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.

Ansiedade, depressão e qualidade de vida em pacientes com glomerulonefrite familiar ou doença renal policística autossômica dominante

INTRODUÇÃO: Aspectos psicológicos, transtornos psiquiátricos e qualidade de vida são frequentemente avaliados em pacientes em terapia renal substitutiva. Entretanto, não existem estudos que analisem ansiedade, depressão e qualidade de vida especificamente em pacientes portadores de doenças renais familiares. OBJETIVO: Avaliar a frequência de traços e estados ansiosos e depressivos e qualidade de vida, verificando as possíveis relações com os principais achados laboratoriais, clínicos, socioeconômicos e culturais de pacientes portadores de glomerulonefrites (GN) familiares ou de doença renal policística autossômica dominante (DRPAD). MÉTODOS: Noventa pacientes adultos (52 GN familiares e 38 DRPAD) foram avaliados utilizando Inventário de Ansiedade Traço-Estado (IDATE), Inventário de Depressão Beck (Beck) e Questionário de Qualidade de Vida Short Form-36 (SF-36), além de uma breve entrevista. RESULTADOS: Observou-se ansiedade moderada em ambos os grupos, depressão em 34,6% das GN e em 60,5% das DRPAD. De um modo geral, ansiedade e depressão associaram-se mais ao gênero feminino na GN familiar e ao pior nível educacional na DRPAD. Pacientes de ambos os grupos apresentaram duas dimensões mais afetadas no que se refere à qualidade de vida, o aspecto emocional e a percepção geral do estado de saúde. Além disso, o SF-36 revelou que na presente amostra, a qualidade de vida foi pior para o sexo feminino, e para pacientes de cor branca, com baixa escolaridade e sem parceiros estáveis. CONCLUSÃO: Os questionários aplicados permitiram identificar frequência e graus de ansiedade, depressão e comprometimento da qualidade de vida nos pacientes com doença renal familiar, que poderiam afetar a aderência desses pacientes ao tratamento. Esses achados podem contribuir para o planejamento de um melhor atendimento multidisciplinar para ambas as doenças.

Modulação autonômica cardíaca em indivíduos saudáveis com histórico familiar de doença renal crônica

INTRODUÇÃO: O histórico familiar positivo para a doença renal crônica (HF+) é um fator de risco para o surgimento e desenvolvimento dessa doença. Desta forma, é importante avaliar traços que possam estar correlacionados à predisposição familiar para a doença renal crônica. OBJETIVO: Avaliar a modulação autonômica, pela variabilidade da frequência cardíaca, de indivíduos com HF+. MÉTODOS: Foram avaliados nove indivíduos saudáveis com HF+ e 22 indivíduos saudáveis com histórico familiar negativo para doença renal crônica (Grupo HF-), pareados por idade (27 ± 6 vs. 26 ± 4 anos; p = 0,39, respectivamente). A frequência cardíaca foi medida continuamente pelo cardiofrequencímetro Polar S810i® durante 10 minutos de repouso na posição supina. A Variabilidade da Frequência Cardíaca (VFC) foi avaliada pelos índices do domínio do tempo, média dos intervalos RR (MNN), desvio padrão dos intervalos RR (SDNN), raiz média quadrática das diferenças de intervalos RR sucessivos (RMSSD) e percentual de intervalos RR com diferença de duração maior que 50 ms (pNN50), e pelos domínios de baixa frequência (BF), alta frequência (AF) e razão baixa/alta (BF/AF). Os exames laboratoriais foram realizados após jejum de 12 horas. Os resultados são expressos como média ± desvio padrão, adotando como significativo p < 0,05. RESULTADOS: Os grupos HF+ e HFforam semelhantes em relação à estimativa da taxa de filtração glomerular (p = 0,49) e frequência cardíaca (p = 0,68). Os grupos HF+ e HF- não apresentaram diferenças significativas em relação aos índices da variabilidade da frequência cardíaca MNN; SDNN, RMSSD, pNN50, Potência total; BF; AF u.n e razão BF/AF. CONCLUSÃO: A modulação autonômica cardíaca está preservada em indivíduos saudáveis com HF+.

