBU Business Power Lunch Explores the Future of Human-Robot Collaboration 12 NEWS
Public Lecture at HKBU School of Business Explores AI’s Revolutionary Impact on Finance
14 Research EXCELLENCE
Huang, L. L., Chen, R. P., & Chan, K. W. Pairing up with anthropomorphized artificial agents: Leveraging employee creativity in service encounters. Journal of the Academy of Marketing Science. (2024) 52:955–975
https://doi.org/10.1007/s11747-024-01017-w
As AI breakthroughs capture global attention, tech-powered artificial agents (AA) are popping up everywhere, including in the workplace. But despite the success of tools like ChatGPT, skepticism—and perhaps fear—lingers over the potential of AAs to replace human workers. Can we really trust robotic creative workers? A recent study highlights some key traits that could boost workplace acceptance of these technologies.
Firms are increasingly relying on creativity to meet customers’ unique demands, particularly in designfocused industries like fashion and interior design. Meanwhile, these sectors are leveraging advanced technologies, including both physical and virtual autonomous agents, that support service delivery by handling certain tasks. Stitch Fix, for instance, integrates AAs with human stylists to deliver personalised styling, while musicians collaborate with AA platform Mubert to compose new pieces.
While these human-AI collaborations have the potential to revolutionise creative processes, enhance efficiency, cut costs and reduce employee workloads, consumers remain hesitant. Seen as suitable for mundane tasks like inventory forecasting, many doubt AA’s ability to generate original products or ideas. As a result, consumers tend to undervalue creative works such as music or paintings produced by AAs. One solution? Pairing human employees with anthropomorphized AAs as part of a service team.
After conducting five studies across sectors like interior design and shopping with participants from China, the United Kingdom, and the United States (both online shoppers and people recruited from online panels), researchers find that humanising the artificial agent can facilitate a trait transference process, in which consumers believe that the human employee can transfer creativity to the artificial agent in the service team. Findings indicate that customers not only perceive products and services as more creative when AAs that work closely with humans are anthropomorphized but are more likely to buy too.
They also enjoy the level of service delivered by such teams. However, this effect weakens when customers lack the belief that “birds of a feather flock together”, when the collaboration between the AA and the human is short, or when the purchase objective is more utilitarian than hedonic, like when a tech-savvy shopper selects a laptop based solely on technical specifications rather than the overall customer service experience.
Since teams composed of a human and an anthropomorphized AA are viewed favourably by consumers, they offer potential cost-saving
opportunities to firms. However, with lingering doubts about AAs’ creative abilities, companies should highlight the importance of human-machine collaboration. Coordinating employees and AAs by, for example, matching uniforms, reinforcing the perception of longterm partnerships, identifying consumers’ biases and promoting hedonistic consumption can also help bridge the machine trust gap. Still, it seems there’s no replacing the human touch when it comes to making consumers comfortable with robots!
Which Auditor Should You Hire in the Year of the Snake?
Dou, H., Khoo, E. S., Tan, W., & Zhang, J. J. (2024). Superstition, risk aversion, and audit quality: Evidence from China. Auditing: A Journal of Practice & Theory, 1–35. https://doi.org/10.2308/ajpt-2022-140
From reading tea leaves and gazing in crystal balls to mapping the stars and drawing tarot cards, people across cultures and all walks of life have invested considerable amounts of time–and money–in their quest to glimpse what the future holds. Despite lacking any scientific foundation, many still rely on superstitions to help manage uncertainty—even, according to a recent paper, for people engaged in what is often perceived as a highly professional activity: auditing.
In the high-stakes world of finance, where algorithms and quantitative techniques are said to reign supreme, superstitions continue to wield a surprising influence. In the boardrooms and on trading floors, CEOs might choose auspicious numerical ticker codes for their IPOs, and traders may time their limit orders based on more than the latest data. In China, a country where divinatory practices have been woven into the cultural fabric for millennia, decisions are often swayed by the principles of Feng Shui and the guidance of the Chinese zodiac. In Chinese astrology, which attributes an animal and its characteristics to each lunar year within a twelve-year cycle, the zodiac takes on particular significance during what’s known as a person’s “benming nian”, or zodiac year—when the year’s sign matches that of their birth year. This period is traditionally viewed as unlucky, with individuals fearing challenges ranging from illnesses to financial setbacks. But surely, accountants, typically seen as pillars of objectivity, are immune to such beliefs?
Analysing a sample of listed firms in China’s A-share market from 2007 to 2020, researchers examined the zodiac years of signing auditors as sourced from the Chinese Institute of Certified Public Accountants. The study found that firms with lead auditors in their zodiac years recorded less income-inflating discretionary accruals, made fewer material misstatements, and showed a reduced probability of financial restatements in subsequent years. Already known for their caution, auditors apparently take this to another level when in their zodiac years, meticulously scrutinising details and adopting a stricter, risk-averse approach. This heightened
vigilance leads to less tolerance for clients’ aggressive accounting tactics and opportunistic behaviours.
