Earnings management in the process of preparing corporate financial reports

Earnings management (EM) literature examines managers’ use of judgment in financial reporting and in structuring transactions to alter financial reports for a specific reason. Mainstream EM literature strongly concentrates on statistical research methodologies and it is driven by positive accounting theory. Although EM occurs in the process of preparing corporate financial reports, that process has so far largely remained a “black box” in prior literature. The purpose of this study is to analyze what EM is, how and why it unfolds and how it is intertwined in the process of preparing corporate financial reports. In order to meet the needs of the study, a qualitative case study method will be used. The contribution of this study is threefold. First, it indicates that the concept of EM is not as unam-biguous as the prior literature has assumed. I find that EM is socially constructed and more open to interpretation than absolutely dichotomous conception given by previous studies. Second, this study contributes to our knowledge of the role and the importance of actors involved in conducting EM, indicating that EM is much more actor-dependent than the prior literature has assumed. Third, this study broadens our knowledge base with regard to the processes and potential for EM in academic research.

MASTER DATA MANAGEMENT MATURITY AND TECHNOLOGY ASSESSMENT - From theory to practice, case Ineo Oy

After decades of mergers and acquisitions and successive technology trends such as CRM, ERP and DW, the data in enterprise systems is scattered and inconsistent. Global organizations face the challenge of addressing local uses of shared business entities, such as customer and material, and at the same time have a consistent, unique, and consolidate view of financial indicators. In addition, current enterprise systems do not accommodate the pace of organizational changes and immense efforts are required to maintain data. When it comes to systems integration, ERPs are considered “closed” and expensive. Data structures are complex and the “out-of-the-box” integration options offered are not based on industry standards. Therefore expensive and time-consuming projects are undertaken in order to have required data flowing according to business processes needs. Master Data Management (MDM) emerges as one discipline focused on ensuring long-term data consistency. Presented as a technology-enabled business discipline, it emphasizes business process and governance to model and maintain the data related to key business entities. There are immense technical and organizational challenges to accomplish the “single version of the truth” MDM mantra. Adding one central repository of master data might prove unfeasible in a few scenarios, thus an incremental approach is recommended, starting from areas most critically affected by data issues. This research aims at understanding the current literature on MDM and contrasting it with views from professionals. The data collected from interviews revealed details on the complexities of data structures and data management practices in global organizations, reinforcing the call for more in-depth research on organizational aspects of MDM. The most difficult piece of master data to manage is the “local” part, the attributes related to the sourcing and storing of materials in one particular warehouse in The Netherlands or a complex set of pricing rules for a subsidiary of a customer in Brazil. From a practical perspective, this research evaluates one MDM solution under development at a Finnish IT solution-provider. By means of applying an existing assessment method, the research attempts at providing the company with one possible tool to evaluate its product from a vendor-agnostics perspective.

Elämänkokemukset ja koherenssin tunne – typologinen tutkimus grounded theory -metodologiaa soveltaen

