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An explanatory multiple case studies about upgrading of Vietnamese companies in Danida B2B partnershipsMøller, Signe (Frederiksberg, 2013)[More information][Less information]
Abstract: This study concerns the upgrading opportunities for Vietnamese companies in Danida B2B partnerships in Vietnam. In a transition economy like Vietnam, many companies still lack skills and technology required to upgrade and compete in a market economy. Therefore, international joint ventures with foreign companies have been a common path to try to obtain these skills through knowledge transfer. One of the visions behind Danida’s B2B program in Vietnam has been for Danish companies to transfer technology and knowledge to local companies. This study will look into some of these partnerships and try to explain how different factors have influenced the upgrading of the Vietnamese companies. Derived from past studies on knowledge transfer from IJVs, different internal factors within business partnerships: Commitment, control, trust, conflict and absorptive capacity were suggested to have an influence on knowledge transfer and upgrading. In addition, two external factors: Vietnam and Danida are included. Policies and regulations from Danida and the Vietnamese government were expected to have a possible influence on upgrading of the Vietnamese companies, and therefore they were also included in the overall analysis. This thesis has been built up on multiple case studies. 11 interviews, conducted with Vietnamese and Danish companies from former or present B2B partnerships, have been turned into 5 case studies. 3 of these cases take place within the software industry, and the other 2 take place within the plastic and mold making industry. The study provides a number of interesting indications to how the former mentioned internal and external factors have influenced the upgrading of the Vietnamese companies. First of all, it seems as if it is difficult for the Vietnamese companies to absorb the knowledge from the IJVs and implement it in their own companies. Therefore, in the partnerships where no IJVs were established yet, all training went directly to the Vietnamese company, which seemed to have learned a great deal more than the companies where IJVs had been established early on. Therefore, commitment was found to be important, but mainly when it not only involved commitment to the IJV, but also to the Vietnamese partner. In addition, Product relatedness was found to be important, especially when establishing IJVs, as related knowledge is easier to obtain and apply. In 2 partnerships where the Danish partners had the majority share, the Vietnamese partners seemed unsatisfied with the partnership and did not seem to have benefitted much from knowledge transfer. This might indicate that equally shared IJVs lead to more knowledge transfer. However, as it was also found that many former B2B partnerships ended due to disagreements in 50/50 partnerships, it does not seem to be the best way either. In the case where a 50/50 shared IJV had been successful, trust was found to be an important factor. Conflicts did not seem to have a direct negative effect on learning, but there were more conflicts in the 2 partnerships where the Danish partners had the majority share. The study is finished with some recommendations to Danida in Vietnam as well as to the Vietnamese companies, and an encouragement of more studies about how companies in developing countries can reach upgrading from partnerships and IJVs. URI: http://hdl.handle.net/10417/3947 Files in this item: 1
signe_moeller.pdf (1.190Mb) -
And their meaning for the new mothers in today’s societyMikkelsen, Louise (Frederiksberg, 2012)[More information][Less information]
Abstract: For the last fifty years mothers have become more and more career minded and busy in their everyday life which has opened a huge market for baby products making it easier to be a new mother. The market for baby products is constantly growing due to the desire to be the perfect mother. These products are meant to make life easier as a parent and to make sure that the baby is being stimulated correctly, are safe in the car, can be heard while sleeping in the prawn etc. This development also creates confusion among the new mothers because it is so difficult to figure out what they need for the baby and why. While deciding this, the mothers are being affected by the society to own the right products in order to function as a perfect mother. This obviously causes stress among the new mothers. In order to figure out what this meant among new mothers two focus group discussions were conducted. The findings showed that they believed they needed to own a large range of products in order to succeed. It also showed that they felt affected by the society being their own mothers, other mothers, advertisements and articles in magazines. Because the new mothers feel it is so important to own the baby products it is a very interesting market to investigate. The manufactures of baby products can use this information in conducting a successful marketing campaign and gain loyal customers and these customers could potentially affect other mothers in purchasing their products. The entire thesis consists of a description of the data and methodology, an analysis of the results including the McCracken meaning transfer model, reflection on the findings including the CBBE model and at the end the future prospects for the marketer. URI: http://hdl.handle.net/10417/3713 Files in this item: 1
