Angel Investing in Finland: An Analysis Based on Agency Theory and the Incomplete Contracting Theory

Wealthy individuals - business angels who invest a share of their net worth in entrepreneurial ventures - form an essential part of an informal venture capital market that can secure funding for entrepreneurial ventures. In Finland, business angels represent an untapped pool of capital that can contribute to fostering entrepreneurial development. In addition, business angels can bridge knowledge gaps in new business ventures by means of making their human capital available. This study has two objectives. The first is to gain an understanding of the characteristics and investment behaviour of Finnish business angels. The strongest focus here is on the due diligence procedures and their involvement post investment. The second objective is to assess whether agency theory and the incomplete contacting theory are useful theoretical lenses in the arena of business angels. To achieve the second objective, this study investigates i) how risk is mitigated in the investment process, ii) how uncertainty influences the comprehensiveness of due diligence as well as iii) how control is allocated post investment. Research hypotheses are derived from assumptions underlying agency theory and the incomplete contacting theory. The data for this study comprise interviews with 53 business angels. In terms of sample size this is the largest on Finnish business angels. The research hypotheses in this study are tested using regression analysis. This study suggests that the Finnish informal venture capital market appears to be comprised of a limited number of business angels whose style of investing much resembles their formal counterparts’. Much focus is placed on managing risks prior to making the investment by strong selectiveness and by a relatively comprehensive due diligence. The involvement is rarely on a day-to-day basis and many business angels seem to see board membership as a more suitable alternative than involvement in the operations of an entrepreneurial venture. The uncertainty involved does not seem to drive an increase in due diligence. On the contrary, it would appear that due diligence is more rigorous in safer later stage investments and when the business angels have considerable previous experience as investors. Finnish business angels’ involvement post investment is best explained by their degree of ownership in the entrepreneurial venture. It seems that when investors feel they are sufficiently rewarded, in terms of an adequate equity stake, they are willing to involve themselves actively in their investments. The lack of support for a relationship between increased uncertainty and the comprehensiveness of due diligence may partly be explained by an increasing trend towards portfolio diversification. This is triggered by a taxation system that favours investments through investment companies rather than direct investments. Many business angels appear to have substituted a specialization strategy that builds on reducing uncertainty for a diversification strategy that builds on reducing firm specific (idiosyncratic) risk by holding shares in ventures whose returns are not expected to exhibit a strong positive correlation.

From Habits to Social Structures : Pragmatism and Contemporary Social Theory

Pragmatism has sometimes been taken as a catchphrase for epistemological stances in which anything goes. However, other authors argue that the real novelty and contribution of this tradition has to do with its view of action as the context in which all things human take place. Thus, it is action rather than, for example, discourses that should be our starting point in social theory. The introductory section of the book situates pragmatism (especially the ideas of G. H. Mead and John Dewey) within the field and tradition of social theory. This introductory also contextualizes the main core of the book which consists of four chapters. Two of these chapters have been published as articles in scientific journals and one in an edited book. All of them discuss the core problem of social theory: how is action related to social structures (and vice versa)? The argument is that habitual action is the explanation for the emergence of social structures from our action. Action produces structures and social reproduction takes place when action is habitualized; that is, when we develop social dispositions to act in a certain manner in familiar environments. This also means that even though the physical environment is the same for all of us, our habits structure it into different kinds of action possibilities. Each chapter highlights these general insights from different angles. Practice theory has gained momentum in recent years and it has many commonalities with pragmatism because both highlight the situated and corporeal character of human activity. One famous proponent of practice theory is Margaret Archer who has argued that the pragmatism of G. H. Mead leads to an oversocialized conception of selfhood. Mead does indeed present a socialized view of selfhood but this is a meta-sociological argument rather than a substantial sociological claim. Accordingly, one can argue that in this general sense intersubjectivity precedes subjectivity and not the other way around. Such a view does not indicate that our social relation would necessarily "colonize" individual action because there is a place for internal conversations (in Archer s terminology); it is especially in those phases of action where it meets obstacles due to the changes of the environment. The second issue discussed has the background assumption that social structures can fruitfully be conceptualized as institutions. A general classification of different institution theories is presented and it is argued that there is a need for a habitual theory of institutions due to the problems associated with these other theories. So-called habitual institutionalism accounts for institutions in terms of established and prevalent social dispositions that structure our social interactions. The germs of this institution theory can be found in the work of Thorstein Veblen. Since Veblen s times, these ideas have been discussed for example, by the economist Geoffrey M. Hodgson. His ideas on the evolution of institutions are presented but a critical stance is taken towards his tendency of defining institutions with the help of rules because rules are not always present in institutions. Accordingly, habitual action is the most basic but by no means the only aspect of institutional reproduction. The third chapter deals with theme of action and structures in the context of Pierre Bourdieu s thought. Bourdieu s term habitus refers to a system of dispositions which structure social fields. It is argued that habits come close to the concept of habitus in the sense that the latter consists of particular kinds of habits; those that are related to the reproduction of socioeconomic positions. Habits are thus constituents of a general theory of societal reproduction whereas habitus is a systematic combination of socioeconomic habits. The fourth theme relates to issues of social change and development. The capabilities approach has been associated with the name of Amartya Sen, for example, and it underscores problems inhering in economistic ways of evaluating social development. However, Sen s argument has some theoretical problems. For example, his theory cannot adequately confront the problem of relativism. In addition, Sen s discussion lacks also a theory of the role of the public. With the help of arguments derived from pragmatism, one gets an action-based, socially constituted view of freedom in which the role of the public is essential. In general, it is argued that a socially constituted view of agency does not necessarily to lead to pessimistic conclusions about the freedom of action.