Tutkimuksen tarkoituksena on laadullisin menetelmin syventää tietoa työikäisten (28–60-vuotiaiden) suomalaisten kvantitatiivisesti mitatun koherenssin tunteen takana olevista tekijöistä. Tutkimuksella halutaan tuottaa aineistolähtöisesti tietoa siitä, mitkä käsitteet kuvaavat tutkittavien kerrottujen elämänkokemusten kautta selvitettyä koherenssin tunnetta ja samalla lisäämään ymmärrystä Antonovskyn salutogeenisesta teoreettisesta mallista. Tutkimukseen osallistuneet olivat Health and Social Support tutkimukseen vuosina 1998 ja 2003 osallistuneita. Koko kyseinen tutkimusotos edusti vuonna 1998 20–24, 30–34, 40–44 ja 50–54 -vuotiasta Suomen väestöä. Tutkimuksen metodina käytettiin glaserilaista grounded theory -metodologiaa. Tutkimuksen aineistonkeruu toteutettiin kolmessa eri vaiheessa. Ensimmäisessä vaiheessa haastateltiin 27 tutkittavaa. Toisessa vaiheessa haastateltavilta kerättiin lisäaineistoa kirjallisesti. Kahdeksan vastasi tähän pyyntöön. Kolmannessa vaiheessa haastateltiin seitsemää. Haastattelujen yhteydessä haastateltavat täyttivät koherenssin tunteen mittarin (13-osainen). Aineisto analysoitiin koherenssipisteiden mukaisesti kolmena eri aineistona. Tulokseksi saatiin substantiivinen teoria. Tutkimuksen tuloksena kuvattiin sosiaalinen perusprosessi, joka nimitettiin Elämän kokonaisuudeksi tässä hetkessä. Sosiaalisen perusprosessin sisällä on typologia. Jokaisesta koherenssipisteryhmästä muodostettiin oma typologia. Kukin typologia sisälsi neljä tyyppiä. Sosiaalisen perusprosessin vaiheet olivat: ehdot tämän hetken taustalla, eläminen ehtojen varassa ja uusia luoden (tietynlainen ihminen, eläminen tässä hetkessä, kokonaisnäkemys elämästä) sekä jatkaminen ehtojen varassa ja uusia luoden. Typologiat ovat nimeltään eheät, pärjäävät ja sinnittelijät. Haastateltavien kokemuksia ei analyysivaiheessa pyritty liittämään tiettyyn kontekstiin, vaan ne liittyivät toimintaan ja käyttäytymiseen. Tulosten tarkasteluvaiheessa tehtiin kuitenkin lyhyt kuvaus elämänkulkututkimuksesta sekä sosiaalisesta ja kulttuurisesta ympäristöstä. Tutkimustulokset ovat kuvailevia ja niiden perusteella saadaan viitteitä siitä, millaiset asiat ovat yhteydessä koherenssin tunteeseen ja millä tavalla yhteys rakentuu. Saatu substantiivinen teoria on pätevä tässä aineistossa. Tulokset noudattelevat Antonovskyn salutogeenista teoreettista mallia siltä osin, että mitä korkeammat koherenssipisteet olivat, sitä enemmän typologiassa oli eheyttä lisääviä tekijöitä. Eheys tuo elämään henkistä liikkumavaraa, jota typologian tyypit (rakentava, ilmavasti elävä, elämänmyönteinen, juureva realisti) ilmentävät. Typologioiden kuvauksista voidaan lukea, että kaikissa tyypeissä kuvataan vaikeita elämänkokemuksia. Olennaista on se, miten näihin vaikeuksiin suhtaudutaan. Eheillä on parhaat edellytykset käsitellä elämän haasteita. Voidaan kuitenkin todeta, että kaikki tähän tutkimukseen osallistuneet olivat selviytyjiä.

Towards conceptually comprehensive and integrated theory of entrepreneurial opportunity

Insufficient understanding of entrepreneurial opportunities characterizes entrepreneurship research (Companys & McMullen 2006, 302). Subsequently, the purpose of this study was to analyze the concept of entrepreneurial opportunity and to explore and synthetize the integrated theory of entrepreneurial opportunity. A theoretical and concept analytical approach was adapted. Findings of this study was that entrepreneurial opportunity concept was used for variety of different phenomena. No commonly accepted definition existed. Altogether 24 attributes that described the concept were found. The most frequently attached attributes were agent and action, new goods and services, market, value, new means ends or both, and future. Further, the results implied that opportunity could be best understood as a part of a process. Opportunity emerges out of intervened factors. Changes in the environment together with factors related to knowledge, cognition and social ties are the most important drivers of opportunity. Preventing factors that impeded the emergence of opportunity were typically related to cognitive and organizational factors. This study found a tendency towards more integrated theory of entrepreneurial opportunity. The integrated theory acknowledged the usefulness of both discovery and creation theories of opportunity in explaining opportunity. Yet three argument types of integrating two different opportunity theories were identified. These were process category, contextual category and complementing category. Opportunity is at the same time cognitive, social and linguistic construct, although it is shaped by the objective environment. Opportunity requires linguistic endeavors to become explicit. Materialization of opportunity occurs in a social context. Moreover, it is always characterized by some extent of subjectivity, as opportunities cannot appear without the agent and their action. Due to these the concept remains always to some extent ambiguous. Tolerating and harnessing change and investing in human and social capital create the preeminent environment for the entrepreneurial opportunity to be identified.

