The us subprime crisis and stock market integration: evidence from the BRICS

The aim of this study is to examine the level of stock market co-movement in the BRICS countries and three major industrialized countries (Japan, UK and USA). While analyzing the interdependence and integration of markets, two subsets are examined: before (2000 – 2007) and during the global financial crisis (2007-2011). Generally, interdependence across markets is likely to increase during a highly volatile period. This is problematic because if it were true, the main benefit of international diversification would be reduced at times when it is most needed. The results reveal the dominant role of the US financial markets over the examined time period. Empirical studies of this research paper indicate that cross-market linkages have become slightly stronger during the ongoing subprime crisis than before crisis. However, results also show that an investor may obtain some international diversification benefits by investing especially in the BRICS countries despite the fact of unstable economic condition and growing globalization.

Market integration, return and volatility dynamics; empirical evidence from African stock markets

Frontier and Emerging economies have implemented policies with the objective of liberalizing their equity markets. Equity market liberalization opens the domestic equity market to foreign investors and as well paves the way for domestic investors to invest in foreign equity securities. Among other things, equity market liberalization results in diversification benefits. Moreover, equity market liberalization leads to low cost of equity capital resulting from the lower rate of return by investors. Additionally, foreign and local investors share any potential risks. Liberalized equity markets also become liquid considering that there are more investors to trade. Equity market liberalization results in financial integration which explains the movement of two markets. In crisis period, increased volatility and co-movement between two markets may result in what is termed contagion effects. In Africa, major moves toward financial liberalization generally started in the late 1980s with South Africa as the pioneer. Over the years, researchers have studied the impact of financial liberalization on Africa’s economic development with diverse results; some being positive, others negative and still others being mixed. The objective of this study is to establish whether African stock-markets are integrated into the United States (US) and World market. Furthermore, the study helps to see if there are international linkages between the Africa, US and the world markets. A Bivariate- VAR- GARCH- BEKK model is employed in the study. In the study, the effect of thin trading is removed through series of econometric data purification. This is because thin trading, also known as non-trading or inconsistency of trading, is a main feature of African markets and may trigger inconsistency and biased results. The study confirmed the widely established results that the South Africa and Egypt stock markets are highly integrated with the US and World market. Interestingly, the study adds to knowledge in this research area by establishing the fact that Kenya is very integrated with the US and World markets and that it receives and exports past innovations as well as shocks to and from the US and World market.

Dynamic linkages of real estate and stock markets in Finland

Traditionally real estate has been seen as a good diversification tool for a stock portfolio due to the lower return and volatility characteristics of real estate investments. However, the diversification benefits of a multi-asset portfolio depend on how the different asset classes co-move in the short- and long-run. As the asset classes are affected by the same macroeconomic factors, interrelationships limiting the diversification benefits could exist. This master’s thesis aims to identify such dynamic linkages in the Finnish real estate and stock markets. The results are beneficial for portfolio optimization tasks as well as for policy-making. The real estate industry can be divided into direct and securitized markets. In this thesis the direct market is depicted by the Finnish housing market index. The securitized market is proxied by the Finnish all-sectors securitized real estate index and by a European residential Real Estate Investment Trust index. The stock market is depicted by OMX Helsinki Cap index. Several macroeconomic variables are incorporated as well. The methodology of this thesis is based on the Vector Autoregressive (VAR) models. The long-run dynamic linkages are studied with Johansen’s cointegration tests and the short-run interrelationships are examined with Granger-causality tests. In addition, impulse response functions and forecast error variance decomposition analyses are used for robustness checks. The results show that long-run co-movement, or cointegration, did not exist between the housing and stock markets during the sample period. This indicates diversification benefits in the long-run. However, cointegration between the stock and securitized real estate markets was identified. This indicates limited diversification benefits and shows that the listed real estate market in Finland is not matured enough to be considered a separate market from the general stock market. Moreover, while securitized real estate was shown to cointegrate with the housing market in the long-run, the two markets are still too different in their characteristics to be used as substitutes in a multi-asset portfolio. This implies that the capital intensiveness of housing investments cannot be circumvented by investing in securitized real estate.

