Propensity for entrepreneurship among college undergraduates: the case of a public university in north-eastern Portugal

             

+$5656,-±ȀȆǼ5,&5±=5:±***5  (GLWRULDO%RDUG  :HEVLWHKWWSZZZUVLMRXUQDOHX(PDLOLQIR#UVLMRXUQDOHXSXEOLVKHU#UVLMRXUQDOHX E1DYDULQRX6WUHHW&KDODQGUL$WKHQV*UHHFH7HO)D[ &RS\ULJKW‹&$/$',$6+(//(1,&$662&,$7,212)5(*,21$/6&,(17,676 (OHFWURQLFDQGKDUGFRS\HGLWLRQVDUHRIIHUHGIUHHRIFKDUJH,661,66121/,1( 7KH56,-RXUQDOLVLQFOXGHGLQWKH5HIHUHQFH/LVWVRI(FRQ/LW6FRSXV56$,(FRQ3DSHUV5H3HF,'($6      7KH%RDUGRIWKH+(//(1,& $662&,$7,212)5(*,21$/ 6&,(17,676+$56  >+$56LVD7KLQN7DQNRIJURXSVRISHRSOHZLWK PXOWLGLVFLSOLQDU\ZRUNLQWKHILHOGVRI5HJLRQDO 6FLHQFHZKLFKRFFXUVZLWKWKHVHOIOHVVFRQWULEXWLRQ RISDUWLFLSDQWVZKRRIIHUWKHLUZRUNWRWKHJOREDO VFLHQWLILFFRPPXQLW\@  3UHVLGHQWDQG&KDLU-RXUQDOV0DQDJHPHQW &RPPLWWHH 56,-±ȀȆǼ±5,&5±=5:±***5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¶'$+0$'$/1,05 0HFKDQLFDO(QJLQHHULQJ'HSDUWPHQW -RUGDQ8QLYHUVLW\RI6FLHQFHDQG7HFKQRORJ\ ,UELG±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

   352)(6625'$1,(/$/&2167$17,1 RIWKH5HVHDUFK&HQWUHIRU0DFURHFRQRPLF DQG5HJLRQDO)RUHFDVWLQJ3520$5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³(TUHP&DEHM´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±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

  /(&785(59,&.<.$7621, 'HSDUWPHQWRI+RVSLWDOLW\DQG7RXULVP0DQDJHPHQW 7HFKQRORJLFDO(GXFDWLRQDO $WKHQV*UHHFH  352)(6625 $1$67$6,$$7+$1$628/$5(33$ 'HSDUWPHQWRI3HGDJRJ\+LJK6FKRRORI 3HGDJRJLFDODQG7HFKQRORJLFDO(GXFDWLRQ*UHHFH  352)(6625*(25*(32/,&+5212328/26 6FKRRORI%XVLQHVV$GPLQLVWUDWLRQDQG (FRQRPLFV7HFKQRORJLFDO(GXFDWLRQDO,QVWLWXWHRI $WKHQV*UHHFH  'U'$0,$1266$..$6 8QLYHUVLW\RI3HORSRQQHVH*UHHFH  'U0,&+(/'848(612< 8QLYHUVLGDGGHORV/DJRV&('(5 8QLYHUVLGDG$XWy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ȀİȓȝİȞĮȆİȡȚijİȡİȚĮțȒȢǼʌȚıIJȒȝȘȢ .LPHQD3HULIHULDNLV(SLVWLPLV  0DQDJLQJ(GLWRU $VVRFLDWH3URIHVVRU *HRUJLRV.RUUHV  +RQ0DQDJLQJ(GLWRU 3URIHVVRU&KDUDODPSRV%RWVDULV  &RS\(GLWRU 'U$LNDWHULQL.RNNLQRX  (GLWRULDO$VVLVWDQW $VVRFLDWH3URIHVVRU 6WHIDQRV.DUDJLDQQLV  3XEOLVKHU0DQDJHU 'U&KULVWRV/DGLDV  0HPEHUV /HFWXUHU)RWLV.LWVLRV$VVLVWDQW3URIHVVRU(OHQL 3DSDGRSRXORX9LOHOPLQL3VDUULDQRX  ,QYHVWLJDFLyQHQ&LHQFLD5HJLRQDO  0DQDJLQJ(GLWRU /HFWXUHU1HOD)LOLPRQ  +RQ0DQDJLQJ(GLWRU 3URIHVVRU-RVp9DUJDV+HUQiQGH]  &RS\(GLWRU 9LV3URIHVVRU.RQVWDQWLQD=HUYD  (GLWRULDO$VVLVWDQW 3URIHVVRU&ULVWLDQR&HFKHOD  3XEOLVKHU0DQDJHU 'U&KULVWRV/DGLDV 0HPEHUV 3URIHVVRU$QD&ULVWLQD/LPRQJL)UDQFD$VVRFLDWH 3URIHVVRU)UDQFLVFR'LQL]$VVLVWDQW3URIHVVRU(ORtQD 0DULDÈYLOD0RQWHLUR'U0LFKHO'XTXHVQR\  =HLWVFKULIWIUGLH5HJLRQDOH :LVVHQVFKDIW  0DQDJLQJ(GLWRU $VVRFLDWH3URIHVVRU7ULIRQDV.RVWRSRXORV  +RQ0DQDJLQJ(GLWRU 3URIHVVRU5XGLJHU+DPP  &RS\(GLWRU $VVLVWDQW3URIHVVRU 3DQDJLRWLV.ULEDV  (GLWRULDO$VVLVWDQW $VVRFLDWH3URIHVVRU 6WHIDQRV.DUDJLDQQLV  3XEOLVKHU0DQDJHU 'U&KULVWRV/DGLDV  0HPEHUV 'U.KDFKDWU\DQ1XQH'U1LNRODRV&KDVDQDJDV 'U$QQH0DUJDULDQ'U/DPEURV6GUROLDV  *pRJUDSKLHV*pRSROLWLTXHVHW *pRVWUDWpJLHV5pJLRQDOHV  0DQDJLQJ(GLWRU 3URIHVVRU,RDQQLV0D]LV  +RQ0DQDJLQJ(GLWRU 3URIHVVRU&KDULODRV.HSKDOLDNRV  &RS\(GLWRU 9LOHOPLQL*3VDUULDQRX  (GLWRULDO$VVLVWDQW 'LPLWULRV..RX]DV  3XEOLVKHU0DQDJHU 'U&KULVWRV$S/DGLDV  0HPEHUV 3URIHVVRU*ULJRULRV7VDOWDV3URIHVVRU/\GLD 6DSRXQDNL'UDNDNL$VVRFLDWH3URIHVVRU2OJD*LRWL 3DSDGDNL'U0DULD/XLVD0RDWVRX          

5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9   

&RQWHQWV

  3DJH  (GLWRULDO    $UWLFOHV   (FRQRPLF$QDO\VLVRIWKH,PSDFWRI&DUERQ7D[RQWKH(FRQRP\RI0DNDVVDU &LW\,QGRQHVLD<X]XUX0L\DWD$Q\:DK\XQLDQG+LUR\XNL6KLEXVDZD    /RFDWLRQ&RQGLWLRQVRI(QHUJ\,QWHQVLYH(QWHUSULVHV5GLJHU+DPP  

 $ 7KHRUHWLFDODQG0HWKRGRORJLFDO $SSURDFK RI ©)UDJLOHª $UHDV7KH &DVHV RI

*UHHN5HJLRQV&URVVHGE\WKH(JQDWLD5RDG/DPDUD+DGMRXDQG0DULH1RsOOH 'XTXHQQH





 7KH 5HODWLRQ %HWZHHQ ,QGXVWULDO $QG 6RFLR(FRQRPLF )XQGDPHQWDOV ,Q *HUPDQ 'LVWULFWV$QQH0DUJDULDQ



  3URSHQVLW\ IRU HQWUHSUHQHXUVKLS DPRQJ FROOHJH XQGHUJUDGXDWHV WKH FDVH RI D

SXEOLF XQLYHUVLW\ LQ QRUWKHDVWHUQ 3RUWXJDO 0DULD ,VDEHO %DUUHLUR 5LEHLUR $QWyQLR-RVp*RQoDOYHV)HUQDQGHVDQG)UDQFLVFR-RVp/RSHVGH6RXVD'LQL]    (VWLPDWLQJ%UD]LOLDQ)',0RWLYDWLRQV,Q3RUWXJDO%\6WUXFWXUDO(TXDWLRQV0RGHO 6(0&ULVWLDQR&HFKHOOD    7KH 6\VWHP RI &RQWULEXWLRQV IRU +HDOWK ,QVXUDQFH 6FKHPH LQ $OEDQLD 

