International Portfolio Investments and The Informational Value of Trade

A large volume of literature suggests that information asymmetry resulting from the spatial separation between investors and investments have a significant impact on the composition of investors’ domestic and international portfolios. I show that institutional factors affecting trading in tangible goods help explain a substantial portion of investors’ spatial bias. More importantly, I demonstrate that an information flow medium with breadth and richness directly linked to the bilateral commitment of resources between countries, that I measure by their trading intensity in tangible goods, is consistent with the prevailing country allocation in investors’ international portfolios.

Samarbete mellan konkurrenter - en undersökning av österbottniska sm-företag

Under senare tid har förekomsten av samarbete mellan konkurrerande sm-företag ökat. Forskningen kring ämnet har dock bedrivits i mindre skala, framför allt om man beaktar finländska (nordiska) förhållanden. Syftet med denna undersökning är att kartlägga förekomsten av samarbete mellan konkurrerande sm-företag i Österbotten (Finland), samt beskriva dessa. Gällande demografiska variabler jämförs dessa företag även med sm-företag som inte samarbetar. Data insamlades genom en enkät utskickad i november 2001 till 345 sm-företag i Österbotten. Svarsprocenten var 35.1. Av de respondenter som besvarade enkäten, var 47.9 procent involverade i ett eller flera samarbeten med ett eller flera företag som var deras konkurrenter. Samarbete mellan konkurrenter är således inte ett ovanligt fenomen, utan innefattar allt från informella, operativa samarbeten till formella, strategiskt viktiga samarbeten. Samarbete inom produktion var den mest vanligt förekommande formen av samarbete. Partnern kom från Finland, även om målmarknaderna för samarbetet fanns både i Finland och i utlandet. Denna undersökning kunde inte identifiera någon större skillnad mellan de sm-företag som samarbetade med konkurrenter och de sm-företag som inte samarbetade. Det intressanta är således att det inte verkar finnas några skillnader vad gäller ålder, omsättning, omsättningsökning, underleverans- och exportverksamhet mellan de samarbetande och de icke samarbetande företagen. Skillnaderna bör således sökas i andra variabler. Den enda signifikanta skillnaden kunde upptäckas i upplevelsen av konkurrens. Tidigare forskning har identifierat att osäkerhet i konkurrensen är ett incitament till att börja samarbeta med konkurrenter. Denna undersökning förstärker detta antagande. De samarbetande företagen upplevde att konkurrensen var hårdare än de icke samarbetande företagen. Bland de samarbetande företagen var det speciellt de mindre (med en personalstyrka mellan 10 och 50 arbetstagare) som upplevde att konkurrensen var hård. Undersökningen har finansierats med stipendiemedel från Sparbanksstiftelsen i Vasa och Handlande Gustav Svanljungs fond.

Analysts' Accuracy of Estimation and the Relative Trading Volume

This study contributes to the neglect effect literature by looking at the relative trading volume in terms of value. The results for the Swedish market show a significant positive relationship between the accuracy of estimation and the relative trading volume. Market capitalisation and analyst coverage have in prior studies been used as proxies for neglect. These measures however, do not take into account the effort analysts put in when estimating corporate pre-tax profits. I also find evidence that the industry of the firm influence the accuracy of estimation. In addition, supporting earlier findings, loss making firms are associated with larger forecasting errors. Further, I find that the average forecast error increased in the year 2000 – in Sweden.

Does Uncertainty Affect Investment and Labor Demand?

This paper analyzes the effect of uncertainty on investment and labor demand for Finnish firms during the time period 1987 – 2000. Utilizing a stock return based measure of uncertainty decomposed into systematic and idiosyncratic components, the results reveal that idiosyncratic uncertainty significantly reduces both investment and labor demand. Idiosyncratic uncertainty seems to influence investment in the current period, whereas the depressing effect on labor demand appears with a one-year lag. The results provide support that the depressing effect of idiosyncratic uncertainty on investment is stronger for small firms in comparison to large firms. Some evidence is reported regarding differential effects of uncertainty on labor demand conditional on firm characteristics. Most importantly, the depressing effect of lagged idiosyncratic uncertainty on labor demand tends to be stronger for diversified firms compared with focused firms.

The Impact of FDI on International Portfolio Investments

Some empirical research has argued that part of the reason for the observed "home bias" is that investors are able to indirectly achieve internationally diversified portfolios via domestically listed multinational firms. Another branch of this research attributes the "home bias" and country allocations to more deeply rooted informational causes. Using a four-year annual panel of Finnish international portfolios and Foreign Direct Investments in twenty-five countries, I provide evidence consistent with an information asymmetry explanation

Corporate Governance Mechanisms and Firm Performance:Evidence from Finland

This paper examines the association between corporate governance attributes and firm performance of Finnish firms during 1990 – 2000. The empirical results suggest that corporate governance matters for firm performance. First, univariate test results indicate that firms characterized by a high (efficient) level of corporate governance have delivered greater stock returns, are higher valued based on the measure of Tobin’s Q, and exhibit higher ratios of cash flow to assets, on average, in comparison to their counterparts characterized by a low (inefficient) level of corporate governance. Second, controlling for a number of well-known determinants of stock returns, we find evidence that firms categorized by inefficient corporate governance have delivered inferior returns to shareholders during the investigation period. Finally, after controlling for several common determinants of firm value, we find that firms characterized by efficient corporate governance have been valued higher during the investigation period, measured by Tobin’s Q.