Suomen taloussuhdanteiden kansainvälinen yhteisvaihtelu

Taloussuhdanteiden yhteisvaihtelun tutkimus on eräs taloustieteiden vanhimmista tutkimusaloista. Finanssikriisi ja euroalueen kohtaamat talousvaikeudet ovat kuitenkin nostaneet aiheen jälleen hyvin ajankohtaiseksi. Kuluneiden kahdenkymmenen vuoden aikana tutkimusalueesta on muodostunut erittäin laaja lukuisine näkökulmineen ja debatteineen. Tutkielman aiheena on Suomen taloussuhdanteiden kansainvälinen yhteisvaihtelu valittujen vertailumaiden kanssa. Vertailumaat ovat Ruotsi, Norja, Tanska, Saksa, Ranska, Iso-Britannia ja Yhdysvallat. Tutkielmaan valitut taloussuhdannetta kuvaavat muuttujat ovat reaalinen bruttokansantuote, yksityinen kokonaiskulutus ja teollisuustuotantoindeksi. Aineisto on kerätty Lappeenrannan tiedekirjaston Nelli-portaalin OECD iLibrary-tietokannasta ja se kattaa aikajakson 1960 Q1- 2014 Q4. Maakohtainen taloussuhdanne operationalisoidaan laskemalla ensimmäinen logaritminen differenssi, joka edustaa perinteistä reaalisuhdanneteoreettisen koulukunnan näkemystä taloussuhdanteesta. Tutkielman näkökulmaksi valitaan yhden maan näkökulma, joka on hieman harvinaisempi näkökulma verrattuna laajempiin alueellisiin näkökulmiin. Tutkimusmenetelminä käytetään Pearsonin korrelaatiokerrointa, Engle-Granger- sekä Johansenin yhteisintegroituvuustestejä ja VAR-GARCH-BEKK –mallilla laskettua dynaamista korrelaatiota, jotka lasketaan Suomen ja vertailumaiden välille maapareittain. Tuloksia tulkitaan suomalaisen vientiä vertailumaihin suunnittelevan yrityksen näkökulmasta. Tutkielman tulosten perusteella Engle-Grangerin menetelmällä laskettu samanaikainen yhteisintegroituvuus Suomen ja vertailumaiden välillä on epätodennäköistä. Kun yhteisintegroituvuuden annetaan riippua myös viiveistä, saadaan Johansenin menetelmällä yhteisintegroituvuus Suomen ja Yhdysvaltojen välille reaalisessa bruttokansantuotteessa, Suomen ja Saksan, Suomen ja Ranskan sekä Suomen ja Yhdysvaltojen välille yksityisessä kokonaiskulutuksessa sekä Suomen ja Norjan välille teollisuustuotantoindeksissä. Tulosten tulkintaa vaikeuttavat niiden malliriippuvuus ja informaatiokriteerien toisistaan poikkeavat mallisuositukset, joten yhteisintegroituvuus on mahdollinen myös muiden maaparien kohdalla. Dynaamisten korrelaatiokuvaajien perusteella maaparien välisen yhteisvaihtelun voimakkuus muuttuu ajan mukana. Finanssikriisin aikana kokonaistuotannossa on havaittavissa korkeampi korrelaatio, mutta korrelaatio palaa sen jälkeen perustasolleen. Kokonaiskulutuksen korrelaatio on kokonaistuotantoa alhaisempi ja pitemmissä aikajaksoissa vaihtelevaa.

Pairs trading profitability in the Finnish stock market: A comparison between three methods

Pairs trading is an algorithmic trading strategy that is based on the historical co-movement of two separate assets and trades are executed on the basis of degree of relative mispricing. The purpose of this study is to explore one new and alternative copula-based method for pairs trading. The objective is to find out whether the copula method generates more trading opportunities and higher profits than the more traditional distance and cointegration methods applied extensively in previous empirical studies. Methods are compared by selecting top five pairs from stocks of the large and medium-sized companies in the Finnish stock market. The research period includes years 2006-2015. All the methods are proven to be profitable and the Finnish stock market suitable for pairs trading. However, copula method doesn’t generate more trading opportunities or higher profits than the other methods. It seems that the limitations of the more traditional methods are not too restrictive for this particular sample data.

ETYK III-vaihe (Tasavallan Presidentin esittämä Suomen puheenvuoro 31.7.1975 = Conference on Security and Co-operation in Europe = main speech of Finland delivered by President Urho Kekkonen July 31, 1975)

Puhe

Photosynthesis and Rubisco kinetics in spring wheat and meadow fescue under conditions of simulated climate change with elevated CO[sub 2] and increased temperatures

Selostus: Kevätvehnän ja nurminadan fotosynteesi ja Rubisco-kinetiikka simuloidun ilmastonmuutoksen eli kohotetun hiilidioksidipitoisuuden ja kohotetun lämpötilan oloissa

Simulation of spring wheat responses to elevated CO‚́‚ and temperature by using CERES-wheat crop model

Selostus: Kohotettujen CO‚́‚:n ja lämpötilan vaikutukset kevätvehnän fenologiseen kehitykseen ja sadontuottomahdollisuuksiin

Effects of rotation period on biomass production and atmospheric CO‚́‚ emissions from broadleaved stands growing on abandoned farmland

Abstract

Formation and Control of Trace Metal Emissions in Co-Firing of Biomass, Peat, and Wastes in Fluidised Bed Combustors

