Sustainability practices of a company reflect its commitments to the environment, societal good, and good governance. Institutional investors take these into account for decision-making purposes, since these factors are known to affect public opinion and thereby the stock indices of companies. Though sustainability score is usually derived from information available in self-published reports, News articles published by regulatory agencies and social media posts also contain critical information that may affect the image of a company. Language technologies have a critical role to play in the analytics process. In this paper, we present an event detection model for detecting sustainability-related incidents and violations from reports published by various monitoring and regulatory agencies. The proposed model uses a multi-tasking sequence labeling architecture that works with transformer-based document embeddings. We have created a large annotated corpus containing relevant articles published over three years (2015–2018) for training and evaluating the model. Knowledge about sustainability practices and reporting incidents using the Global Reporting Initiative (GRI) standards have been used for the above task. The proposed event detection model achieves high accuracy in detecting sustainability incidents and violations reported about an organization, as measured using cross-validation techniques. The model is thereafter applied to articles published from 2019 to 2022, and insights obtained through aggregated analysis of incidents identified from them are also presented in the paper. The proposed model is envisaged to play a significant role in sustainability monitoring by detecting organizational violations as soon as they are reported by regulatory agencies and thereby supplement the Environmental, Social, and Governance (ESG) scores issued by third-party agencies.

A new methodology is proposed for the simultaneous reduction of units, variables, and occasions of a three-mode data set. Units are partitioned into a reduced number of classes, while, simultaneously, components for variables and occasions accounting for the largest common information for the classification are identified. The model is a constrained three-mode factor analysis and it can be seen as a generalization of the REDKM model proposed by De Soete and Carroll for two-mode data. The least squares fitting problem is mathematically formalized as a constrained problem in continuous and discrete variables. An iterative alternating least squares algorithm is proposed to give an efficient solution to this minimization problem in the crisp and fuzzy classification context. The performances of the proposed methodology are investigated by a simulation study comparing our model with other competing methodologies. Different procedures for starting the proposed algorithm have also been tested. A discussion of some interesting differences in the results follows. Finally, an application to real data illustrates the ability of the proposed model to provide substantive insights into the data complexities.

An algorithm for generating artificial data sets which contain distinct nonoverlapping clusters is presented. The algorithm is useful for generating test data sets for Monte Carlo validation research conducted on clustering methods or statistics. The algorithm generates data sets which contain either 1, 2, 3, 4, or 5 clusters. By default, the data are embedded in either a 4, 6, or 8 dimensional space. Three different patterns for assigning the points to the clusters are provided. One pattern assigns the points equally to the clusters while the remaining two schemes produce clusters of unequal sizes. Finally, a number of methods for introducing error in the data have been incorporated in the algorithm.

Statisticians typically estimate the parameters of latent class and latent profile models using the Expectation-Maximization algorithm. This paper proposes an alternative two-stage approach to model fitting. The first stage uses the modified k-means and hierarchical clustering algorithms to identify the latent classes that best satisfy the conditional independence assumption underlying the latent variable model. The second stage then uses mixture modeling treating the class membership as known. The proposed approach is theoretically justifiable, directly checks the conditional independence assumption, and converges much faster than the full likelihood approach when analyzing high-dimensional data. This paper also develops a new classification rule based on latent variable models. The proposed classification procedure reduces the dimensionality of measured data and explicitly recognizes the heterogeneous nature of the complex disease, which makes it perfect for analyzing high-throughput genomic data. Simulation studies and real data analysis demonstrate the advantages of the proposed method.

By reference to nominated attributes, a genus, being a population of objects of one specified kind, may be partitioned into species, being subpopulations of different kinds. A prototype is an object representative of its species within the genus. Using this framework, the paper describes how objects can be relatively differentiated with respect to attributes, and how attributes can be relatively differentiating with respect to objects. Methods and rationale for such differential ordering of objects and attributes are presented by example, formal development, and application.

For a genus Ω comprising n species of object there is a subset P ofn distinct prototypes. With respect to m nominated attributes, each object in Ω has an m-element characterization. Together these determine an n × m objects × attributes matrix, the rows of which are the characterizations of the prototypical objects. Over then species in Ω, an associated relative frequency vector gives the distribution of objects (and of their characterizations). The matrix and vector associate the objects in Ω with points in a metric space (P, δ); and it is with respect to various sums of distances in this attribute space that one can differentially order objects and attributes.

The definition of the distance function δ is generalized across kinds of difference, types of characterization, scale-types of measurement, Minkowski index ≧ 1, and any form of distribution of objects over species. Explanatory and taxonomic applications in psychology and other fields are discussed, with focus on classification, identification, recognition, and search. The Braille code and the identification of its characters provide illustration.

