In the aftermath of the media attention given to the Cum/Ex structures the German government in their 2021 coalition agreement decided to further pursue the prevention of dividend arbitrage transactions, i.e. abusive arrangements in the context of dividend taxation, and to explore the possible use of modern technologies to achieve this objective. Dividend arbitrage transactions are based on the special taxation procedure for capital gains tax. Capital gains tax is initially withheld in a standardised manner at the level of the withholding entity and then, if required, corrected at the level of the taxpayer. This taxation procedure in combination with the complex depository system of the financial market is abused so as to impede the provision of the information required for lawful taxation.

Blockchain technology, which has already found its way into various financial applications, was explicitly mentioned in the coalition agreement as a technology for preventing dividend arbitrage. A blockchain is a decentralised register of chronologically ordered transactions aggregated in blocks that can ensure the availability and immutability of data and the integrity of the system independently of a central party. This study analyses the extent to which these properties can be used to prevent tax avoidance schemes. Furthermore, it takes into account legal, economic, and technical requirements as well as system costs to propose a practically feasible solution.

The primary result of the study is a concept that attempts to address both basic types of tax avoidance schemes: On the one hand, tax schemes with the aim of multiple tax refunds (e.g. cum/ex) are prevented by a token-based solution in which tokens on the blockchain issued by the tax administration and to be redeemed upon tax refund ensure that the amount of refunded tax cannot exceed the amount that was originally paid. On the other hand, additional information on the tokens makes it easier to uncover and trace tax avoidance schemes aimed at misusing tax refund claims or avoiding definitive tax charges (e.g. cum/cum).

By presenting an explicit solution concept the study demonstrates that blockchain technology can already be used to prevent excessive tax refunds. By providing traceable and tamper-proof information the technology also has the potential to create benefits in the fight against other tax avoidance schemes. However, maximising these benefits would require using blockchain technology as base for the entire financial infrastructure, especially for securities book entry, trading, and settlement. While this is considered unrealistic in the short term, current regulatory, technological and social advances may set a path to enable this in the future.

As a result, the study not only shows the current possibilities of blockchain technology to prevent tax avoidance in the form of dividend arbitrage, but also provides an outlook for the future, offering an additional incentive to continue and even intensify efforts to use blockchain technology for the financial infrastructure.

Please access the complete study report here (in German).

The increasing capabilities of Artificial Intelligence (AI) raise concerns about the risks associated with the technology. The European Union, therefore, proposed the Artificial Intelligence Act aiming to mitigate the risks of AI by fostering their safety and transparency. However, there is controversial debate about its impact on AI innovation. While the AI Act aims to provide legal certainty guiding innovation, the criticism refers to exaggerated bureaucratic burden such as transparency requirements impeding innovation.

Based on a multivocal literature review, we examined the impact of the AI Act's transparency requirements on patenting as a means for AI innovation. Our results indicate that the transparency requirements do not necessarily hinder the patentability of AI innovations. Instead, existing concerns primarily rely on uncertainties within key terms of the AI Act. Accordingly, we propose an improvement suggestion focusing on resolving existing uncertainties.

I am happy that our paper “The Impact of the EU AI Act’s Transparency Requirements on AI Innovation” has been accepted for presentation at the 19th International Conference on Wirtschaftsinformatik (WI 2024). The conference will take place from September 16 to 19 in Würzburg, Germany.

Companies are faced with the challenge of counteracting the risks associated with the integration of artificial intelligence (AI) in order to maximize the value creation potential of the technology. Traditional governance mechanisms often have to be adapted to cover the specific requirements and risks of AI applications. This article presents a method developed as part of a scientific study that enables a systematic transformation of existing governance mechanisms towards comprehensive AI governance. This method provides a practice-oriented guide that supports governance managers and consultants with concrete action steps to integrate AI-specific considerations into existing governance mechanisms. Through an iterative approach and continuous adaptation to technological developments, the method helps companies to realize the value creation potential of AI while controlling the risks. Please read more on this topic in our (German) paper "Governance von künstlicher Intelligenz – Eine Methode zur Transformation vorhandener Governance-Mechanismen in Unternehmen" recently published in Wirtschaftsinformatik & Management.

