Pricing anomalies in the Finnish stock market

The aim of this thesis is to examine whether the pricing anomalies exists in the Finnish stock markets by comparing the performance of quantile portfolios that are formed on the basis of either individual valuation ratios, composite value measures or combined value and momentum indicators. All the research papers included in the thesis show evidence of value anomalies in the Finnish stock markets. In the first paper, the sample of stocks over the 1991-2006 period is divided into quintile portfolios based on four individual valuation ratios (i.e., E/P, EBITDA/EV, B/P, and S/P) and three hybrids of them (i.e. composite value measures). The results show the superiority of composite value measures as selection criterion for value stocks, particularly when EBITDA/EV is employed as earnings multiple. The main focus of the second paper is on the impact of the holding period length on performance of value strategies. As an extension to the first paper, two more individual ratios (i.e. CF/P and D/P) are included in the comparative analysis. The sample of stocks over 1993- 2008 period is divided into tercile portfolios based on six individual valuation ratios and three hybrids of them. The use of either dividend yield criterion or one of three composite value measures being examined results in best value portfolio performance according to all performance metrics used. Parallel to the findings of many international studies, our results from performance comparisons indicate that for the sample data employed, the yearly reformation of portfolios is not necessarily optimal in order to maximally gain from the value premium. Instead, the value investor may extend his holding period up to 5 years without any decrease in long-term portfolio performance. The same holds also for the results of the third paper that examines the applicability of data envelopment analysis (DEA) method in discriminating the undervalued stocks from overvalued ones. The fourth paper examines the added value of combining price momentum with various value strategies. Taking account of the price momentum improves the performance of value portfolios in most cases. The performance improvement is greatest for value portfolios that are formed on the basis of the 3-composite value measure which consists of D/P, B/P and EBITDA/EV ratios. The risk-adjusted performance can be enhanced further by following 130/30 long-short strategy in which the long position of value winner stocks is leveraged by 30 percentages while simultaneously selling short glamour loser stocks by the same amount. Average return of the long-short position proved to be more than double stock market average coupled with the volatility decrease. The fifth paper offers a new approach to combine value and momentum indicators into a single portfolio-formation criterion using different variants of DEA models. The results throughout the 1994-2010 sample period shows that the top-tercile portfolios outperform both the market portfolio and the corresponding bottom-tercile portfolios. In addition, the middle-tercile portfolios also outperform the comparable bottom-tercile portfolios when DEA models are used as a basis for stock classification criteria. To my knowledge, such strong performance differences have not been reported in earlier peer-reviewed studies that have employed the comparable quantile approach of dividing stocks into portfolios. Consistently with the previous literature, the division of the full sample period into bullish and bearish periods reveals that the top-quantile DEA portfolios lose far less of their value during the bearish conditions than do the corresponding bottom portfolios. The sixth paper extends the sample period employed in the fourth paper by one year (i.e. 1993- 2009) covering also the first years of the recent financial crisis. It contributes to the fourth paper by examining the impact of the stock market conditions on the main results. Consistently with the fifth paper, value portfolios lose much less of their value during bearish conditions than do stocks on average. The inclusion of a momentum criterion somewhat adds value to an investor during bullish conditions, but this added value turns to negative during bearish conditions. During bear market periods some of the value loser portfolios perform even better than their value winner counterparts. Furthermore, the results show that the recent financial crisis has reduced the added value of using combinations of momentum and value indicators as portfolio formation criteria. However, since the stock markets have historically been bullish more often than bearish, the combination of the value and momentum criteria has paid off to the investor despite the fact that its added value during bearish periods is negative, on an average.

Cross-cultural knowledge transfer within a multinational company

The ability to share knowledge efficiently is vital in day-to-day operations of multinational companies. Therefore, the tools for the effective knowledge sharing along with the transfer knowledge models are of a primary interest for the companies. Knowledge transfer often involves participants of different cultural background. The purpose of this research is to investigate how the cross-cultural knowledge transfer in a multinational corporation takes place and how the successful knowledge transfer is ensured. The four sub-questions will help to answer the research question. Firstly, the author will try to identify what difficulties might occur while transferring knowledge in a multicultural environment. Secondly, the cultural differences’ impact on cross-cultural communication will be explored. Thirdly, the tools and models for effective tacit knowledge transfer will be covered by the author. Lastly, the methods of assessing if a knowledge transfer was successful or not will be discussed. The focus of this thesis is on knowledge transfer within a multinational setting. A multinational corporation is used as a practical example for this study; namely the Training Centre of the multinational corporation. The study was carried out by using a qualitative research approach. The four employees of the Training Centre were interviewed in order to obtain the answers to the research questions. The complete idea of the data gathering process can be obtained by reading through the first part of the methodology section Furthermore, the matters of transferability, confirmability, trustworthiness and objectivity were discussed in the methodological section. The study indicates that in order to carry out the successful and efficient knowledge transfer several requests have to be met. Mutual motivation, e.g. the motivation of both knowledge sender and knowledge receiver is one of the most important determinants of knowledge transfer. Sufficient and bearable workload for the knowledge senders is important to ensure the quality and involvement of the knowledge sender into knowledge transfer process. Course contents, infrastructure and other matters will be discussed further on in relation of successful knowledge transfer. Influences of cultural differences on knowledge sharing were studied in this thesis. At the end of the empirical study- a model used to transfer knowledge in Training Centre will be presented. The model created proves to be functional and appropriate for transferring knowledge to representatives of different cultures.

