Dynamic Hedging with Credit Default Swaps: Empirical Evidence from the European Monetary Union

This thesis investigates the effectiveness of time-varying hedging during the financial crisis of 2007 and the European Debt Crisis of 2010. In addition, the seven test economies are part of the European Monetary Union and these countries are in different economical states. Time-varying hedge ratio was constructed using conditional variances and correlations, which were created by using multivariate GARCH models. Here we have used three different underlying portfolios: national equity markets, government bond markets and the combination of these two. These underlying portfolios were hedged by using credit default swaps. Empirical part includes the in-sample and out-of-sample analysis, which are constructed by using constant and dynamic models. Moreover, almost in every case dynamic models outperform the constant ones in the determination of the hedge ratio. We could not find any statistically significant evidence to support the use of asymmetric dynamic conditional correlation model. In addition, our findings are in line with prior literature and support the use of time-varying hedge ratio. Finally, we found that in some cases credit default swaps are not suitable instruments for hedging and they act more as a speculative instrument.

Northern Landscapes : ʻʻImplementation of the European Landscape Convention In the North Calotte Area Municipalitiesʼʼ - Conference in Inari, Finland 7-9.9.2011

The conference promoting the objectives of the international European Landscape Convention (ELC) was held on 7-9 September 2011 in Inari. The primary aim of the conference was to increase awareness of the ELC and the prospects and requirements it brings to practical planning work, especially at the municipal level. The conference speakers included top experts from Sweden, Norway, Finland, France, Holland and Catalonia. This report is a collection of articles written by the experts in the ELC conference. The report is available in five languages: Finnish, Swedish, Norwegian, Northern Sámi and English. The common characteristics of the North Calotte area, such as the magnificent riverside scenery and the beautiful fell landscapes formed by the Sámi culture and reindeer management are broadly reflected in the environment. Alongside the traditional forms of land use, many other livelihoods and forms of land use now need to be accommodated in the area. Tourism, energy production, mining industry and new infrastructure create new and manifold challenges to the authorities in charge of land use in these areas. Municipalities need information and support for versatile planning in the future, so that the unique and valuable characteristics of the North can be preserved. Landscape protection and management in the landscape areas is executed through areal and land use planning, mainly through town planning and the creation of landscape management plans. The municipalities in the North Calotte region have their own partly divergent methods and practices, based on the various land use processes are executed. The municipalities and inhabitants have a great interest in preserving and protecting their living environment and maintaining and increasing the appeal of the area. Landscape is viewed as one of the most significant appealing factors that cannot be lost. The increasing land use in municipalities, for example due to energy production, mining industry and increasing tourism, create a need for more multidimensional planning. The reconciliation of the wishes of different interest groups, and traditional and new livelihoods will not be easy. Conflict is inevitable. This will lead to a greater need to engage local bodies to the planning processes right from the start of the projects. Close cooperation between different administrative branches, operators, local bodies and landscape research promote the objectives of the convention. To ensure that the work continues, a landscape co-operation group is planned to be established in the North Calotte area. It´s main task is to promote and develop landscape policy in the area.

CREATION OF INTERNATIONALIZATION CAPABILITIES IN FINNISH ENVIRONMENTAL TECHNOLOGY SME’S

The purpose of this study is to identify successful capabilities that Finnish SME’s, in the environmental technology industry, use in their internationalization efforts. It is the goal of this study to create a list of guidelines and capabilities that other SME’s in this industry can use to help be more effective in their internationalization efforts. Through a study of three Finnish SME’s, in the growing environmental technologies sector, several common internationalization capabilities were identified to be helpful in their internationalization process. The common capabilities that were identified were then categorized together to show not only what capabilities were identified but if they came from firm, location or network specific advantages. As a result of the study, three dynamic capabilities were formulated as guidelines. These guidelines are designed so that a SME based in Finland, and in the environmental technology industry, could use them to help them in their own internationalization process.

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.