Molecular theory of dielectric relaxation in a dense binary dipolar liquid

A molecular theory of dielectric relaxation in a dense binary dipolar liquid is presented. The theory takes into account the effects of intra- and interspecies intermolecular interactions. It is shown that the relaxation is, in general, nonexponential. In certain limits, we recover the biexponential form traditionally used to analyze the experimental data of dielectric relaxation in a binary mixture. However, the relaxation times are widely different from the prediction of the noninteracting rotational diffusion model of Debye for a binary system. Detailed numerical evaluation of the frequency-dependent dielectric function epsilon-(omega) is carried out by using the known analytic solution of the mean spherical approximation (MSA) model for the two-particle direct correlation function for a polar mixture. A microscopic expression for both wave vector (k) and frequency (omega) dependent dielectric function, epsilon-(k,omega), of a binary mixture is also presented. The theoretical predictions on epsilon-(omega) (= epsilon-(k = 0, omega)) have been compared with the available experimental results. In particular, the present theory offers a molecular explanation of the phenomenon of fusing of the two relaxation channels of the neat liquids, observed by Schallamach many years ago.

Perturbation of critical solution temperatures by impurity doping

An expression is developed for the variation of the critical solution temperature of a binary liquid system when a third component (dopant) is added, using an extension of the regular solution theory. The model can be used for UCST, LCST and for closed loop systems and has the correct features in the limiting cases.

New twelve node serendipity quadrilateral plate bending element based on Mindlin-Reissner theory using Integrated Force Method

The Integrated Force Method (IFM) is a novel matrix formulation developed for analyzing the civil, mechanical and aerospace engineering structures. In this method all independent/internal forces are treated as unknown variables which are calculated by simultaneously imposing equations of equilibrium and compatibility conditions. This paper presents a new 12-node serendipity quadrilateral plate bending element MQP12 for the analysis of thin and thick plate problems using IFM. The Mindlin-Reissner plate theory has been employed in the formulation which accounts the effect of shear deformation. The performance of this new element with respect to accuracy and convergence is studied by analyzing many standard benchmark plate bending problems. The results of the new element MQP12 are compared with those of displacement-based 12-node plate bending elements available in the literature. The results are also compared with exact solutions. The new element MQP12 is free from shear locking and performs excellent for both thin and moderately thick plate bending situations.

