The benefits of tree-based models for stock selection

The identification of the primary drivers of stock returns has been of great interest to both financial practitioners and academics alike for many decades. Influenced by classical financial theories such as the CAPM (Sharp, 1964; Lintner, 1965) and APT (Ross, 1976), a linear relationship is conventionally assumed between company characteristics as derived from their financial accounts and forward returns. Whilst this assumption may be a fair approximation to the underlying structural relationship, it is often adopted for the purpose of convenience. It is actually quite rare that the assumptions of distributional normality and a linear relationship are explicitly assessed in advance even though this information would help to inform the appropriate choice of modelling technique. Non-linear models have nevertheless been applied successfully to the task of stock selection in the past (Sorensen et al, 2000). However, their take-up by the investment community has been limited despite the fact that researchers in other fields have found them to be a useful way to express knowledge and aid decision-making...

Spot the differences in traditional and social entrepreneurial intention : highlighting the role of human and social capital

There is general agreement in the scientific community that entrepreneurship plays a central role in the growth and development of an economy in rapidly changing environments (Acs & Virgill 2010). In particular, when business activities are regarded as a vehicle for sustainable growth at large, that goes beyond mere economic returns of singular entities, encompassing also social problems and heavily relying on collaborative actions, then we more precisely fall into the domain of ‘social entrepreneurship’(Robinson et al. 2009). In the entrepreneurship literature, prior studies demonstrated the role of intentionality as the best predictor of planned behavior (Ajzen 1991), and assumed that the intention to start a business derives from the perception of desirability and feasibility and from a propensity to act upon an opportunity (Fishbein & Ajzen 1975). Recognizing that starting a business is an intentional act (Krueger et al. 2000) and entrepreneurship is a planned behaviour (Katz & Gartner 1988), models of entrepreneurial intentions have substantial implications for intentionality research in entrepreneurship. The purpose of this paper is to explore the emerging practice of social entrepreneurship by comparing the determinants of entrepreneurial intention in general versus those leading to startups with a social mission. Social entrepreneurial intentions clearly merit to be investigated given that the opportunity identification process is an intentional process not only typical of for profit start-ups, and yet there is a lack of research examining opportunity recognition in social entrepreneurship (Haugh 2005). The key argument is that intentionality in both traditional and social entrepreneurs during the decision-making process of new venture creation is influenced by an individual's perceptions toward opportunities (Fishbein & Ajzen 1975). Besides opportunity recognition, at least two other aspects can substantially influence intentionality: human and social capital (Davidsson, 2003). This paper is set to establish if and to what extent the social intentions of potential entrepreneurs, at the cognitive level, are influenced by opportunities recognition, human capital, and social capital. By applying established theoretical constructs, the paper draws comparisons between ‘for-profit’ and ‘social’ intentionality using two samples of students enrolled in Economy and Business Administration at the University G. d’Annunzio in Pescara, Italy. A questionnaire was submitted to 310 potential entrepreneurs to test the robustness of the model. The collected data were used to measure the theoretical constructs of the paper. Reliability of the multi-item scale for each dimension was measured using Cronbach alpha, and for all the dimensions measures of reliability are above 0.70. We empirically tested the model using structural equation modeling with AMOS. The results allow us to empirically contribute to the argument regarding the influence of human and social cognitive capital on social and non-social entrepreneurial intentions. Moreover, we highlight the importance for further researchers to look deeper into the determinants of traditional and social entrepreneurial intention so that governments can one day define better polices and regulations that promote sustainable businesses with a social imprint, rather than inhibit their formation and growth.