3HUIRUPDQFHDQG0DLQ&KDOOHQJHV(QNHOHMGD$YGL    7KH&URVVURDGRI+RXVLQJ/RDQV)LQDQFLQJ&DVHRI$OEDQLD,ULV6KDKLQLDQG 2UIHD'KXFL    $JHRSROLWLFDODQDO\VLVRIWKHDFWLYDWLRQRIWKH6KLLWHJHRSROLWLFDOIDFWRUZLWKLQ WKH6\ULDQFRQIOLFWJHRV\VWHP,RDQQLV7K0D]LVDQG0LFKDOLV6DUOLV    ,QWHUSUHWLQJ2YHUDOO,QHTXDOLW\LQ&KLQD7KH5ROHVRI3K\VLFDO&DSLWDO+XPDQ &DSLWDODQG6RFLDO+XPDQ<XKHQJ/LDQG+DQV:HVWOXQG    7KH 6HUYLFHV RI *HQHUDO ,QWHUHVW LQ 5RPDQLD ,QVLJKWV ,QWR /HJDO $QG

,QVWLWXWLRQDO ,VVXHV $W 1DWLRQDO $QG 7HUULWRULDO /HYHO 'DQLHOD/XPLQLĠD &RQVWDQWLQ $OLQD (OHQD,RVLI $OLQD *HRUJLDQD 3URILURLX DQG 5DOXFD0DULDQD *URVX





 /RFDO $FWRUV DQG /HDGHUVKLS LQ 5XUDO 'HVWLQDWLRQV ([SORULQJ WKH 5ROH RI

*DVWURQRPLF&RQIUDWHUQLWLHV%HUQDUG'H0\WWHQDHUH    $QQRXQFHPHQWV&RQIHUHQFHV1HZV    $FDGHPLFSURILOHV    %RRNUHYLHZV    $XWKRU,QVWUXFWLRQV    7KHDUWLFOHVSXEOLVKHGLQ56,-RXUQDODUHLQDFFRUGDQFHZLWKWKHDSSURYLQJGDWHVE\WKHDQRQ\PRXV UHYLHZHUV

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS   3523(16,7<)25(175(35(1(856+,3$021*&2//(*( 81'(5*5$'8$7(67+(&$6(2)$38%/,&81,9(56,7<,11257+ ($67(5132578*$/   0DULD,VDEHO%$55(,525,%(,52 %UDJDQoD3RO\WHFKQLF,QVWLWXWH%UDJDQoD &HQWUHIRU7UDQVGLVFLSOLQDU\'HYHORSPHQW6WXGLHV9LOD5HDO 5HVHDUFK8QLWIRU,QODQG'HYHORSPHQW*XDUGD 3RUWXJDO [LORWH#LSESW  $QWyQLR-RVp*21d$/9(6)(51$1'(6FRUUHVSRQGLQJDXWKRU %UDJDQoD3RO\WHFKQLF,QVWLWXWH%UDJDQoD &HQWUHIRU7UDQVGLVFLSOLQDU\'HYHORSPHQW6WXGLHV9LOD5HDO 3RUWXJDO WR]H#LSESW  )UDQFLVFR-RVp/RSHVGH6286$',1,= 8QLYHUVLW\RI7UiVRV0RQWHVH$OWR'RXUR9LOD5HDO &HQWUHIRU7UDQVGLVFLSOLQDU\'HYHORSPHQW6WXGLHV9LOD5HDO 3RUWXJDO IGLQL]#XWDGSW   &RUUHVSRQGLQJDXWKRUDGGUHVV ,QVWLWXWR3ROLWpFQLFRGH%UDJDQoD (VFROD6XSHULRU$JUiULD &DPSXVGH6DQWD$SROyQLD %UDJDQoD3RUWXJDO  7OP 7HO )D[ $EVWUDFW 

7KLV VWXG\ ORRNHG LQWR WKH HQWUHSUHQHXULDO DELOLW\ RI WKH VWXGHQWV RI D SXEOLF XQLYHUVLW\ LQ %UDJDQoD 3RUWXJDO WR LGHQWLI\ GLIIHUHQWLDWLRQ IDFWRUV RI WKHLU HQWUHSUHQHXULDO SRWHQWLDO $ TXDQWLWDWLYH WUDQVYHUVDO DQG REVHUYDWLRQDO DQDO\VLV ZDV FRQGXFWHG LQYROYLQJ  VWXGHQW SDUWLFLSDQWV'DWDJDWKHULQJWRRNSODFHEHWZHHQ1RYHPEHUDQG'HFHPEHUDQGXVHGWKH (QWUHSUHQHXULDO 3RWHQWLDO ,QGLFDWRU TXHVWLRQQDLUH 7KH UHVSRQGHQWV ZHUH PRVWO\ IHPDOH EHWZHHQDQG\HDUVROGFRUUHVSRQGLQJWRDQDYHUDJHRI\HDUVRI DJH “ VWXGLHG XQGHU DQ RUGLQDU\ UHJLPH  ZHUH IURP WKH QRUWKHUQ UHJLRQ OLYHGLQDQXUEDQFHQWUHDQGDWWHQGHGWKHILUVWVWXG\F\FOHRIWZR VFLHQWLILF DUHDV QDPHO\ (GXFDWLRQ 6FLHQFHV  DQG 7HFKQRORJ\ DQG 0DQDJHPHQW  2YHU KDOI RI WKH UHVSRQGHQWV VKRZHG HQWUHSUHQHXULDO VNLOOV  2I DOO WKH KXPDQ FDSLWDO IDFWRUV FRQVLGHUHG WKH DWWHQGDQFH UHJLPH ZDV WKH RQO\ RQH ZKLFK KDG QR LQIOXHQFHRQWKHHQWUHSUHQHXULDOSRWHQWLDO,QIDFWDOOWKHRWKHUVQDPHO\WKHFRXUVH¶VVFLHQWLILF DUHDDQGWKHVWXG\F\FOHKDYHSURYHQWREHUHOHYDQWIRUUHLQIRUFLQJRUGHYHORSLQJWKHVWXGHQWV¶ HQWUHSUHQHXULDO VNLOOV 1RQH RI WKH VRFLRGHPRJUDSKLF IDFWRUV WKDW ZHUH WDNHQ LQWR FRQVLGHUDWLRQ KDG DQ\ LQIOXHQFH RQ HQWUHSUHQHXULDO SRWHQWLDO GLIIHUHQWLDWLRQ %LQDU\ ORJLVWLF UHJUHVVLRQ ORJLW PRGHO UHYHDOHG D FDXVH DQG HIIHFW UHODWLRQVKLS EHWZHHQ DOO WKH FKDUDFWHULVWLFVDQGWKHHQWUHSUHQHXULDOWHQGHQF\  .H\ZRUGV+LJKHU(GXFDWLRQ(QWUHSUHQHXULDOSRWHQWLDO7UiVRV0RQWHV3RUWXJDO -(/&ODVVLILFDWLRQ''  

