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The main purpose of this chapter is to estimate a model for hedge fund returns that will endogenously generate failure probabilities using panel data where sample attrition due to fund failures is a dominant feature. We use the Lipper (TASS) hedge fund database, which includes all live and defunct hedge funds over the period January 1994 through March 2009, to estimate failure probabilities for hedge funds. Our results show that hedge fund failure prediction can be substantially improved by accounting for selectivity bias caused by censoring in the sample. After controlling for failure risk, we find that capital flow, lockup period, redemption notice period, and fund age are significant factors in explaining hedge fund returns. We also show that for an average hedge fund, failure risk increases substantially with age. Surprisingly, a 5-year-old fund on average has only a 65% survival rate.

Purpose: The present study investigates how the performance of Greek bank branching varies when the external environment causes dramatic changes that are reflected in recession and capital control effects.

Design/Methodology: A unique dataset of accounting Profit and Loss statements of retail branches of a systemic Greek commercial bank, closely supervised by the European Central Bank (ECB), is utilized. A profit bootstrap Data Envelopment Analysis (DEA) model is selected to measure the bank branch efficiency. The derived efficiency estimates are analyzed through a second-stage panel data regression analysis against a set of efficiency drivers related to branch profitability, diversification of income, branch size, and branch activity.

Findings: The results indicate that recession negatively affects branch efficiency in the short and long run. The occurrence of recession significantly intensifies the efficiency premium of branch profitability, reduces the efficiency premium of diversification of income (i.e., a negative efficiency effect is recorded during the early recession period), while mitigating the generally negative efficiency effect of branch size. The analysis of efficiency effects from the deep recession period that encompasses capital controls reveals the importance of diversification of income for the improvement of profit efficiency at bank branch level.

Originality/Value: This is the first branch banking study that explores branch efficiency alteration and the dynamic of branch efficiency drivers when the economy suddenly enters recession and afterwards when conditions are becoming extremely difficult and consequently capital controls are imposed on the economy.

Dynamic predictions of financial distress of the firms have received less attention in finance literature rather than static prediction, specifically in Malaysia. This study, therefore, investigates dynamic symptoms of the financial distress event a few years before it happened to the firms by using neural network method. Cox Proportional Hazard regression models are used to estimate the survival probabilities of Malaysian PN17 and GN3 listed firms. Forecast accuracy is evaluated using receiver operating characteristics curve. From the findings, it shown that the independent directors’ ownership has negative association with the financial distress likelihood. In addition, this study modeled a mix of corporate financial distress predictors for Malaysian firms. The combination of financial and non-financial ratios which pressure-sensitive institutional ownership, independent director ownership, and Earnings Before Interest and Taxes to Total Asset shown a negative relationship with financial distress likelihood specifically one year before the firms being listed in PN 17 and GN 3 status. However, Retained Earnings to Total Asset, Interest Coverage, and Market Value of Debt have positive relationship with firm financial distress likelihood. These research findings also contribute to the policy implications to the Securities Commission and specifically to Bursa Malaysia. Furthermore, one of the initial goals in introducing the PN17 and GN3 status is to alleviate the information asymmetry between distressed firms, the regulators, and investors. Therefore, the regulator would be able to monitor effectively distressed firms, and investors can protect from imprudent investment.

Shane and Venkataraman (2000) suggest “the field [of entrepreneurship] involves the study of sources of opportunities; the processes of discovery, evaluation, and exploitation of opportunities; and the set of individuals who discover, evaluate, and exploit them” (p. 218). However, the study of the judgment required for opportunity evaluation has been greatly overshadowed by interest in opportunity recognition and to a lesser extent opportunity exploitation. This is surprising considering the number of economic theories of the entrepreneur that recognize sound judgment as a principal quality of entrepreneurship (Cantillon, 1755; Kirzner, 1973; Knight, 1921; Mises, 1949; Say, 1840; Schumpeter, 1934; Shackle, 1955). In fact, the first recognized theory of the entrepreneur defined the entrepreneur as someone who exercises business judgment in the face of uncertainty (Cantillon, 1755/1931, pp. 47–49). Similarly, Knight (1921, p. 271) suggests that the essence of entrepreneurship is judgment, born of uncertainty, and argues that it is this judgment that delineates the function of entrepreneur from that of manager. He goes on to point out that the function of manager does not in itself imply entrepreneurship but that a manager becomes an entrepreneur when he exercises judgment involving liability to error (Knight, 1921, p. 97). However, the judgment referred to by these theorists is not just any form of judgment, it is judgment exercised in the decision of whether to take action.

