Metaheuristics “In the Large”

Many people have generously given their time to the various activities of the MitL initiative. Particular gratitude is due to Adam Barwell, John A. Clark, Patrick De Causmaecker, Emma Hart, Zoltan A. Kocsis, Ben Kovitz, Krzysztof Krawiec, John McCall, Nelishia Pillay, Kevin Sim, Jim Smith, Thomas Stutzle, Eric Taillard and Stefan Wagner. J. Swan acknowledges the support of UK EPSRC grant EP/J017515/1 and the EU H2020 SAFIRE Factories project. P. GarciaSanchez and J. J. Merelo acknowledges the support of TIN201785727-C4-2-P by the Spanish Ministry of Economy and Competitiveness. M. Wagner acknowledges the support of the Australian Research Council grants DE160100850 and DP200102364.Following decades of sustained improvement, metaheuristics are one of the great success stories of opti- mization research. However, in order for research in metaheuristics to avoid fragmentation and a lack of reproducibility, there is a pressing need for stronger scientific and computational infrastructure to sup- port the development, analysis and comparison of new approaches. To this end, we present the vision and progress of the Metaheuristics “In the Large”project. The conceptual underpinnings of the project are: truly extensible algorithm templates that support reuse without modification, white box problem descriptions that provide generic support for the injection of domain specific knowledge, and remotely accessible frameworks, components and problems that will enhance reproducibility and accelerate the field’s progress. We argue that, via such principled choice of infrastructure support, the field can pur- sue a higher level of scientific enquiry. We describe our vision and report on progress, showing how the adoption of common protocols for all metaheuristics can help liberate the potential of the field, easing the exploration of the design space of metaheuristics.UK Research & Innovation (UKRI)Engineering & Physical Sciences Research Council (EPSRC) EP/J017515/1EU H2020 SAFIRE Factories projectSpanish Ministry of Economy and Competitiveness TIN201785727-C4-2-PAustralian Research Council DE160100850 DP20010236

The Effects of a Training Program to Encourage Social Entrepreneurship

We use two sequential randomized controlled trials (RCTs) to study the impact of the first two editions of a 12-day intensive training program that cost about 12,000 euros (approx. $14,878) per participant to encourage youth to become leaders in social entrepreneurship. The first edition of the program showed no robust treatment effects. The program was adjusted to reduce leadership training and increase “hard skills” entrepreneurship training. The second edition of the program had treatment effects on entrepreneurial activities and the creation of a new venture during the program, as well as subsequent start-up activity. In both RCTs, participants who had made more entrepreneurial progress before the start of the program made more progress afterward, irre-spective of treatment. Those with the highest pretreatment expectations made the least progress, irrespective of treatment. Training people to learn entrepreneurship seems to be difficult and costly, but repeated field experiments will increase our knowledge of the impact of entrepreneurship training

The Effects of a Training Program to Encourage Social Entrepreneurship

We use two sequential randomized controlled trials (RCTs) to study the impact of the first two editions of a 12-day intensive training program that cost about 12,000 euros (approx. $14,878) per participant to encourage youth to become leaders in social entrepreneurship. The first edition of the program showed no robust treatment effects. The program was adjusted to reduce leadership training and increase “hard skills” entrepreneurship training. The second edition of the program had treatment effects on entrepreneurial activities and the creation of a new venture during the program, as well as subsequent start-up activity. In both RCTs, participants who had made more entrepreneurial progress before the start of the program made more progress afterward, irre-spective of treatment. Those with the highest pretreatment expectations made the least progress, irrespective of treatment. Training people to learn entrepreneurship seems to be difficult and costly, but repeated field experiments will increase our knowledge of the impact of entrepreneurship training

'Serving Two Masters' and the Chief Audit Executive's Communication: Experimental Evidence About Internal Auditors’ Judgments

The position of an internal audit function (IAF) as a “servant of two masters” (i.e., management and the audit committee) may lead to a conflict of priorities. In this setting, the tone at the top set by the Chief Audit Executive (CAE) plays a critical role in balancing the potentially competing priorities of the “two masters.” We test two hypotheses in a mixed experimental design with the communicated preferences of the CAE to subordinates (cost reduction vs. effectiveness of internal controls) as a between-subjects factor, and levels of ambiguity (low, medium, high) manipulated within-subjects. Findings suggest that the emphasis in the CAE’s message can influence internal auditors’ judgments, and such influence is more pronounced when task ambiguity is high, resulting in the elimination of a significantly greater number of internal controls and the design of less effective processes. We discuss implications of our results for modern IAFs and the role of the CAE

Effective, but not all the time: Experimental evidence on the effectiveness of a code of ethics' design

Relations between society and business are increasingly characterized by the societal demand for compliance with ethical standards. Companies are held responsible for behavior of their employees, which increases the demand for effective internal governance. To assure compliance, many companies enact codes of ethics. Despite a common core of ethical standards, codes differ considerably in formal design elements. Albeit theory suggests that a code's formal design, that is, how a code's content is presented, affects its behavioral impact, there is little research on this issue. Addressing this research gap, we conducted a between‐subjects experiment (factorial survey) in which we manipulated design elements of codes and examined how these elements affect behavioral intentions in various business situations. Holding the code's content constant, we manipulated its tone (positive vs. negative) and whether it was signed by the company's executive board (with vs. without signature). Our results indicate that the effectiveness of a code can be improved by using signed codes, while there is no effect for a code's tone. Our paper contributes designing internal governance in two ways: by giving experimental evidence on the relevance of a code's formal design and by providing practical guidance how to increase code effectiveness

Ripple Effects of Noise on Corporate Investment

Firms significantly reduce their investment in response to non-fundamental drops in the stock price of their product-market peers. We argue that this result arises because of managers' limited ability to filter out the noise in stock prices when using them as signals about their investment opportunities. The resulting losses of capital investment and shareholders' wealth are economically large, and affect even firms that are not facing severe financing constraints or agency problems. Our findings offer a novel perspective on how stock market inefficiencies can affect the real economy, even in the absence of financing or agency frictions