Função renal e disfunção cognitiva: estudo transversal de utentes inscritos na unidade de saúde familiar-ponte

Introdu&#231;&#227;o: Estudos recentes demonstram o aumento da preval&#234;ncia de Disfun&#231;&#227;o Cognitiva em pacientes com Doen&#231;a Renal Cr&#244;nica. Objetivo: Avaliar a referida associa&#231;&#227;o nos utentes inscritos na Unidade de Sa&#250;de Familiar-Ponte. M&#233;todos: Estudamos uma amostra constitu&#237;da por 246 idosos. Avaliamos a fun&#231;&#227;o cognitiva por meio do Mini Mental State Examination e a Taxa de Filtra&#231;&#227;o Glomerular com recurso &#224; equa&#231;&#227;o Modification of Diet in Renal Disease. Os valores da Taxa de Filtra&#231;&#227;o Glomerular obtidos (ml/min/1,73 m2) foram distribu&#237;dos por tr&#234;s categorias: < 60,00, 60-89,99 e &#8805; 90. Recolhemos vari&#225;veis adicionais do Servi&#231;o de Apoio ao M&#233;dico e estudamos os dados recorrendo a an&#225;lises bivariadas e a modelos de regress&#227;o log&#237;stica. Resultados: Os grupos com Taxa de Filtra&#231;&#227;o Glomerular < 60 e &#8805; 90 apresentaram maior preval&#234;ncia de Disfun&#231;&#227;o Cognitiva, independentemente de outros fatores. Os odds-ratio foram, respectivamente, de 4,534 (IC95%: 1,257-16,356) e 3,302 (IC95%: 1,434-7,607). Discuss&#227;o: Conforme a literatura, verificamos maior preval&#234;ncia de Disfun&#231;&#227;o Cognitiva no grupo com Taxa de Filtra&#231;&#227;o Glomerular < 60. A elevada preval&#234;ncia de Disfun&#231;&#227;o Cognitiva nos utentes com Taxa de Filtra&#231;&#227;o Glomerular &#8805; 90 est&#225; descrita em alguns estudos e poder&#225; dever-se a situa&#231;&#245;es que induzam a sobrestima&#231;&#227;o da mesma taxa, como nos estados de caquexia, ou a situa&#231;&#245;es de hiperfiltra&#231;&#227;o glomerular. Conclus&#227;o: Constatamos que a rela&#231;&#227;o entre a fun&#231;&#227;o renal e a preval&#234;ncia de Disfun&#231;&#227;o Cognitiva n&#227;o foi linear, mas sim parab&#243;lica. Novos estudos s&#227;o necess&#225;rios para se explicar o porqu&#234; deste achado e para se averiguar a necessidade de vigil&#226;ncia da Disfun&#231;&#227;o Cognitiva em pacientes com altera&#231;&#245;es da fun&#231;&#227;o renal.

Review of investment strategy, portfolio management, and scorecard based portfolio selection tool for direct property investments in Finland

The lack of research of private real estate is a well-known problem. Earlier studies have mostly concentrated on the USA or the UK. Therefore, this master thesis offers more information about the performance and risk associated with private real estate investments in Nordic countries, but especially in Finland. The structure of this master thesis is divided into two independent sections based on the research questions. In first section, database analysis is performed to assess risk-return ratio of direct real estate investment for Nordic countries. Risk-return ratios are also assessed for different property sectors and economic regions. Finally, review of diversification strategies based on property sectors and economic regions is performed. However, standard deviation itself is not usually sufficient method to evaluate riskiness of private real estate. There is demand for more explicit assessment of property risk. One solution is property risk scoring. In second section risk scorecard based tool is built to make different real estate comparable in terms of risk. In order to do this, nine real estate professionals were interviewed to enhance the structure of theory-based risk scorecard and to assess weights for different risk factors.

