Essays on pricing of risk and international linkage of Russian stock market

Last two decades have seen a rapid change in the global economic and financial situation; the economic conditions in many small and large underdeveloped countries started to improve and they became recognized as emerging markets. This led to growth in the amounts of global investments in these countries, partly spurred by expectations of higher returns, favorable risk-return opportunities, and better diversification alternatives to global investors. This process, however, has not been without problems and it has emphasized the need for more information on these markets. In particular, the liberalization of financial markets around the world, globalization of trade and companies, recent formation of economic and regional blocks, and the rapid development of underdeveloped countries during the last two decades have brought a major challenge to the financial world and researchers alike. This doctoral dissertation studies one of the largest emerging markets, namely Russia. The motivation why the Russian equity market is worth investigating includes, among other factors, its sheer size, rapid and robust economic growth since the turn of the millennium, future prospect for international investors, and a number of important major financial reforms implemented since the early 1990s. Another interesting feature of the Russian economy, which gives motivation to study Russian market, is Russia’s 1998 financial crisis, considered as one of the worst crisis in recent times, affecting both developed and developing economies. Therefore, special attention has been paid to Russia’s 1998 financial crisis throughout this dissertation. This thesis covers the period from the birth of the modern Russian financial markets to the present day, Special attention is given to the international linkage and the 1998 financial crisis. This study first identifies the risks associated with Russian market and then deals with their pricing issues. Finally some insights about portfolio construction within Russian market are presented. The first research paper of this dissertation considers the linkage of the Russian equity market to the world equity market by examining the international transmission of the Russia’s 1998 financial crisis utilizing the GARCH-BEKK model proposed by Engle and Kroner. Empirical results shows evidence of direct linkage between the Russian equity market and the world market both in regards of returns and volatility. However, the weakness of the linkage suggests that the Russian equity market was only partially integrated into the world market, even though the contagion can be clearly seen during the time of the crisis period. The second and the third paper, co-authored with Mika Vaihekoski, investigate whether global, local and currency risks are priced in the Russian stock market from a US investors’ point of view. Furthermore, the dynamics of these sources of risk are studied, i.e., whether the prices of the global and local risk factors are constant or time-varying over time. We utilize the multivariate GARCH-M framework of De Santis and Gérard (1998). Similar to them we find price of global market risk to be time-varying. Currency risk also found to be priced and highly time varying in the Russian market. Moreover, our results suggest that the Russian market is partially segmented and local risk is also priced in the market. The model also implies that the biggest impact on the US market risk premium is coming from the world risk component whereas the Russian risk premium is on average caused mostly by the local and currency components. The purpose of the fourth paper is to look at the relationship between the stock and the bond market of Russia. The objective is to examine whether the correlations between two classes of assets are time varying by using multivariate conditional volatility models. The Constant Conditional Correlation model by Bollerslev (1990), the Dynamic Conditional Correlation model by Engle (2002), and an asymmetric version of the Dynamic Conditional Correlation model by Cappiello et al. (2006) are used in the analysis. The empirical results do not support the assumption of constant conditional correlation and there was clear evidence of time varying correlations between the Russian stocks and bond market and both asset markets exhibit positive asymmetries. The implications of the results in this dissertation are useful for both companies and international investors who are interested in investing in Russia. Our results give useful insights to those involved in minimising or managing financial risk exposures, such as, portfolio managers, international investors, risk analysts and financial researchers. When portfolio managers aim to optimize the risk-return relationship, the results indicate that at least in the case of Russia, one should account for the local market as well as currency risk when calculating the key inputs for the optimization. In addition, the pricing of exchange rate risk implies that exchange rate exposure is partly non-diversifiable and investors are compensated for bearing the risk. Likewise, international transmission of stock market volatility can profoundly influence corporate capital budgeting decisions, investors’ investment decisions, and other business cycle variables. Finally, the weak integration of the Russian market and low correlations between Russian stock and bond market offers good opportunities to the international investors to diversify their portfolios.

