The appointment of activist-nominated directors is an emerging phenomenon, but they’ve come with increased reports of stakeholder harm. A new study published in Strategic Management Journal found that activist directors bring immediate benefits to shareholders, but they appear to impose a managerial myopia that results in executives becoming less inclined to make long-term investments. The research team also found that the adverse effects on stakeholder harm are strongest when a director is a delegate — i.e., they work directly for an activist investor — compared with a trustee, who is appointed by, but does not work for, an activist investor.

The research team — Brian L. Connelly of Auburn University, Mark R. DesJardine of Dartmouth College, Wei Shi of University of Miami, and Zhihui Sun of Capital University of Economics and Business in Beijing — pulled data on thousands of companies that had directors appointed to their board by an activist investor between 2008 and 2019. They compared these boards to those without activist-nominated members to determine the likely consequences of the board appointments across a broad range of scenarios.

A new paper in the Quarterly Journal of Economics shows customer service workers using artificial intelligence assistance become more productive and work faster. The effects vary significantly, however. Less experienced and lower-skilled employees improve both the speed and quality of their work, while the most experienced and highest-skilled workers see small gains in speed and small declines in quality. The researchers also found that AI assistance can help worker learning and improve English fluency, particularly for international workers.