Islamic project financing implementation for sustainable infrastructure development in Indonesia

Islamic financing in Indonesia infrastructure projects development has not been optimally implemented. Therefore this paper serves as a catalyst to explore alternative financial scheme such as Islamic financing for infrastructure development. The purpose of this paper is to explore the enablers and barriers in implementing Islamic project financing for public infrastructure development. The findings are then culminated into enablers and barriers in the implementation of Islamic project financing. The two main enablers are the readily availability of huge fund that can be used to support infrastructure projects; and the acceptability of the concept of shariah-compliant financing. On the other hand, the barriers include: high cost of funding; lack of financial institution capability; lack of government policy and regulation; insufficient government support and commitment; conflict between infrastructure and Islamic finance business practices; profit oriented mindset; lack of understanding of Islamic project financing knowledge in infrastructure; and insufficient project preparation.

Building sustainable and effective assurance of learning process in a changing higher education environment

In a study of assuring learning in Australian Business Schools, 25 Teaching and Learning Associate Deans were interviewed to identify current issues in developing and measuring the quality of teaching and learning outcomes. Results indicate that for most institutions developing a perspective on graduate attributes and mapping assessments to measure outcomes across an entire program required knowledge creation and the building of new inclusive processes. Common elements of effective practice, namely those which offered consistently superior outcomes, included: inclusive processes; embedded graduate attributes throughout a program; alongside consistent and appropriate assessment. Results indicate that assurance of learning processes are proliferating nationally while quality of teaching and learning outcomes and in the processes for assuring it is increasing as a result.

Impact fees and new housing cost: A comparative analysis of the empirical models

Developers and policy makers are consistently at odds over the debate as to whether impact fees increase house prices. This debate continues despite the extensive body of theoretical and empirical international literature that discusses the passing on to home buyers of impact fees, and the corresponding increase to housing prices. In attempting to quantify this impact, over a dozen empirical studies have been carried out in the US and Canada since the 1980’s. However the methodologies used vary greatly, as do the results. Despite similar infrastructure funding policies in numerous developed countries, no such empirical works exist outside of the US/Canada. The purpose of this research is to analyse the existing econometric models in order to identify, compare and contrast the theoretical bases, methodologies, key assumptions and findings of each. This research will assist in identifying if further model development is required and/or whether any of these models have external validity and are readily transferable outside of the US. The findings conclude that there is very little explicit rationale behind the various model selections and that significant model deficiencies appear still to exist.

Servicescape symbolism

In order to drive sustainable financial profitability, service firms make significant investments in creating service environments that consumers will prefer over the environments of their competitors. To date, servicescape research is over-focused on understanding consumers’ emotional and physiological responses to servicescape attributes, rather than taking a holistic view of how consumers cognitively interpret servicescapes. This thesis argues that consumers will cognitively ascribe symbolic meanings to servicescapes and then evaluate if those meanings are congruent with their sense of Self in order to form a preference for a servicescape. Consequently, this thesis takes a Self Theory approach to servicescape symbolism to address the following broad research question: How do ascribed symbolic meanings influence servicescape preference? Using a three-study, mixed-method approach, this thesis investigates the symbolic meanings consumers ascribe to servicescapes and empirically tests whether the joint effects of congruence between consumer Self and the symbolic meanings ascribed to servicescapes influence consumers’ servicescape preference. First, Study One identifies the symbolic meanings ascribed to salient servicescape attributes using a combination of repertory tests and laddering techniques within 19 semi-structured individual depth interviews. Study Two modifies an existing scale to create a symbolic servicescape meaning scale in order to measure the symbolic meanings ascribed to servicescapes. Finally, Study Three utilises the Self-Congruity Model to empirically examine the joint effects of consumer Self and servicescape on consumers’ preference for servicescapes. Using polynomial regression with response surface analysis, 14 joint effect models demonstrate that both Self-Servicescape incongruity and congruity influence consumers’ preference for servicescapes. Combined, the findings of three studies suggest that the symbolic meanings ascribed to servicescapes and their (in)congruities with consumers’ sense of self can be used to predict consumers’ preferences for servicescapes. These findings have several key theoretical and practical contributions to services marketing.

