TAKING ADVANTAGE OF THE LOCAL ADVANTAGE? - Investment value of the analyst local advantage in the Finnish stock market in 2006–2014

An investor can either conduct independent analysis or rely on the analyses of others. Stock analysts provide markets with expectations regarding particular securities. However, analysts have different capabilities and resources, of which investors are seldom cognizant. The local advantage refers to the advantage stemming from cultural or geographical proximity to securities analyzed. The research has confirmed that local agents are generally more accurate or produce excess returns. This thesis tests the investment value of the local advantage regarding Finnish stocks via target price data. The empirical section investigates the local advantage from several aspects. It is discovered that local analysts were more focused on certain sectors generally located close to consumer markets. Market reactions to target price revisions were generally insignificant with the exception to local positive target prices. Both local and foreign target prices were overly optimistic and exhibited signs of herding. Neither group could be identified as a leader or follower of new information. Additionally, foreign price change expectations were more in line with the quantitative models and ideas such as beta or return mean reversion. The locals were more accurate than foreign analysts in 5 out of 9 sectors and vice versa in one. These sectors were somewhat in line with coverage decisions and buttressed the idea of local advantage stemming from proximity to markets, not to headquarters. The accuracy advantage was dependent on sample years and on the measure used. Local analysts ranked magnitudes of price changes more accurately in optimistic and foreign analysts in pessimistic target prices. Directional accuracy of both groups was under 50% and target prices held no linear predictive power. Investment value of target prices were tested by forming mean-variance efficient portfolios. Parallel to differing accuracies in the levels of expectations foreign portfolio performed better when short sales were allowed and local better when disallowed. Both local and non-local portfolios performed worse than a passive index fund, albeit not statistically significantly. This was in line with previously reported low overall accuracy and different accuracy profiles. Refraining from estimating individual stock returns altogether produced statistically significantly higher Sharpe ratios compared to local or foreign portfolios. The proposed method of testing the investment value of target prices of different groups suffered from some inconsistencies. Nevertheless, these results are of interest to investors seeking the advice of security analysts.

Post-transaction brand and model line-up integration in the automotive industry: Case studies of European companies as target of acquisitions by Chinese and Indian multinational corporations