Development of power flows around Baltic countries with new grid links

In the Thesis main focus is done on power flow development paths around the Baltic States as well as on market-based requirements for creation of the common Baltic electricity market. Current market regulations between the countries are presented; barriers for creating competitive common Baltic power market and for electricity trading with third countries are clarified; solutions are offered and corresponding road map is developed. Future power development paths around the Baltic States are analysed. For this purpose the 330 kV transmission grid of Estonia, Latvia and Lithuania is modelled in a power flow tool. Power flow calculations are carried out for winter and summer peak and off-peak load periods in 2020 with different combinations of interconnections. While carrying out power balance experiments several power flow patterns in the Baltic States are revealed. Conclusions are made about security of supply, grid congestion and transmission capacity availability for different scenarios.

Explosion-proof requirements for Electrical Machines in Chemical, Oil and Gas Industry in Russia and CIS Countries

One of the main industries which form the basis of Russian Economical structure is oil and gas. This industry is also playing a significant role for CIS countries. Oil and gas industry is developing intensively attracting foreign investments. This situation is providing sustainable development of machinery production for hazardous areas. Operating in oil and gas areas is always related with occurrence of explosion gas atmospheres. Machines for hazardous areas must be furnished with additional protection of different types. Explosion protection is regulated with standards according to which equipment must be manufactured. In Russia and CIS countries explosion-proof equipment must be constructed in compliance with GOST standards. To confirm that equipment is manufactured according to standards’ requirements and is safe and reliable it must undergo the approval procedure. Certification in Russia is governed by Federal Laws and legislation. Each CIS country has its own approval certificates and permissions for operating in hazardous areas.

Identification of the Emerging Issues in Recycled Fiber Processing

The objectives of this research work “Identification of the Emerging Issues in Recycled Fiber processing” are discovering of emerging research issues and presenting of new approaches to identify promising research themes in recovered paper application and production. The projected approach consists of identifying technological problems often encountered in wastepaper preparation processes and also improving the quality of recovered paper and increasing its proportion in the composition of paper and board. The source of information for the problem retrieval is scientific publications in which waste paper application and production were discussed. The study has exploited several research methods to understand the changes related to utilization of recovered paper. The all assembled data was carefully studied and categorized by applying software called RefViz and CiteSpace. Suggestions were made on the various classes of these problems that need further investigation in order to propose an emerging research trends in recovered paper.

Mining in Developing Countries: A Case Study of Sustainability Challenges

Mining has severe impacts on its surrounding. Particularly in the developing countries it has degraded the environment and signigicantly altered the socio-economical dynamics of the hosts. Especially relocation disrupts people from their homes, livelihoods, cultures and social activities. Mining industry has failed to develop the local host and streghten its governance structures; instead it has further degraded the development of mineral rich third world countries, which are among the world poorest ones. Cash flows derived from mining companies have not benefitted the crass-root level that however, bears most of the detrimental impacts. Especially if the governance structure of the host is weak, the sudden wealth is likely to accelerate disparities, corruption and even fuel wars. Environmental degradation, miscommunication, mistrust and disputes over land use have created conflicts between the communities and a mining company in Obuasi, Ghana; a case study of this thesis. The disputes are deeply rooted and further fuelled by unrealistic expectations and broken promises. The relations with artisanal and illegal miners have been especially troublesome. Illegal activities, mainly encroachment of the land and assets of the mine, such as vandalising tailings pipes have resulted in profits losses, environmental degradation and security hazards. All challenges mentioned above have to be addressed locally with site-specific solutions. It is vital to increase two-way communication, initiate collaboration and build capacity of the stakeholders such as local communities, NGOs and governance authorities. The locals must be engaged to create livelihood opportunities that are designed with and for them. Capacity can also be strengthened through education and skills training, such as women’s literacy programs. In order to diminish the overdependence of locals to the mine, the activities have to be self -sufficient and able to survive without external financial and managerial inputs. Additionally adequate and fair compensation practises and dispute resolution methods that are understood and accepted by all parties have to be agreed on as early as possible.