louise_mikkelsen.pdf (1.677Mb) -
En undersøgelse af de symbolske betydninger som nybagte mødre knytter til forskelligt babytøj, og den rolle som babytøj spiller i konstruktionen af deres moderskabsidentitetWonge Nielsen, Gitte (Frederiksberg, 2010)[More information][Less information]
Abstract: The purpose of this thesis is to provide suppliers of baby clothing with an understanding of mothers’ use and consumption of baby clothing. The thesis examines how new mothers, in their use of baby clothing, deal with the image of the ideal mother – with special attention to the symbolic meanings they attach to different brands – and how baby clothing support them in their identity construction as mothers. The study is based on eight semi-structured interviews with new mothers. All interviews are audio recorded and transcribed resulting in 146 pages of interview text. In the analysis units are elected from the interview text and matched against the theoretical framework and through a social constructivist approach an interpretive explanation of the studied phenomenon is presented. The thesis draws on different theoretical frameworks within Interpretive Consumer Behavior. The analysis shows that mothers attach different symbolic meanings to different baby clothing, making baby clothing representative of an ideology of motherhood. Therefore, the individual mother can draw on different symbolic meanings from different baby clothing and thereby pursue to construct an identity as a good mother, - an identity that accommodates the ideology of motherhood. URI: http://hdl.handle.net/10417/1773 Files in this item: 1
gitte_wonge_nielsen.pdf (3.560Mb) -
Roerup, Julia Linda (Frederiksberg, 2011)[More information][Less information]
Abstract: The reasons behind the financial crisis in the U.S., EU and Denmark 1990 – 2007 With this thesis I will examine how problems in the U.S. housing market could affect the European Union and Denmark, in such a degree as it has. I will look at the development in the financial market during the years of 1990 to 2007. During these years there was a rapid growth in the development of financial products and in globalisation of the financial market. The first part of the thesis describes securitization witch was the most common way to fund sub prime mortgages. This will give an understanding of how risk is transferred from the originator of the mortgage to investors from all over the world. The second part of the thesis looks at the development in the financial sector. There has been a period with low regulation and a belief in the market forces. The financial sector thrived in this environment and developed a lot of new products. Another strong force was the fast globalisation witch made the marketplace bigger. In the third section I will use models to describe the forces behind the changes and the consequences in the end. The fourth section looks at the monetary policies in the U.S., EU and Denmark in the years before the crisis. Interest rates have been kept low for long periods to help growth in the economies. For many years this method has been successful but it has also caused some of the problems the economy faces today. The last section will draw conclusions from the other sections and link them together. This explains how the different developments in the economy influent each other, both during the building up of a bubble and during a crisis. The combined forces make the end result much stronger than it would have been without interconnection. URI: http://hdl.handle.net/10417/2976 Files in this item: 1
julia_linda_roerup.pdf (1.641Mb) -
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Abstract: Der blev i foråret 2008 hos Singapore Technology Aerospace Solutions (Europe) A/S (STASEU) besluttet at indføre brugen af Balanced Scorecard. Dette skete i forbindelse med et stadig større ønske om at effektivisere og optimere arbejdsgange, samt med det formål at forbedre produktionen. Det skulle også være med at gøre det mere klart for medarbejderne, hvilke mål der arbejdes efter. Problemet som er opstået på baggrund af dette arbejde er mange. Det som jeg ønsker at beskæftige mig med er den usikkerhed der er opstået. Usikkerheden går på, at det er vanskeligt for medarbejderen helt nede på værkstedet at forstå hvorfor de skal arbejde efter disse mål samt hvordan målene er blevet opstillet. Denne frustration gælder helt op på mellemlederniveau. URI: http://hdl.handle.net/10417/601 Files in this item: 1
morten_hoejgaard_bech.pdf (6.339Mb) -
Pilegaard, Lotte; Østergaard, Rikke (Frederiksberg, 2010)[More information][Less information]