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS  ,QWURGXFWLRQ  $FFRUGLQJWR%URQRVN\>@+LJKHU(GXFDWLRQ,QVWLWXWLRQVKDYHEHHQIHHOLQJWKHQHHG WRPRWLYDWHWKHLUVWXGHQWVDQGJLYHWKHPWKHQHFHVVDU\VNLOOVWRWDNHHQWUHSUHQHXULDOLQLWLDWLYHV FDSDEOH RI JHQHUDWLQJ HPSOR\PHQW DQG HFRQRPLF GHYHORSPHQW ,Q +XOO¶V HW DO >@ YLHZ LGHQWLI\LQJDQGVXEVHTXHQWO\XVLQJWKHLUHQWUHSUHQHXULDOSRWHQWLDOZLOOQRGRXEWEHEHQHILFLDO IRUVRFLHW\6RFLRGHPRJUDSKLFYDULDEOHVVXFKDVJHQGHUDJHUHVLGLQJDUHDDPRQJRWKHUV DQGKXPDQFDSLWDOYDULDEOHVOLNHWKHFRXUVHDUHSLQSRLQWHGE\7HL[HLUDDQG'DYH\>@DV GLIIHUHQWLDWLQJIDFWRUVRIWKHHQWUHSUHQHXULDOSRWHQWLDO 7KHPDLQJRDOVRIWKLVVWXG\LQYROYHGDQDO\VLQJWKHVWXGHQWV¶HQWUHSUHQHXULDOVNLOOVLQ DSXEOLF+LJKHU(GXFDWLRQLQVWLWXWLRQLQQRUWKHDVWHUQ3RUWXJDODQGWU\LQJWRDVFHUWDLQZKHWKHU WKHUH DUH VLJQLILFDQW GLIIHUHQFHV LQ WKH VWXGHQWV¶ HQWUHSUHQHXULDO SRWHQWLDO WDNLQJ LQWR FRQVLGHUDWLRQVRFLRGHPRJUDSKLFDVZHOODVKXPDQFDSLWDOIDFWRUVVWXGHQWVSDUWLFLSDWHG LQ WKH VWXG\ ZKLFK ZDV TXDQWLWDWLYH WUDQVYHUVDO DQDO\WLFDO DQG REVHUYDWLRQDO 'DWD ZHUH FROOHFWHG EHWZHHQ 1RYHPEHU DQG 'HFHPEHU  WKURXJK WKH DSSOLFDWLRQ RI WKH (QWUHSUHQHXULDO3RWHQWLDO,QGLFDWRUTXHVWLRQQDLUHYDOLGDWHGIRU3RUWXJDOE\)HUUHLUDHWDO>@

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¶V>@RSLQLRQWKHUHLVOLWWOHFRQVHQVXVDVWRZKDWHQWUHSUHQHXUVKLSPHDQVRUDQ HQWUHSUHQHXUGRHV &XQQLQJKDPDQG/LVFKHURQ>@KDYHLGHQWLILHGVL[FXUUHQWVRIWKRXJKWRQWKHVXEMHFW DQGSURYLGHD GLIIHUHQW YLHZ RI ZKDWLW LV WREH DQ HQWUHSUHQHXU7KH*UHDW3HUVRQ 6FKRRO GHILQHVWKHHQWUHSUHQHXUDVVRPHRQHZKRLVERUQZLWKLQWXLWLRQVWDPLQDYLJRUSHUVLVWHQFH DQG VHOIHVWHHP RQ WKH RWKHU KDQG WKH &ODVVLFDO 6FKRRO UHFRJQLVHV WKH HQWUHSUHQHXU¶V LQQRYDWLYHDQGGLVFRYHU\VNLOOVDQGFUHDWLYLW\IRUWKH0DQDJHPHQW6FKRROWKHHQWUHSUHQHXU RUJDQL]HVPDQDJHVDQGWDNHVULVNVZKHUHDVWKH/HDGHUVKLS6FKRROVHHVKLPKHUDVWKHSHUVRQ ZKRPRWLYDWHVDGYLVHVDQGOHDGVWKH,QWUDSUHQHXUVKLS6FKRROFRQFHLYHVWKHHQWUHSUHQHXUDV WKH VNLOOIXO PDQDJHU RI ELJ RUJDQLVDWLRQV DQG ILQDOO\ WKH 3V\FKRORJLFDO &KDUDFWHULVWLFV 6FKRRODVVRFLDWHVWKHHQWUHSUHQHXUZLWKERWKXQLTXHYDOXHVDQGDWWLWXGHVDQGGLVWLQFWQHHGV

'HR >@ FODLPV WKH HQWUHSUHQHXU FDQ EH VHHQ ERWK IURP WKH HFRQRPLVW¶V DQG WKH SV\FKRORJLVW¶VSHUVSHFWLYH$FFRUGLQJWR5ZLJHPDDQG9HQWHU>@WKHHFRQRPLVWFRQVLGHUV WKH HQWUHSUHQHXU DV VRPHRQH ZKR LV SURQH WR LQQRYDWH WR EHFRPH DQ DJHQW RI FKDQJH WR FUHDWHZHDOWKDQGDGGYDOXHWRUHVRXUFHVDQGRWKHUDVVHWVZKLOHLQWURGXFLQJFKDQJHVWRWKH HFRQRP\,QWKLVFRQWH[W$FVHWDO>@UHIHUWKH\JHQHUDWHHPSOR\PHQWDQGLQQRYDWLRQDQG VWUHQJWKFRPSHWLWLYHQHVV)LOLRQ>@SRVLWVWKHHQWUHSUHQHXULVRIWHQVRPHRQHZKRLVDEOHWR LGHQWLI\EXVLQHVVRSSRUWXQLWLHVPDUNHWQLFKHVDQGWKHUHIRUHEULQJDERXWSURJUHVV

2Q WKH RWKHU KDQG 'HR >@ WKLQNV WKDW IURP WKH SV\FKRORJLVW¶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

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS   LQQRYDWLYHQHVV7KHUHIRUHWKHVHDUHDOVRWKHFKDUDFWHULVWLFVDGGUHVVHGLQWKHSUHVHQWUHVHDUFK VHHLQJDV0LWWRQ>@0DUNPDQDQG%DURQ>@DQG&XUUDOHWDO>@FODLPWKDWLQGLYLGXDOV ZKRGLVSOD\WKHPDUHPRUHOLNHO\WREHFRPHHQWUHSUHQHXUVLQWKHIXWXUH  0HWKRGRORJ\ 

,Q RUGHU WR FRQGXFW WKLV VWXG\ WKH DXWKRUV DGRSWHG D TXDQWLWDWLYH DQDO\WLFDO WUDQVYHUVDO DQG REVHUYDWLRQDO PHWKRGRORJ\  7KH VWXG\ IRFXVHG RQ DQDO\VLQJ WKH HQWUHSUHQHXULDOSRWHQWLDOLQDVDPSOHRIVWXGHQWVIURPD+LJKHU(GXFDWLRQ,QVWLWXWLRQORFDWHG LQ 7UiVRV0RQWHV LQ QRUWKHDVWHUQ 3RUWXJDO 7KH DLP ZDV WR LGHQWLI\ WKH VWXGHQWV¶ HQWUHSUHQHXULDO SRWHQWLDO DQG GHFLGH ZKLFK RI WKH VRFLRGHPRJUDSKLF DQG KXPDQ FDSLWDO IDFWRUVFRQVLGHUHGZHUHOLNHO\WRGLIIHUHQWLDWHHQWUHSUHQHXULDOSRWHQWLDO

$ UHSUHVHQWDWLYH VDPSOH RI WKH XQLYHUVH XQGHU VWXG\ ZDV UDQGRPO\ FROOHFWHG FRQVLVWLQJRIVWXGHQWV7KHFROOHFWLRQRIGDWDRFFXUUHGLQWKHSHULRGEHWZHHQ1RYHPEHU DQG'HFHPEHUXVLQJWKH(QWUHSUHQHXULDO3RWHQWLDO,QGLFDWRUYDOLGDWHGIRU3RUWXJDOE\ )HUUHLUDHWDO>@7KHTXHVWLRQQDLUHZDVFUHDWHGRQ*RRJOH'RFVDQGGLUHFWO\DGPLQLVWHUHG E\ WKH VWXGHQWV RQOLQH 7KH TXHVWLRQQDLUH LQ TXHVWLRQ IRFXV RQ VL[ HQWUHSUHQHXULDO IHDWXUHV 7DEOH  UHIHUUHG E\ )HUUHLUD HW DO >@ DQG .RK >@ DQG UHVXOW IURP D VHW RI  DWWLWXGHV DVVHVVHGZLWKUHFRXUVHWRDWR/LNHUWVFDOHGLVFULPLQDWHGDVIROORZV WRWDOO\GLVDJUHH GLVDJUHH ±QHLWKHUDJUHHQRUGLVDJUHH DJUHHDQG ±WRWDOO\DJUHH  7KHIHDWXUHVWREHDVVHVVHGDUHLQ7DEOHDQGDFFRUGLQJWR)HUUHLUDHWDO>@DQG.RK >@PD\EHGHVFULEHGDVIROORZV