DFMA Aspects in the Design of a Transfer Line for Off-line Ion Sources

In this thesis, the DFMA is presented and used for the purpose of having a design for a vertical transfer line that can be easily manufactured and assembled. The design of the transfer line, the major components and drawings are presented. The ease of assembly, the costs of manufacturing and differences between the use of steel structure and aluminum are compared. The ALARA principle is followed to minimize the risk of radiation exposure by the means of locating the test ion sources outside the radioactive area.

Glycolipid and ceramide transfer proteins : important determinants for their function

Lipider är viktiga biomolekyler, eftersom de bygger upp alla cellulära membran. Glykolipider, dvs. lipider som innehåller socker, är dessutom betydelsefulla som signaleringsmolekyler vid olika processer. Det är essentiellt att regleringen av syntesen, nedbrytningen samt transporten av lipider i cellen är noggrant koordinerade, och faktorer som kan påverka lipidmetabolismen är därför viktiga att undersöka. Denna avhandling har undersökt två olika lipidbindande proteiner, glykolipidtransportprotein (GLTP) och ceramidtransportprotein (CERT). GLTPs biologiska funktion är ännu oklar, dock vet man att GLTP har förmåga att binda olika glykolipider samt överföra dessa lipider mellan olika lipidmembraner. CERT har däremot visats kunna transportera ceramid från det endoplastiska retiklet (ER) till Golgi-apparaten, för produktion av sfingomyelin. I detta avhandlingsarbete undersöktes lokaliseringen av GLTP i celler med olika metoder, bl.a. konfokalmikroskopi, samt olika centrifugeringsmetoder. Genom att överuttrycka GLTP i celler och därefter analysera halten nysyntetiserade glykolipider, kunde även sambandet mellan GLTP-uttrycket och dessa lipider undersökas. I avhandlingen identifierades ytterligare en specifik aminosyrasekvens hos GLTP. Denna sekvens visades kunna binda till VAP-A, ett integralt ER protein, med en tidigare fastställd viktig funktion vid regleringen av lipidtransporten. I avhandlingen analyserades även hur ceramidtransporten mellan två olika membraner, medierad av CERT, påverkas av egenskaper i ceramidens omgivning. För att undersöka detta användes artificiella modellmembraner samt fluorimetriska metoder. Sammansättningen och packningen hos lipidmembranerna visades ha en stor betydelse för den CERT-katalyserade ceramidtransporten. Sammanfattningsvis antyder resultaten från avhandlingen att det existerar flera faktorer som kan påverka aktiviteten av GLTP och CERT, vilka i sin tur har förmåga att reglera lipidmetabolismen.

Heat transfer inside internal combustion engine: modelling and comparison with experimental data

The paper is devoted to study specific aspects of heat transfer in the combustion chamber of compression ignited reciprocating internal combustion engines and possibility to directly measure the heat flux by means of Gradient Heat Flux Sensors (GHFS). A one – dimensional single zone model proposed by Kyung Tae Yun et al. and implemented with the aid of Matlab, was used to obtain approximate picture of heat flux behavior in the combustion chamber with relation to the crank angle. The model’s numerical output was compared to the experimental results. The experiment was accomplished by A. Mityakov at four stroke diesel engine Indenor XL4D. Local heat fluxes on the surface of cylinder head were measured with fast – response, high – sensitive GHFS. The comparison of numerical data with experimental results has revealed a small deviation in obtained heat flux values throughout the cycle and different behavior of heat flux curve after Top Dead Center.

