Testing the Random Walk Hypothesis on the Baltic Stock Markets

The purpose of the thesis is to analyze whether the returns of general stock market indices of Estonia, Latvia and Lithuania follow the random walk hypothesis (RWH), and in addition, whether they are consistent with the weak-form efficiency criterion. Also the existence of the day-of-the-week anomaly is examined in the same regional markets. The data consists of daily closing quotes of the OMX Tallinn, Riga and Vilnius total return indices for the sample period from January 3, 2000 to August 28, 2009. Moreover, the full sample period is also divided into two sub-periods. The RWH is tested by applying three quantitative methods (i.e. the Augmented Dickey-Fuller unit root test, serial correlation test and non-parametric runs test). Ordinary Least Squares (OLS) regression with dummy variables is employed to detect the day-of-the-week anomalies. The random walk hypothesis (RWH) is rejected in the Estonian and Lithuanian stock markets. The Latvian stock market exhibits more efficient behaviour, although some evidence of inefficiency is also found, mostly during the first sub-period from 2000 to 2004. Day-of-the-week anomalies are detected on every stock market examined, though no longer during the later sub-period.

De scientia Dei media

Invocatio: kreik.

Applications and Markets of Linear Motors

A steady increase in practical industrial applications has secured a place for linear motors. They provide high dynamics and high positioning accuracy of the motor, high reliability and durability of all components of the system. Machines with linear motors have very big perspectives in modern industry. This thesis enables to understand what a linear motor is, where they are used and what situation there is on their market nowadays. It can help to understand reasonability of applying linear motors on manufacture and benefits of its application.

Yhdessä ja liikkeellä. Mobiili sosiaalinen media

Sosiaalinen media viittaa verkkopalveluihin, joiden toiminta perustuu käyttäjien ja käyttäjäyhteisöjen aktiiviseen sosiaaliseen vuorovaikutukseen. Matkapuhelimien kautta sosiaalinen media on liikkeellä ja pitää käyttäjät yhdessä ajasta ja paikasta riippumatta. Sosiaalisen median vetovoima perustuu siihen, että ihmiset jakavat tietoja, kuvia, videota ja ääntä sekä kommentoivat ja jatkavat viestiketjuja. Yhdessä ja liikkeellä -kirja tarkastelee sosiaalisen median uusinta ilmiötä, videoiden jakamista kännykkäpalvelun kautta. Mobiilit videot voivat kertoa jaetuista elämyksistä, konserteista, benji-hypyistä tai jazz-festivaalin vessajonosta. Liikkuva kuva kertoo usein enemmän kuin useampi valokuva, ja monen käyttäjän videokuva samasta tapahtumasta voi jo kertoa monipolvisen tarinan. Yhdessä ja liikkeellä esittelee Mobile Social Media -tutkimushankkeen tuloksia. Tavoitteena on ollut tutkia, millaiset tekijät tukevat mobiilin sosiaalisen median käyttöä ja miten sosiaalista mediaa hyödynnetään matkapuhelimilla, miten sosiaalisen median yhteisö voi muodostaa kännykkävideoista yhteisen tarinan, millaisia teknologisia haasteita mobiilin sosiaalisen median käytölle on. Tutkimushanke on CAT - Culture Art and Technology -verkoston yhteistyötä. Verkostoon kuuluvat Aalto-yliopiston, Tampereen teknillisen yliopiston ja Turun yliopiston Porin yksiköt.

Country Risk and Market Reactions to Earnings Announcements: Evidence from Finnish Stock Markets

The objective of this thesis is to examine the market reaction around earnings announcements in Finnish stock markets. The aim is to find out whether the extreme market conditions during the financial crisis are reflected in stock prices as a stronger reaction. In addition to this, the purpose is to investigate how extensively Finnish listed companies report the country segmentation of revenues in their interim reports and whether the country risk is having a significant impact on perceived market reaction. The sample covers all companies listed in Helsinki stock exchange at 1.1.2010 and these companies’ interim reports from the first quarter of 2008 to last quarter of 2009. Final sample consists of 81 companies and 630 firm-quarter observations. The data sample has been divided in two parts, of which country risk sample contains 17 companies and 127 observations and comparison sample covers 66 companies and 503 observations. Research methodologies applied in this thesis are event study and cross-sectional regression analysis. Empirical results indicate that the market reaction occurs mainly during the announcement day and is slightly stronger in case of positive earnings surprises than the reactions observed in previous studies. In case of negative earnings surprises no significant differences can be observed. In case of country risk sample and negative earnings surprise market reaction is negative already in advance of the disclosure contrary to comparison sample. In case of positive surprise no differences can be observed. Country risk variable developed during this study seems to explain only minor part of the market reaction.

