Effects of stock splits on stock returns: An event study of Finnish companies

Tämän kandidaatintyön tavoitteena on tutkia osakkeen nimellisarvon jakamisen vaikutusta osakkeen markkina-arvoon Suomessa vuosina 1996-2007. Ilmiötä tarkastellaan tapahtumatutkimusmenetelmän avulla ja lopullinen tutkittavien osakesplittien määrä on 38. Tutkimuksessa ei löydetty epänormaaleja tuottoja splittien julkistushetkellä, joten tämän aineiston mukaan sijoittajat eivät pitäneet sitä johdolta tulevana positiivisena signaalina. Sitä vastoin tutkimuksessa löydettiin positiivinen kurssimuutos niiden osakkeiden kohdalla, jolloin pörssiyhtiö ilmoitti splitin ohella myös osingonjaostaan.

Analysis of companies' software as a service adoption intention factors

The goal of this study is to develop managerial recommendations for international vendors and system integrators, which offer Software as a Service for enterprise information systems on the Russian market. Those recommendations can be used to develop marketing, sales, new product and service level agreement strategies. For those reasons factors affecting SaaS adoption were determined and their influence on intention to adoption was examined.

Knowledge modeling for innovative companies: case of business incubator

The paper presents a study which is aimed at building a knowledge model for a case company – business incubator “Ingria” (St. Petersburg, Russia). The business incubator is one of its kind organization in St. Petersburg, and one of the few in Russia, providing services for innovative entrepreneurial companies at an international level. Business incubation impact is deeply researched from the point of view of knowledge engineering. The paper also provides a broad analysis of various knowledge engineering tools used for visualization of knowledge, as well as knowledge modeling techniques.

Intellectual capital management in international and Russian software companies

The importance of the company’s intellectual capital (IC) increased during the last decades due to knowledge-based economy development. Despite the clear understanding of the IC importance, researchers agree on the fact that many difficulties in management of intangibles still exist from the both theoretical and practical points of view. The goal of the study is to conduct a comparison of IC management approaches used in international and Russian software companies. To carry out a proper comparison and identify similarities and differences, software firms are explored from the point of view of IC, and then be compared in the context of international and Russian sectors. At the end of the study, current IC management findings in international and Russian software companies are presented, and comparison of IC management is done. It was investigated from the comparison that international and Russian software companies have similarities and few principal differences in several IC management areas. The comparison of IC management approaches between international and Russian software companies provide helpful information to both, researchers and practitioners.

Innovation and Internationalisation in Russian Companies: Challenges and Opportunities for Open Innovation and Cooperation

Increasing globalisation and intensified cross-border cooperation, together with significant technological breakthroughs, create a fascinating gap for the research of the relationship between internationalisation and innovation on national, regional and company levels in Russia. The intensified international trade between countries and regions benefited from favourable institutional conditions, and facilitated the technology transfer and the development of innovations on the national level. This study approaches the same question from the company perspective; if certain companies are more innovative than other domestic companies, will they start internationalisation more easily or get involved in cooperation with international stakeholders? When companies operate in international markets, how do they obtain knowledge? Moreover, would this new knowledge from the foreign market help then to increase innovativeness, competitiveness and develop operations in domestic/local and foreign markets? Considering the role of foreign direct investments (FDI), the research in hand tries to find out the role of companies with FDI on the other players on the home market. Do foreigners bring new technology, innovation to the country? Is there spillover effect observed and how local companies can benefit from them? This dissertation studies the internationalisation and innovation in Russian companies, both from the outward internationalisation and inward internationalisation perspectives. Russian companies developed quickly during the transition period, after the dissolution of the Soviet Union. The common background of these companies, the effects of the change of ownership, and some managerial difficulties make them more sensitive to competitions issues, and in this context, the opportunities brought by the developing innovations are seen in companies and on the governmental level.