A framework of promoting stakeholder mutual benefits for sustainable housing implementation

Strong regulatory pressure and rising public awareness on environmental issues will continue to influence the market demand for sustainable housing for years to come. Despite this potential, the voluntary uptake rate of sustainable practices is not as high as expected within the new built housing industry. This is in contrast to the influx of emerging building technologies, new materials and innovative designs as showcased in office buildings and exemplar homes worldwide. One of the possible reasons for this under-performance is that key stakeholders such as developers, builders and consumers do not fully understand and appreciate the related challenges, risks and opportunities of pursuing sustainability. Therefore, in their professional and business activities, they may not be able to see the tangible and mutual benefits that sustainable housing may bring. This research investigates the multiple challenges to achieving benefits (CABs) from sustainable housing development, and links these factors to the characteristics of key stakeholders in the housing supply chain. It begins with a comparative survey study among seven stakeholder groups in the Australian housing industry, in order to examine the importance and interrelationships of CABs. In-depth interviews then further explore the survey findings with a focus on stakeholder diversity, which leads to the identification of 12 critical mutual-benefit factors and their interrelationship. Based on such a platform, a mutual-benefit framework is developed with the aid of Interpretive Structure Modelling, to identify the patterns of stakeholder benefit materialisation, suggest the priority of critical factors and provide related stakeholder-specific action guidelines for sustainable housing implementation. The study concludes with a case study of two real-life housing projects to test the application of the mutual-benefit framework for improvement. This framework will lead to a shared value of sustainability among stakeholders and improved stakeholder collaboration, which in turn help to break the "circle of blame" for the current under-performance of sustainable housing implementation.

Real-time risk monitoring in business processes : a sensor-based approach

This article proposes an approach for real-time monitoring of risks in executable business process models. The approach considers risks in all phases of the business process management lifecycle, from process design, where risks are defined on top of process models, through to process diagnosis, where risks are detected during process execution. The approach has been realized via a distributed, sensor-based architecture. At design-time, sensors are defined to specify risk conditions which when fulfilled, are a likely indicator of negative process states (faults) to eventuate. Both historical and current process execution data can be used to compose such conditions. At run-time, each sensor independently notifies a sensor manager when a risk is detected. In turn, the sensor manager interacts with the monitoring component of a business process management system to prompt the results to process administrators who may take remedial actions. The proposed architecture has been implemented on top of the YAWL system, and evaluated through performance measurements and usability tests with students. The results show that risk conditions can be computed efficiently and that the approach is perceived as useful by the participants in the tests.

Corporate commitment to sustainability : is it all hot air? An Australian review of the linkage between executive pay and sustainable performance

Across time, companies have increasingly made public commitments to sustainable development and to reducing their impacts on climate change. Management remuneration plans (MRPs) are a key mechanism to motivate managers to achieve corporate goals. We review the MRPs negotiated with key management personnel in a sample of large Australian carbon-intensive companies. Our results show that, as in past decades, the companies in our sample have MRPs in place that continue to fixate on financial performance. We argue that this provides evidence of a disconnection, or ‘decoupling’, between the sustainability-related rhetoric of the sample companies, and their ‘real’ organisational practices and priorities.

Normative requirements for business process compliance

Norms regulate the behaviour of their subjects and define what is legal and what is illegal. Norms typically describe the conditions under which they are applicable and the normative effects as a results of their applications. On the other hand, process models specify how a business operation or service is to be carried out to achieve a desired outcome. Norms can have significant impact on how business operations are conducted and they can apply to the whole or part of a business process. For example, they may impose conditions on the different aspects of a process (e.g., perform tasks in a specific sequence (control-flow), at a specific time or within a certain time frame (temporal aspect), by specific people (resources)). We propose a framework that provides the formal semantics of the normative requirements for determining whether a business process complies with a normative document (where a normative document can be understood in a very broad sense, ranging from internal policies to best practice policies, to statutory acts). We also present a classification of normal requirements based on the notion of different types of obligations and the effects of violating these obligations.