Regulation of photosynthetic electron transfer in plant chloroplasts

This thesis focuses on the molecular mechanisms regulating the photosynthetic electron transfer reactions upon changes in light intensity. To investigate these mechanisms, I used mutants of the model plant Arabidopsis thaliana impaired in various aspects of regulation of the photosynthetic light reactions. These included mutants of photosystem II (PSII) and light harvesting complex II (LHCII) phosphorylation (stn7 and stn8), mutants of energy-dependent non-photochemical quenching (NPQ) (npq1 and npq4) and of regulation of photosynthetic electron transfer (pgr5). All of these processes have been extensively investigated during the past decades, mainly on plants growing under steady-state conditions, and therefore many aspects of acclimation processes may have been neglected. In this study, plants were grown under fluctuating light, i.e. the alternation of low and high intensities of light, in order to maximally challenge the photosynthetic regulatory mechanisms. In pgr5 and stn7 mutants, the growth in fluctuating light condition mainly damaged PSI while PSII was rather unaffected. It is shown that the PGR5 protein regulates the linear electron transfer: it is essential for the induction of transthylakoid ΔpH that, in turn, activates energy-dependent NPQ and downregulates the activity of cytochrome b6f. This regulation was shown to be essential for the photoprotection of PSI under fluctuations in light intensity. The stn7 mutants were able to acclimate under constant growth light conditions by modulating the PSII/PSI ratio, while under fluctuating growth light they failed in implementing this acclimation strategy. LHCII phosphorylation ensures the balance of the excitation energy distribution between PSII and PSI by increasing the probability for excitons to be trapped by PSI. LHCII can be phosphorylated over all of the thylakoid membrane (grana cores as well as stroma lamellae) and when phosphorylated it constitutes a common antenna for PSII and PSI. Moreover, LHCII was shown to work as a functional bridge that allows the energy transfer between PSII units in grana cores and between PSII and PSI centers in grana margins. Consequently, PSI can function as a quencher of excitation energy. Eventually, the LHCII phosphorylation, NPQ and the photosynthetic control of linear electron transfer via cytochrome b6f work in concert to maintain the redox poise of the electron transfer chain. This is a prerequisite for successful plant growth upon changing natural light conditions, both in short- and long-term.

Homogeneous assay technologies in drug screening: Quenching Resonance Energy Transfer (QRET) technique

Information gained from the human genome project and improvements in compound synthesizing have increased the number of both therapeutic targets and potential lead compounds. This has evolved a need for better screening techniques to have a capacity to screen number of compound libraries against increasing amount of targets. Radioactivity based assays have been traditionally used in drug screening but the fluorescence based assays have become more popular in high throughput screening (HTS) as they avoid safety and waste problems confronted with radioactivity. In comparison to conventional fluorescence more sensitive detection is obtained with time-resolved luminescence which has increased the popularity of time-resolved fluorescence resonance energy transfer (TR-FRET) based assays. To simplify the current TR-FRET based assay concept the luminometric homogeneous single-label utilizing assay technique, Quenching Resonance Energy Transfer (QRET), was developed. The technique utilizes soluble quencher to quench non-specifically the signal of unbound fraction of lanthanide labeled ligand. One labeling procedure and fewer manipulation steps in the assay concept are saving resources. The QRET technique is suitable for both biochemical and cell-based assays as indicated in four studies:1) ligand screening study of β2 -adrenergic receptor (cell-based), 2) activation study of Gs-/Gi-protein coupled receptors by measuring intracellular concentration of cyclic adenosine monophosphate (cell-based), 3) activation study of G-protein coupled receptors by observing the binding of guanosine-5’-triphosphate (cell membranes), and 4) activation study of small GTP binding protein Ras (biochemical). Signal-to-background ratios were between 2.4 to 10 and coefficient of variation varied from 0.5 to 17% indicating their suitability to HTS use.

Lymph node transfer in the treatment of postmastectomy lymphedema

Background: Lymphedema is a debilitating disorder with few treatment options. Clinical studies have shown that microvascular lymph node transfer may improve the lymphatic function of the affected limb. This study provides information about the clinical efficacy and safety of this procedure. Further, the biological background of this technique is clarified with an analysis of postoperative production of lymphatic growth factors and cytokines related to lymphangiogenesis. Patients and Methods: The effect of lymph node transfer to recipient and donor sites was analyzed with lymphoscintigraphy, limb circumference measurements, and appearance of clinical symptoms. Axillary seroma samples were analyzed from four patient groups: Axillary lymph node removal (ALND), Microvascular breast reconstruction (BR), lymph node transfer (LN) and combined lymph node transfer and breast reconstruction (LN-BR). Results: The postoperative lymphatic transport index was improved in 7/19 patients. Ten patients were able to reduce or discontinue compression therapy 6 - 24 months postoperatively. The donor lower limb lymphatic flow was slightly impaired (Ti >10) in 2 patients. No donor site lymphedema symptoms appeared during the 8 – 56-month follow-up. A high concentration of the VEGF-C protein was detected in the seroma fluid of all flap transfer groups. The concentration of the anti-inflammatory and anti-fibrotic cytokine IL-10 was increased in the LN-BR group samples when compared to the ALND or BR group. Conclusions: According to this preliminary study, the lymph node transfer seems to be beneficial for the lymphedema patients. However, a randomized study comparing the effect of BR and LN-BR is needed to evaluate the clinical efficacy of lymph node transfer. In addition, the effect of this surgery on the donor site needs to be studied further. The clinical effects of the lymph node transfer might be partly mediated by increased production of the lymphangiogenic growth factor (VEGF-C) as well as the anti-fibrotic cytokine (IL-10).