Effect of additives, precursors and process conditions on particle morphology

The objective of the thesis was to develop methods to manufacture and control calcium carbonate crystal nucleation and growth in precipitation process. The work consists of experimental part and literature part that addresses theory of nucleation, crystallization and precipitation. In the experimental part calcium carbonate was precipitated using carbonization reaction. Precipitation was carried out in presence of known morphology controlling agents (anionic polymers and sodium silicate) and by using different operation conditions. Formed material was characterized using SEM images, and its thermal stability was assessed. This work demonstrates that carbon dioxide feeding rate and concentrations of calcium hydroxide and additives can be used to control size, shape and amount of precipitating calcium carbonate.

CTQ process flow development and the impact for cost of quality

Tämä työ tehtiin Kone Industrial Oy:lle Major Projects yksikköön, laatuosastolle. Kone Major Projects yksikkö keskittyy erikoisiin ja suuriin hissi- ja liukuporras projekteihin. Työn tavoitteena oli luoda harmonisoitu prosessi hissikomponenttien laaduntarkkailua varten sekä tarkastella ja vertailla kustannussäästöjä, jota tällä uudella prosessilla voidaan saavuttaa. Tavoitteena oli saavuttaa 80-prosentin kustannussäästöt laatukustannuksissa uuden laatuprosessin avulla. Työn taustana ja tutkimusongelmana ovat lisääntyneet erikoisprojektit ja niiden myötä lisääntynyt laaduntarkkailun tarve. Ongelmana laaduntarkkailussa voitiin pitää harmonisoidun ja selkeän prosessin puuttumista C-prosessikomponenttien valmistuksessa. Lisäksi kehitysprosessin aikana luotiin vanhojen työkalujen pohjalta keskeinen laaduntarkkailutyökalu, CTQ-työkalu. Työssä käsitellään ensin Konetta yhtiönä ja selvitetään Koneen keskeisimmät prosessit työn taustaksi. Teoria osuudessa käsitellään prosessin kehitykseen liittyviä teorioita sekä yleisiä laatukäsitteitä ja esitetään teorioita laadun asemasta nykypäivänä. Lopuksi käsitellään COQ eli laatukustannusten teoriaa ja esitellään teoria PAF-analyysille, jota käytetään työssä laatukustannusten vertailuun case esimerkin avulla. Työssä kuvataan CTQ prosessin luominen alusta loppuun ja case esimerkin avulla testataan uutta CTQ prosessia pilottihankkeessa. Tässä case esimerkissä projektin bracket eli johdekiinnitysklipsi tuotetaan uuden laatuprosessin avulla sekä tehdään kustannusvertailu saman projektin toisen bracketin kanssa, joka on tuotettu ennen uuden laatuprosessin implementoimista. Työn lopputuloksena CTQ prosessi saatiin luotua ja sitä pystyttiin testaamaan käytännössä case esimerkin avulla. Tulosten perusteella voidaan sanoa, että CTQ prosessin käyttö vähentää laatukustannuksia huomattavasti ja helpottaa laadunhallintaa C-prosessikomponenttien tuotannossa.

Viral marketing in a Finnish medium sized gaming company: discovering, analyzing and building an improved management process for viral marketing campaigns, case: Nitrogames

The goal of this thesis is to build a viral marketing management framework for a Finnish medium sized gaming company. This is achieved by first finding and building a theoretical five step management process framework based on literature, analyzing current model and giving recommendations for the case company to develop its own management process. In addition, viral marketing research is still in early stage resulting this study to propose its own take on the definition in the theory part. Empirical part is based on qualitative interviews, campaign material and secondary sources and is aimed to find out and analyze the case company’s current viral marketing state and to give recommendations to it. The final outcome of the study is a general, theoretical management framework for viral marketing campaigns and specified recommendations for the case company.

The Role of networks in the internationalization process of Finnish design companies