Employer Branding in Power Industry

Companies invest in employer branding in order to get good applicants, retain employees and create the image of a great employer. Employer branding will become more prominent in the future because companies strive to gain competitive advantage. Power industry is an internationally remarkable field of business. Energy and the solutions of power technology are always needed and there is a major need for new experts in power industry. The competition of talented workforce will increase because of the decrease in working-age population. The fundamental purpose of this study is to examine what kind of motives and practices company has for employer branding in power industry. The objective is to find out the benefits of employer branding and how it is targeted towards potential and current employees. In addition, the aim is to examine whether companies see employer branding as a process and what kind of processes they have for employer branding. The theoretical contribution of this study is based on literature review, which provides a better understanding of employer branding. The empirical part is a qualitative case study of two large and international companies in the field of power industry. Employer branding in the case companies is examined using theme interviews. According to this study, employer branding is a significant part of companies’ business in power industry. The main motives for employer branding are better employer image, more efficient recruitment and improved job satisfaction. Employer branding is communicated and targeted according to target group. Recruitment and educational co-operation are the main objects of employer branding towards potential employees, whereas training and development are an essential part of employer branding towards current employees. This study also discovers that there is some kind of process aspect in the background of employer branding.

Marketing plan for a new service concept: case Taksipalvelu MPS Oy

Markkinointisuunnitelmatutkimukset koostuvat pääosin tuotantoalalle tai suurille yrityksille tehdyistä markkinointisuunitelmista. Vaikuttaa siltä, että pienet yritykset tekevät suunnitelmansa ilman nimenomaisesti heille suunniteltua mallia, jos tekevät suunnitelmaa ollenkaan. Kuten sanottu, sovellukset palveluyrityksille ja pk-yrityksille puuttuvat markkinointisuunnitelmiin kohdistuvasta tutkimuksesta, mikä lisää tämän tutkimuksen arvoa keskittyen juuri kyseisiin markkinointisuunnitelman osa-alueisiin. Tutkimusta sovelletaan uuteen palvelukonseptiin, jota case-yritys Taksipalvelu MPS Oy on lanseeraamassa. Palvelu on kohdistettu venäläisille matkailijoille sekä Lappeenrannan alueella eläville venäläisille, ja se perustuu ennen kaikkea korkeaan laatuun. Tutkimus on tärkeä, sillä taksiala on hyvin säännelty, mutta säännöstelyn piirissä on todennäköisesti paljon potentiaalia palveluiden differentaatioon. Segmentointi ja palveluiden kohdistus tiettyihin asiakasryhmiin on taksialalla myös hyvin minimaalista. Tutkimalla kohdistetun palvelun kysyntää ja arvoa saadaan selville olisiko tällainen toiminta kannattavaa vai ei. Venäläisten asiakkaiden määrä on kasvanut Lappeenrannan alueella paljon, minkä potentiaalia ei ole ehkä vielä täysin hyödynnetty. Tutkimuksen tarkoituksena on luoda hyödyllinen markkinointisuunnitelma case-yritykselle kiinnittäen erityisesti huomiota toimialaan ja kohdeasiakasryhmään. Tarkoituksena on antaa suuntaviivoja kuinka lähestyä kohdeasiakkaita ja kuinka markkinoida palvelua oikein. Tavoitteena on myös selvittää onko valitulla asiakassegmentillä kysyntää vai tulisiko kohdistaminen tehdä toisia määritteitä käyttäen.

Stock Repurchase Authorizations - Finnish Companies

The aim of this study is to examine the abnormal market reaction caused by share repurchase authorizations. We study this abnormal reaction from five different angles. First four concentrate on average abnormal returns while the fifth concentrates on cumulative abnormal return. Data consists of 508 share repurchase authorization from Finnish stock market. Event study methodology is used to examine the stock price reaction and regression analysis is used to find correlation between actual buybacks and abnormal returns. The empirical results show that markets do usually react positively to share repurchase authorizations. There are some differences depending which of the five angles the abnormal returns are being examined. Statistically we can confirm that some authorization give positive reaction while others do not. Also we didn’t find a statistically significant positive correlation between actual buybacks and abnormal returns.

