Effect of Earnings Volatility on Cost of Debt: The case of Swedish Limited Companies

The paper empirically tests the relationship between earnings volatility and cost of debt with a sample of more than 77,000 Swedish limited companies over the period 2006 to 2013 observing more than 677,000 firm years. As called upon by many researchers recently that there is very limited evidence of the association between earnings volatility and cost of debt this paper contributes greatly to the existing literature of earnings quality and debt contracts, especially on the consequence of earnings quality in the debt market. Earnings volatility is a proxy used for earnings quality while cost of debt is a component of debt contract. After controlling for firms’ profitability, liquidity, solvency, cashflow volatility, accruals volatility, sales volatility, business risk, financial risk and size this paper studies the effect of earnings volatility measured by standard deviation of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) on Cost of Debt. Overall finding suggests that lenders in Sweden does take earnings volatility into consideration while determining cost of debt for borrowers. But a deeper analysis of various industries suggest earnings volatility is not consistently used by lenders across all the industries. Lenders in Sweden are rather more sensitive to borrowers’ financial risk across all the industries. It may also be stated that larger borrowers tend to secure loans at a lower interest rate, the results are consistent with majority of the industries. Swedish debt market appears to be well prepared for financial crises as the debt crisis seems to have no or little adverse effect borrowers’ cost of capital. This study is the only empirical evidence to study the association between earnings volatility and cost of debt. Prior indirect research suggests earnings volatility has a negative effect on cost debt (i.e. an increase in earnings volatility will increase firm’s cost of debt). Our direct evidence from the Swedish debt market is consistent for some industries including media, real estate activities, transportation & warehousing, and other consumer services.

Trade effects of exchange rate fluctuations: Evidence from Sweden

An overview of the theoretical literature for the last two decades suggests that there is no clear-cut relationship one can pin down between exchange rate volatility and trade flows. Analytical results are based on specific assumptions and only hold in certain cases. Especially, the impact of exchange rate volatility on export and import activity investigated separately leads also to dissimilar conclusions among countries studied. The general presumption is that an increase in exchange rate volatility will have an adverse effect on trade flows and consequently, the overall heath of the world economy. However, neither theoretical models nor empirical studies provide us with a definitive answer, leaving obtained results highly ambiguous and inconsistent (Baum and Caglayan, 2006). We purposed to empirically investigate trade effects of exchange rate fluctuations in Sweden from the perspective of export and import in this research. The data comprises period from January 1993 to December 2006, where export and import volumes are considered from the point of their determinants, including exchange rate volatility, which has been measured through EGARCH model. The results for the case of Sweden show that short run dynamics of volatility negatively associated with both export and import, whereas considered from the case of previous period volatility it exhibits positive relationship. These results are consistent with the most findings of prior studies, where the relationship remained ambiguous.

IT­-Forensisk undersökning av flyktigt minne : På Linux och Android enheter

Att kunna gör en effektiv undersökning av det flyktiga minnet är något som blir viktigare ochviktigare i IT-forensiska utredningar. Dels under Linux och Windows baserade PC installationermen också för mobila enheter i form av Android och enheter baserade andra mobila opperativsy-stem.Android använder sig av en modifierad Linux-kärna var modifikationer är för att anpassa kärnantill de speciella krav som gäller för ett mobilt operativsystem. Dessa modifikationer innefattardels meddelandehantering mellan processer men även ändringar till hur internminnet hanteras ochövervakas.Då dessa två kärnor är så pass nära besläktade kan samma grundläggande principer användas föratt dumpa och undersöka minne. Dumpningen sker via en kärn-modul vilket i den här rapportenutgörs av en programvara vid namn LiME vilken kan hantera bägge kärnorna.Analys av minnet kräver att verktygen som används har en förståelse för minneslayouten i fråga.Beroende på vilken metod verktyget använder så kan det även behövas information om olika sym-boler. Verktyget som används i det här examensarbetet heter Volatility och klarar på papperet avatt extrahera all den information som behövs för att kunna göra en korrekt undersökning.Arbetet avsåg att vidareutveckla existerande metoder för analys av det flyktiga minnet på Linux-baserade maskiner (PC) och inbyggda system(Android). Problem uppstod då undersökning avflyktigt minne på Android och satta mål kunde inte uppnås fullt ut. Det visade sig att minnesanalysriktat emot PC-plattformen är både enklare och smidigare än vad det är mot Android.