Finnish design has attracted global attention lately and companies within the industry have potential in international markets. Because networks have been found to be extremely helpful in a firm’s international business operations and usefulness of networks is not fully exploited, their role in Finnish design companies is investigated. Accordingly, this study concentrates on understanding the role of networks in the internationalization process of Finnish design companies. This was investigated through describing the internationalization process of Finnish design companies, analyzing what kind of networks are related to internationalization process of Finnish design companies, and analyzing how networks are utilized in the internationalization process of Finnish design companies. The theoretical framework explores the Finnish design industry, internationalization process and networks. The Finnish design industry is introduced in general and the concept of design is defined to refer to the industries of textiles, furniture, clothing, and lighting equipment in the research. The theories of internationalization process, the Uppsala model and Luostarinen’s operation modes, are explored in detail. The Born Global theory, which is a contrary view to stage models, is also discussed. The concept of network is investigated, networks are classified into business and social networks, and network approach to internationalization is discussed. The research is conducted empirically and the research method is a descriptive case study. In this study, four case companies are investigated: the interior decoration unit of L-Fashion Group, Globe Hope, Klo Design, and Melaja Ltd. Data is collected by semi-structured interviews and the analysis is done in the following way: the case companies are introduced, their internationalization processes and networks are described and, finally, the comparison of the case companies is done in a form of cross-case analysis. This research showed that cooperation with social networks, such as locals or employees who have experience from the target market can be extremely helpful in the beginning of a Finnish design company’s internationalization process. This study also indicated that public organizations do not necessarily enhance the internationalization process in a design company point-of-view. In addition, the research showed that there is cooperation between small Finnish design companies whereas large design companies are not as open to cooperation with competitors.

Designing of Balanced Performance Measurement System to Purchasing Process

The performance measurement produces information about the operation of the business process. On the basis of this information performance of the company can be followed and improved. Balanced performance measurement system can monitor performance of several perspectives and business processes can be led according to company strategy. Major part of the costs of a company is originated from purchased goods or services are an output of the buying process emphasising the importance of a reliable performance measurement of purchasing process. In the study, theory of balanced performance measurement is orientated and framework of purchasing process performance measurement system is designed. The designed balanced performance measurement system of purchasing process is tested in case company paying attention to the available data and to other environmental enablers. The balanced purchasing performance measurement system is tested and improved during the test period and attention is paid to the definition and scaling of objectives. Found development initiatives are carried out especially in the scaling of indicators. Finally results of the study are evaluated, conclusions and additional research areas proposed.

Balancing the quotation process by LEAN methods

This thesis studies the possibility to use lean tools and methods in a quotation process which is carried out in an office environment. The aim of the study was to find out and test the relevant lean tools and methods which can help to balance and standardize the quotation process, and reduce the variance in quotation lead times and in quality. Seminal works, researches and guide books related to the topic were used as the basis for the theory development. Based on the literature review and the case company’s own lean experience, the applicable lean tools and methods were selected to be tested by a sales support team. Leveling production, by product categorization and value stream mapping, was a key method to be used to balance the quotation process. 5S method was started concurrently for standardizing the work. Results of the testing period showed that lean tools and methods are applicable in office process and selected tools and methods helped to balance and standardize the quotation process. Case company’s sales support team decided to implement new lean based quotation process model.

Development of project cash flow forecasting process

Process management refers to improving the key functions of a company. The main functions of the case company - project management, procurement, finance, and human resource - use their own separate systems. The case company is in the process of changing its software. Different functions will use the same system in the future. This software change causes changes in some of the company’s processes. Project cash flow forecasting process is one of the changing processes. Cash flow forecasting ensures the sufficiency of money and prepares for possible changes in the future. This will help to ensure the company’s viability. The purpose of the research is to describe a new project cash flow forecasting process. In addition, the aim is to analyze the impacts of the process change, with regard to the project control department’s workload and resources through the process measurement, and how the impacts take the department’s future operations into account. The research is based on process management. Processes, their descriptions, and the way the process management uses the information, are discussed in the theory part of this research. The theory part is based on literature and articles. Project cash flow and forecasting-related benefits are also discussed. After this, the project cash flow forecasting as-is and to-be processes are described by utilizing information, obtained from the theoretical part, as well as the know-how of the project control department’s personnel. Written descriptions and cross-functional flowcharts are used for descriptions. Process measurement is based on interviews with the personnel – mainly cost controllers and department managers. The process change and the integration of two processes will allow work time for other things, for example, analysis of costs. In addition to the quality of the cash flow information will improve compared to the as-is process. Analyzing the department’s other main processes, department’s roles, and their responsibilities should be checked and redesigned. This way, there will be an opportunity to achieve the best possible efficiency and cost savings.