Hazard Risk Management in Large Nordic Companies' Operations in Russia

The objective of this research was to describe how Nordic companies manage hazard risks in their operations in Russia and how the local business environment is considered to affect the hazard risks. Research methods used in this research were literature review and expert interviews. Twelve Nordic industrial companies operating in different fields of industry were interviewed. Large Nordic companies typically guide risk management centralized from the parent company on behalf of the whole company group and the risk management standards and policies are integrated in all subsidiaries. Parent companies typically control hazard risk management in Russia by regular risk management reporting, auditing the Russian sites and by training local managers and employees to risk management work. Many companies have experienced several losses in the first years of operating in Russia before the risk management policies have been implemented in Russian subsidiaries. The companies have learned to take local characteristics better into account by experience and most companies are quite satisfied with their current risk management standards in Russia. The interviews indicate that companies experience especially the poor quality of infrastructure, some features in Russian organizational culture and high level of criminality to increase hazard risks in Russia. However, understanding these features and risks in the business environment makes the management of these risks possible. Risks related to infrastructure can be managed in advance by decreasing dependencies of infrastructure and considering the infrastructure quality already when planning the business operations. Also good local network is often considered critical in order to overcome the complications related to infrastructure. Russian personnel has typically different attitude towards risk management than Nordic personnel and neglecting safety and maintenance and concealing losses is more typical in Russia. By training and guiding the local personnel risk management and safety work and desired ways of actions these risks can be decreased. Criminality risks are often managed to certain extent by investing in security, increasing supervising and paying attention to reliability of the employees and other interest groups of the company.

Teollisten palveluiden kehittäminen asiakaslähtöisesti

Teollisuuden palvelut tuottavat tulevaisuudessa yhä suuremman osan yritysten liikevaihdosta ja tämän vuoksi niiden systemaattinen kehittäminen yrityksessä on erityisen tärkeää. Tutkimuksen tavoitteena on luoda teorian pohjalta malli, jonka avulla mekatroniikkaklusterin yritykset voivat analysoida tarjottavia palveluitaan asiakkaan näkökulmasta. Tutkimuksessa pyritään myös selvittämään empiirisesti mallin soveltuvuus palvelutarjonnan kehittämiseen tutkimuksessa mukana oleville erikokoisille yrityksille. Tutkimuksen teoreettisessa osassa luodaan katsaus yrityksen kasvustrategioihin. Palveluiden innovaatio- sekä kehitysprosessit käydään lyhyesti läpi, sekä esitetään lähtökohtia, miten yritykset voivat siirtyä tuotetarjoajasta palveluntarjoajaksi. Teoriaosassa käydään läpi QFD -malli, jota voidaan käyttää hyödyksi kun analysoidaan asiakkaan palvelutarpeita ja priorisoidaan yrityksen resursseja. QFD -mallin lisäksi esitellään myös muita laatutyökaluja sekä asiakkaan tarpeiden selvitysmenetelmiä, joita yritys voi käyttää hyödykseen QFD -mallin kanssa. Synteesiosassa esitellään ensin MS Excel -pohjainen QFD -malli. Mallin käyttö-kokeilu toteutetaan työpaja tyylisessä kokouksessa, ja tutkimustulokset kerätään havainnoimalla, teemahaastattelulla sekä kyselyn avulla.

SOCIAL MEDIA IN INTERNATIONAL BRAND COMMUNICATION OF SMES - A multiple case study of small Finnish design-intensive companies

Social media is a rather new phenomenon which has revolutionised the world of online communication. However, academic research on how companies can benefit from social media is lacking. The research objective of this thesis was to examine the use of social media in international brand communication of small Finnish design-intensive companies. Therefore, this research contributes also to the research gap in SME branding. The focus was on communication targeted at consumers. The research was carried out as a mixed methods research employing the questionnaire and multiple case study methods. The questionnaire was used to gather preliminary information on Finnish design-intensive companies and to provide an eligible list of companies for deeper examination. Then, four case companies were studied in more depth. The empirical evidence of the case companies was mainly gathered through theme interviews. The results of the questionnaire shed light on the internationalisation of small Finnish designintensive companies. On average, the companies had internationalised rather quickly after they had been founded. However, the share of exports was rather low in most of the companies. The results revealed also that social media was already used widely in the exporting companies and the use can be expected to grow in future. The findings of the multiple case study suggest that branding activities in small Finnish designintensive companies are constrained by limited resources and skills. In addition, the branding activities are strongly guided by the vision and values of the entrepreneur(s) rather than extensive marketing research. The brand structure was simple in all case companies and they aimed at having a standardised brand image across markets. However, all case companies had faced a need for some adaptation of their international brand communication. Internationally important brand communication channels were international fairs, the internet, word-of-mouth and social media. Social media offered a cost-effective brand communication channel for the case companies. It was used for various purposes, such as creating brand awareness and affecting how the brand is perceived. The entrepreneurs found the use of social media to be rather easy and the case companies had not faced any major challenges. However, the companies had recognised that communication in social media requires consistency and planning. The planning was rather informal and stayed on a general level. Overall, the utilisation of social media in the case companies was limited by a lack of resources. It seemed to affect especially the follow-up of brand communication in social media which stayed rather superficial.