Environmentally harmful consequences of fossil fuel utilisation andthe landfilling of wastes have increased the interest among the energy producers to consider the use of alternative fuels like wood fuels and Refuse-Derived Fuels, RDFs. The fluidised bed technology that allows the flexible use of a variety of different fuels is commonly used at small- and medium-sized power plants ofmunicipalities and industry in Finland. Since there is only one mass-burn plantcurrently in operation in the country and no intention to build new ones, the co-firing of pre-processed wastes in fluidised bed boilers has become the most generally applied waste-to-energy concept in Finland. The recently validated EU Directive on Incineration of Wastes aims to mitigate environmentally harmful pollutants of waste incineration and co-incineration of wastes with conventional fuels. Apart from gaseous flue gas pollutants and dust, the emissions of toxic tracemetals are limited. The implementation of the Directive's restrictions in the Finnish legislation is assumed to limit the co-firing of waste fuels, due to the insufficient reduction of the regulated air pollutants in the existing flue gas cleaning devices. Trace metals emission formation and reduction in the ESP, the condensing wet scrubber, the fabric filter, and the humidification reactor were studied, experimentally, in full- and pilot-scale combustors utilising the bubbling fluidised bed technology, and, theoretically, by means of reactor model calculations. The core of the model is a thermodynamic equilibrium analysis. The experiments were carried out with wood chips, sawdust, and peat, and their refuse-derived fuel, RDF, blends. In all, ten different fuels or fuel blends were tested. Relatively high concentrations of trace metals in RDFs compared to the concentrations of these metals in wood fuels increased the trace metal concentrations in the flue gas after the boiler ten- to hundred-folds, when RDF was co-fired with sawdust in a full-scale BFB boiler. In the case of peat, lesser increase in trace metal concentrations was observed, due to the higher initial trace metal concentrations of peat compared to sawdust. Despite the high removal rate of most of the trace metals in the ESP, the Directive emission limits for trace metals were exceeded in each of the RDF co-firing tests. The dominat trace metals in fluegas after the ESP were Cu, Pb and Mn. In the condensing wet scrubber, the flue gas trace metal emissions were reduced below the Directive emission limits, whenRDF pellet was used as a co-firing fuel together with sawdust and peat. High chlorine content of the RDFs enhanced the mercuric chloride formation and hence the mercury removal in the ESP and scrubber. Mercury emissions were lower than theDirective emission limit for total Hg, 0.05 mg/Nm3, in all full-scale co-firingtests already in the flue gas after the ESP. The pilot-scale experiments with aBFB combustor equipped with a fabric filter revealed that the fabric filter alone is able to reduce the trace metal concentrations, including mercury, in the flue gas during the RDF co-firing approximately to the same level as they are during the wood chip firing. Lower trace metal emissions than the Directive limits were easily reached even with a 40% thermal share of RDF co-firing with sawdust.Enrichment of trace metals in the submicron fly ash particle fraction because of RDF co-firing was not observed in the test runs where sawdust was used as the main fuel. The combustion of RDF pellets with peat caused an enrichment of As, Cd, Co, Pb, Sb, and V in the submicron particle mode. Accumulation and release oftrace metals in the bed material was examined by means of a bed material analysis, mass balance calculations and a reactor model. Lead, zinc and copper were found to have a tendency to be accumulated in the bed material but also to have a tendency to be released from the bed material into the combustion gases, if the combustion conditions were changed. The concentration of the trace metal in the combustion gases of the bubbling fluidised bed boiler was found to be a summary of trace metal fluxes from three main sources. They were (1) the trace metal flux from the burning fuel particle (2) the trace metal flux from the ash in the bed, and (3) the trace metal flux from the active alkali metal layer on the sand (and ash) particles in the bed. The amount of chlorine in the system, the combustion temperature, the fuel ash composition and the saturation state of the bed material in regard to trace metals were discovered to be key factors affecting therelease process. During the co-firing of waste fuels with variable amounts of e.g. ash and chlorine, it is extremely important to consider the possible ongoingaccumulation and/or release of the trace metals in the bed, when determining the flue gas trace metal emissions. If the state of the combustion process in regard to trace metals accumulation and/or release in the bed material is not known,it may happen that emissions from the bed material rather than the combustion of the fuel in question are measured and reported.

The fleet of the Finska Ångfartygs Aktiebolaget (Finland Steamship Co. Ltd), Helsingfors - [Cover]

Julkaisusta puuttuu s/s Oihonnan pohjapiirustus, sen paikalla on s/s Wellamon pohjapiirustus toiseen kertaan.

Challenges in co-operation with Logistics Service Providers

Kiristyvä kilpailu ja korkean teknologian alalle tyypillisten nopeiden suhdannevaihteluiden tuomat haasteet ajavat yrityksiä etsimään uusia kehityskohteita ja kustannussäästöjä. Ydinosaamisen ulkopuolelle kuuluvan osa-alueen ulkoistamisella yritykset hakevat tehokkuutta ja kustannussäästöjä eri toimintoihinsa. Tässä työssä selvitetään tutkittavan yrityksen toteutuneita ulkoistamisprojekteja, niiden tuomia etuja ja haittoja. Tutkimuksen teoriaosuudessa käsitellään yleisesti ulkoistamiseen liittyviä asioita, sekä uppoudutaan erityisesti logistiikan ulkoistamisen tuomiin mahdollisuuksiin ja haasteisiin. Empiirinen osuus käsittää prosessikuvaukset tutkittavan yrityksen logistisista toiminnoista sekä yrityksen toteutuneista ulkoistamisprojekteista. Vertailut -kappaleessa pohditaan mitä logistiikan ulkoistaminen on tarkoittanut sekä kustannus että operatiivisessa mielessä.