Analysis of the Change Management Process in a Multinational Company

The purpose of this thesis was to study change management and find out how the theory applies to practise with the help of studying an organizational change process. The goal was to investigate the different ways of the change management and how those could be utilized in practise. The purpose was also to see what kind of tools and information packages for change management the company involved has developed and taken in to use and check if these could have been utilized in the change process studied in this thesis. This thesis was established by studying the theory of change management and interviewing the people involved in the organizational change and the stakeholders. The questions were formed in line with the change management theory. The main theory used was John P. Kotter’s Eight Steps of Change. The study revealed valuable details about change processes in real life and concrete improvement ideas were recognized from the interviews. Overall the people were quite happy with the outcome of the change process. There were also some failures identified in this change process. Most probably those can be avoided in the future if people planning the change are familiar with the company’s new information packages and tools for change management. Change management is a complex area that is still today quite often forgotten by companies. Effective change management can give a huge competitive advantage for a company. Acknowledging that change process is always complex and not easy is already a good step forward in handling change processes. All changes need change management and understanding the way people react on change. A good and efficient change management is the key to make the change process smooth and easier for the people involved.

The general equilibrium theory as economic metatheory

Many economists show certain nonconformity relative to the excessive mathematical formalization of economics. This stems from dissatisfaction with the old debate about the lack of correspondence between mainstream theoretical models and reality. Although we do not propose to settle this debate here, this article seeks to associate the mismatch of mathematized models with the reality of the adoption of the hypothetical-deductive method as reproduced by general equilibrium. We begin by defining the main benefits of the mathematization of economics. Secondly, we address traditional criticism leveled against it. We then focus on more recent criticism from Gillies (2005) and Bresser-Pereira (2008). Finally, we attempt to associate the reproduction of the hypothetical-deductive method with a metatheoretical process triggered by Debreu's general equilibrium theory. In this respect, we appropriate the ideas of Weintraub (2002), Punzo (1991), and mainly Woo (1986) to support our hypothesis.

THE ADAPTATION PROCESS AND CHALLENGES OF EDUCATION EXPORT

The purpose of this study is to investigate the challenges of the adaptation process of education export. The research is conducted as a single case study that concentrates on three education export projects. The case company in the research is Team Academy. The study goes through the different forms of education export, the adaptation of education export and the challenges of the education export –process by means of theory and empirical data. The research is carried out as a qualitative research and the method used is a qualitative content analysis. More specifically the research is an abductive content analysis. The research data is collected in four in-depth interviews from Team academy representatives who have been strongly involved in certain education export –project of Team Academy. The research confirms the theory in the challenge of hierarchy, funding and registration issues, and refutes it in the challenge of competition, legislation, different governmental attitudes and knowledge in productization. The main challenges of the adaptation process are related to funding, differences in values, sudden changes, the complex nature of the learning model, concept of time, teamwork as method and accreditation. It is highlighted that in the future operations, anticipating problems that arise from for example cultural differences and differences in values, communication, managing the money flows and the company form is recommended. Future research could continue with investigating the suitable company form for education exports of this kind, and how to stand out and communicate when operating under another institution. It is considered a potential risk that a brand encloses the brand that operates under it.

Incorporating Sustainability in Global Sourcing Process, Industry Focus- Apparel / Textile

This is a Master’s thesis research, which mainly aims at identifying the sustainability issues in sourcing process and to identify the core competencies in sourcing process through triple bottom line adaptation. The focus of this thesis is on apparel industry’s sourcing process. The purpose of this thesis is to examine global apparel industry’s reality in their sourcing process and how buyers-suppliers are cooperating with their sourcing process to incorporate sustainability. Other goal of this research paper is to provide recommendation for sustainable sourcing process for companies and how the stakeholders can be benefitted by sustainable sourcing. The literature review part of this paper has presented the research gaps from the earlier researches along with the key concepts, academic purposes and key definitions. Theoretical framework chapter has focused on global sourcing strategies and firm’s competencies and sustainable strategies. From the theoretical framework, author has presented essential theory which establishes the link between research questions and proposed hypotheses. Main results and findings have been presented in empirical findings and in data analysis chapter. This study is an exploratory research followed by deductive method and primary data has been used to evaluate the current situation of apparel industry; which will assist to build the recommendation model. Primary data has been collected through online questionnaires and secondary data has used to cover the literature and theoretical parts. Therefore, the potential outcome of this paper will display the importance of sustainable sourcing from academic point of view and also from the business perspective. As a final point, this paper has followed the research objectives and has generated some new directions for further studies.