v10i4 – Junior Management Science

Integrating Sustainability in Risk Management and Internal Control Systems: An Empirical Assessment of ESG Reporting of German DAX40 Firms

Niklas Janßen, Leuphana University Lüneburg (Bachelor thesis)
Junior Management Science 10(4), 2025, 858-875

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Integrating 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 governance.

DOI: https://www.doi.org/10.5282/jums/v10i4pp858-875

A New Dimension of Transparency: ESG Disclosure and Its Effect on Shareholder Behavior

Tobias Keserü, Technical University of Munich (Master thesis)

Junior Management Science 10(4), 2025, 876-903

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This study examines the impact of Environmental, Social, and Governance Disclosure (ESGD) on a company’s ownership structure in predominantly developed economies. It aims to assess whether ESGD influences the shares held by different investor types, with a focus on institutional investors. Using data from 2016 to 2022, ESGD is measured relatively and absolutely, while ownership is categorized into corporate, government, individual, and institutional types. A multivariate regression assesses the overall impact, and a univariate regression specifically examines the effect on institutional ownership. The analysis reveals a significant link between ESGD and ownership structure, suggesting that ESGD shapes ownership dynamics. In particular, institutional investors respond positively to relative ESGD, valuing how a company’s ESG transparency compares to its peers. The study acknowledges limitations like the short time frame and potential biases in the database. Nevertheless, the findings suggest that companies can attract institutional investors by improving ESG transparency, even if actual ESG outcomes are modest. This research contributes to the understanding of how ESG transparency shapes investor behavior, offering valuable insights for companies, investors, and policymakers.

Keywords: corporate governance; ESG disclosure; institutional investors; ownership structure; transparency.

DOI: https://www.doi.org/10.5282/jums/v10i4pp876-903

ESG Regulation Across the Globe: Does ESG Regulation Pay Off?

Antonia Engel, Technical University of Munich (Master thesis)

Junior Management Science 10(4), 2025, 904-939

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A growing number of investors and other stakeholders are demanding greater transparency about companies’ sustainability performance. Countries around the world are responding with mandatory environmental, social and governance (ESG) disclosure regulations. On the one hand, this has led to a fragmented regulatory landscape. On the other hand, there is little empirical evidence on how these mandatory ESG disclosure requirements affect reporting companies. This paper addresses the gap through a three-part approach. First, it examines the evolution and status quo of global ESG regulation. Second, it provides a comprehensive literature review on the impact of such regulation on affected firms. Finally, it applies a difference-in-difference analysis to assess whether the EU’s Non-Financial Disclosure Directive (NFRD), an unprecedented supranational ESG disclosure regime, has led to the adoption of moresustainable business practices. The results show a stronger increase in ESG scores for regulated EU companies compared with a control group of non-regulated US companies. This finding has practical relevance not only for the EU, but also for other legislators considering the introduction or expansion of ESG reporting requirements.

Keywords: disclosure; ESG regulation; NFRD; reporting; sustainability.

DOI: https://www.doi.org/10.5282/jums/v10i4pp904-939

The Impact of Female Board Members on ESG Performance: An Empirical Analysis

Finn Matthes Gooßen, University of Hamburg (Master thesis)

Junior Management Science 10(4), 2025, 940-965

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This study investigates the impact of female board representation on ESG performance within the German two-tier corporate governance system. Using OLS regression analysis on a sample of 157 DAX, MDAX, and SDAX companies over a two-year period, the findings reveal a positive and significant relationship between the presence of women on both management and supervisory boards and improved ESG performance, regardless of whether measured by percentage or absolute number. Contrary to the critical mass theory, even the presence of a single woman on a board was found to significantly enhance ESG outcomes. No statistically significant effect was observed for female CEOs, although this is likely to be attributed to the low number of female CEOs in the sample. The study highlights both the ongoing underrepresentation of women on boards and the limited scope of current gender quota regulations (FüPoG I & II), suggesting the need for stronger legislative measures to support gender diversity as a driver of corporate sustainability.

Keywords: board gender diversity; board structure; critical mass; corporate governance; ESG performance.