Corporations practice company acquisitions in order to create shareholder’s value. During the last few decades, the companies in emerging markets have become active in the acquisition business. During the last decade, large and significant acquisitions have occurred especially in automotive industry. While domestic markets have become too competitive and companies are lacking required capabilities, they seek possibilities to expand into Western markets by attaining valuable assets through acquisitions of developed country corporations. This study discusses the issues and characteristics of these acquisitions through case studies. The purpose of this study was to identify the acquisition motives and strategies for post-transaction brand and product integration as well as analyze the effect of the motives to the integration strategy. The cases chosen for the research were Chinese Geely acquiring Swedish Volvo in 2010 and Indian Tata Motors buying British Jaguar Land Rover in 2008. The main topics were chosen according to their significance for companies in automotive industry as well as those are most visible parts for consumers. The study is based on qualitative case study methods, analyzing secondary data from academic papers and news articles as well as companies’ own announcements e.g. stock exchange and press releases. The study finds that the companies in the cases mainly possessed asset-seeking and market-seeking motives. In addition, the findings refer to rather minimal post-acquisition brand and product integration strategies. Mainly the parent companies left the target company autonomous to make their own business strategies and decisions. The most noticeable integrations were in the product development and production processes. Through restructuring the product architectures, the companies were able to share components and technology between product families and brands, which results in cutting down costs and in increase of profitability and efficiency. In the Geely- Volvo case, the strategy focused more on component sharing and product development know-how, whereas in Tata Motors-Jaguar Land Rover case, the main actions were to cut down costs through component sharing and combine production and distribution networks especially in Asian markets. However, it was evident that in both cases the integration and technology sharing were executed cautiously to prevent on harming the valuable image of the luxury brand. This study has concluded that the asset-seeking motives have significant influence on the posttransaction brand and model line-up integration strategies. By taking a cautious approach in acquiring assets, such as luxury brand, the companies in the cases have implemented a successful post-acquisition strategy and managed to create value for the shareholders at least in short-term. Yritykset harjoittavat yritysostoja luodakseen osakkeenomistajille lisäarvoa. Viimeisten muutamien vuosikymmenien aikana yritykset kehittyvissä maissa ovat myös aktivoituneet yritysostoissa. Viimeisen vuosikymmenen aikana erityisesti autoteollisuudessa on esiintynyt suuria ja merkittäviä yritysostoja. Koska kilpailu kotimaan markkinoilla on kiristynyt ja yritykset ovat vailla vaadittavia valmiuksia, ne etsivät mahdollisuuksiaan laajentaa länsimaisiin markkinoihin hankkimalla arvokkaita etuja kehittyneiden maiden yrityksistä yritysostojen avulla. Tämä tutkimus pohtii näiden yritysostojen olennaisia kysymyksiä ja ominaisuuksia casetutkimuksien kautta. Tutkimuksen tarkoitus oli tunnistaa sekä yritysostojen motiiveja ja brändi- ja mallisto-integraation strategioita että analysoida kyseisten motiivien vaikutusta integraatiostrategiaan. Tapaus-tutkimuksiksi valittiin kiinalaisen Geelyn yritysosto ruotsalaisesta Volvosta vuonna 2010 ja intialaisen Tata Motorsin yritysosto englantilaisesta Jaguar Land Roverista vuonna 2008. Tutkimus on kvalitatiivinen case-tutkimus ja siinä analysoidaan toissijaista tietoa sekä akateemisten ja uutisartikkeleiden että yritysten omien ilmoitusten, kuten pörssi- ja lehdistötiedotteiden, kautta. Tutkimuksen tulokset osoittavat, että tutkittujen yritysten toiminnat perustuivat motiiveihin, joita ajoivat etujen and uusien markkinoiden tarve. Sen lisäksi tutkimustulokset osoittivat, että yritysoston jälkeinen brändi- ja mallisto-integraatio pidettiin minimaalisena. Pääasiallisesti kohdeyrityksille jätettiin autonomia tehdä omat liikkeenjohdolliset päätökset yritysstrategioihin liittyen. Huomattavimmat integraatiot koskivat tuotekehityksellisiä ja tuotannollisia prosesseja. Kehittämällä uudelleen tuotearkkitehtuureja, yritykset pystyivät jakamaan komponentteja ja teknologiaa tuoteperheiden ja brändien välillä. Tämä mahdollisti kustannusleikkauksia sekä kannattavuuden ja tehokkuuden parantamista. Geely-Volvo –tapauksessa integraatiostrategia keskittyi komponenttien jakamiseen yhteisten tuotearkkitehtuurien avulla ja tuotekehityksen ammattitaitoon, kun taas Tata Motors-JLR –tapauksessa päätoiminnat olivat kustannuksien leikkaus sekä tuotannon ja jakeluverkoston yhdistäminen erityisesti Aasian maissa. Yhteistä yrityskaupoissa oli, että brändi- ja mallisto-integraatio sekä teknologian jakaminen suoritettiin varoen ehkäistäkseen arvokkaiden luksus-brändien tuotekuvan vahingoittamista. Tutkimuksen lopputulokset osoittavat, että yrityskaupan motiiveilla on huomattava vaikutus brändija mallisto-integraation strategiaan. Toteuttamalla varovaista lähestymistapaa luksus-brändin hankinnassa ja integraatiossa, yritykset ovat onnistuneet luomaan lisäarvoa osakkeenomistajille vähintään lyhyellä aikavälillä.

Stories from the City, Stories from the Sea - How place brands are perceived differently from the points of view of a local and a tourist

Tämä tutkielma käsittelee paikkamarkkinointia ja paikkabrändäystä. Tutkielmassa tarkastellaan paikallisen ja turistin tapoja muodostaa kaupunkibrändi; mistä palasista brändi muodostuu kirjallisuuden ja haastateltavien mukaan, koetaanko eri palaset vaihtelevissa määrin tärkeiksi riippuen siitä, tarkastellaanko paikkaa paikallisena vai turistina, ja löytyykö jotain yhteisiä retorisia nimittäjiä sille, miten kotikaupungista puhutaan verrattuna lomakaupunkiin. Tutkimuksessa haastateltiin yli kolmeakymmentä henkilöä heidän kotikaupungeistaan ja kaupungeista, joihin he olivat matkustaneet lomalle. Haastateltavat olivat suurinpiirtein samanikäisiä, mutta eri kaupungeista ja matkustaneet eri paikkoihin. Haastateltavia pyydettiin ensin kuvailemaan vapaasti kotikaupunkiaan ja sen jälkeen kaupungista kysyttiin kirjallisuuteen perustuen kysymyksiä. Sama menetelmä toistettiin lomakohteen suhteen. Tutkimuksesta selvisi, että paikkabrändi muodostetaan samoista komponenteista, mutta joidenkin komponenttien merkitys on tärkeämpi kotikaupungissa, kun taas toiset komponentit ovat tärkeitä lomakohteen suhteen. Ihmiset ja kulttuuri yleisesti koettiin tärkeinä komponentteina molemmista paikkabrändeistä puhuttaessa, kun taas kotikaupungin brändinmuodostukseen kuului vahvemmin lait ja muut käytännölliset menettelytavat kuten liikenteen toimivuus. Lomakohteen brändinmuodostuksessa vapaudella tehdä mitä haluaa oli suuri merkitys ja vapautta nähtiin eri muodoissa. Retoriikka kotikaupungista puhuttaessa oli selvästi negatiivista, kun taas lomakohteesta puhuttiin yleisesti ottaen positiiviseen sävyyn. Suhde kotikaupunkiin oli ambivalentti, sillä huonojakin puolia mainittaessa niitä puolusteltiin, tai kotikaupungista mainittiin loppujen lopuksi jotain hyvää. Tutkimusten tuloksiin perustuen toimenpidesuosituksina ehdotetaan olemassaolevan autenttisen kulttuurin ylläpitämäistä, korostamista ja kaupungin orgaanista kehittämistä suuntaan, jossa se on hyvä paikka niin elämiseen kuin lomailuun. Identiteetti, imago ja ihmiset kietoutuvat tiiviisti yhteen, minkä vuoksi kaupunkisuunnittelun- ja kehittämisen tehtävänä on pitää huolta, että kaupunki on onnistunut molempien ryhmien suhteen, ja molemmat ryhmät levittävät kaupungista positiivista sanomaa.