Inverse problem for the wave equation : partial data and novel boundary sources

An inverse problem for the wave equation is a mathematical formulation of the problem to convert measurements of sound waves to information about the wave speed governing the propagation of the waves. This doctoral thesis extends the theory on the inverse problems for the wave equation in cases with partial measurement data and also considers detection of discontinuous interfaces in the wave speed. A possible application of the theory is obstetric sonography in which ultrasound measurements are transformed into an image of the fetus in its mother's uterus. The wave speed inside the body can not be directly observed but sound waves can be produced outside the body and their echoes from the body can be recorded. The present work contains five research articles. In the first and the fifth articles we show that it is possible to determine the wave speed uniquely by using far apart sound sources and receivers. This extends a previously known result which requires the sound waves to be produced and recorded in the same place. Our result is motivated by a possible application to reflection seismology which seeks to create an image of the Earth s crust from recording of echoes stimulated for example by explosions. For this purpose, the receivers can not typically lie near the powerful sound sources. In the second article we present a sound source that allows us to recover many essential features of the wave speed from the echo produced by the source. Moreover, these features are known to determine the wave speed under certain geometric assumptions. Previously known results permitted the same features to be recovered only by sequential measurement of echoes produced by multiple different sources. The reduced number of measurements could increase the number possible applications of acoustic probing. In the third and fourth articles we develop an acoustic probing method to locate discontinuous interfaces in the wave speed. These interfaces typically correspond to interfaces between different materials and their locations are of interest in many applications. There are many previous approaches to this problem but none of them exploits sound sources varying freely in time. Our use of more variable sources could allow more robust implementation of the probing.

Jos olisin viisas niin siivoisin : Lasten luovat prosessit päiväkodissa

It has been found usually to talk in the early childhood education in connection with the creativity about arts and skills and about play. In this treatise, the creativity is approached besides play but also from the point of view of the creativity of the everyday. The starting point for the study is the view according to which the creativity is complex interaction between a creative person and an environment. The theoretical body of the study is the Componential theory of creativity of Amabile (1996). The process which is open and product which is new and suitable or acceptable were defined creative. In the opinion of many researchers, the creativity is a phenomenon that has determined in a certain time and place so the creativity is examined from the point of view of the social constructionism. As creative processes in the day nursery it has been defined pretend play, child´s involvement and children´s agentive perception which is based on the Children´s agentive perception theory of Reunamo (2007). The purpose of the study is to clarify how the child's personal factors and the social environment affect the creative processes of children in the day nursery. This Master's thesis is based on the Children' s agentive perception uncovered study led by Jyrki Reunamo (2010) which was carried out in the spring of 2010 in Keski-Uusimaa and in Hämeenlinna and Taiwan. From the study, a name has also been used "on the sources of Orientation", a research project and development project. The study includes the children's evaluation sector, the observation sector, the children's interview sector and the evaluation sector of the pedagogic environment. 891 Children 1-7 year-old by age participated in the study. All the sectors which belong to the study of Reunamo were utilized in this treatise and the Finnish day nurseries or preschool groups which had participated in the study were marked off as the target group. The main component analysis, sum variables, the correlation coefficients, Mann-Whitney s U-test and Kruskall-Wallas test were used for the statistical examination of the quantitative material. In this treatise it was noticed, both the personal properties of the child and a social environment, that they affected all the examined creative processes which also had a significant connection with each other statistically. The definition of creativity was filled best by the participative answers. However, the number of the participative answers was only 8% in the questions concerning adults. That raised the question whether an attempt should be made to have effect so that the children's better participation also in the interaction with the adults would be possible in the educational culture of the day nursery. In the further study, the conscious building of the social environment which supports the creativity from a social constructionism point of view could indeed be an interesting task. The treatise is suitable for an examination of the interaction between the child's person and a social environment especially from the point of view of the creativity.

Schlieren visualization of shock wave phenomena over a missile-shaped body at hypersonic Mach numbers

The flow over a missile-shaped configuration is investigated by means of Schlieren visualization in short-duration facility producing free stream Mach numbers of 5.75 and 8. This visualization technique is demonstrated with a 41 degrees full apex angle blunt cone missile-shaped body mounted with and without cavity. Experiments are carried out with air as the test gas to visualize the flow field. The experimental results show a strong intensity variation in the deflection of light in a flow field, due to the flow compressibility. Shock stand-off distance measured with the Schlieren method is in good agreement with theory and computational fluid dynamic study for both the configurations. Magnitude of the shock oscillation for a cavity model may be greater than the case of a model without cavity. The picture of visualization shows that there is an outgoing and incoming flow closer to the cavity. Cavity flow oscillation was found to subside to steady flow with a decrease in the free stream Mach number.

A Microscopic Theory of the f.c.c.-b.c.c. Interface .