Assessment of Coals from Russia and Countries of Former Soviet Union for Utility Fluidized Bed Boilers

With the occurrence of fossil fuels such as oil, gas and coal we found new sources of energy that have played a critical role in the progress of our modern society. Coal is very ample compared to the other two fossil fuels. Global coal reserves at the end of 2005 were estimated at 847,5 billion tones. Along with the major energy sources, coal is the most fast growing fuel on a global basis, it provides 26% of primary energy needs and remains essential to the economies of many developed and developing countries. Coal-fired power generation accounts for 41% of the world‘s total electricity production and in some countries, such as South Africa, Poland, China, Australia, Kazakhstan and India is on very high level. Still, coal utilization represents challenges related to high emissions of air pollutants such as sulphur and nitrogen dioxides, particulate matter, mercury and carbon dioxide. In relation to these a number of technologies have been developed and are in marketable use, with further potential developments towards ―Near Zero Emission‖ coal plants. In present work, coals mined in Russia and countries of Former Soviet Union were reviewed. Distribution of coal reserves on the territory of Russia and the potential for power generation from coal-fired plants across Russia was shown. Physical and chemical properties of coals produced were listed and examined, as main factor influencing on design of the combustion facility and incineration process performance. The ash-related problems in coal-fired boilers were described. The analysis of coal ash of Russia and countries of Former Soviet Union were prepared. Feasible combustion technologies also were reviewed.

Effects of Foreign Direct Investment inflows on growth in Central and Eastern European transition countries

The aim of this master’s thesis is to analyze the effects of Foreign Direct Investments on growth in selected Central and Eastern European transition countries. The theoretical part of this thesis, introduces growth theories and how FDI is covered in those theories. In addition, the results from previous studies, which have studied FDI’s effect on growth, are presented in this master’s thesis. This work introduces also the economical progress during the transition period in selected countries. In the empirical part’s regression model, it will be searched for the direct effect of FDI on growth with panel data collected from nine transition countries.

Management of interdependency in project portfolio

Project management has evolved in recent decades. Project portfolio management, together with multi project management, is an emerging area in the project management field in practice, and correspondingly in academic research and forums. In multi project management, projects cannot be handled isolated from each other, as they often have interdependencies that have to be taken into account. If the interdependencies between projects are evaluated during the selection process, the success rate of the project portfolio is increased. Interdependencies can be human resources, technological, and/or market based. Despite of the fact that interdependency as a phenomenon has roots in the 1960s and is related to famous management theories, it has not been much studied, although in practice most companies use it to great extent. There exists some research on interdependency, but prior publications have not emphasized the phenomenon per se, because a practical orientation practitioner techniques prevails in the literature. This research applies the method triangulation, electronic surveys and multiple case study. The research concentrates on small to large companies in Estonia and Finland, mainly in construction, engineering, ICT, and machinery industries. The literature review reveals that interdependencies are deeply involved in R&D and innovation. Survey analysis shows that companies are aware of interdependency issues in general, but they i have lack of detailed knowledge to use it thoroughly. Empirical evidence also indicates that interdependency techniques influence the success rate and other efficiency aspects to different extents. There are a lot of similarities in interdependency related managerial issues in companies of varying sizes and countries in Northern Europe. Differences found in the study are for instance the fact that smaller companies face more difficulties in implementing and evaluating interdependency procedures. Country differences between Estonia and Finland stem from working solutions to manage interdependencies on a daily basis.historical and cultural reasons, such as the special features of a transition country compared to a mature country. An overview of the dominant problems, best practices, and commonly used techniques associated with interdependency is provided in the study. Empirical findings show that many interdependency techniques are not used in practice. A multiple case study was performed in the study to find out how interdependencies are managed in real life on a daily basis. The results show that interdependencies are mostly managed in an informal manner. A description of managing the interdependencies and implementation procedures is given. Interdependency procedures are hard to implement, especially in smaller companies. Companies have difficulties in implementing interdependency procedures and evaluating them. The study contains detailed results on how companies have implemented working solutions to manage interdependencies on a daily basis

Convergence and divergence in global economy and social development : global perspectives on the contents of economic and soical development policy and its effects on rich and poor countries