The Impact of Foreign Direct Investment Inflows on the Economic Growth of Bangladesh. The Roles of Infrastructural Facilities

Foreign direct investment (FDI) inflow has been a key concern for Bangladesh to obtain additional support for the economic development. The Government of Bangladesh continuously competing with other South Asian countries and putting more effort to increase the number of FDI inflows in the country. From the country’s perspective, the constant increasing rate of economic growth shows a positive outcome of FDI inflow. However, the country still not performing up to the mark to pull enough FDI inflows to its potential. Thus, this study discusses about the major determinants and factors affecting FDI inflows in Bangladesh. Among those determinants and factors, infrastructural facility is considered as the most important to affect FDI inflows. FDI inflow is fundamentally depending upon infrastructural facilities to achieve its desire success. Foreign investors take this issue very seriously because based on this they can measure their ease of doing business in the host country. Despite of providing a large market size, due to having weak and lack of infrastructural facilities, Bangladesh is facing trouble in drawing attention of the foreign investors. In order to make the infrastructural facilities happen, it is highly required to organize each of the systems under of it. The body of this study discussed about the weak infrastructures in Bangladesh such as transport and communication, power and energy, education system, and governance services. Improvement in one of these systems cannot provide valuable positive changes on FDI inflows. It requires improvement in all the weak systems to grasp multinational companies and attract foreign investors. On the basis of this research problem, research questions are established. Both qualitative and quantitative methods are used to answer the research questions. Furthermore, several theories have been applied to justify possible scenarios from the research problem. In addition, the history in between Bangladesh, trade liberalization, and FDI inflows is presented briefly.

The Impact of Foreign Direct Investment Inflows on the Economic Growth of Bangladesh. The Roles of Infrastructural Facilities

Foreign direct investment (FDI) inflow has been a key concern for Bangladesh to obtain additional support for the economic development. The Government of Bangladesh continuously competing with other South Asian countries and putting more effort to increase the number of FDI inflows in the country. From the country’s perspective, the constant increasing rate of economic growth shows a positive outcome of FDI inflow. However, the country still not performing up to the mark to pull enough FDI inflows to its potential. Thus, this study discusses about the major determinants and factors affecting FDI inflows in Bangladesh. Among those determinants and factors, infrastructural facility is considered as the most important to affect FDI inflows. FDI inflow is fundamentally depending upon infrastructural facilities to achieve its desire success. Foreign investors take this issue very seriously because based on this they can measure their ease of doing business in the host country. Despite of providing a large market size, due to having weak and lack of infrastructural facilities, Bangladesh is facing trouble in drawing attention of the foreign investors. In order to make the infrastructural facilities happen, it is highly required to organize each of the systems under of it. The body of this study discussed about the weak infrastructures in Bangladesh such as transport and communication, power and energy, education system, and governance services. Improvement in one of these systems cannot provide valuable positive changes on FDI inflows. It requires improvement in all the weak systems to grasp multinational companies and attract foreign investors. On the basis of this research problem, research questions are established. Both qualitative and quantitative methods are used to answer the research questions. Furthermore, several theories have been applied to justify possible scenarios from the research problem. In addition, the history in between Bangladesh, trade liberalization, and FDI inflows is presented briefly

Investment in the Brazilian economy during the crisis

In this short article, it is analyzed as to whether financial flows and credit concessions explain the behavior of investment in the Brazilian economy during the 2008 crisis. Beyond the importance of demand, changes in expectations seem to be an important source of instability in investment and, as a consequence, in the economy.

Fiscal policy and private investment: latin america in a comparative perspective

The main objective of the paper is to assess the impact of fiscal variables on private investment comparing some Latin-American economies to other advanced ones. For such purposes, the authors carry out an econometric analysis for the period 1990-2008. They make use of two dynamic panel models in which they group countries with similar characteristics and development levels. In one of them, they include Mexico, Brazil, Chile, Colombia and Uruguay; whereas in the second one the countries accounted for are the U.S., Canada, Spain, Korea, Ireland and Japan. They specify in both models an investment function using as arguments a wide range of variables, including those related with fiscal policy. From their results the authors infer that governments can, with higher spending, boost up the economy even when they finance spending with higher taxes. In Latin America, where income concentration is enormous, a proposal to boost up the economy through higher government expenditure financed with a progressive income tax, is even more justified.