TAKING ADVANTAGE OF THE LOCAL ADVANTAGE? - Investment value of the analyst local advantage in the Finnish stock market in 2006–2014

An investor can either conduct independent analysis or rely on the analyses of others. Stock analysts provide markets with expectations regarding particular securities. However, analysts have different capabilities and resources, of which investors are seldom cognizant. The local advantage refers to the advantage stemming from cultural or geographical proximity to securities analyzed. The research has confirmed that local agents are generally more accurate or produce excess returns. This thesis tests the investment value of the local advantage regarding Finnish stocks via target price data. The empirical section investigates the local advantage from several aspects. It is discovered that local analysts were more focused on certain sectors generally located close to consumer markets. Market reactions to target price revisions were generally insignificant with the exception to local positive target prices. Both local and foreign target prices were overly optimistic and exhibited signs of herding. Neither group could be identified as a leader or follower of new information. Additionally, foreign price change expectations were more in line with the quantitative models and ideas such as beta or return mean reversion. The locals were more accurate than foreign analysts in 5 out of 9 sectors and vice versa in one. These sectors were somewhat in line with coverage decisions and buttressed the idea of local advantage stemming from proximity to markets, not to headquarters. The accuracy advantage was dependent on sample years and on the measure used. Local analysts ranked magnitudes of price changes more accurately in optimistic and foreign analysts in pessimistic target prices. Directional accuracy of both groups was under 50% and target prices held no linear predictive power. Investment value of target prices were tested by forming mean-variance efficient portfolios. Parallel to differing accuracies in the levels of expectations foreign portfolio performed better when short sales were allowed and local better when disallowed. Both local and non-local portfolios performed worse than a passive index fund, albeit not statistically significantly. This was in line with previously reported low overall accuracy and different accuracy profiles. Refraining from estimating individual stock returns altogether produced statistically significantly higher Sharpe ratios compared to local or foreign portfolios. The proposed method of testing the investment value of target prices of different groups suffered from some inconsistencies. Nevertheless, these results are of interest to investors seeking the advice of security analysts.

Tourism and the precautionary principle : a survey of academic and government stakeholders

The purpose of this exploratory investigation was to provide a more precise understanding and basis from which to assess the potential role of the precautionary principle in tourism. The precautionary principle, analogous to the ideal of sustainable development, is a future-focused planning and regulatory mechanism that emphasizes pro-action and recognizes the limitations of contemporary scientific methods. A total of 100 respondents (80 tourism academics, 20 regional government tourism officials) from Canada, United States, United Kingdom, Australia and New Zealand completed the webbased survey between May and June 2003. Respondents reported their understanding of the precautionary principle, rated stakeholder involvement and education strategies, assessed potential barriers in implementation, and appraised steps of a proposed fi-amework for implementation. Due to low sub sample numbers, measures of central tendency were primarily used to compare groups, while inferential statistics were applied when warranted. Results indicated that most respondents (79%) felt the principle could be a guiding principle for tourism, while local and regional government entities were reported to have the most power in the implementation process. Findings suggested close links between the precautionary principle and sustainability, as concern for future generations was the most critical element of the principle for tourism. Overall, tourism academics were more supportive of the precautionary principle in tourism than were regional government tourism officials. Only minor variation was found in responses among regional groups across all variables. This study established basic ground for understanding the precautionary principle in tourism and has been effective in formulating more precise questions for future research.

McNeill's code : Arranged to meet the requirements of mi ning, metallurgical and civil engineers ; directors of mining, smetling and other companies...

UANL

Systemic and regional hemodynamics in pigs with acute liver failure and the effect of albumin dialysis.