In psychological research, one often aims at explaining individual differences in S-R profiles, that is, individual differences in the responses (R) with which people react to specific stimuli (S). To this end, researchers often postulate an underlying sequential process, which boils down to the specification of a set of mediating variables (M) and the processes that link these mediating variables to the stimuli and responses under study. Obviously, a crucial task is to chart how the individual differences in the S-R profiles are caused by individual differences in the S-M link and/or by individual differences in the M-R link. In this paper we propose a new model, called CLASSI, which was explicitly designed for this task. In particular, the key principle of CLASSI consists of reducing the S, M, and R nodes of a sequential process to a few mutually exclusive types and inducing an S-M and an M-R person typology from the data, with the S-M person types being characterized in terms of if S type then M type rules and the M-R person types in terms of if M type then R type rules. As such, the S-M and M-R person types and their associated if–then rules represent the important individual differences in the S-M and M-R links of the sequential process under study. An algorithm to fit the CLASSI model is described and evaluated in a simulation study. An application of CLASSI to data from the behavioral domain of anger and sadness is discussed. Finally, we relate CLASSI to other methods and discuss possible extensions.

A reparameterization of a latent class model is presented to simultaneously classify and scale nominal and ordered categorical choice data. Latent class-specific probabilities are constrained to be equal to the preference probabilities from a probabilistic ideal-point or vector model that yields a graphical, multidimensional representation of the classification results. In addition, background variables can be incorporated as an aid to interpreting the latent class-specific response probabilities. The analyses of synthetic and real data sets illustrate the proposed method.

Computerized adaptive testing (CAT) is a sequential experiment design scheme that tailors the selection of experiments to each subject. Such a scheme measures subjects’ attributes (unknown parameters) more accurately than the regular prefixed design. In this paper, we consider CAT for diagnostic classification models, for which attribute estimation corresponds to a classification problem. After a review of existing methods, we propose an alternative criterion based on the asymptotic decay rate of the misclassification probabilities. The new criterion is then developed into new CAT algorithms, which are shown to achieve the asymptotically optimal misclassification rate. Simulation studies are conducted to compare the new approach with existing methods, demonstrating its effectiveness, even for moderate length tests.

Latent class regression models relate covariates and latent constructs such as psychiatric disorders. Though full maximum likelihood estimation is available, estimation is often in three steps: (i) a latent class model is fitted without covariates; (ii) latent class scores are predicted; and (iii) the scores are regressed on covariates. We propose a new method for predicting class scores that, in contrast to posterior probability-based methods, yields consistent estimators of the parameters in the third step. Additionally, in simulation studies the new methodology exhibited only a minor loss of efficiency. Finally, the new and the posterior probability-based methods are compared in an analysis of mobility/exercise.

Ideal point discriminant analysis is a classification tool which uses highly intuitive multidimensional scaling procedures. However, in the last paper, Takane wrote about it. He concludes that the interpretation is rather intricate and calls that a weakness of the model. We summarize the conditions that provide an easy interpretation and show that in maximum dimensionality they can be obtained without any loss. For reduced dimensionality, it is conjectured that loss is minor which is examined using several data sets.

Two simple classes of mastery scores which are suitable for hand calculations are presented for beta-binomial test score distributions combined with linear and cubic referral success. The models provide a simple way to explore the consequences of selecting an arbitrary mastery score. Such assessment would be useful whenever the test user is not willing to post a priori a loss ratio, but wishes to look at the various consequences before aiming at a particular score.

Methodology is described for fitting a fuzzy consensus partition to a set of partitions of the same set of objects. Three models defining median partitions are described: two of them are obtained from a least-squares fit of a set of membership functions, and the third (proposed by Pittau and Vichi) is acquired from a least-squares fit of a set of joint membership functions. The models are illustrated by application to both a set of hard partitions and a set of fuzzy partitions and comparisons are made between them and an alternative approach to obtaining a consensus fuzzy partition proposed by Sato and Sato; a discussion is given of some interesting differences in the results.

A nonrandomized minimax solution is presented for passing scores in the binomial error model. The computation does not require prior knowledge regarding an individual examinee or group test data for a population of examinees. The optimum passing score minimizes the maximum risk which would be incurred by misclassifications. A closed-form solution is provided for the case of constant losses, and tables are presented for a variety of situations including linear and quadratic losses. A scheme which allows for correction for guessing is also described.

Expressions involving optimal sign vectors are derived so as to yield two new applications. First, coefficient alpha for the sign-weighted composite is maximized in analogy to Lord's scale-independent solution with differential weights. Second, optimal sign vectors are used to define two groups of objects that are maximally distinct in terms of a function of the squared euclidean distances between groups. An efficient computing algorithm is described along with several examples.