The study of convergence and divergence in global economy and social development utilises comparative indicators to investigate the contents of economic and social development policy and their effects on the global samples that represent the rich industrial, semi-industrial and the poor developing nations. The study searchesfor answers to questions such as "what are the objectives of economic growth policies in globalisation under the imperatives of convergence and divergence, and how do these affect human well-being in consideration to the objectives of social policy in various nations?" The empirical verification of data utilises the concepts of the `logic of industrialism´ for comparative analysis that focuses mainly on identifying the levels of well-being in world nations after the Second World War. The perspectives of convergence and divergence in global economy and social development critically examine the stages of early development processes in global economy, distinguish the differences between economy and social development, illustrate the contents of economic and social development policies, their effects on rich and poor countries, and the nature of convergence and divergence in propelling economic growth and unequal social development in world nations. The measurement of convergence and divergence in global economy and social development utilised both economic and social data that were combined into an index that measures the precise levels of the effects of economic and social development policies on human well-being in the rich and poor nations. The task of finding policy solutions to resolve the controversies are reviewed through empirical investigations and the analyses of trends indicated within economic and social indicators and data. These revealed how the adoption of social policy measures in translating the gains from economic growth, towards promoting education, public health, and equity, generate social progress and longer life expectancy, higher economic growth, and sustain more stable macro economy for the nations. Social policy is concerned with the translation of benefits from objectives of global economic growth policies, to objectives of social development policy in nation states. Social policy, therefore, represents an open door whereby benefits of economic growth policies are linked with the broader objectives of social development policy, thereby enhancing the possibility of extending benefits from economic growth to all human being in every nation.

Mobile banking in developing countries

This Master’s thesis examines the feasibility of eBusiness in developing countries by looking at the current mobile banking solutions. The research involved reviewing literature that was relevant to the research questions. It was discovered that the Wizzit and M-PESA are the current solutions to mobile banking. Furthermore, it was found out that the Wizzit and M-PESA were either transformational or additive. Additive mobile banking is the use of mobile phones as a channel to provide services to existing customers within financial institutions. Transformational mobile banking extends financial services to the unbanked. The results of the thesis are M-PESA works with only Safaricom while on the other hand Wizzit has compatibility with any mobile operator. The other result is that both M-PESA and Wizzit are transformational mobile banking technologies at the sametime Wizzit is an Additive mobile banking technology. Wizzit can provide financial services to both the unbanked and existing bank customers. It can be said the merits of Wizzit outweigh those of M-PESA which makes Wizzit better.

Conference Proceedings. Academic Mobility Blending Perspectives - Mobilité Académique Perspectives croisées