Effects of overvaluation and exchange rate volatility over industrial investment: empirical evidence and economic policy proposals for Brazil

The present article aims to analyze the recent behavior of real exchange rate in Brazil and its effects over investment per worker in Brazilian manufacturing and extractive industry. Preliminary estimates presented in the article shows an over-valuation of 48% of real exchange rate in Brazil. The reaction between the level (and volatility) of real exchange rate and investment (per worker) in Brazil is analyzed by means of a panel data econometric model for 30 sectors of Brazilian manufacturing and extractive industry. The empirical results show that the level and volatility of real exchange rate has a strong effect over investment per worker in Brazilian industry. Finally, we conclude the article presenting a proposal for a new macroeconomic regime that aims to produce an acceleration of economic growth of Brazilian economy and, by that, a catching-up process with developed countries.

Crawling up the value chain: domestic institutions and non-traditional foreign direct investment in Brazil, 1990-2010

Brazil attracted relatively little innovation-intensive and export-oriented foreign investment during the liberalization period of 1990 to 2010, especially compared with competitors such as China and India. Adopting an institutionalist perspective, I argue that multinational firm investment profiles can be partly explained by the characteristics of investment promotion policies and bureaucracies charged with their implementation. Brazil's FDI policies were passive and non-discriminating in the second half of the 1990s, but became more selective under Lula. Investment promotion efforts have often been undercut by weakly coordinated and inconsistent institutions. The paper highlights the need for active, discriminating investment promotion policies if benefits from non-traditional FDI are to be realized.

Exploring Relationship between Pakistani Teachers’ Pedagogical Beliefs and ICT Use for Teaching and Learning

Background: The aim of present study is to investigate relationship between Pakistani teachers’ pedagogical beliefs and ICT use for teaching and learning. Previous studies found close relationship between pedagogical beliefs and teaching practices including use of ICT. However, variation in results is also reported and attributed to cultural and contextual differences. Methodology: Quantitative approach was used to study a sample of 231 Pakistani basic education teachers from middle and upper-middle range private schools, mostly from large urban centres. Results: This study confirmed previously study results that constructivist-compatible pedagogical beliefs are significantly related to both traditional and constructivist use of ICT. However, it is also found that traditional-transmission pedagogical beliefs are significantly related to traditional use of ICT – a finding not reported in previous studies. Some amounts of ICT training for pedagogical purpose exhibit significant impact on ICT use, in particular constructivist use of ICT. Similarly age also play a role as younger teachers are more likely to use ICT, however, no significant difference of pedagogical beliefs and ICT use was found between male and female teachers. Recommendation for practice and further investigation are made in chapter 5.

POLITICAL RISK IN FOREIGN DIRECT INVESTMENT IN THE RUSSIAN ELECTRIC POWER SECTOR

Russia approved ambitious reform plan for the electricity sector in 2001 including privatisation of the country’s huge thermal generation assets. So far the sector had suffered from power shortages, aging infrastructure, substantial electricity losses, and weak productivity and profitability numbers. There was obvious need for foreign investments and technologies. The reform was rather successful; the generation assets were privatised in auctions in 2007-2008 and three European energy companies, E.On, Enel and Fortum, invested in and obtained together over 10% of the Russian production assets. The novelty of these foreign investments serves unique object for the study. The political risk is involved in the FDI due to the industry’s social and economic importance. The research’s objective was to identify and analyse the political risk that foreign investors face in the Russian electricity sector. The research had qualitative study method and the empirical data was collected by interviewing. The research’s theoretical framework was based on the existing political risk theories and it focused to understand the Russian government in relation to the country’s stability and define both macro-level and micro-level sources of political risk for the foreign direct investments in the sector. The research concludes that the centralised and obscure political decision-making, economic constriction, high level of governmental control in economy and corruption form the country’s internal macro-level risk sources for the foreign investors in the sector. Additionally the retribution due to the companies’ home country actions, possible violent confrontations at the Russian borders and the currency instability are externally originated risk sources. In the electricity industry there is risk of tightened governmental control and increased regulation and taxation. Similarly the company-level risk sources link to the unreformed heating sector, bargaining with the authorities, diplomatic stress between host and home countries and to companies and government’s divergent perspective for the profit-making. The research stresses the foreign companies’ ability to cope with the characteristics of Russian political environment. In addition to frequent political and market risk assessment, the companies need to focus on currency protection against rouble’s rate fluctuation and actively build good company-citizenship in the country. Good relationship is needed with the Russian political authorities. The political risk identification and the research’s conclusive framework also enable political risk study assessments for other industries in Russia