Abstract: Vores overordnede fokus er, hvorvidt BSC kan anvendes i praksis som værktøj til at eksekvere COWIs strategi og tilføre koncernen merværdi. I den forbindelse lægges der vægt på planlægning af, hvorledes den overordnede strategi udbredes i virksomheden. Vores hypotese er, at BSC er med til at give virksomheden et værktøj at styre efter, hvorved der opnås større synergi ved at få medarbejderne til at arbejde i samme og derved opnå større succes. Denne hypotese undersøges nærmere gennem en udvikling af COWI koncernens strategikort og scorecard i forhold til COWI’s overordnede vision, mission og strategi. Hvorefter der gives et bud på hvordan strategien hypotetisk kan eksekveres i COWI ved at give et eksempel på hvordan. BSC gøres operationel i afdelingen (FBS). Der konstrueres et strategikort og scorecard, som er linket til koncerns, for at se nærmere på hvordan COWIs strategier har indflydelse på afdelingen og hvorledes (FBS) kan understøtte COWIs nuværende succes. Dette leder os til følgende hovedspørgsmål: Er BSC et godt ledelsesværktøj for COWI til at understøtte den stærke markedsposition? Hvorledes konstrueres og implementeres BSC i afdelingen (FBS)? Hvorfor er BSC relevant for COWI som koncern? Hvordan vil et BSC se ud for COWI koncernen? Hvilke styringsopgaver kan BSC være med til at løse i COWI koncernen? Hvorledes kan strategien eksekveres med succes i COWI? Vi ved hvor vigtigt det er at fokusere på det egentlige mål for succes, derfor vil vi med BSC synliggøre strategien i bestræbelserne på at opnå bedre performance af medarbejderne i FBS. Opgaven vil være et pilotprojekt for en praktisk implementering af BSC i hele COWI koncernen. Hvordan får vi alignet COWIs strategi med BSC i (FBS)? Hvilke KPI’er er relevante målepunkter for (FBS)? Hvordan sikres den bedst mulige performance i (FBS)? Hvordan kan BSC forankres i afdelingen således, at strategien bliver en del af medarbejdernes hverdag? Endvidere vil vi foretage et sammendrag og perspektivering med udgangspunkt i følgende: Vil det give COWI fordele at implementere BSC i resten af koncernen set ud fra nytteværdibetragtningen? URI: http://hdl.handle.net/10417/2690 Files in this item: 1
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Eksemplificeret ved Rysensteen GymnasiumKehlet Frederiksen, Lea; Halsø, Anders (Frederiksberg, 2010)[More information][Less information]
URI: http://hdl.handle.net/10417/2735 Files in this item: 1
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Vilhof, Tanja (Frederiksberg, 2012)[More information][Less information]
Abstract: This master thesis arose from an observation in the Danish women’s magazine. They glorifies the strong ambitious women seem to having it all. A great career, several children and a perfect mar-riage. Even though she works a lot, all the negative externalities and opt-out are hidden from the reader. So my thought was to show the cost of being a family where both parents work. I started to wonder how I could observe balance between work and family and how the balance constructs the families and organizations – not just today, but through the past 110-130 years. The theoretical approach of this master thesis is inspired by the work of the German sociologist Niklas Luhmann. I use his semantic analysis as a second order perspective. I look at three guiding distinctions: salary, time and childcare. I used two tools to implement my analysis: the first one is to observe if the communication is about ‘things’, ‘social interaction’ or ‘time’ (as in future/past) and the second tool is to observe how the communication shifted in certain manners. The result of the analysis was several semantic breaks for the three guiding distinctions. I observed that time and salary has become very related in the present. The scarce resource for the families is not money anymore, but time. In relation to that fact, the organizations try to meet the families’ needs with very flexible solutions where they for instance are offered flextime meaning that they are not obligated to meet in a certain point of time and also opportunity to work from home. But with the new flexibility and the rise of technology as the internet and mobile devices, people has the opportunity to work all the time and they are having are hard time finding the boundaries and balance between work and family. The childcare system in Denmark is much expanded and the reason for that is the rise and the en-largement of the welfare state in the 50s and 60s. The need for more labor made the women work and they never turned back. The state obligated to the childcare and today almost every child is in childcare services from they are around one year old. They have not extended the opening hours through the years so the lack of flexibility in this area makes it challenging for the families. URI: http://hdl.handle.net/10417/3758 Files in this item: 1
tanja_vilhof.pdf (884.1Kb) -
Nina Louise, Tipsmark (Frederiksberg, 2011)[More information][Less information]
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Nilsson, William (Frederiksberg, 2017)[More information][Less information]
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How can managers successfully solve the challenge of balancing the simultaneous need for integration and coordination within a multinational corporation competing in hypercompetitive markets?Ólafsson, Sævar (Frederiksberg, 2009)[More information][Less information]