Configuring processes and business documents : an integrated approach to enterprise systems collaboration

Enterprise Systems (ES) provide standardized, off-theshelf support for operations and management within organizations. With the advent of ES based on a serviceoriented architecture (SOA) and an increasing demand of IT-supported interorganizational collaboration, implementation projects face paradigmatically new challenges. The configuration of ES is costly and error-prone. Dependencies between business processes and business documents are hardly explicit and foster component proliferation instead of reuse. Configurative modeling can support the problem in two ways: First, conceptual modeling abstracts from technical details and provides more intuitive access and overview. Second, configuration allows the projection of variants from master models providing manageable variants with controlled flexibility. We aim at tackling the problem by proposing an integrated model-based framework for configuring both, processes and business documents, on an equal basis; as together, they constitute the core business components of an ES.

Empirical investigation of the usefulness of Gateway constructs in process models

Process modeling grammars are used to create scripts of a business domain that a process-aware information system is intended to support. A key grammatical construct of such grammars is known as a Gateway. A Gateway construct is used to describe scenarios in which the workflow of a process diverges or converges according to relevant conditions. Gateway constructs have been subjected to much academic discussion about their meaning, role and usefulness, and have been linked to both process-modeling errors and process-model understandability. This paper examines perceptual discriminability effects of Gateway constructs on an individual's abilities to interpret process models. We compare two ways of expressing two convergence and divergence patterns – Parallel Split and Simple Merge – implemented in a process modeling grammar. On the basis of an experiment with 98 students, we provide empirical evidence that Gateway constructs aid the interpretation of process models due to a perceptual discriminability effect, especially when models are complex. We discuss the emerging implications for research and practice, in terms of revisions to grammar specifications, guideline development and design choices in process modeling.

From conceptual process models to running workflows : a holistic approach for the configuration of enterprise systems

The configuration of comprehensive Enterprise Systems to meet the specific requirements of an organisation up to today is consuming significant resources. The results of failing implementation projects are severe and may even threaten the organisation’s existence. This paper proposes a method which aims at increasing the efficiency of Enterprise Systems implementations. First, we argue that existing process modelling languages that feature different degrees of abstraction for different user groups exist and are used for different purposes which makes it necessary to integrate them. We describe how to do this using the meta models of the involved languages. Second, we motivate that an integrated process model based on the integrated meta model needs to be configurable and elaborate on the mechanisms by which this model configuration can be achieved. We introduce a business example using SAP modelling techniques to illustrate the proposed method.

Humanised xenograft models of bone metastasis revisited : novel insights into species-specific mechanisms of cancer cell osteotropism

The determinants and key mechanisms of cancer cell osteotropism have not been identified, mainly due to the lack of reproducible animal models representing the biological, genetic and clinical features seen in humans. An ideal model should be capable of recapitulating as many steps of the metastatic cascade as possible, thus facilitating the development of prognostic markers and novel therapeutic strategies. Most animal models of bone metastasis still have to be derived experimentally as most syngeneic and transgeneic approaches do not provide a robust skeletal phenotype and do not recapitulate the biological processes seen in humans. The xenotransplantation of human cancer cells or tumour tissue into immunocompromised murine hosts provides the possibility to simulate early and late stages of the human disease. Human bone or tissue-engineered human bone constructs can be implanted into the animal to recapitulate more subtle, species-specific aspects of the mutual interaction between human cancer cells and the human bone microenvironment. Moreover, the replication of the entire "organ" bone makes it possible to analyse the interaction between cancer cells and the haematopoietic niche and to confer at least a partial human immunity to the murine host. This process of humanisation is facilitated by novel immunocompromised mouse strains that allow a high engraftment rate of human cells or tissue. These humanised xenograft models provide an important research tool to study human biological processes of bone metastasis.