Compared to other EU Member States, Germany has particularly high requirements for the security of identification in notarial (online) procedures. We have published two (German-language) articles on this in ZIP – Zeitschrift für Wirtschaftsrecht. The first article provides an overview of basic technical approaches to electronic identification and their characteristics, for example with regard to security and user-friendliness, in order to classify these requirements in legal terms. In the second article, the German approach to online identification in the context of notarial online procedures is classified on the basis of these technical characteristics and compared in particular with the corresponding Austrian procedure.

Digital technologies, while enhancing productivity and communication, also contribute to significant workplace stress. Our recently published study addresses the fragmentation in existing models of digital hindrance stressors by proposing a unified hierarchical model tailored to contemporary digital work environments. The research synthesizes various technostress frameworks and employs a mixed methods approach, including a qualitative pre-study and extensive surveys with over 5,800 participants, to identify and validate twelve first-order and five second-order stressors. The new model offers both detailed and streamlined measurement tools, enhancing its applicability in diverse organizational contexts.

For practitioners and policymakers, this study provides a comprehensive framework to assess and mitigate the adverse impacts of digital stressors. The unified model allows organizations to understand specific stressors their employees face and implement targeted interventions to improve well-being and productivity. By utilizing this model, occupational health professionals can better address the psychological and physical health implications of technostress. Moreover, the findings offer actionable insights for designing digital work environments that minimize stress and foster a healthier, more productive workforce. This research bridges the gap between theoretical technostress models and practical applications, guiding effective strategies for managing digital workplace stress.

Please read more about our research in our latest paper published in Information Systems Research.

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The successful implementation of business strategies remains one of the biggest challenges for companies. Strategy implementation processes are often too static and long-term planning is not always compatible with the dynamic corporate environment. In particular, the rapid progress of digital technologies confronts companies with the risk of losing touch with the market. In order to meet this challenge, a strategy implementation process was developed as part of a case study and evaluated with a German automotive supplier. This process is designed to help companies harmonize business strategies with emerging digital transformation initiatives and implement them in an integrative manner in order to keep pace with dynamic market conditions. Please read more on this topic in our (German) paper "Harmonisierung und integrative Implementierung traditioneller Geschäftsstrategien mit digitalen Transformationsinitiativen" recently published in Wirtschaftsinformatik & Management.

Intelligent agents may become our co-workers. As intelligent agents powered by agentic information systems are acquiring more capabilities, humans consider teaming up with them in ever more circumstances. However, research and practice still face major uncertainties and difficulties when implementing intelligent agents into work systems together with humans.

We addressed the lack of guidance on how to design work systems in which human and intelligent agents can collaborate, by investigating the central aspects that describe the collaboration of human and intelligent agents in work systems. We did so by building on a literature review on human-robot interaction and taking the work system perspective. This results in two contributions. First, we identified 16 important design dimensions of collaboration between human and intelligent agents. Second, we assembled these dimensions into a task-related framework that highlights specific design parameters and important considerations when designing work systems where human and intelligent agents collaborate.

I am happy that our paper "Teaming Up With Intelligent Agents – A Work System Perspective on the Collaboration With Intelligent Agents" has been accepted for presentation at the 32nd European Conference on Information Systems (ECIS 2024). The conference will take place from June 13 to 19 in Paphos, Cyprus.

The business value of data-driven insight initiatives (DDII), such as business intelligence or big data analytics, has been primarily studied from a variance perspective, often neglecting the process perspective. Although the variance perspective is well established and identifies key factors or capabilities critical to business value creation, the process perspective can provide explanations of how capabilities lead to business value. For organizations to fully understand how these capabilities impact the value-creation process and to prevent the failure of DDII, there is a need for prescriptive knowledge that encompasses both perspectives.

Through a systematic literature review, our research work highlights the variance-focused conceptual landscape of DDII business value research. Based on these findings, along with an analysis of the (process-) explanations for this relationship, we introduce a hybrid explanation model that integrates the insights from both perspectives, thus providing a more comprehensive understanding of the mechanisms by which DDII capabilities lead to business value.

I am happy that our paper "From Data to Value: Revisiting Business Value Research in the Context of Data Insights-Driven Initiatives" has been accepted for presentation at the 32nd European Conference on Information Systems (ECIS 2024). The conference will take place from June 13 to 19 in Paphos, Cyprus.

In the current issue of DUZ, I wrote about the impact of artificial intelligence on work with a particular focus on the implications for universities and science (in German).