Les 21, 22 et 23 septembre 2006, le Département d’Études Françaises de l’Université de Turku (Finlande) a organisé une conférence internationale et bilingue (anglais et français) sur le thème de la mobilité académique ; le but de cette rencontre était de rendre possible la tenue d’un forum international et multidisciplinaire, susceptible d’être le siège de divers débats entre les différents acteurs de la mobilité académique (c’estàdire des étudiants, des chercheurs, des personnels enseignants et administratifs, etc.). Ainsi, ont été mis à contribution plus de cinquante intervenants, (tous issus de domaines aussi variés que la linguistique, les sciences de l’éducation, la didactique, l’anthropologie, la sociologie, la psychologie, l’histoire, la géographie, etc.) ainsi que cinq intervenants renommés1. La plupart des thèmes traités durant la conférence couvraient les champs suivants : l’organisation de la mobilité, les obstacles rencontrés par les candidats à la mobilité, l’intégration des étudiants en situation d’échange, le développement des programmes d’études, la mobilité virtuelle, l’apprentissage et l’enseignement des langues, la prise de cosncience interculturelle, le développement des compétences, la perception du système de mobilité académique et ses impacts sur la mobilité effective. L’intérêt du travail réalisé durant la conférence réside notamment dans le fait qu’il ne concentre pas uniquement des perspectives d’étudiants internationaux et en situation d’échange (comme c’est le cas de la plupart des travaux de recherche déjà menés sur ce sujet), mais aussi ceux d’autres corps : enseignants, chercheurs, etc. La contribution suivante contient un premier corpus de dixsept articles, répartis en trois sections : 1. Impacts de la mobilité étudiante ; 2. Formation en langues ; 3. Amélioration de la mobilité académique. À l’image de la conférence, la production qui suit est bilingue : huit des articles sont rédigés en français, et les neuf autres en anglais. Certains auteurs n’ont pas pu assister à la conférence mais ont tout de même souhaité apparaître dans cet ouvrage. Dans la première section de l’ouvrage, Sandrine Billaud tâche de mettre à jour les principaux obstacles à la mobilité étudiante en France (logement, organisation des universités, démarches administratives), et propose à ce sujet quelques pistes d’amélioration. Vient ensuite un article de Dominique Ulma, laquelle se penche sur la mobilité académique régnant au sein des Instituts Universitaires de Formation des Maîtres (IUFM) ; elle s’est tout particulièrement concentrée sur l’enthousiasme des stagiaires visàvis de la mobilité, et sur les bénéfices qu’apporte la mobilité Erasmus à ce type précis d’étudiant. Ensuite, dans un troisième article, Magali Hardoin s’interroge sur les potentialités éducationnelles de la mobilité des enseignantsstagiaires, et tâche de définir l’impact de celleci sur la construction de leur profil professionnel. Après cela arrive un groupe de trois articles, tous réalisés à bases d’observations faites dans l’enseignement supérieur espagnol, et qui traitent respectivement de la portée qu’a le programme de triple formation en langues européennes appliquées pour les étudiants en mobilité (Marián MorónMartín), des conséquences qu’occasionne la présence d’étudiants étrangers dans les classes de traductions (Dimitra Tsokaktsidu), et des réalités de l’intégration sur un campus espagnol d’étudiants américains en situation d’échange (Guadalupe Soriano Barabino). Le dernier article de la section, issu d’une étude sur la situation dans les institutions japonaises, fait état de la situation des programmes de doubles diplômes existant entre des établissements japonais et étrangers, et tente de voir quel est l’impact exact de tels programmes pour les institutions japonaises (Mihoko Teshigawara, Riichi Murakami and Yoneo Yano). La seconde section est elle consacrée à la relation entre apprentissage et enseignement des langues et mobilité académique. Dans un premier article, Martine Eisenbeis s’intéresse à des modules multimédia réalisés à base du film « L’auberge espagnole », de Cédric Klapish (2001), et destinés aux étudiants en mobilité désireux d’apprendre et/ou améliorer leur français par des méthodes moins classiques. Viennent ensuite les articles de Jeanine Gerbault et Sabine Ylönen, lesquels traitent d’un projet européen visant à supporter la mobilité étudiante par la création d’un programme multimédia de formation linguistique et culturelle pour les étudiants en situation de mobilité (le nom du projet est EUROMOBIL). Ensuite, un article de Pascal Schaller s’intéresse aux différents types d’activités que les étudiants en séjour à l’étranger expérimentent dans le cadre de leur formation en langue. Enfin, la section s’achève avec une contribution de Patricia KohlerBally, consacrée à un programme bilingue coordonné par l’Université de Fribourg (Suisse). La troisième et dernière section propose quelques pistes de réflexion destinées à améliorer la mobilité académique des étudiants et des enseignants ; dans ce cadre seront donc évoquées les questions de l’égalité face à la mobilité étudiante, de la préparation nécessitée par celleci, et de la prise de conscience interculturelle. Dans un premier chapitre, Javier Mato et Bego

Travels in various countries of Europe, Asia and Africa : Part the third : Scandinavia : Section the second : by Edward Daniel Clarke.

Digital reproduction, The National Library of Finland, Centre for Preservation and Digitisation, Mikkeli

Travels in various countries of Europe, Asia and Africa : Part the third : Scandinavia : Section the first : by Edward Daniel Clarke.

Digital reproduction, The National Library of Finland, Centre for Preservation and Digitisation, Mikkeli