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Digital transformation has made enormous changes in the banking domain, where FinTech is the salient driving force inside it. Especially in the banking industry, Artificial Intelligence (AI) and Blockchain technology act as the most innovative technologies. Similarly, Chatbots in commercial banking and Robo-advisors in investment banking has shifted banks into the entire virtual environment. In this context, the main objectives of this chapter are: to determine the current application of AI and blockchain in the banking industry, to identify the challenges faced by banks in adapting AI and blockchain technology, and to provide new insights on future banking in the industry 5.0 in this digital era. This chapter discusses the application of two robotic platforms widely used in banking, chatbots, and Robo-advisors. Chatbots are more like frontline employees of banks who are commonly engaged in customer relationship management, sales, and marketing. In contrast, Robo-advisors are a relatively advanced AI tool involved in investment and portfolio management. Blockchain will accelerate digital transformation where a decentralized digital ledger system is used for banking transactions. However, this is entirely the opposite of conventional centralized digital banking, and the adoption of these technologies is still in its infancy. Employment, performance, security, privacy and trust, cost, ethical and regulatory challenges are the most common challenges. To avoid the challenges, banks should concern with strategies like collaboration with robots, increasing the platforms’ performance, etc. Finally, the chapter provides insights on banking at industry 5.0. In the future, banking customers can experience completely virtual and customer-oriented banking services. In this regard, the fusion of all technologies and collaborative human effort is essential.

This study examines the impact of different Balanced Scorecard (BSC) formats (table, graph without summary measure, graph with a summary measure) on various decision outcomes: performance ratings, perceived informativeness, and decision efficiency.

Using an original case developed by the researchers, a total of 135 individuals participated in the experiment and rated the performance of carwash managers in two different scenarios: one manager excelled financially but failed to meet targets for all other three BSC perspectives and the other manager had the opposite results.

The evaluators rated managerial performance significantly lower in the graph format compared to a table presentation of the BSC. Performance ratings were significantly higher for the scenario where the manager failed to meet only financial perspective targets but exceeded targets for all other nonfinancial BSC perspectives, contrary to the usual predictions based on the financial measure bias. The evaluators reported that informativeness of the BSC was highest in the table or graph without summary measure formats, and, surprisingly, adding a summary measure to the graph format significantly reduced perceived informativeness compared to the table format. Decision efficiency was better for the graph formats (with or without summary measure) than for the table format.

Ours is the first study to compare tables, graphs with and without a summary measure in the context of managerial performance evaluations and to examine their impact on ratings, informativeness, and efficiency. We developed an original case to test the boundaries of the financial measure bias.

During the last several years, a stream of research has evolved that investigates the influence of outcome information on evaluation judgments in an auditor legal liability context. These studies have included judges and jurors and have utilized different cases and scenarios. Our objective in this paper is to review and discuss insights from this stream of research. This research consists of three phases. Phase 1 focuses on the robust manifestation of outcome effects in an audit legal liability context, Phase 2 examines the effectiveness of selected mitigation strategies in moderating outcome effects, and Phase 3 begins the process of developing a preliminary theoretical framework. We also discuss future research that could be done to better understand outcome effects and to test operational responses and proposed remedies.

Social exchange theories posit that people engage in diverse forms of exchange to enhance their own interests. Knowing whom to exchange with and what to exchange, however, requires an understanding of other people's wants and needs. Gaining such an understanding requires skill at perspective taking: assessing what other people's preferences are and how they differ from one's own. We discuss a systematic bias in interpersonal perspective taking that can limit people's ability to reap the benefits of social and economic exchange. People systematically overestimate the similarity between their own perspective and that of other people who are in different psychological situations from their own. We show that such “egocentric empathy gaps” occur in transactions between buyers and sellers. Owners are subject to the endowment effect, valuing their possessions more simply because they own them. Non-owners fail to appreciate the psychological impact of endowment and thus make imperfect choices when interacting with owners. We describe how difficult it is for people to learn about the psychology of endowment and explain how misunderstanding that psychology can lead to enmity and perceptions of unfairness. We discuss the broader relevance of egocentric empathy gaps for social policy and pluralistic ignorance.

To explore and measure wearout or the acceptance threshold, beyond which, messages in the form of mobile text advertising generate irritation. To assess the set of factors that positively or negatively, according to literature, influences the attitude towards advertising in short message service (SMS) format and on this basis to propose future research along this line. There is also a focus on irritation antecedents.

Two surveys are used to prevent unbiased answers. The first one is driven to study the wearout effect in the SMS context. An offline survey is carried out using a structured questionnaire. A sample size of 188 using convenience sampling is collected. The second research is driven to study irritation and attitude towards SMS advertising. Data are collected through an online questionnaire which is published through social media platforms, an e-mail mailing list and a quick response (QR) code. An international sample size of 253 applying a convenience and snow ball sampling procedure is collected.

