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Research on strategic choices available to the firm are often modeled as a limited number of possible decision outcomes and leads to a discrete limited dependent variable. A limited dependent variable can also arise when values of a continuous dependent variable are partially or wholly unobserved. This chapter discusses the methodological issues associated with such phenomena and the appropriate statistical methods developed to allow for consistent and efficient estimation of models that involve a limited dependent variable. The chapter also provides a road map for selecting the appropriate statistical technique and it offers guidelines for consistent interpretation and reporting of the statistical results.

This paper proposes an alternative method of estimating a model that predicts the outcome of a tender offer. We argue that previous econometric models designed to predict the outcome of a tender offer have been estimated incorrectly. Explanatory variables which are endogenous have been treated as though they were exogenous. Ignoring the endogeneity problem results in estimates of re‐gression coefficients which are inconsistent. In order to derive consistent estimates of the regression coefficients, we construct a simultaneous equation model to explain the outcome of a tender offer. Since two of the three dependent variables in the simultaneous equation model are dichotomous, it is necessary to use the two stage limited dependent variable estimator (2SLDV) to find consistent estimates of the regression coefficients.

The purpose of this paper is to investigate the role played by the geographic distance between the poor and non‐poor in the local demand for income redistribution and, in particular, to provide an empirical test of the geographically limited altruism model proposed by Pauly, incorporating the possibility of participation costs associated with the provision of transfers.

First, the authors motivate the discussion by allowing for an “iceberg cost” as participation for the poor individuals in Pauly's original model. Next, using data from the 2000 Brazilian Census and a panel based on the National Household Sample Survey (PNAD) from 2001 to 2007, the authors estimate the effect of the proximity between poor and non‐poor on the demand for redistribution.

All of the authors' distance‐related explanatory variables indicate that an increased proximity between poor and non‐poor is associated with better targeting of the programs (demand for redistribution). For instance, a one‐hour increase in the time spent commuting by the poor reduces the targeting by 3.158 percentage points. This result is similar to that of Ashworth et al., but is definitely not due to the program leakages. To empirically disentangle participation costs and spatially restricted altruism effects, an additional test is conducted using unique panel data based on the 2004 and 2006 PNAD, which assess the number of benefits and the average benefit value received by beneficiaries. The estimates suggest that both cost and altruism play important roles in the demand for redistribution and might reduce targeting in Brazil. Lastly, the results indicate that “size matters”; i.e. the budget for redistribution has a positive impact on targeting.

Our results suggest that a totally centralized supply of transfers may be more inefficient than local redistribution in terms of targeting, either due to higher participation costs or because of the eventual greater geographical distance between the national median voter and poor individuals. However, a partial role for the federal government, such as providing funds for redistribution, seems to improve targeting.

In particular, the paper provides an empirical test for the geographically limited altruism model proposed by Pauly, incorporating the possibility of participation costs associated with the provision of transfers. The authors motivate this discussion by adding the possibility of distance‐related “iceberg costs” of delivering benefits to poor individuals and show that these two effects of distance may act to lower the demand for transfers, making it difficult to distinguish between the two effects. These two effects of distance act by lowering the demand for transfers, making it difficult to disentangle the effect of altruism from the effect of cost. The authors' empirical strategy seems to allow to identify each of them and to provide a suggestion on whether it is advantageous to carry out redistribution at the local level.

Considering the importance of human capital in innovation, entrepreneurship and thus economic development, this study attempts to examine formal learning as a mechanism of human capital development in institutions of higher learning. Ironically, students in such institutions are automatically assumed to learn and accumulate pertinent capacity, which would then enable them to compete in the business world or pursue further studies in future. Consequently, lack of this cognizance culminates in little being known about how students learn to accumulate knowledge, skills and requisite competencies. Notwithstanding this, the challenges posed in the twenty-first century require well-rounded students those especially who can address the global transformations witnessed in the business arena. The purpose of this paper is an attempt to fill this gap using data from the University of Dubai (UD) to examine how formal learning takes place in an institution and what determines it.

Learning is conceptualized in terms of knowledge, skills and competencies accumulated as proxied by cumulative general point aggregate. All the data used came from the UD. In addition to in-depth descriptive analysis, the study uses limited dependent techniques to identify the most significant determinants of institutional learning.

The empirical results generated indicate that demographic characteristics such as age, nationality and gender had a positive effect on learning. Moreover, a student’s initial condition influenced his/her learning positively. Whereas the mode of study under personal preferences did not seem to affect learning, the number of course sections taken had a positive influence on learning. As anticipated, student transfer had a negative influence on learning. The number of credit hours accumulated affected learning positively.

The main limitation of this study is that results are only applicable within a limited geographical scope, and thus they cannot be generalized for global consumption. Nonetheless, the discussion and results obtained make insights to any future-related studies.

As pointed out in the previous sections, learning will be conceptualized in the form of knowledge, skills and competency acquisition. In a school setting, knowledge, skills and competencies are better captured by the grade attained in each subject. The general student learning can, therefore, be equally captured by the cumulative grade point aggregate. The authors purport that learning can be visualized, or in other words conceptualized, as a complex process that is determined by five main factors that include demographic characteristics; student initial condition; personal preferences and choices; and time factor curriculum and anticipated future career.