Purpose – This chapter examines the extent to which public support for internationalization can be considered as a determinant of foreign direct investment (FDI).

Design/methodology/approach – The chapter examines the traditional determinants of FDI and the capability-building argument; and augments this by testing a set of public support measures as complement of the firm's internal needs, using a probit model.

Findings – The chapter shows that a special theory is clearly required to explain the particular circumstances of the use of public support for internationalization activities. However, the received theory relying on capability-building argument performs well.

Practical implications – The importance of specific characteristics related to competencies and the use of certain types of public support that improve competencies lead us to consider that public support matters for capability-building. Despite this issue, the analysis of the FDI determinants can be explained by standard theory. However, the impact of public policies on FDI suggests new models capable of capturing the behaviour of foreign direct investors in presence of public incentives.

Originality/value – This research provides useful information to understand the role of intrinsic characteristics of the firms and how they bridge their internal gaps with external support in carrying out demanding activities. External support provides a good test of the general theory of FDI, and a special theory nested within this gives a great deal of insight into current issues of FDI in the link between the home-country government and the firm's needs. This study goes beyond the traditional analysis of the effects of public support on exports. It uses a uniquely rich data set to evaluate the importance of public support as FDI determinant.

We write this chapter using a historical discourse, both in the chronology of research and in the development that has occurred over the years with curriculum-based measurement (CBM). More practically, however, we depict the chronology in terms of the sequence of decisions that educators make as they provide special services to students with disabilities. In the first part of the chapter, we begin with a pair of seminal documents that were written in the late 1970s to begin the story of CBM. In the second part of the chapter, we begin with the first decision an educator needs to make in providing special services and then we continue through the chronology of decisions to affect change in learning for individual students. In the end, we conclude with the need to integrate these decisions with multiple references for interpreting data: normative to allocate resources, criterion to diagnose skill deficits, and individual to evaluate instruction.

Very often the diagnostic process provides only a descriptive label of the disorder. A useful diagnosis must reach the precise description and the functional interpretation of the deficits shown by a given individual. To this aim, four separate but intertwined steps are required: (1) clinical interview to collect personal and clinical anamnesis and to figure out the sociocultural context; (2) screening tests to describe the general cognitive picture and to detect the impaired functions; (3) standardized batteries to categorize the specific cognitive disorders according to the accredited taxonomies; (4) ad hoc investigation to identify the impaired cognitive components in the individual patient according to a sound theoretical model of the functional architecture of the cognitive processes. Only doing in this way, personalized educational and rehabilitative interventions may be planned and specific goals can be achieved.

Constructing and evaluating behavioral science models is a complex process. Decisions must be made about which variables to include, which variables are related to each other, the functional forms of the relationships, and so on. The last 10 years have seen a substantial extension of the range of statistical tools available for use in the construction process. The progress in tool development has been accompanied by the publication of handbooks that introduce the methods in general terms (Arminger et al., 1995; Tinsley & Brown, 2000a). Each chapter in these handbooks cites a wide range of books and articles on specific analysis topics.

Given the increasing global focus of many aspects of our society, researchers have taken significant steps in understanding the impact of culture on various psychological states. This review focuses on the stressor–strain relationships within the context of cross-cultural and cross-national studies. Using research findings from the United States as a baseline, we identify common and unique themes concerning the stressor–strain relationships between different countries, and clarify the differences between cross-national and cross-cultural studies. Furthermore, we consider cross-cultural and cross-national occupational stress research from an individual differences perspective. We encourage future studies to adopt this perspective and carefully consider the implications of cultural values on occupational stress research at the individual, group, and country levels.

Constraints on human-machine systems’ performance are generally treated as due to anatomy, physiology, and cognitive or behavioral limits. It is assumed that research findings can be universally applied to the design of such systems. It is now clear that social and cultural constraints are equally important, even in simple work systems. Context and culture are at least as important as limits of cognitive ability, and in many situations social and cultural factors are the dominant constraints on performance. This is particularly true in the cross-cultural transfer of advanced technological systems. A particularly clear example is given by population stereotypes of stimulus-response relations.