Utilizing social media in software documentation and knowledge management

This Master’s thesis studies the possibilities that social media tools can bring to help knowledge management in software development companies. It will introduce the most popular tools of social media and their usage possibilities in companies, not forgetting the possible downsides. One relevant aspect in this study is to investigate the possibilities of social media to help converting existing tacit knowledge into explicit. The purpose of the work is to create a proposal of social media utilization for a mid-sized software company, which has not utilized social media tools before. To be able to create the proposal, employees of the company are interviewed and a survey is executed to analyze the current situation. In addition a pilot project for trying out new social media tools is executed. The final result of this thesis introduces a tailored solution for the target company to start utilizing social media in its documentation and knowledge sharing processes. This new solution consists of multiple individual suggestions that are categorized and prioritized based on the significance and benefit that they bring to the company.

Russian Venture Capital Markets

Tämän työn tarkoituksena on arvioida riskipääomasijoittamisen kehitystä ja kasvua Venäjällä, sekä antaa kuva siihen vaikuttavista tekijöistä. Se myös arvioi Venäjän valtion toimintaa niin säätelijänä, kuin myös itsenäisenä sijoittajana. Saavutetut tulokset perustuvat haastatteluihin ja olemassa olevien tilastojen analysointiin. Vuoden 1998 rupla kriisin jälkeen riskipääomasijoittaminen lähti kasvuun joka on jatkunut tasaisella rauhallisella tahdilla. Alueellisista riskipääomarahastoista on siirrytty myös yksityisrahoitteisiin ja yksityishallinnoituihin rahastoihin omine kohde aloineen ja portfolioineen. Silti markkinat ovat säilyneet kyllästymättöminä. Kuluttajavetoiset toimialat ovat keränneet eniten investointeja talouden ja ostovoiman kasvusta johtuen. Alueellisesti Moskova erottuu sijoituskohteena, muiden suurempien kasvukeskusten seuratessa perässä. Venäjällä on vielä paljon heikkouksia jotka vaikuttavat sen houkuttelevuuteen sijoittajan näkökulmasta. Heikot instituutiot ja lainsäädäntö yhdistettynä riskipääomasijoittamisen luonteeseen tekevät Venäjästä arvaamattoman markkina-alueen. Se kuitenkin tarjoaa menestyville sijoittajille korkeat tuotot. Nähtäväksi jää kuinka valtion toiminta vaikuttaa markkinoiden kehitykseen lyhyellä ja pitkällä tähtäimellä, ja kuinka se onnistuu kehittämään Venäjän yleistä kilpailukykyä globaaleilla markkinoilla.

Determinants of credit default swap spread, the effect of the financial crisis in the us markets

The purpose of this study is to define what determinants affect the Credit spread. There are two theoretical frameworks to study this: structural models and reduced form models. Structural models indicate that the main determinants are company leverage, volatility and risk-free interest rate, and other market and firm-specific variables. The purpose is to determine which of these theoretical determinants can explain the CDS spread and also how these theoretical determinants are affected by the financial crisis in 2007. The data is collected from 30 companies in the US Markets, mainly S&P Large Cap. The sample time-frame is 31.1.2004 – 31.12.2009. Empirical studies indicate that structural models can explain the CDS spreads well. Also, there were significant differences between bear and bull markets. The main determinants explaining CDS spreads were leverage and volatility. The other determinants were significant, depending on the sample period. However, these other variables did not explain the spread consistently.

Accounting Beta Measuring Systematic Risk: Empirical Evidence from the Finnish Markets

The main purpose of this study is to examine whether accounting-based variables can be used to measure systematic risk of a company using Finnish data. When the fundamental sources of systematic risk are known, companies are able to manage these risks and increase company value. Accounting beta was formed based on OLS regression models. Theoretical background for the study was based on the findings of studies according to which business risk, financial risk, operating risk and growth risk can be theoretically regarded as determinants of the systematic risk. The results reveal that accounting variables describe systematic risk of a company. The accounting beta is found to be particularly sensitive to the changes in the risk components. The investigation is confidential until 15.10.2012.