This study aims to investigate the relationship between three organizational practices (distributive justice, procedural justice and potential growth opportunity) and at-will employees’ work attitudes (job satisfaction and affective organizational commitment).

The data for the analysis are derived from the 2000 GeorgiaGain Survey. Multinomial logit model is used to examine the relationship of three organizational practices to reduce job insecurity and to promote at-will employees’ work attitudes.

This study demonstrated that at-will employees responded positively with job satisfaction or affective organizational commitment if they perceived a strong perception of organizational practices fairly and properly, in the form of providing distributive justice (affective organizational commitment), procedural justice (job satisfaction and affective organizational commitment) and offering career development opportunity (affective organizational commitment).

By using a unique data set of US public employees who felt limited job security protection through at-will employment policy reform, this study has enhanced our understanding of how at-will employee group in US state government would respond to different organizational practices which is currently limited.

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.

The purpose of this paper is to investigate the relationships between five characteristics of social shoppers’ online reviews (the number of all reviews made by a reviewer, the number of friends of a reviewer, the review score, the number of review words, and images/photos) and the usefulness, funniness, and coolness to viewers for the restaurant businesses and the health and wellness businesses.

A sample of 1,114 online reviews of social shoppers was collected from Yelp.com. A zero-inflated Poisson regression was used due to a high number of zero votes in the dependent variables for usefulness, funniness, and coolness. The regression identified the review characteristics that are strongly associated with the number of usefulness, funniness, and coolness votes made by viewers.

The analysis shows that for the health and wellness businesses, all three dependent variables (usefulness, funniness, and coolness) have the number of reviews, the number of friends, and the number of words as significant independent variables. The results indicate that a reviewer who has more friends and is more experienced in giving reviews is likely to be more influential in generating a perceived value of the online review. The analysis also shows that all three dependent variables of the restaurant businesses have the number of words as a significant independent variable. It is found that there is a negative relationship between the review score and the usefulness votes for both restaurant businesses and health and wellness businesses. The effect of the review score on the coolness votes was not consistent.

This study is the first research attempt in understanding social shoppers’ online reviews and their usefulness, funniness, and coolness to viewers, and therefore makes significant contributions to research and practice. The comparison was made between restaurant businesses and health and wellness businesses. The result indicates that for the health and wellness businesses, managers need to pay attention to social shoppers with a high number of friends and high number of words in a review. It is also noted that it is necessary to analyze review characteristics separately for each business type. However, as is typical in many empirical studies, this study is not without limitations. While the author limited the analysis of social shoppers’ online reviews to the five characteristics, additional variables may influence the number of votes, too. This study is limited to social shoppers’ reviews and the findings may not be generalized to regular customers’ online reviews. Future research should also examine whether similar results can be obtained at other review sites such as TripAdvisor and Zagat.

Despite the potential significance of social shoppers’ online reviews, the critical mass of empirical studies still lacks in this area. For a more comprehensive interpretation of review characteristics, this study develops hypotheses based on the literature review on electronic word of mouth and source credibility models and investigates the effect of the five review characteristics on the viewers’ perceived usefulness, funniness, and coolness. Unlike previous studies focused on a single business type, this study compares the results obtained for restaurant businesses and health and wellness businesses and demonstrates that viewers in each business type respond differently to social shoppers’ online reviews.

This paper aims to investigate the determinants of women representation on Australian corporate boards under the ASX’s “if not, why not” corporate governance framework. It further aims to improve the study of Geiger and Marlin (2012) by using a theoretically sound two-limit Tobit model to examine the determinants.

This study uses the two-limit Tobit model to examine the determinants of women representation on ASX 500 boards. This approach is used due to the censored nature of the dependent variable.

This study finds that the two-limit Tobit model is an appropriate methodology to accommodate the censored dependent variable. It further finds that firm size, women as chair of boards, corporate governance index, Global Reporting Initiative signatory, debt ratio, average board age, BIG4 auditors, chief executive officer tenure and shareholder concentration are major determinants of women on boards.

The use of only ASX 500 companies and the sample years (2011-2014) may limit the generalisation of the findings.

This is the first extensive longitudinal Australian study to examine the drivers of women representation on corporate boards. It is also the first of its kind to use the two-limit Tobit model to consider these determinants.

The aim of this paper is to identify the factors that influence rice farmers' decisions to adopt crop insurance and premium payments (willingness to pay [WTP] amounts). The paper also demonstrates the usefulness of the complementary log-log (cloglog) truncated Poisson double-hurdle model as an alternative hurdle model.

The study first investigated the nature of the dependent variable, which had non-normal residuals and was overdispersed. The probit truncated normal regression double-hurdle model was tried but it failed the normality and homoscedasticity tests; hence, the cloglog truncated Poisson double-hurdle model was employed in the study.

An estimated 61% of respondents would purchase crop insurance, despite farmers not having prior experience with this product. Amongst others, the factors that influence insurance adoption amongst rice farmers are the share of rice in total income, reliability perception of crop insurance schemes and the probability of failure to achieve target yields. The latter helps the authors to address adverse selection, a central issue to the viability of such an insurance programme. The determinants of farmers' WTP are also identified.

Sampling was limited to farmers using irrigation and living in one region of Ghana, which may limit the study’s wider applicability.

As far as the authors are aware, this study is the first to select the appropriate hurdle model based on established properties of the dependent variable on this topic – crop insurance decisions.