The pricing of industrial services

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Kaukolämmön hinnoittelumallien optimointi ja kehittäminen muuttuvassa toimintaympäristössä

Kaukolämpöliiketoiminnan kehittämistarve korostuu jatkuvasti alan rakennemuutosten ja markkinoiden muutoksien seurauksena. Turku Energian tavoitteena on uudistaa ja kehittää kaukolämmön hinnoitteluaan vastaamaan energian tuotannon, jakelun, loppukäytön ja muihin alan muutoksiin. Tässä opinnäytetyössä tutkitaan kaukolämmön hinnoittelun optimointi ja kehittämistä nykyisessä sekä tulevaisuuden markkina- ja tuotantorakenteessa. Nykyisen hinnoittelumallin lisäksi tutkitaan vaihtoehtoisia tapoja hinnoitella myytävä kaukolämpöenergia, kuten vuodenaikojen mukaan määriteltävä muuttuva energianhinta. Työn kirjallisuusosassa esitellään kaukolämmön tuotanto, siirto ja jakelu sekä liiketoiminta Suomessa ja Turun seudulla. Tutkittavat hinnoittelumallit perustuvat todellisiin ja arvioituihin liiketoiminnan kustannuksiin, sekä esitettyihin laskentaperiaatteisiin. Turku Energian nykyistä perusmaksun hintatasoa tulee korottaa, jotta se vastaa lämmönhankinnan kiinteitä kustannuksia tarkemmin ja minimoi liiketoiminnan markkinariskiä. Nykyisen hinnoittelun verokomponentin kehittämisellä lisätään hinnoittelun läpinäkyvyyttä. Kausihinnoittelun avulla energianhinta noudattaa tuotannon kustannuksia vuoden aikana ja ohjaa asiakkaiden lämmönkulutusta nykyistä tarkemmin. Uusiutuvilla energianlähteillä tuotettua kaukolämpöä voidaan myydä erillisillä tuotteilla, joiden avulla liiketoiminnalle saadaan lisäarvoa.

Russian SME technology transfer to Finland – Entrepreneurial challenges and motivation

The purpose of this thesis is to study the international technology transfer of transition economy SME entrepreneurs to the developed countries. The research aims to characterize the phenomenon by studying Russian SME technology transfer to Finland with the research methods from case studies. In addition to characterizing the phenomenon, the research finds out factors that motivate Russian entrepreneurs to conduct international technology transfer and what are the challenges the Russian entrepreneurs face when they enter the Finnish business environment. The qualitative data was collected from six semi-structured interviews with the entrepreneurs and several secondary data sources, considering four different technology transfer cases. The data and the analysis showed that the case companies in Finland are mostly linked to manufacturing of physical products. The entrepreneurs are motivated to come to Finland mainly by the opportunities and support the Finnish business and innovation environment provides to the entrepreneurs and by the personal gain that they get by establishing the company in Finland. Major challenges in the process include time constraints and capital requirements, difficulties on achieving sales on the Finnish market and finding skilled personnel to support the Russian management and owners.

Liquidity and Asset Pricing in the French Stock Market

This thesis investigates pricing of liquidity in the French stock market. The study covers 835 ordinary shares traded in the period of 1996-2014 on Paris Euronext. The author utilizes the Liquidity-Adjusted Capital Asset Pricing Model (LCAPM) recently developed by Acharya and Pedersen (2005) to test whether liquidity level and risks significantly affect stock returns. Three different liquidity measures – Amihud, FHT, and PQS – are incorporated into the model to find any difference between the results they could provide. It appears that the findings largely depend on the liquidity measure used. In general the results exhibit more evidence for insignificant influence of liquidity level and risks as well as market risk on stock returns. The similar conclusion was reported earlier by Lee (2011) for several regions, including France. This finding of the thesis, however, is not consistent across all the liquidity measures. Nevertheless, the difference in the results between these measures provides new insight to the existing literature on this topic. The Amihud-based findings might indicate that market resiliency is not priced in the French stock market. At the same time the contradicting results from FHT and PQS provide some foundation for the hypothesis that one of two leftover liquidity dimensions – market depth or breadth – could significantly affect stock returns. Therefore, the thesis’ findings suggest a conjecture that different liquidity dimensions have different impacts on stock returns.