Abstract: In the hypercompetitive environment described in the thesis, consumers expect and demand more; competitors aggressively introduce new products, change distribution channels, implement costcutting programs, and imitate each other’s innovations. As the world has become more competitive and volatile, companies experience in industry after industry has shown that neither market positions nor traditional sources of competitive advantage can anymore guarantee long-term success. In this mercurial environment, attention is converging on knowledge as a critical source of comparative economic advantage. The new strategies, in turn, have raised questions about the adequacy of organizational structures and control processes used to manage worldwide operations. In the earlier parts of the thesis I provide the reader with the introduction and research consideration and move to another part containing a sound theoretical background for my following empirical analysis. I try to indicate first my point of view on different theories, giving the reader basic, however sufficient background concerning hypercompetition, exploration, exploitation and control processes. Next i move to a following part describing an ambidextrous and transnational structures. With the inspection of the empirical research i was successfully able to relate the business cases of IO Interactive, Microsoft Denmark and Velux A/S to the theoretical framework. The study provides empirical evidence that the manner which multinational corporations choose to organize themselves with regards to organizational structure and control processes does not have to be homogeneous. Whether the difference lies in the level of centralization, decentralization, exploration or exploitation is irrelevant – What is significant in hypercompetitive markets is that multinational corporations can sense and respond to multiple changing environmental demands and make selective decisions. As a result, in order to successfully solve the challenge of balancing the simultaneous need for integration and coordination within a multinational corporation competing in hypercompetitive markets, managers have to be able to implement what I define as an organic and loosely administered structure. In this context, managers are able to stimulate the creation, collection and the sharing of the exploitive and exploratory knowledge simultaneously, overcoming most of the disadvantages of centralization and decentralization. This requires a highly creative and communicative working environment lead by qualified and diverse employees who share a set of common values. The ability of being flexible while maintaining some consistency and reliability seems to be the key to meeting the challenges of the future. URI: http://hdl.handle.net/10417/927 Files in this item: 1
saevar_olafsson.pdf (1.154Mb) -
An interpretive case study of postmerger identityThorlacius, Thit (Frederiksberg, 2010)[More information][Less information]
Abstract: This thesis aims at understanding the social aspects of postmerger integration processes by taking an interpretive point of departure in the case of a merger between four Copenhagen film festivals. The case offhand holds a paradox: how can synergies be pursued across the festivals while maintaining the distinctiveness - which is needed for cultural products - for each of these? Research has shown that management in the cultural-creative industries demands balancing of opposing imperatives and handling of dilemmas which generally informs and provides management practices for other industries. Given this aspect of learning from the cultural-creative industries and the paradox of the case, the study has set out to understand the balance between these two opposing elements of organising; distinctiveness and synergies. Through an overall narrative approach organisational identity within the merged organisation is analysed from a cultural as well as a process perspective. The main findings are that the organisational members – through identity work of unmanaged storytelling and sensemaking as well as managed physical artifacts - construct a hybrid and holographic identity based upon both a utilitarian - as well as an artistic logic. By flexibly claiming these logics of the hybrid organisational identity the paradox is balanced by the organisational members. However, the balance of synergies and distinctiveness is in flux as organisational members - by drawing on the utilitarian - and artistic logic - continuously negotiate, narrate, and make sense of how this balance needs to be managed. Moreover, a grey area of differing interpretations of what needs to be distinct and what can be pursued synergies upon exists in the case. The thesis contributes to understanding the social mechanisms of postmerger integration processes within the creative-cultural industries. It points to managers’ advantages of paying attention to the social constructions of identity – both managed and unmanaged - as they hold valuable implications for the balancing of distinctiveness and pursuit of synergies. URI: http://hdl.handle.net/10417/1287 Files in this item: 1
thit_thorlacius.pdf (4.345Mb) -
Radeva, Irena (Frederiksberg, 2012)[More information][Less information]