 7KH QHHG IRU DFKLHYHPHQW FDQ EH IRXQG LQ LQGLYLGXDOV ZLWK D VWURQJ GHVLUH WR VXFFHHGZKRDUHFRQVHTXHQWO\PRUHSURQHWRHQWUHSUHQHXULDODWWLWXGHV

 6HOIFRQWURO LV OLQNHG WR WKH LQGLYLGXDOV¶ DELOLW\ WR FRQGXFW WKHLU RZQ OLYHV 7KHUHIRUHLQGLYLGXDOVZKRKDYHVHOIFRQWUROEHOLHYHWKH\DUHFDSDEOHRIFRQWUROOLQJWKHLURZQ OLYHVXQOLNHWKRVHZKRGRQRWGLVSOD\VXFKFKDUDFWHULVWLFZKREHOLHYHWKDWZKDWKDSSHQVLQ WKHLUOLYHVOLNHOXFNRUPLVIRUWXQHDUHDOZD\VWKHUHVXOWRIH[WHUQDOIDFWRUV

 5LVNWDNLQJ SURSHQVLW\ LV W\SLFDO RI LQGLYLGXDOV ZKRVH DWWLWXGHV DUH RULHQWHG WRZDUGVPDNLQJGHFLVLRQVLQDQXQFHUWDLQW\FRQWH[W,WVKRXOGEHQRWHGWKDWWKHULVNLQYROYHG LVFRQWUROOHG $PELJXLW\WROHUDQFHLVDWWKHEDVLVRIDPELJXRXVVLWXDWLRQVIRUZKLFKWKHUHLVQRW HQRXJKLQIRUPDWLRQ,QGLYLGXDOVFDSDEOHRIXQGHUVWDQGLQJVXFKVLWXDWLRQVDQGRIRUJDQL]LQJ WKHDYDLODEOHLQIRUPDWLRQSULRUWRDFWLQJXVXDOO\KDYHWKLVFKDUDFWHULVWLF 6HOIFRQILGHQFHLVUHODWHGWRWKHLQGLYLGXDO¶VSRVLWLYHDQGFRQILGHQWSHUFHSWLRQDERXW KLPKHUVHOIDQGKLVKHUVNLOOVDQGDELOLWLHV

 ,QQRYDWLYHQHVV KDV WR GR ZLWK VHHNLQJ DQG GHYHORSLQJ QHZ DFWLYLWLHV RU ZD\V RI GHYHORSLQJWKHP  7DEOH±(QWUHSUHQHXULDOIHDWXUHVDQGDWWLWXGHV )HDWXUHV $WWLWXGHV ,FRXOGGHVFULEHP\VHOIDVDJDPEOHU ,EHOLHYH,WDNHKLJKHUULVNVWKDQPRVWSHRSOH , GR QRW HQJDJH LQ DQ\WKLQJ ZLWKRXW FRPLQJ XS ZLWK DQ DFWLRQ SODQ ILUVW ,DOZD\VNHHSDQH\HRQP\PRQH\ 5LVNWDNLQJ SURSHQVLW\ ,DOZD\VPDNHUDWLRQDOGHFLVLRQV ,KDYHDVWURQJQHHGWRGRLQGHSHQGHQWZRUN 1HHG IRU DFKLHYHPHQW _{,VXFFHHGDWIDFLQJFKDOOHQJHVDQGJHWWLQJRYHUSUREOHPV}

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS  2QFH,VWDUWDSURMHFW,VHHLWWKURXJKXQWLOWKHHQG ,EHOLHYHIDLOXUHVDUHEXWOHDUQLQJRSSRUWXQLWLHV ,KDYHDVWURQJQHHGWRGRLQGHSHQGHQWZRUN ,FOHDUO\VHSDUDWHZRUNIURPOHLVXUH 6HOIFRQWURO ,EHOLHYHZHPDNHRXURZQOXFN ,KDYHDVWURQJQHHGWRGRLQGHSHQGHQWZRUN ,RIWHQIROORZP\LQWXLWLRQ ,VXFFHHGDWIDFLQJFKDOOHQJHVDQGJHWWLQJRYHUSUREOHPV 6HOIFRQILGHQFH ,EHOLHYHIDLOXUHVDUHEXWOHDUQLQJRSSRUWXQLWLHV ,QQRYDWLYHQHVV ,¶PDSHUVRQRIQHZDQGGLIIHUHQWLGHDVDQGVROXWLRQV ,JLYHXSHDVLO\ZKHQWKLQJVGRQRWZRUNRXWP\ZD\ , GR QRW HQJDJH LQ DQ\WKLQJ ZLWKRXW FRPLQJ XS ZLWK DQ DFWLRQ SODQ ILUVW ,¶PJRRGDWGHDOLQJZLWKDPELJXRXVVLWXDWLRQV 7ROHUDQFHWR XQFHUWDLQW\ ,DOZD\VPDNHUDWLRQDOGHFLVLRQV 

7KH GDWD FROOHFWHG ZHUH WUHDWHG XVLQJ 6366  6WDWLVWLFDO 3DFNDJH IRU 6RFLDO 6FLHQFHV7KHLUVWDWLVWLFDOWUHDWPHQWZDVGHVFULSWLYHVRDVWRFKDUDFWHULVHWKHVDPSOH7KXV DFFRUGLQJ WR 0DURFR >@ DQG 3HVWDQD DQG *DJHLUR >@ DEVROXWH DQG UHODWLYH IUHTXHQFLHV ZHUHFDOFXODWHGZKHQHYHUYDULDEOHVZHUHQRPLQDOVLPLODUO\WKHPHDQPHDVXUHVRIFHQWUDO WHQGHQF\DQGWKHVWDQGDUGGHYLDWLRQPHDVXUHVRIGLVSHUVLRQZHUHDOVRFDOFXODWHGZKHQHYHU YDULDEOHV ZHUH RUGLQDO RU VXSHULRU %HFDXVH WKLV ZDV DQ DQDO\WLFDO VWXG\ VHYHUDO VWDWLVWLFDO WHVWV ZHUH DSSOLHG VXFK DV ORFDOLVDWLRQ WHVWV WR GHWHUPLQH ZKHWKHU WKHUH ZHUH VLJQLILFDQW VWDWLVWLFDO GLIIHUHQFHV EHWZHHQ WKH VDPSOHV DVVRFLDWLRQ WHVWV WR ILQG RXW KRZ WKH HQWUHSUHQHXULDO SRWHQWLDO FRUUHODWHG ZLWK WKH HQWUHSUHQHXULDO IHDWXUHV FRQVLGHUHG DQG PXOWLYDULDWHDQDO\VLVWRHVWLPDWHDELQDU\ORJLVWLFUHJUHVVLRQPRGHOWKDWFRXOGLGHQWLI\ZKLFK FKDUDFWHULVWLFVJRKDQGLQKDQGZLWKWKHVWXGHQWV¶HQWUHSUHQHXULDOVNLOOVZKLOHXQGHUVWDQGLQJ WKHLUH[SODQDWRU\SRZHU

)ROORZLQJWKHPHWKRGRORJ\VXJJHVWHGE\0DURFR>@DQG3HVWDQDDQG*DJHLUR>@ QRQSDUDPHWULF WHVWV ZHUH DSSOLHG WR FRPSDUH WKH HQWUHSUHQHXULDO SRWHQWLDO VLQFH WKH QHFHVVDU\FRQGLWLRQVIRUXVLQJSDUDPHWULFWHVWVZHUHQRWIXOILOOHG$VDPDWWHURIIDFWZKHQ GDWDQRUPDOLW\ZDVWHVWHGXVLQJWKH.ROPRJRURY6PLUQRYWHVWZLWKWKH/LOOLHIRUVFRUUHFWLRQ1 •  RU 6KDSLUR:LON WHVW 1   LW VWRRG RXW WKDW DW OHDVW RQH RI WKH FRQGLWLRQV ZDV YLRODWHGWKHVDPHRFFXUUHGUHJDUGLQJWKHKRPRJHQHLW\RIYDULDQFHZKHQWKH/HYHQHWHVWZDV DSSOLHG ,Q YLHZ RI WKH UHDVRQV WKDW KDYH DOUHDG\ EHHQ PHQWLRQHG WKH 0DQQ:KLWQH\ :LOFR[RQ WHVW ZDV XVHG DOWHUQDWLYHO\ WR 76WXGHQW IRU LQGHSHQGHQW VDPSOHV ZKHQHYHU FRPSDULVRQVLQYROYHGRQO\WZRVDPSOHVJHQGHUDJHUHVLGLQJDUHDDWWHQGDQFHUHJLPH7KH 0DQQ:KLWQH\:LOFR[RQWHVWDOORZVXVWRWHVWZKHWKHUWKHQXOOK\SRWKHVLVRIWKHPHGLDQVLV HTXDO+Ș ȘDJDLQVWWKHDOWHUQDWLYHRQHRIWKHLUEHLQJGLIIHUHQW+ȘzȘZKHUHȘLV