DOI: https://www.doi.org/10.5282/jums/v10i4pp940-965

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

Louisa Felicitas Bläßer, Technical University of Munich (Bachelor thesis)

Junior Management Science 10(4), 2025, 966-984

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While 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-image.

DOI: https://www.doi.org/10.5282/jums/v10i4pp966-984

Who Bears the Costs of the UK Soft Drink Tax? An Empirical Study of Medium-Term Effects

Laura Wiredu, Paderborn University (Master thesis)
Junior Management Science 10(4), 2025, 985-1008

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Using five years post-tax data on CPI prices, national employment as well as firm-level employment, we provide novel evidence on the medium-term effects of the UK Soft Drinks Industry Levy (SDIL). Applying a difference-in-differences research design, we find that neither consumers nor employees visibly bore the costs of the tax. However, given the falling trend in beverage prices in the UK, consumers faced a 6% less decline in soft drink prices compared to prices of levy-exempt beverages, since the introduction of the tax. Employees in the soft drink manufacturing industry were unaffected by the tax, whilst employees in the beverage manufacturing industry even benefitted from it through significant employment increases. Our study offers policy advice for other countries which are yet to implement soft drink taxes. We advocate the implementation of tiered tax designs, such as in the UK, due to its positive impact on employment and minimal burden for consumers.

Keywords: public health policy; soft drink taxation; UK sugar tax.

DOI: https://www.doi.org/10.5282/jums/v10i4pp985-1008

From Pictures to Perceptions: Exploring the Strategic Use of Visuals in CSR Reports and the Impact of Regulatory Mandates

Thiemo Janßen, Technical University of Munich (Bachelor thesis)
Junior Management Science 10(4), 2025, 1009-1027

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This thesis explores the strategic use of visuals in CSR reports, comparing companies in the EU and Switzerland. Using automated image classification and clustering, 11,455 images from sustainability reports were analyzed. The study finds that firms in environmentally or socially sensitive industries, especially those with higher CO₂ emissions per revenue, tend to use more images—often aligned with their specific challenges. This suggests that visuals are not merely illustrative but serve to shape corporate perception, potentially diverting attention from negative impacts. The introduction of the EU’s Non-Financial Reporting Directive (NFRD) appears to reduce image reliance, indicating a positive regulatory effect on transparency. Overall, the findings highlight that images can be used not just to complement text, but to construct a more favorable corporate narrative. The study underscores the importance of critically assessing visual elements in CSR disclosures, as they may subtly influence stakeholders’ perception beyond what is verbally communicated.

Keywords: CSR; image analysis; NFRD; greenwashing; visual communication.

DOI: https://www.doi.org/10.5282/jums/v10i4pp1009-1027

Determinants of Corporate Bond Mutual Fund Flows

Vanessa Jeske, University of Stuttgart (Bachelor thesis)
Junior Management Science 10(4), 2025, 1028-1052

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This 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 risk.

DOI: https://www.doi.org/10.5282/jums/v10i4pp1028-1052

The Influence of Leadership Style on the Acceptance of Generative AI in the Workplace – The Role of Organizational Commitment, Job Insecurity and Interaction Frequency

Felix Yumuşak, Freie Universität Berlin (Master thesis)
Junior Management Science 10(4), 2025, 1053-1074

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This thesis investigates the influence transformational and transactional leadership styles have on the acceptance of generative AI in the workplace. To account for other factors, I also examine the mediating effect of organizational commitment and the fear of job loss as well as the moderating effect of interaction frequency with the supervisor. Using a sample of 220 full time working participants, I find that technology acceptance does not significantly differ between transformational and transactional leadership. However, the results show that the fear of job loss significantly mediates the relationship between leadership and technology acceptance. While organizational commitment does not mediate the relationship, it does significantly influence technology acceptance. My research extends research incorporating threat rigidity theory by showing that transformational leadership reduces AI-related fear of job loss. Therefore, it highlights the importance of considering additional factors such as prior experience and openness to innovations in AI acceptance. The findings suggest that managers should adopt transformational leadership to decrease the fear of job loss and enhance organizational commitment to effectively increase AI acceptance in the workplace.

Keywords: AI acceptance; fear of job loss; Gen AI; leadership style; technology acceptance.

DOI: https://www.doi.org/10.5282/jums/v10i4pp1053-1074