Abstract: Health Microinsurance is a controversial microinsurance product as it is the most demanded type of microinsurance amongst the poor while it is also the most technically difficult type of microinsurance because of high adverse selection, low quality of health infrastructure in developing countries and high operational costs. This study aims at contributing to the field of health microinsurance management by exploring the recent topic of performance measurement and long term balance between financial and social performance. This is done by investigating how the delivery models of Health Microinsurance in India relate to performance measurement and affect the balance of social value and financial viability. In order to explore and explain the topic, the research starts by selecting the Mutual and the Partner agent models as representative of the common delivery structure of Health Microinsurance in India. The features of the two models are applied as parameters in the comparison of different performance measurement practices. The performance measurement is analyzed according to the 16 Key Performance Indicators created by the microinsurance industry, adding two more Health Microinsurance specific indicators. As the literature indicates lack of academic review on the balance between financial and social performance and further lack of performance tools that combine both, this research realizes its main contribution to be presenting such framework to the Health Microinsurance industry. The Balanced Scorecard, adapted from Paul Niven since the social mission is the leading force for organizations that provide Health Microinsurance, incorporates the PACE model on client value and the financial viability methodologies. The core argument of the study consists of two parts: 1) the type of delivery model affects the performance indicators that are measured and 2) there is a negative relationship between financial and social performance within both delivery models. In the case of the Mutual model, measures are monitored and interpreted in a social value light while the Partner-Agent model emphasizes the importance of viability through actuarial monitoring of financial performance measures. There is an overlap of financial and social measures but the different models interpret the results according to either more social or more financial performance. At the same time that creates a trade-off between outreach and better health benefits on the one side and financial viability and amount of subsidization on the other. The paper’s research strategy is constructed towards a multiple-case study design with qualitative methods as the primary technique. The core block of empirical data consists of data from five case companies that were selected for the model of their innovative scheme and the outreach of their operations. The outcomes of the study point out at substantial differences between the two delivery models but also significant differences among the organizations’ performance practices. URI: http://hdl.handle.net/10417/3237 Files in this item: 1
irena_radeva.pdf (2.574Mb) -
An exploratory case study of the relationship between institutions and sustainability entrepreneurship in the Tanzanian solar power industryKirstein, Ida (Frederiksberg, 2014)[More information][Less information]
Abstract: This paper combines institutional and sustainability entrepreneurship literature in order to investigate the role of institutions for entrepreneurship ventures in the solar power industry in Tanzania. The goal is to understand how the complex relationship between the institutional environment and the ventures constrains or enables the activities of the entrepreneurship ventures towards balancing social, environmental and financial values, and thus their assumed contributions to sustainable development as described in the sustainability entrepreneurship literature. Based on critical realist philosophical assumptions, the study takes an exploratory approach to a multiple case study of five ventures operating with a blended value proposition incorporating social, environmental and financial values. The analysis compares and contrasts the institutional influences on the ventures, by applying a theoretical framework developed by combining institutional and sustainability entrepreneurship literature. It also identifies areas where the ventures influence institutions to make them more supportive. The results of the study show a complex relationship between institutions and entrepreneurial ventures. Two ventures were found to operate with a blended value proposition integrated into their organizational design similar to what is described as ‘whole enterprise design’ in the sustainability entrepreneurship literature. Three ventures were found to operate with a blended value proposition but not integrating all three value objectives equally into their organizational design. The study identifies both constraining and enabling mechanisms in the relationship between institutions and ventures, however the ventures described their institutional environment as overall supportive, with synergies found between institutions and operating with both social, environmental and financial objectives. Institutional voids were identified that constrained activity, but the ventures were found to adapt to these, fill them and even use them as opportunity. The study thus contributes to sustainability literature with a new perspective from a developing country context with findings that show that institutional environment is important to the way entrepreneurship ventures operate with sustainability value objectives, and that entrepreneurship under the right conditions can contribute to institutional and societal transformations. URI: http://hdl.handle.net/10417/5025 Files in this item: 2
ida_kirstein.pdf (1.395Mb) -
The Impact Of The External Network On New Product DevelopmentMöckel, Marie; Borg, Martin Sung (Frederiksberg, 2014)[More information][Less information]