Strategic alliances as an international entry strategy: Finnish cleantech SMEs and the Indian market

The demand for environmental technologies, also called cleantech, is growing globally but the need is especially high in emerging markets such as India where the rising economy and rapid industrialisation have led to increasing energy needs and environmental degradation. The market is of great potential also for the Finnish cleantech cluster that represents advanced expertise in several fields of environmental technologies. However, most of the Finnish companies in the field are SMEs that face challenges in their internationalisation due to their limited resources. The objective of this study was to estimate, whether strategic alliances could be an efficient entry strategy for Finnish cleantech SMEs entering the Indian market. This was done by studying what are the key factors influencing the international entry mode decision of Finnish cleantech SMEs, what are the major factors affecting the entry of Finnish cleantech SMEs to the Indian market and how do Finnish cleantech SMEs use strategic alliances in their internationalisation process. The study was realised as a qualitative multi-case study through theme interviews of Finnish cleantech SME representatives. The results indicated that Finnish cleantech SMEs prefer to enter international markets through non-equity and collaborative modes of entry. These entry modes are chosen because of the small size and limited resources of companies, but also because they want to protect their innovative technologies from property rights violations. India is an attracting market for Finnish cleantech SMEs mainly because of its size and growth, but insufficient environmental regulation and high import tariffs have hindered entry to the market. Finnish cleantech SMEs commonly use strategic alliances in their internationalisation process but the use is rather one-sided. Most of the formed strategic alliances are low-commitment, international contractual agreement in sales and distribution. Alliance partner selection receives less attention. In the future, providing Finnish cleantech SMEs with international experience and training could help in diversifying the use of strategic alliances and increase their benefits to SME internationalisation.

THE IMPACT OF GUANXI TO MULTINATIONAL COMPANIES BUSINESS PERFORMACE, CORPORATE REPUTATION, NEGOTIATIONS AND MANAGEMENT IN CHINA

The modern business development of China began during 1978 and during the last decades Chinese have created one of the most dynamic and strongest economies in the world. China is now second largest trading power calculated in dollars. The special characteristic of this economic development is that it is not copy of any existing economy, instead the developments have been strongly influenced by the Chinese cultural characteristics. One cultural characteristic, guanxi, which is a “network of services and counter- services” is argued to be major component of successful business in China where these changes of services happen between people but also between companies. Obtaining introductions and the guanxi when doing business in China will give attentive audience and security for companies business. Despite the evidenced importance of guanxi, China´s business environment is rapidly changing towards Western economies, which might then reduce the importance of guanxi. Therefore the current impact of guanxi is a important topic to study. The main purpose of this study is to explore the impact of guanxi for Western big and small sized multinational companies´ business processes when doing business in China. This study looks What is the impact of guanxi in contemporary Chinese business environment for foreign companies doing business in China. Sub-questions in this research focus on what is the impact of guanxi on corporate reputation, management and negotiations. Findings present a mixed view where the importance of guanxi is not anymore critical, especially among younger people in the cities, however guanxi was clearly important outside the cities and when dealing with government officials. Efficient use of guanxi can be extremely profitable especially during early stages of business operations and guanxi plays role when bargaining prices and ensuring product quality from the factories. Therefore guanxi should be considered as essential element for successful business in China.