WKHPHGLDQ

6WLOO DFFRUGLQJ WR WKH PHWKRGRORJ\ VXJJHVWHG E\ 0DURFR >@ DQG 3HVWDQD DQG *DJHLUR>@WKH.UXVNDO:DOOLVZDVXVHGDVDQDOWHUQDWLYHWR$129$2QH:D\ZKHQHYHU WKHFRPSDULVRQLQYROYHGPRUHWKDQWZRNLQGHSHQGHQWVDPSOHVDUHDRIRULJLQVWXG\F\FOH DWWHQGHG DQG FRXUVH¶V VFLHQWLILF DUHD 7KH .UXVNDO:DOOLV WHVW DOORZV XV WR WHVW WKH QXOO K\SRWKHVLVRIWKHHTXDOLW\RIPHGLDQV+Ș Ș « ȘNDJDLQVWWKHDOWHUQDWLYHRQHWKDW

WKH\DUHQRWDOOHTXDO+LMȘLzȘM

6LPLODUO\ LQ RUGHU WR VWXG\ KRZ HQWUHSUHQHXULDO SRWHQWLDO FRUUHODWHV WR HQWUHSUHQHXUVKLSUHODWHGIHDWXUHVWKHU±3HDUVRQWHVWZDVGLVFDUGHGVLQFHWKHFRQGLWLRQIRU WKHDSSOLFDWLRQRIVXFKDWHVWGDWDQRUPDOLW\ZDVQRWIXOILOOHG,QVWHDGWKH6SHDUPDQRUGLQDO FRUUHODWLRQWHVWZDVXVHGWRPHDVXUHWKHLQWHQVLW\RIWKHUHODWLRQEHWZHHQRUGLQDOYDULDEOHV,W XVHV LQVWHDG RI WKH REVHUYHG YDOXHV WKH REVHUYDWLRQV RUGHU 7KXV WKLV FRHIILFLHQW LV QRW VHQVLWLYHQHLWKHUWRDV\PPHWULHVLQGLVWULEXWLRQQRUWRWKHSUHVHQFHRIRXWOLHUVZKLFKPHDQV

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS   WKDWGDWDGRQRWKDYHWREHRULJLQDWLQJIURP1RUPDOSRSXODWLRQV,WWHVWVWKHQXOOK\SRWKHVLV +9DULDEOHVDUHQRWFRUUHODWHGDJDLQVWWKHDOWHUQDWLYHRQH+9DULDEOHVDUHFRUUHODWHG 5HJUHVVLRQDQDO\VLVLVDQHFRQRPHWULFWHFKQLTXHXVHGWRVKDSHDQGDQDO\VHWKHFDXVH DQGHIIHFWUHODWLRQVKLSEHWZHHQYDULDEOHV7KHUHIRUHLWLVSDUWLFXODUO\XVHIXOLQVWXG\LQJWKH UHODWLRQVKLSEHWZHHQHQWUHSUHQHXULDOSRWHQWLDODQGWKHVWXGHQWV¶HQWUHSUHQHXULDOFKDUDFWHULVWLFV VRDVWRHVWDEOLVKZKHWKHUWKRVHFKDUDFWHULVWLFVKDYHDQ\LQIOXHQFHRUQRWRQWKHLUWHQGHQF\ WRZDUG HQWUHSUHQHXUVKLS  6LQFH WKH GHSHQGDQW YDULDEOH HQWUHSUHQHXULDO SRWHQWLDO ZDV WUDQVIRUPHG LQWR D GXPP\ RQH \HV  QR   UHJUHVVLRQ PXVW EH EDVHG RQ D OLQHDU SUREDELOLW\PRGHOZKLFKXVHVQRQOLQHDUIXQFWLRQVWKDWGHOLPLWVWKHHVWLPDWLRQVFDOH,QWKLV VWXG\ WKH HVWLPDWLRQ VFDOH ZDV GHOLPLWHG ZLWK UHFRXUVHWR RQH RI WKH PRVW IUHTXHQWO\ XVHG GLVWULEXWLRQIXQFWLRQVWKHORJLVWLFIXQFWLRQRUORJLWPRGHO)LJXUHDVVXJJHVWHGE\&UDPHU >@7KHORJLWIXQFWLRQLVDQDSSUR[LPDWLRQZKHUH(<LWHQGVWRZKHQ;LWHQGVWR’DQG

(<L WHQGV WR ZKHQ ;LWHQGV WR  ’ 7KH IXQFWLRQ YDOXHV YDU\ EHWZHHQ  DQG  DQG DUH

LQWHUSUHWHGDVWKHSRVVLELOLW\WKDWWKHSKHQRPHQRQWKDWLVEHLQJVWXGLHGPD\RFFXU,QIDFWDV LWFDQEHVHHQLQ)LJXUH0LLVWKHHOHPHQW¶VSUREDELOLW\RIEHORQJLQJWRJURXSWKDWLVWKH SUREDELOLW\WKDWWKHSKHQRPHQRQWKDWLVEHLQJVWXGLHGEHLQJHQWUHSUHQHXULDOPD\RFFXUDQG 0LWKHSUREDELOLW\WKDWWKHHOHPHQWEHORQJVWRJURXSQRWEHLQJHQWUHSUHQHXULDO  L ;L ;L

H

H

<L

D _DE _E



H



 



3=  _ _ _ _ _ _ _ _ _       0L             0L    _ _ _ _ _ _ _ _ _  = Į‰[  )LJXUH±/RJLWIXQFWLRQFRQILJXUDWLRQ 6RXUFH&UDPHU>@  9DULDEOHVZHUHFKRVHQXVLQJWKHVWHSZLVHPHWKRGDSURFHVVZKLFKLVIUHTXHQWO\XVHG LQVLWXDWLRQVLQZKLFKWKHUHODWLRQVKLSVRUDVVRFLDWLRQVEHWZHHQWKHH[SODQDWRU\YDULDEOHVDQG WKH GHSHQGHQW YDULDEOH DUH QRW NQRZQ   2I WKH YDULDQWV ZLWKLQ WKH VWHSZLVH PHWKRG WKH IRUZDUG VWHSZLVH ZDV FKRVHQ EHFDXVH LW GHSDUWV IURP DQ RULJLQDO PRGHO ZLWKRXW DQ\ H[SODQDWRU\YDULDEOHRQO\WKHFRQVWDQWWHUPWRZKLFKWKHPRVWVLJQLILFDQWYDULDEOHVDUHWKHQ FRQWLQXLQJO\DGGHGXQWLOWKH³EHVWPRGHO´LVREWDLQHG$FFRUGLQJWR3HVWDQDDQG*DJHLUR>@ WKLV PHWKRG KDV WKH DGYDQWDJH RI HOLPLQDWLQJ DQ\ OLNHO\ PXOWLFROOLQHDULW\UHODWHG SUREOHPV ZKLFKXVXDOO\TXHVWLRQWKHVLJQLILFDQFHRIWKHHVWLPDWHGFRHIILFLHQWV

2QH RI WKH FRPPRQHVW PHWKRGV WR DVVHVV WKH PRGHO¶V RYHUDOO TXDOLW\ LV WKH ³OLNHOLKRRG UDWLR´ ZKLFK DOORZV XVWR WHVW WKH QXOO K\SRWKHVLV RIWKH FRHIILFLHQWVEHLQJ QXOO +ȕ ȕ  ȕN DJDLQVWWKHDOWHUQDWLYHRQHRIWKHUHEHLQJDWOHDVWRQHWKDWLVXQHTXDO