Abstract: Executive Summary: In today’s world companies rely heavily on external partners like suppliers, customers, research partners or external designers to develop innovative products, as they cannot possess all resources internally. Existing research in innovation management highlights the importance of the external network during the product development, especially in design-driven innovation (Verganti, 2009). However, network characteristics such as the relationship strength between different actors, for example the external designers and a company, and their influence on the product development and the success of a product are to a great extent unexplored. One of the few companies that does design-driven innovation but does not employ in-house designers is Bang & Olufsen. B&O outsources the entire design process to external designers and, therefore, depends on their ability to create innovative product ideas. By looking comparatively at the design process of successful and less successful products evidence showed that network characteristics like the relationship strength between the external designers and B&O have had an influence on the success of a product. It was found that external designers who had a weak relationship were able to create more successful products than designers who had strong relationship to the company. A look at the designers work process showed that their design research, the design discourse, was influenced by indirect knowledge sources, such as previous work experience and not by other network partners such as experts or users. Established literature (Verganti, 2009) points out that design-driven companies make use of a wide and diverse external network during the design discourse. However, this was not observed in the case of B&O and another Scandinavian design company, Stelton (Lauritzen, 2012). This indicates the existence of a Scandinavian design-driven innovation approach, however, further research will be needed to confirm this. URI: http://hdl.handle.net/10417/5123 Files in this item: 1
marie_möckel_og_martin_sung_borg.pdf (11.62Mb) -
Et dansk flagskibMundus Nielsen, Jesper; Sørensen, Louise Denice (Frederiksberg, 2010)[More information][Less information]
URI: http://hdl.handle.net/10417/3469 Files in this item: 1
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En virksomhed i forandringThisted Mortensen, Kim; Krath Knudsen, Danny (Frederiksberg, 2009)[More information][Less information]
Abstract: Hvilke tiltag har Bang & Olufsen gjort for at manøvrere sig gennem finanskrisen, og er koncernen rustet til fremtidigt, at kunne tilpasse sig ændringer i efterspørgslen opstået ved skiftende omverdensforhold, industri dynamikker og efterspørgselsforhold? Besvarelsen sker på baggrund af en strategisk analyse af Bang & Olufsens faktiske tiltag og udmeldinger inden finanskrisen (2005/06) ved de første tegn på finanskrisen (2006/07) under finanskrisen (2007/09) i dag 2009 Vi vil analysere Bang & Olufsens branche og omverden, og om Bang & Olufsen har været i stand til at tilpasse sig ændringer i denne, som følge af finanskrisen. Denne analyse vil tage udgangspunkt i Bang & Olufsens faktiske handlinger samt udmeldingerne i årsrapporterne om forventningerne til koncernens følgende regnskabsår. Vi vil yderligere beskrive og analysere Bang & Olufsens strategier samt definere koncernens mål, vision og målgruppe. For at kunne vurdere Bang & Olufsens fremtid, vil vi danne os et overblik over, hvordan omverdenen har ændret sig, og hvilke tiltag Bang & Olufsen har gjort i denne sammenhæng samt om tiltagene er gjort tidsnok, eller om Bang & Olufsen kunne have forudset tendenserne bedre og handlet derefter. Analysen vil lede os over i en konklusion, og vores vurdering om, hvorvidt Bang & Olufsen har været i stand til at foretage de korrekte strategiske tiltag for at kunne ruste sig til fremtidigt, at tilpasse sig ændringer i omverdensforhold, industri dynamikker og efterspørgselsforhold. Vi vil yderligere komme med vores ideer til strategiske tiltag og produkter, som kan medvirke til at Bang & Olufsen er bedre rustet mod fremtidige udfordringer. URI: http://hdl.handle.net/10417/913 Files in this item: 1
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Abstract: Hvilke strategier har ligget bag og hvilke konsekvenser har, den måde hvorpå Bang og Olufsen rent krisekommunikativt har håndteret medierne, offentligheden og deres stakeholdere i perioden 8. januar 2008 – 19. januar 2009, haft? For at dette overordnede spørgsmål kan besvares, vil opgavens struktur og analyse støtte sig op af følgende arbejdsspørgsmål: 1. Hvordan defineres en krise, hvilke interessenter er relevante, og hvilke faretegn skal man som organisation holde øje med? 2. Hvordan kan B&O som organisation opretholde sit image under en krise? 3. Hvordan kan den enkelte organisation (B&O) opfatte sig selv, samt agere og kommunikere med krisens andre stakeholdere? 4. Omfatter B&O’s krisekommunikation en fortælling, i så fald hvilken? Hvordan præsenteres den og hvem er skurke og helte? URI: http://hdl.handle.net/10417/887 Files in this item: 1
jonas_dentrup.pdf (433.7Kb) -
How the implementation of CRD IV affects Danish financial institutions’ capital structuresKarkov, Ane Kamstrup (Frederiksberg, 2016)[More information][Less information]