Stock Option Compensation in Finland: An Analysis of Economic Determinants, Contracting Frequency, and Design

This paper addresses several questions in the compensation literature by examining stock option compensation practices of Finnish firms. First, the results indicate that principal-agent theory succeeds quite well in predicting the use of stock options. Proxies for monitoring costs, growth opportunities, ownership structure, and risk are found to determine the use of incentives consistent with theory. Furthermore, the paper examines whether determinants of stock options targeted to top management differ from determinants of broad-based stock option plans. Some evidence is found that factors driving these two types of incentives differ. Second, the results reveal that systematic risk significantly increases the likelihood that firms adopt stock option plans, whereas total firm risk and unsystematic risk do not seem to affect this decision. Third, the results show that growth opportunities are related to time-dimensional contracting frequency, consistent with the argument that incentive levels deviate more rapidly from optimum in firms with high growth opportunities. Finally, the results suggest that vesting schedules are decreasing in financial leverage, and that contract maturity is decreasing in firm focus. In addition, both vesting schedules and contract maturity tend to be longer in firms involving state ownership.

La investigación comercial como instrumento básico para el conocimiento de las actitudes del electorado: un estudio empírico en la Universidad del País Vasco

[ES] Hoy en día, cualquier partido político debe utilizar el marketing para analizar su mercado y posicionarse en el mismo con una estrategia adecuada. Para ello, el papel de la investigación comercial resulta fundamental, dado que nos permite detectar las necesidades y deseos de los electores, pudiendo el partido adoptar decisiones tendentes a satisfacerlas.

Gestión del riesgo operativo en las entidades de crédito: un camino sin retorno

[ES] Este trabajo presenta la problemática de la gestión del riesgo operativo en las entidades de crédito en el ámbito europeo. Aprobado el texto definitivo del denominado Comité de Supervisión Bancaria (Basilea II), con especial y novedosa regulación del riesgo operativo, amanece como inminente su integración e la regulación bancaria de la UE, y, por tanto, su pronta implantación y supervisión por las autoridades monetarias y financieras. Esta nueva normativa, de carácter flexible y profesional, introduce en el seno del gobierno corporativo de las entidades de crédito nuevos elementos que afectarán a su cultura interna (cultura de gestión de los riesgos), afectando a las decisiones estratégicas y a la organización de las entidades, incentivando a la mejora de la calidad de sus procesos, servicios y operaciones. Todo lo cual supone una acicate para perseguir la eficiencia continua a nivel individual y a nivel del sistema financiero, con visos de adquirir dimensión estratégica. De esta manera, se abre un espacio para la investigación y creatividad en la aplicación y desarrollo de los postulados científicos de la Economía de la Empresa, con posibilidades de incorporarlos a otros sectores empresariales de similar afectación por los riesgos operativos.

La metodología científica en economía de la empresa en la actualidad

[ES] Mientras la realidad se transforma a gran ritmo, las ideas de ciencia y de conocimiento científico entran en crisis. Esta crisis también se manifiesta en los estudios empresariales: muchos afirman que la Economía de la Empresa no es ciencia, sino un conjunto de conocimientos diversos, débilmente conectados entre sí. Otros se pierden en investigaciones alejadas de la realidad, y un último grupo no consigue remontar un enfoque meramente practicista. Por ello, estimamos que es un buen momento para recordar los fundamentos que sustentan una ciencia: su objeto formal y material y su método. Para ello se realizará una exposición sintética del pensamiento del profesor Soldevilla.

Multiple table factor analysis applied to the higher education competences

Due to the recent implantation of the Bologna process, the definition of competences in Higher Education is an important matter that deserves special attention and requires a detailed analysis. For that reason, we study the importance given to severa! competences for the professional activity and the degree to which these competences have been achieved through the received education. The answers include also competences observed in two periods of time given by individuals of multiple characteristics. In this context and in order to obtain synthesized results, we propose the use of Multiple Table Factor Analysis. Through this analysis, individuals are described by severa! groups, showing the most important variability factors of the individuals and allowing the analysis of the common structure ofthe different data tables. The obtained results will allow us finding out the existence or absence of a common structure in the answers of the various data tables, knowing which competences have similar answer structure in the groups of variables, as well as characterizing those answers through the individuals.