WR ]HUR + LM ȕL   ȕM 7KH FULWLFDO DSSUR[LPDWH YDOXH LV REWDLQHG LQ WKH FKLVTXDUH

GLVWULEXWLRQ WDEOHV ZLWK D QXPEHU RI GHJUHHV RI IUHHGRP ZKLFK HTXDOV WKH QXPEHU RI UHVWULFWLRQVFRQVLGHUHGLQWKHQXOOK\SRWKHVLV&UDPHU>@

$FFRUGLQJWR3HVWDQDDQG*DJHLUR>@WKHWHVWWRWKHPRGHO¶VRYHUDOOTXDOLW\DOORZV XVRQO\WRFRQFOXGHWKDWLVH[SODQDWRU\SRZHULVJUHDWHUWKDQWKDWRIWKHPRGHOZLWKRQO\RQH LQGHSHQGHQWWHUPLQZKLFKFDVHLWLVQRWSRVVLEOHWRGUDZDQ\FRQFOXVLRQVDVWRWKHLQGLYLGXDO VLJQLILFDQFHRIHDFKRIWKHHVWLPDWHGFRHIILFLHQWV7RGRVRWKH:DOGWHVWVKRXOGEHXVHGIRU LW WHVWV WKH QXOO K\SRWKHVLV + ȕM   DJDLQVW WKH DOWHUQDWLYH + ȕM   2QFH WKH PRGHO¶V

YDOLGLW\ DV UHJDUGV HDFK HVWLPDWRU DQG WKH ZKROH VHWRI HVWLPDWRUV LVWHVWHGWKH DGMXVWPHQW TXDOLW\VKRXOGDOVREHWHVWHG3HVWDQDDQG*DJHLUR>@VXJJHVWWKHXVHRI1DJHONHUNH5_

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS  $VLWFDQEHVHHQLQ7DEOHPRVWSDUWLFLSDQWVZHUHIHPDOHEHWZHHQDQG \HDUVROGFRUUHVSRQGLQJWRDQDYHUDJHRI\HDUVRIDJH“VWXGLHGXQGHU DQRUGLQDU\UHJLPHZHUHIURP3RUWXJDOQRUWKHUQUHJLRQOLYHGLQDQXUEDQ FHQWUHDWWHQGHGWKHILUVWVWXG\F\FOHDQGKDGFKRVHQHLWKHUWHFKQRORJLFDO DQGPDQDJHULDOFRXUVHVRUVFLHQFHHGXFDWLRQRQHVHDFKZLWK  7DEOH±&KDUDFWHULVWLFVRIWKH3DUWLFLSDQWV )UHTXHQFLHV 9DULDEOH &DWHJRULHV  1 0DOH   *HQGHU 1  _{)HPDOH  } WR\HDUVROG   $JHJURXS 1  _{•\HDUVRIDJH  } 2UGLQDU\   $WWHQGDQFH5HJLPH1  6WXGHQWZRUNHU   1RUWK   &HQWUH   6RXWK   0DGHLUDDQG$]RUHV   5HJLRQRIRULJLQ 1  2WKHU   5XUDO   5HVLGLQJDUHD 1  _{8UEDQ  } 7HFKQRORJLFDO 6SHFLDOL]DWLRQ &RXUVHV   /LFHQWLDWH   6WXG\F\FOH 1  3RVWJUDGXDWLRQ0DVWHU¶V   $JUDULDQ6FLHQFHV   (GXFDWLRQ6FLHQFHV   +HDOWK6FLHQFHV   7HFKQRORJ\DQG0DQDJHPHQW   6FLHQWLILFDUHD 1  $GPLQLVWUDWLRQDQG7RXULVP     5HVXOWV  $VVHHQLQ)LJXUHPRUHWKDQKDOIRIWKHUHVSRQGHQWVVKRZHGHQWUHSUHQHXULDOVNLOOV 5LVNWDNLQJSURSHQVLW\VWDQGVRXWSRVLWLYHO\,WLVSRVVLEOHWRFRQFOXGHWKHQ WKDW WKHVH VWXGHQWV DUH FDSDEOH RI PDNLQJ ULVN\ GHFLVLRQV EXW EDVHG RQ ZHOOIRXQGHG SUHYLRXVO\ FRQFHLYHG DFWLRQ SODQV   &RQWUDULO\ LQQRYDWLYHQHVV SURYHG WR EH D ZHDN SRLQW  WKDW FDQ EH VROYHG WKRXJK ZLWK SURSHU WUDLQLQJ LQ FUHDWLYLW\ WHFKQLTXHV LQ WKH ZRUNSODFH $V IRU WKH RWKHU IHDWXUHV QDPHO\ VHOIFRQWURO VHOIFRQILGHQFH DPELJXLW\ WROHUDQFHDQGHVSHFLDOO\WKHQHHGIRUDFKLHYHPHQWWKHUHLVREYLRXVO\URRPIRULPSURYHPHQW 

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS     )LJXUH±6WXGHQWV¶FKDUDFWHULVWLFVDQGHQWUHSUHQHXULDOVNLOOV 

7KH DYHUDJHV UHJLVWHUHG IRU ULVNWDNLQJ SURSHQVLW\ LQQRYDWLYHQHVV VHOIFRQILGHQFH VHOIFRQWUROQHHGIRUDFKLHYHPHQWDQGDPELJXLW\WROHUDQFHKRYHUDURXQGDYDOXHRIZKLFK LV FRQVLGHUHG VDWLVIDFWRU\ 7DEOH  )XUWKHUPRUHWKH6SHDUPDQ WHVW DOORZHG XV WR REVHUYH WKDW DW WKH  VLJQLILFDQFH OHYHO WKH HQWUHSUHQHXULDO IHDWXUHV WKDW FRQWULEXWHG PRVW WR GHYHORSLQJ HQWUHSUHQHXULDO SRWHQWLDO ZHUH E\ RUGHU RI LPSRUWDQFH VHOIFRQILGHQFH ȡ  QHHGIRUDFKLHYHPHQWȡ ,QQRYDWLYHQHVVȡ 5LVNWDNLQJSURSHQVLW\ ȡ VHOIFRQWUROȡ DQGDPELJXLW\WROHUDQFHȡ   7DEOH&RUUHODWLRQRIIHDWXUHVZLWKHQWUHSUHQHXULDOVNLOOV )HDWXUHV ȡ 0HDQ 6WDQGDUGGHYLDWLRQ 5LVNWDNLQJSURSHQVLW\     ,QQRYDWLYHQHVV     6HOIFRQILGHQFH     6HOIFRQWURO     1HHGIRUDFKLHYHPHQW     $PELJXLW\WROHUDQFH     0HDQLQJIXOFRUUHODWLRQVDWVLJQLILFDQFHOHYHO  7KH.UXVNDO:DOOLVWHVWDOORZHGXVWRYHULI\ZLWKFRQILGHQFHOHYHOWKDWWKHUHDUH VLJQLILFDQWGLIIHUHQFHVLQWKHHQWUHSUHQHXULDOSRWHQWLDOSYDOXH DVUHJDUGVWKHVWXG\ F\FOHZKHUHWKHILUVWF\FOHOLFHQWLDWHVWDQGVRXWDVKDYLQJWKHODUJHVWSRWHQWLDO0HDQUDQN  VHH7DEOH6LPLODUO\WKURXJKWKH.UXVNDO:DOOLVWHVWLWZDVSRVVLEOHWRLGHQWLI\ VLJQLILFDQWGLIIHUHQFHVLQWKHHQWUHSUHQHXULDOSRWHQWLDOSYDOXH EHDULQJLQPLQGWKH FRXUVH¶V VFLHQWLILF DUHD 6FLHQFH (GXFDWLRQ VWXGHQWV DUH SRWHQWLDOO\ PRUH HQWUHSUHQHXULDO 0HDQUDQN  7DEOHSUHVHQWVWKHUHVXOWVREWDLQHGDIWHUWKH0DQQ:KLWQH\:LOFR[RQWHVWKDGEHHQ DSSOLHGZKLFKVKRZHGWKHHQWUHSUHQHXULDOSRWHQWLDOGRHVQRWYDU\DFFRUGLQJWRWKHDWWHQGDQFH UHJLPHSYDOXH       