We present a first-principles theory of the equilibrium b.c.c.-f.c.c. interface at coexistence using the density functional method. We assume that the interfacial region has local body-centred tetragonal (b.c.t.) symmetry and predict typical interfacial widths to be of order 2 to 3 lattice spacings with typical energies close to 0.05 J/m2. These quantities are in good agreement with laboratory measurements on coherent interfaces.

Rudiments of complexity theory for scientists and engineers

Complexity theory is an important and growing area in computer science that has caught the imagination of many researchers in mathematics, physics and biology. In order to reach out to a large section of scientists and engineers, the paper introduces elementary concepts in complexity theory in a informal manner, motivating the reader with many examples.

Unified approach to the constraint counting theory of glasses

An approach to the constraint counting theory of glasses is applied to many glass systems which include an oxide, chalcohalide, and chalcogenides. In this, shifting of the percolation threshold due to noncovalent bonding interactions in a basically covalent network and other recent extensions of the theory appear natural. This is particularly insightful and reveals that the chemical threshold signifies another structural transition along with the rigidity percolation threshold, thus unifying these two seemingly disparate toplogical concepts. [S0163-1829(99)11441-3].

Non-resonant perturbation formula for interaction impedance measurement for a folded-waveguide SWS

The non-resonant perturbation formula for the measurement of interaction impedance of a folded-waveguide slow-wave structure was derived for the relevant electromagnetic field configuration at the axis of the beam-hole of the structure. Efficacy of the theory was benchmarked through virtual measurement using 3D electromagnetic modeling in CST-studio.

Non-Fermi-liquid theory for disordered metals near two dimensions

We consider the Finkelstein action describing a system of spin-polarized or spinless electrons in 2+2epsilon dimensions, in the presence of disorder as well as the Coulomb interactions. We extend the renormalization-group analysis of our previous work and evaluate the metal-insulator transition of the electron gas to second order in an epsilon expansion. We obtain the complete scaling behavior of physical observables like the conductivity and the specific heat with varying frequency, temperature, and/or electron density. We extend the results for the interacting electron gas in 2+2epsilon dimensions to include the quantum critical behavior of the plateau transitions in the quantum Hall regime. Although these transitions have a very different microscopic origin and are controlled by a topological term in the action (theta term), the quantum critical behavior is in many ways the same in both cases. We show that the two independent critical exponents of the quantum Hall plateau transitions, previously denoted as nu and p, control not only the scaling behavior of the conductances sigma(xx) and sigma(xy) at finite temperatures T, but also the non-Fermi-liquid behavior of the specific heat (c(v)proportional toT(p)). To extract the numerical values of nu and p it is necessary to extend the experiments on transport to include the specific heat of the electron gas.

Fully Comprehensive Geometrically Non-Linear Dynamic Analysis of Multi-Body Beam Systems with Elastic Couplings

This paper is concerned with the dynamic analysis of flexible,non-linear multi-body beam systems. The focus is on problems where the strains within each elastic body (beam) remain small. Based on geometrically non-linear elasticity theory, the non-linear 3-D beam problem splits into either a linear or non-linear 2-D analysis of the beam cross-section and a non-linear 1-D analysis along the beam reference line. The splitting of the three-dimensional beam problem into two- and one-dimensional parts, called dimensional reduction,results in a tremendous savings of computational effort relative to the cost of three-dimensional finite element analysis,the only alternative for realistic beams. The analysis of beam-like structures made of laminated composite materials requires a much more complicated methodology. Hence, the analysis procedure based on Variational Asymptotic Method (VAM), a tool to carry out the dimensional reduction, is used here.The analysis methodology can be viewed as a 3-step procedure. First, the sectional properties of beams made of composite materials are determined either based on an asymptotic procedure that involves a 2-D finite element nonlinear analysis of the beam cross-section to capture trapeze effect or using strip-like beam analysis, starting from Classical Laminated Shell Theory (CLST). Second, the dynamic response of non-linear, flexible multi-body beam systems is simulated within the framework of energy-preserving and energy-decaying time integration schemes that provide unconditional stability for non-linear beam systems. Finally,local 3-D responses in the beams are recovered, based on the 1-D responses predicted in the second step. Numerical examples are presented and results from this analysis are compared with those available in the literature.

Galois Theory and Solvable Equations of Prime Degree

In this article we review classical and modern Galois theory with historical evolution and prove a criterion of Galois for solvability of an irreducible separable polynomial of prime degree over an arbitrary field k and give many illustrative examples.