Pk-IFRS -standardin edut ja ongelmat - empiirinen tutkimus

Pk-IFRS -standardi on pk-yritysten sekä niiden tilinpäätösten käyttäjien erityistarpeita ajatellen kehitetty kansainvälinen tilinpäätösstandardi. Tämän tutkimuksen tavoitteena on selvittää, mitä etuja ja ongelmia standardin soveltamiseen liittyy Euroopan unionin pk-yritysten keskuudessa. Tutkimuksessa tarkastellaan erityisesti tilinpäätösten laatijoiden ja käyttäjien näkemyksiä standardin eduista ja ongelmista sekä tilinpäätösinformaation vertailukelpoisuudesta. Alatavoitteena on myös selvittää, mitkä tekijät vaikuttavat standardin kannatukseen ja vastustukseen. Tutkimus on laadullinen. Sen empiirinen aineisto muodostuu kommenttikirjeistä, joita eri Euroopan valtioiden sidosryhmät lähettivät vastauksiksi standardia koskeneeseen EU-komission konsultaatioon. Pk-IFRS:n soveltamispäätöstä tehtäessä on kyse laatijoille koituvien kustannusten ja käyttäjille aiheutuvien hyötyjen tasapainottelusta. Tutkimuksesta käy kuitenkin ilmi, että pk-IFRS ei ole optimaalinen ratkaisu EU:n pk-yrityksiä ja niiden tilinpäätösten käyttäjiä ajatellen. Tilinpäätösten käyttäjät kokevat EU:n tilinpäätösdirektiivien tarjoavan riittävän vertailukelpoisuuden tason. Kansainvälistä liiketoimintaa harjoittavien pk-yritysten kannalta pk-IFRS olisi kuitenkin edullinen vaihtoehto. Standardia kohtaan esitettyihin puoltaviin ja vastustaviin näkökantoihin vaikuttaa oleellisesti se, kuinka paljon valtion kansalliset laskentakäytännöt eroavat pk-IFRS:stä. Standardin vastustajille luonteenomaista on, että ne edustavat kontinentaalisia valtioita, joiden kirjanpidon ja verotuksen välillä on läheinen yhteys. Sidosryhmistä erityisesti tilintarkastusyhteisöt, tilitoimistot yms. laskentaorganisaatiot kannattavat standardia.

Cultural Diversity, Social Cohesion, Religion: Core Values and Educational Policies in Four European Nations

In my doctoral thesis I evaluate strategies designed to cope with the multicultural nature of four European nations: Great Britain, The Netherlands, Sweden, and Denmark. I also analyse and clarify the question of the place of religion in present-day Europe. The empirical material analysed in the study consists of politicians’ statements and policy documents dealing with immigration policy and religious and values education in the four countries. In addition, I analyse statements issued by the Council of Europe regarding religious education, along with all cases relevant to religious education brought before the United Nations Human Rights Committee or the European Court of Human Rights. The theoretical framework is formed by the scholarly debate – among philosophers, sociologists and scholars of religion in education – concerning the question of a just society. Special emphasis is given to philosophical theories that are in favour of granting special group rights to religious minorities in the name of equal treatment. With regard to the question of the appropriate place of religion, I apply Kim Knott’s methodological model for locating religion in secular contexts, and Émile Durkheim’s theory as to the significance of religion and collective sentiments in uniting adherents or members of a group into a single moral community. The study shows that even when the positive side of immigration, as a potential force for the enrichment of the public culture, is acknowledged, there is anxiety as to the successful integration of immigrants. The premises and goals of immigration policies have also been questioned. One central problem is the incommensurability between the values upheld by Western liberal democracies and certain religious traditions, above all those of Islam. Great Britain, The Netherlands, Sweden, and Denmark have tightened control over their citizens’ ethical attitudes and want to regulate these as well. In coping with cultural diversity, the significance of education, especially religious education, plays a significant role; as future citizens, pupils are expected to internalise the society’s core values as well as gaining an understanding of different cultures and ways of life. It is also worth noting that both the Council of Europe and the European Court of Human Rights have recently expressed the view that one important goal of religious education is to enable pupils to be critical and autonomous with regard to different religions and moral positions. The study shows that religion is not seen as purely a personal matter. Religion is closely linked to individual and national identity, and religious traditions thus have a place in the public domain. It should be noted, however, that a religious tradition – more precisely, an interpretation of religious tradition – qualifies as a legitimate partner in the democratic decision-making process only if it shares similar values with Western European nations.