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS



7DEOH±(QWUHSUHQHXULDO3RWHQWLDODFFRUGLQJWRVRPHKXPDQFDSLWDOIDFWRUV

)DFWRU &DWHJRULHV 1 0HDQ_UDQN SYDOXH

2UGLQDU\   $WWHQGDQFHUHJLPH 1  _{6WXGHQWZRUNHU  }  7HFKQRORJLFDO 6SHFLDOL]DWLRQ &RXUVHV   /LFHQWLDWH   6WXG\&\FOH 1  3RVWJUDGXDWLRQPDVWHU¶V     $JUDULDQ6FLHQFHV   (GXFDWLRQ6FLHQFHV   +HDOWK6FLHQFHV   7HFKQRORJ\DQG0DQDJHPHQW   6FLHQWLILFDUHD 1  $GPLQLVWUDWLRQDQG7RXULVP     6LJQLILFDQWGLIIHUHQFHVDWVLJQLILFDQFHOHYHO 

7KH 0DQQ:KLWQH\:LOFR[RQ WHVW DOORZHG XV WR HVWDEOLVK WKDW QR VLJQLILFDQW GLIIHUHQFHVZHUHREVHUYHGZKHQVRFLRGHPRJUDSKLFIDFWRUVVXFKDVJHQGHUSYDOXH  DQGDJHSYDOXH ZHUHWDNHQLQWRFRQVLGHUDWLRQ/LNHZLVHWKH.UXVNDO:DOOLVWHVW VKRZHGWKDWWKHUHJLRQZKHUHWKHVWXGHQWVFDPHIURPSYDOXH DQGWKHLUUHVLGLQJDUHD SYDOXH GRQRWGLIIHUHQWLDWHWKHVWXGHQWV¶HQWUHSUHQHXULDOSRWHQWLDO7DEOH  7DEOH±(QWUHSUHQHXULDOSRWHQWLDODFFRUGLQJWRVRPHVRFLRGHPRJUDSKLFIDFWRUV

)DFWRU &DWHJRULHV 1 0HDQUDQN SYDOXH

0DOH   *HQGHU 1  _{)HPDOH  }  WR\HDUVROG   $JHJURXS 1  _{•\HDUVRIDJH  }  1RUWK   &HQWUH   6RXWK   0DGHLUDDQG$]RUHV   5HJLRQRIRULJLQ 1  2WKHU    5XUDO   5HVLGLQJ$UHD 1  _{8UEDQ  }   7KH1DJHONHUNH5_{UHJLVWHUHGDQYDOXHVHH7DEOH7KHUHIRUHLWLVSRVVLEOHWR} VD\WKDWSURQHQHVVWRHQWUHSUHQHXUVKLSLVDFFRXQWHGIRUE\LQGHSHQGHQWYDULDEOHVWKDW LVWRVD\E\WKHVWXGHQWV¶HQWUHSUHQHXULDOFKDUDFWHULVWLFV2QWKHRWKHUKDQGWKHDQDO\VLVRI ORJLVWLFUHJUHVVLRQUHVXOWVUHYHDOVDZHOODGMXVWHGPRGHOVLQFHSYDOXH  7KHELQDU\ORJLVWLFUHJUHVVLRQSURYHGWKHUHLVDFDXVHDQGHIIHFWUHODWLRQVKLSEHWZHHQ DOOWKHHQWUHSUHQHXULDOIHDWXUHVEXWWKHDPELJXLW\WROHUDQFHDQGWKHHQWUHSUHQHXULDOSRWHQWLDO ZLWK D  FRQILGHQFH OHYHO  7KH FRQILGHQFH OHYHO IRU WKH DPELJXLW\ WROHUDQFH ZDV RQO\ 

&RHIILFLHQWV¶ SRVLWLYH VLJQV LQGLFDWH WKDW WKRVH ZKR DUH PRUH SURQH WR EHLQJ HQWUHSUHQHXULDODUHDOVRPRUHLQQRYDWLYHPRUHDPELJXLW\WROHUDQWPRUHZLOOLQJWRWDNHULVNV PRUHVHOIFRQWUROOHGDQGVHOIFRQILGHQWDQGKDYHDJUHDWHUQHHGIRUDFKLHYHPHQW

  

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS    7DEOH±%LQDU\ORJLVWLFUHJUHVVLRQPRGHO 3URQHQHVVWRHQWUHSUHQHXUVKLS ,QGHSHQGHQWYDULDEOHV ȕ 6WDQGDUGGHYLDWLRQ SYDOXH 6HOIFRQILGHQFH     5LVNWDNLQJSURSHQVLW\     6HOIFRQWURO     ,QQRYDWLYHQHVV     1HHGIRUDFKLHYHPHQW     $PELJXLW\WROHUDQFH     &RQVWDQW     1  5_{1DJHONHUNH } Ȥ_{ /5 */ } SYDOXHWRUHMHFW+ 6LJQLILFDQWSDUDPHWHUVDWVLJQLILFDQFHOHYHO 6LJQLILFDQWSDUDPHWHUVDWVLJQLILFDQFHOHYHO  'LVFXVVLRQDQGILQDOUHPDUNV 

7KLV VWXG\ DOORZHG LWV DXWKRUV WR FRQFOXGH WKDW PRVW RI WKH VWXGHQWV ZKR ZHUH LQWHUYLHZHG   KDG HQWUHSUHQHXULDO VNLOOV 6HOIFRQILGHQFH QHHG IRU DFKLHYHPHQW DQG LQQRYDWLYHQHVV ZHUH LGHQWLILHG DV WKH IHDWXUHV ZKLFK FRQWULEXWH WKH PRVW WR WKH VWXGHQWV¶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¶V DQG *DOORZD\¶V >@ YLHZ HGXFDWLRQLQJHQHUDODQG+LJKHU(GXFDWLRQLQSDUWLFXODUKDYHEHHQSOD\LQJDQHVVHQWLDOUROHLQ WUDQVPLWWLQJ DQG DGDSWLQJ WHDFKLQJ PHWKRGRORJLHV LQ WKH ILHOG RI HQWUHSUHQHXUVKLS WR WKH VWXGHQWV¶ QHHGV DQG FLUFXPVWDQFHV DQG WR WKH GHPDQGV RI IXWXUHMREV LQ WKH FRQWH[W RI WKH SUHVHQW HFRQRP\ $FDGHPLF HQWUHSUHQHXUVKLS LV FXUUHQWO\ FRQVLGHUHG WR EH D IXQGDPHQWDO PHDQVRIFUHDWLQJQHZEXVLQHVVHVDQGJHQHUDWLQJZHDOWK7KHUHIRUHDFFRUGLQJWR)LOLRQ>@ +LJKHU(GXFDWLRQLQVWLWXWLRQVPXVWIRFXVRQGHYHORSLQJWKHFRQFHSWDQGDFKLHYLQJNQRZKRZ DQGQRWRQO\RQVLPSO\VSUHDGLQJNQRZOHGJH

7KH UHVXOWV RI WKLV UHVHDUFK KDYH VKRZQ WKDW KXPDQ FDSLWDO IDFWRUV VXFK DV WKH FRXUVH¶VVFLHQWLILFDUHD(GXFDWLRQ6FLHQFHVDQGWKHVWXG\F\FOHOLFHQWLDWHGLIIHUHQWLDWHWKH HQWUHSUHQHXULDOSRWHQWLDO$VUHJDUGVKXPDQFDSLWDOIDFWRUVRQO\ZKHQWKHDWWHQGDQFHUHJLPH ZDVWDNHQLQWRFRQVLGHUDWLRQZHUHWKHUHQRVLJQLILFDQWGLIIHUHQFHVEHWZHHQWKHWZRUHJLPHV VWXGLHG $OVRQRQHRIWKHVRFLRGHPRJUDSKLFIDFWRUVSURYHGWREHGLIIHUHQWLDWLQJLQWHUPVRI WKHHQWUHSUHQHXULDOSRWHQWLDO,QIDFWVXFKIDFWRUVDVJHQGHUDJHUHJLRQRIRULJLQDQGUHVLGLQJ DUHD KDYH QR LQIOXHQFH RQ WKH VWXGHQWV¶ HQWUHSUHQHXULDO SRWHQWLDO 0RUHRYHU WKH UHVXOWV REWDLQHGLQWKHFRXUVHRIWKLVUHVHDUFKIRUJHQGHUDQGDJHDUHFRQVLVWHQWZLWK.RK¶V>@