Abstract: This thesis finds that three capital requirements are especially important for banks and that breaches of these have different but all severe consequences. These requirements are the MDA requirement, the Pillar 2 requirement and the minimum capital requirement. These requirements make the bank’s capital structure decision especially challenging compared to corporate firms. The thesis uses a model by Harding, Liang and Ross (2009) that estimates the optimal capital structure of banks by taking into account deposit insurance, capital requirements, bankruptcy costs and tax-advantaged debt. The model assumes that banks face bankruptcy if they fail to comply with their capital requirement but that some of this cost is balanced by the government’s deposit insurance. When applied to the cases of Danske Bank, Sydbank and Jyske Bank, however, it dramatically overshoots the optimal capital ratio compared with the observed capital ratios and the banks’ own proclaimed target capital ratios. The shortcomings of the model are the riskless interest rate’s dramatic influence on results as well as the fact that it fails to take into account risk-weighted assets. The extended model includes a second capital requirement, which is modeled as the combined capital requirement. This model overshoots the optimal capital structure marginally more than the base model. A new model is developed specifically to take into account the new regulatory framework in Denmark, where systemically important banks are not allowed to be liquidated but where shareholders and owners of banks’ AT1 capital face the risk of loss even though the bank is not liquidated. The predicted capital ratios of this model for Danske Bank, Sydbank and Jyske Bank are more realistic but still much higher than the banks’ own capital ratio targets. The shortcoming of the model stems from the current extremely low riskless rate’s large influence on the result. The riskless interest rate is negatively correlated with the optimal capital ratio and the asset volatility and the combined capital requirement are positively correlated with the optimal capital ratio. The combined capital requirement only has a marginal impact, which implies that the phase-in of higher capital requirements until 2019 will have little impact on Danish banks’ optimal capital ratio. The main factor in the optimal capital structure decision is the risk of expropriation and the risk that tax benefits are lost in the process. The results further imply that bank managers, investors and regulators should be careful not to forget to focus on the capital ratio in terms of total assets. It is tempting just to look at the capital ratio in terms of risk-weighted assets, as this is the ratio that is monitored in relation to capital requirements. However, the average risk weight can differ substantially between banks without an apparent difference in the riskiness of the banks’ assets. Therefore, a bank with a very low average risk weight but an asset volatility that is comparable to banks with higher average risk weights, should target a higher capital buffer in terms of risk-weighted assets. The potential introduction of a leverage requirement can help on this issue. The implementation of CRD IV is predicted to increase Danish financial institutions’ optimal capital structures marginally. It is also found that SIFIs’ optimal capital structures will not be significantly different from non-SIFIs. URI: http://hdl.handle.net/10417/5969 Files in this item: 1
ane_kamstrup_karkov.pdf (2.842Mb) -
A social systems approach to banking riskWinther Pedersen, Nils (Frederiksberg, 2014)[More information][Less information]
Abstract: Abstract: The concept of risk has today become a ubiquitous concept within the banking sector ranging from financial risk to liquidity risk and reputational risk. The concept of risk saturates the entire banking sector but leaves an ambiguity about what the concept really means behind. The ambiguity concerns how the concept of risk, on the one hand, involves reining the uncertainty of the future as best as possible while, on the other hand, involves profitable and high-yielding possibilities. The focus of this thesis is to explore and understand the concept of risk in the banking sector in order to grasp the meaning of the concept and discern the particular emphasis on the concept in the banking sector. Through the use of systems theory, the thesis investigates the origination and development of risk in the banking sector in the Middle ages and in modern society. The thesis investigates how risk is handled in the social communication of the two periods and analyses how the concept of risk performs a function in banking communication in periods of a new and changing environment of economic activities. The argument brought forward is that the concept of risk in the banking sector embeds a particular economic meaningfulness about how to handle the future. In the modern banking sector, decisions about the future are decided against the background of complex economic contingency and, at the same time, on a confidence in the ability of probabilistic techniques to uncover the reduction of risk. Thus, the current emphasis on risk in the banking sector concerns not so much whether there is more banking risk today than in previous times but more that the banking sector today increasingly communicates about the future and thus risk. URI: http://hdl.handle.net/10417/5169 Files in this item: 2
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