OBJECTIVE: Acute liver failure (ALF) is haemodynamically characterized by a hyperdynamic circulation. The aims of this study were to investigate the systemic and regional haemodynamics in ALF, to measure changes in nitric oxide metabolites (NOx) and to evaluate whether these haemodynamic disturbances could be attenuated with albumin dialysis. MATERIAL AND METHODS: Norwegian Landrace pigs (23-30 kg) were randomly allocated to groups as controls (sham-operation, n = 8), ALF (hepatic devascularization, n = 8) and ALF + albumin dialysis (n = 8). Albumin dialysis was started 2 h after ALF induction and continued for 4 h. Systemic and regional haemodynamics were monitored. Creatinine clearance, nitrite/nitrate and catecholamines were measured. A repeated measures ANOVA was used to analyse the data. RESULTS: In the ALF group, the cardiac index increased (PGT < 0.0001), while mean arterial pressure (PG = 0.02) and systemic vascular resistance decreased (PGT < 0.0001). Renal resistance (PG = 0.04) and hind-leg resistance (PGT = 0.003) decreased in ALF. There was no difference in jejunal blood flow between the groups. ALF pigs developed renal dysfunction with increased serum creatinine (PGT = 0.002) and decreased creatinine clearance (P = 0.02). Catecholamines were significantly higher in ALF, but NOx levels were not different. Albumin dialysis did not attenuate these haemodynamic or renal disturbances. CONCLUSIONS: The haemodynamic disturbances during the early phase of ALF are characterized by progressive systemic vasodilatation with no associated changes in metabolites of NO. Renal vascular resistance decreased and renal dysfunction developed independently of changes in renal blood flow. After 4 h of albumin dialysis there was no attenuation of the haemodynamic or renal disturbances.

Activism and participation among people of migrant background : discourses and practices of inclusiveness in four italian cities

Alors que l’intérêt pour les processus d’intégration des immigrants et des minorités ethniques est en pleine croissance parmi les chercheurs européens, les facteurs qui expliquent les différentes formes de participation civique et politique doivent être examinés plus en profondeur. Prenant pour base la littérature sur l’immigration, cette étude examine la question de recherche suivante: Comment peut-on expliquer les variations des formes de participation civique et politique des activistes issus de l’immigration au niveau local? Afin de répondre à cette question, cette étude identifie les formes de participation de la part d’activistes issus de l’immigration dans quatre villes Italiennes et examine les discours et les pratiques de multiples acteurs impliqués dans le domaine de l’immigration dans un contexte national d’hostilité croissante. Cette thèse soutient que pour comprendre différentes formes de participation, il est important de considérer non seulement l’État et les acteurs institutionnels, mais aussi les acteurs non-institutionnels et examiner comment ces derniers influencent les opportunités ainsi que les restrictions à la participation. Par ailleurs, cette recherche examine les canaux conventionnels et non-conventionnels dans quatre villes italiennes et étudie les activistes issus de l’immigration comme des acteurs politiques pertinents, capables de se mobiliser et d’influencer la participation à travers leur interaction et alliances avec les acteurs de la société d’accueil. Cette recherche a permis de produire trois résultats. Le premier montre que les approches d’intégration adoptées par les acteurs sont importantes. Cette étude a identifié trois approches d’intégration: 1) « welfariste », basée sur l’idée que les immigrants sont dans le besoin et doivent donc recevoir des services; 2) interculturelle, basée sur l’idée que les immigrants sont de futurs citoyens et que l’intégration est réciproque; 3) promotion des droits politiques, basée sur l’idée que les immigrants ont des droits politiques fondamentaux ; et qui encourage l’ouverture des canaux de participation politique, surtout aux immigrants privés du droit de vote local. L’analyse empirique démontre que, alors que l’approche welfariste n’encourage pas la participation parce qu’elle conçoit les immigrants comme des acteurs passifs, les autres deux approches ont respectivement un impact sur les formes de participation civique et politique. La deuxième conclusion souligne le rôle des acteurs de gauche. En particulier, cette étude montre que les acteurs qui ouvrent de canaux pour la participation ne sont pas uniquement les acteurs de gauche modérée, comme les autorités locales, les partis politiques et les syndicats, mais aussi les groupes de gauche radicale et non-institutionnelle. Chaque acteur de gauche comprend et agit différemment par rapport aux sujets de l’immigration et de la participation et ce fait influence comment les activistes issues de l’immigration se mobilisent. La troisième conclusion met en évidence le rôle de la perception des opportunités par les activistes issus de l’immigration et la façon avec laquelle ils s’approprient les discours et les pratiques des acteurs de gauche. Ce travail démontre que l’ouverture de canaux est possible grâce à l’engagement de personnes issues de l’immigration qui agissent à travers les opportunités qui leurs sont offertes, créent des alliances avec la gauche et défient les discours et pratiques des acteurs locaux.