The wearout threshold and irritation antecedents in the mobile advertising context are identified as well as positive and negative factors which influence attitude towards SMS advertising. The replies do not match exactly with the significant factors found in previous research.

There are some, among them, sample size and sampling procedure; only one sector was analysed and, although reliability is acceptable, the number of items in each measurement scale was reduced to only two.

Wearout and the characteristics of an SMS message capable to generate positive attitude are described.

Guidelines to improve public attitudes towards SMS advertising and prevention from wearout are given.

Wearout in the mobile advertising context is explored and some insights regarding irritation antecedents and the role played by frequency and other positive factors in the causal model proposed by the academy are assessed.

This research aims to explore the impact of augmented reality (AR), the digital technology that superimposes virtual elements in a real environment, on consumers in the context of experiential marketing. Specifically, this study proposes a research model based on the stimulus-organism-response model, which considers AR media characteristics as external stimuli, consumers’ value perceptions as the organisms, and purchase intentions as the responses. The research model was tested with 248 consumers using structural equation modelling. The results show that informativeness, ease of use, and telepresence have positive effects on consumers’ utilitarian value perception and that telepresence and interactivity have positive effects on hedonic value perception. Overall, this study contributes to the growing body of knowledge on AR and provides actionable insights for managers implementing digital transformation strategies and AR applications in marketing practices.

Purpose – Accounting research has long shown the effect of subjectivity in performance evaluation. This study investigates one form of subjectivity in performance evaluation: flexibility in weighting performance measures examining decisions made by supervisors about weighting. Empirical studies show that the performance-measure weights are only partially consistent with the predictions of the agency theory and they are a still outstanding issue.

Methodology/approach – We develop an experiment to analyse supervisor decision-making, manipulating two factors: internal organisational interdependence and the level of managerial performance. We derive hypotheses along with both economic and behavioural approaches. The economic approach is based on agency theory predictions and the controllability principle while the behavioural approach is drawn on the organisational justice theory. We argue that in low interdependence contexts the supervisor's decision confirms the agency theory predictions, while in high interdependence conditions weighting decisions could be driven by behavioural considerations of fairness perceptions of the evaluation process and the level of managerial performance.

Findings – We find that in low interdependence contexts the supervisor's decision confirms the agency theory predictions, while in high interdependence contexts it does not. The results indicate that the supervisor's decision stems from the integration of economic and behavioural perspectives.

Research and social implications – The theoretical framework can be useful for interpreting the supervisor decision-making and the weighting process.

Originality – The economic and behavioural approaches allow us to understand flexibility in weighting performance measures suggesting that, in addition to economic considerations, a behavioural perspective may also be relevant in explaining subjective weighting.

The article hypothesizes that the level of corporate social responsibility affects both the informativeness of earnings and the magnitude of discretionary accounting accrual adjustments. The hypothesis exploits: (1) the positive relationship between corporate social responsibility and firms’ risk-return profiles; and (2) managers’ incentives in using discretionary accounting accrual adjustments. Results show that corporate social responsibility is positively associated with earnings’ explanatory power for returns and related to the magnitude of accounting accrual adjustments.

This study compares the informativeness and the appeals used in magazine advertising in China with those used in France and in the United States. It provides international marketers with a snapshot of current magazine advertising tactics and provides scholars with an assessment of how consistently expectations based on seminal cross-cultural research predict the informativeness and the appeals used in magazine advertising in each country. Surprisingly, the expectations based on the literature were most often inconsistent with the observations. These findings should serve as a reminder to international marketing scholars that the seminal cross-cultural works, as useful as they are in providing cultural insights, were never intended to apply equally to all subgroups (e.g., the Little Emperors) within a culture.

Following the optimal contracting hypothesis, this study investigates the issue of whether the board of director's ex ante choice to incorporate individual performance evaluation (IPE) measures into the CEO bonus plan rewards managerial decisions not reflected in measures of the firm's current financial performance. Empirical results provide evidence that the use of IPE in the CEO bonus plan is an increasing function of the proportion of outsider directors on the board and a decreasing function of the informativeness of financial performance measures. This study also demonstrates how the use of IPE in incentive contracting can explain CEO cash compensation that is not explained by the firm's current performance and governance variables. Finally, the CEO incentive cash compensation not explained by observable performance measures or governance structure is positively associated with firm future performance one year after its award. Overall, results support the optimal contracting hypothesis. IPE appears to be used to increase the informativeness of CEO actions and determine the level of current CEO cash incentive compensation.