The result? Auditors in their zodiac years generally provide superior audit quality. This is especially true for partners, who face greater financial and reputational risks from audit failures, and older auditors, who are more influenced by traditional beliefs. Notably, this effect is concentrated in larger auditing firms, including international ones.
So, if you’re a CEO planning some window-dressing to enhance your company’s appeal or an investor scrutinizing the financials of a potential takeover target, make sure to check if the auditor is in her “benming nian”. Whether you believe in Chinese astrology or not is beside the point—what matters is if the auditor does!
Dr. Jian ZHANG Assistant Professor Department of
How would humans react if robots became your colleagues? On 12th December 2024, the HKBU School of Business hosted its biannual Business Power Lunch, exploring the potential challenges and opportunities of integrating robots into the workforce. The event united over 30 HKBU scholars, business leaders, senior corporate executives, entrepreneurs, and researchers, including many alumni from the School, sparking lively discussions and fresh perspectives.
Prof. Xu HUANG, Associate Dean (Research & Impact), opened the event with a warm welcome, reiterating that since its inception in 2018, the gathering’s mission has been to bridge the gap between academia and industry, fostering meaningful discussions and transformative insights.
While participants enjoyed delightful cuisines, Dr. Rocky CHEN, Associate Professor of the Department of Management, Marketing and Information Systems, delivered an insightful presentation titled “When Robots Become Colleagues: Navigating the New Age of Robots for Better Service Performance”. Dr. CHEN sparked the audience’s curiosity with a thought-provoking question: “How would you feel about having robots as colleagues? Positively, neutrally, or negatively? Would performance improve or decline?” He explained that reactions can vary widely, depending on the interplay between the characteristics of the robots and the employees. Introducing the concept of the “magic mirror effect”, Dr. CHEN noted that human employees tend to feel threatened only when they share similar expertise with their robot colleagues, leading to decreased performance. To counter this effect, he proposed two key strategies: fostering a cooperative mindset and shifting perspectives from negative to positive. His presentation ignited lively discussions during the Q&A session about the impact of robots and artificial intelligence (AI) on human interaction and job security. Prof. HUANG and Dr. CHEN stated that management should address employees’ concerns by highlighting unique human traits that AI cannot replicate and by positioning robots as complementary tools. The conversation also touched on the cost efficiency of robots, the necessity for transparent communication within the organisation, and the potential for new job roles arising from AI advancements.
The HKBU Business Power Lunch continues to be a cornerstone event for the School of Business, offering a platform for scholars to share their latest research and for industry leaders to gain fresh perspectives on pressing global issues.
How is artificial intelligence (AI) transforming the finance industry? On 19th December 2024, the HKBU School of Business hosted a public lecture titled “AI and Finance”, featuring Prof. Lin William CONG, Rudd Family Endowed Chair Professor of Management and Professor of Finance at Cornell University. The event, moderated by Prof. Aristotelis STOURAITIS, Professor, Department of Accountancy, Economics and Finance of the School, attracted around 60 attendees both in-person and online.
Prof. CONG emphasised the advantages of using simpler AI models for finance applications, such as tree-based algorithms. These models are not only effective but also easier to understand, making them particularly well-suited for the financial sector. He highlighted the transformative potential of Generative AI (GenAI) in finance, which can simulate real-life decision-making processes, offering flexibility and applicability across various scenarios.
Additionally, Prof. CONG shared intriguing findings from his research on online credit markets. His study revealed that GenAI significantly improves the quality of writing in credit applications, enhancing the perceived quality of loans and increasing the chances of securing funding. This demonstrates AI's ability to streamline financial processes, making them more efficient and accessible.
Stay tuned for more public lectures by the HKBU School of Business.
Dr. Sihao CHEN
Assistant Professor Department of Accountancy, Economics and Finance
International Production Networks and the Propagation of Financial Shocks
Journal of International Economics
https://doi.org/10.1016/j.jinteco.2024.104039
Dr. Siting WANG
Assistant Professor Department of Management, Marketing and Information Systems
When Self-Love Is Threatened: Adopting a Dual-Type View to Understand Leader Narcissism and Its Impacts on LMX and Newcomer Work Outcomes
Personnel Psychology
https://doi.org/10.1111/peps.12555
The Research Espresso, a bimonthly e-publication covering everything you need to know about the latest research developments at the HKBU School of Business, focuses on four key areas: Research Insights (the main research topic of the month), Research Excellence (recognition of faculty members’ research achievements), News (research-related updates), and Seminars (sharing research skills and knowledge).
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