)LQDOO\ WKH HVWLPDWHG ELQDU\ ORJLVWLF UHJUHVVLRQ VKRZHG WKDW IHDWXUHV VXFK DV LQQRYDWLYHQHVV FDSDFLW\ DPELJXLW\ WROHUDQFH ULVNWDNLQJ SURSHQVLW\ QHHG IRU DFKLHYHPHQW VHOIFRQWURO DQG VHOIFRQILGHQFH ZHUH GHWHUPLQDQW IRU SURQHQHVV WR HQWUHSUHQHXUVKLS 7KHVH UHVXOWVDUHZHOOLQDFFRUGDQFHZLWKWKH3V\FKRORJLFDO&KDUDFWHULVWLFV6FKRROZKLFKDVFULEHV

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS



XQLTXH YDOXHV DQG DWWLWXGHV DQG GLVWLQFW QHHGV WR HQWUHSUHQHXUVKLS 7KH UHVXOWV RI WKH ORJLW PRGHODUHDOVRFRQFXUUHQWZLWKWKRVHREWDLQHGE\.RK>@DQG*DUWQHU>@    %LEOLRJUDSK\ 

>@%URQRVN\ 0 $ LQWHQomR HPSUHHQGHGRUD QR DPELHQWH XQLYHUVLWiULR FDVR XQLFHQWUR 5HYLVWD&DSLWDO&LHQWtILFR9ROQžSS

>@+XOO ' %RVOH\ - DQG 8GHOO * 5HQHZLQJ WKH KXQW IRU WKH KHIIDOXPS LGHQWLI\LQJ SRWHQWLDO HQWUHSUHQHXUV E\ SHUVRQDOLW\ FKDUDFWHULVWLFV -RXUQDO RI 6PDOO %XVLQHVV 0DQDJHPHQW9ROQžSS

>@7HL[HLUD $ DQG 'DYH\ 7 $WWLWXGHV RI +LJKHU (GXFDWLRQ VWXGHQWV WR QHZ YHQWXUH FUHDWLRQDSUHOLPLQDU\DSSURDFKWRWKH3RUWXJXHVHFDVH,QGXVWU\DQG+LJKHU(GXFDWLRQ 9ROQžSS

>@)HUUHLUD $ )RQVHFD / DQG 6DQWRV / ³6HUmR RV µHVWXGDQWHV HPSUHHQGHGRUHV¶ RV HPSUHHQGHGRUHV GR IXWXUR" 2 FRQWULEXWR GDV HPSUHVDV MXQLRUHV SDUD R HPSUHHQGHGRULVPR´)DFXOGDGHGH(FRQRPLDGR3RUWR:RUNLQJ3DSHUVQž >@.RK +7HVWLQJ K\SRWKHVHV RI HQWUHSUHQHXULDO FKDUDFWHULVWLFV $ VWXG\ RI +RQJ .RQJ

0%$VWXGHQWV-RXUQDORI0DQDJHULDO3V\FKRORJ\9ROQžSS

>@&XQQLQJKDP-DQG/LVFKHURQ-'HILQLQJHQWUHSUHQHXUVKLS-RXUQDORI6PDOO%XVLQHVV 0DQDJHPHQW9ROSS

>@'HR6³&KDOOHQJHVIRUVPDOOEXVLQHVVHQWUHSUHQHXUV$VWXG\LQWKH:DOND5HJLRQRI 1HZ =HDODQG´ 6PDOO %XVLQHVV $GYDQFHPHQW 1DWLRQDO &HQWUH 8QLYHUVLW\ RI $UNDQVDV 

>@5ZLJHPD +  DQG 9HQWHU 5 $GYDQFHG HQWUHSUHQHXUVKLS &DSH 7RZQ 2[IRUG 8QLYHUVLW\3UHVV

>@$FV = 'HVDL 6  DQG .ODSSHU / :KDW GRHV (QWUHSUHQHXUVKLS GDWD UHDOO\ VKRZ" $ FRPSDULVRQRIWKHJOREDOHQWUHSUHQHXUVKLSPRQLWRUDQGWKH:RUN%DQN*URXS'DWDVHWV :RUOG%DQN3ROLF\5HVHDUFK:RUNLQJSDSHU6HULHV

>@)LOLRQ - (PSUHHQGHGRULVPR H JHUHQFLDPHQWR SURFHVVRV GLVWLQWRV SRUpP FRPSOHPHQWDUHV5HYLVWDGH$GPLQLVWUDomRGH(PSUHVDV/LJKW9ROQžSS 

>@$OYHV /  DQG %RUQLD $ 'HVHQYROYLPHQWR GH XPD HVFDOD SDUD PHGLU R SRWHQFLDO HPSUHHQGHGRUXWLOL]DQGRD7HRULDGD5HVSRVWDDR,WHP75,*HVWmR 3URGXomR9RO QžSS >@%URFNKDXV5DQG+RUZLW]3³7KHSV\FKRORJ\RIWKHHQWUHSUHQHXU´,Q6H[WRQ'DQG 6PLORU5(GV7KH$UWDQG6FLHQFHRI(QWUHSUHQHXUVKLS%DOOLQJHU&DPEULGJH0$ SS >@0LWWRQ'7KHFRPSOHWHHQWUHSUHQHXU(QWUHSUHQHXUVKLS7KHRU\DQG3UDFWLFH9RO SS

>@0DUNKDP * DQG %DURQ 5 3HUVRQHQWUHSUHQHXUVKLS ILW :K\ VRPH SHRSOH DUH PRUH VXFFHVVIXODVHQWUHSUHQHXUVWKDQRWKHUV+XPDQ5HVRXUFH0DQDJHPHQW5HYLHZ9RO QžSS

>@&XUUDO / &DHWDQR $ DQG 6DQWRV 6 $WLWXGH GRV HVWXGDQWHV XQLYHUVLWiULRV IDFH DR HPSUHHQGHGRULVPR &RPR LGHQWLILFDU R SRWHQFLDO HPSUHHQGHGRU" 5HYLVWD 3RUWXJXHVD H %UDVLOHLUDGH*HVWmR9ROQžSS

>@0DURFR-$QiOLVH(VWDWtVWLFDFRPXWLOL]DomRGR6366/LVERD(GLo}HV6tODER >@3HVWDQD 0 DQG *DJHLUR - $QiOLVH GH 'DGRV SDUD &LrQFLDV 6RFLDLV $

FRPSOHPHQWDULGDGHGR6366/LVERD(GLo}HV6tODER

>@&UDPHU - 7KH 2ULJLQV DQG 'HYHORSPHQW RI WKH /RJLW 0RGHO &DPEULGJH &DPEULGJH 3XEOLVKHUV

5LEHLUR%0)HUQDQGHV*$'LQL]6)5HJLRQDO6FLHQFH,QTXLU\-RXUQDO9RO9SS



 >@.\UR 3 ³(QWUHSUHQHXUVKLS (GXFDWLRQ DQG )LQQLVK 6RFLHW\´ :RUNLQJ 3DSHUV LQ

(FRQRPLFVQž >@0LQX]]L-6DQWRV3/H]DQD$DQG)LOKR1,QWHQomRHPSUHHQGHGRUDHPDOXQRVGH (QJHQKDULDGH3URGXomR8PDDQiOLVHFRPXVRGHUHJUHVVmRORJtVWLFD,Q$FWDVGR;;9,, (1(*(3 >@.HRJK:DQG*DOORZD\/7HDFKLQJHQWHUSULVHLQYRFDWLRQDOGLVFLSOLQHVUHIOHFWLQJRQ SRVLWLYHH[SHULHQFH0DQDJHPHQW'HFLVLRQ9LROQžSS >@*DUWQHU:6RPHVXJJHVWLRQVIRUUHVHDUFKRQHQWUHSUHQHXULDOWUDLWVDQGFKDUDFWHULVWLFV (QWUHSUHQHXUVKLS7KHRU\DQG3UDFWLFH9ROSS