Browsing Cand.merc.IB - MSc in International Business by Title
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A longitudinal Case-study in the U.S Oil and Gas IndustryRoed Bentsen, Rasmus (Frederiksberg, 2015)[More information][Less information]
Abstract: Aim and Objectives The aim of this thesis was to help explain how managerial equity compensation predicts corporate risk management through the effect it has on managerial incentives. The exact research objectives changed during the research process. Originally, the research objective was to provide further empirical evidence in support of the common theory that a linear relationship exists between managerial equity compensation and risk management. Conflicting research results led the author to rethink the nature of the relationship and prompted a change of objectives. Inspired by opposing arguments and ideas in the extant literature, this thesis presents a revised view on the relationship between equity compensation and risk management. Methodology This thesis used the U.S Oil and Gas Industry as a case study since these companies all share a common exposure to a volatile, globally traded commodity, namely oil. Linear regression analysis was used to test for a linear relationship between managerial equity compensation and risk management. Analysis of variance (ANOVA) was used to test for a non-linear relationship between different compositions of equity holdings (stocks and options) and risk management. The sample included all companies with SIC code 1311 that also had consistent compensation data available in Execucomp between 1993 and 2014. The degree of risk management for each company was proxied for using the correlation coefficients between the stock price and the oil price for the individual firms.Findings The key findings of this thesis were that in contrast with the common theory, no evidence of a linear relationship between managerial equity compensation and corporate risk management was found. Additionally, further analysis using analysis of variance supports the idea that a non-linear relationship exists and lends support to the revised view presented in this thesis. Contrary to popular belief, this suggests options may decrease a manager’s appetite for risk in the presence of wealth or when deep in-the-Money Conclusion This thesis contributes to the discussion on how managerial compensation affects management incentives towards risk management in two ways. First, it provides empirical evidence in favor of the opposing arguments that a non-linear relationship between equity compensation and risk management exists. Second, building on the different opposing arguments and ideas in the extant literature of a non-linear relationship, this thesis proposes a revised view on how to better understand the relationship between equity compensation and risk management incentives. The research in this thesis provides mixed support for this proposition. Implications If the revised view presented in this thesis is correct, businesses can potentially design compensation contracts that better align managerial incentives with the interest of the shareholders. URI: http://hdl.handle.net/10417/6255 Files in this item: 1
Rasmus_Roed_Bentsen.pdf (1.766Mb) -
With a special focus on Swedish family firmsDuggal, Rubecca (Frederiksberg, 2013)[More information][Less information]
Abstract: This paper investigates the effects of women in leading positions, as owners and board members of the firm a, with a special focus on family owned enterprises. The ownership data is derived from a survey conducted on a set of non-listed Swedish firms. The descriptive data shows that female representation is relatively low both in family and non-family firms, albeit higher in family firms. In this, situational obstacles and person centered perspectives are explored to explain why women are underrepresented. The empirical analysis shows that females have a relatively low ownership stake in Swedish firms, and a comparably low degree of representation in the board of directors. There are however clear differences between family and non-family firms with respect to female representation. The results further show how firm performance, measured by solvency, is significantly affected by the level of female representation. More precisely, when women’s ownership share in family firms increases, the solvency improves. On the contrary, the solvency decreases when women in nonfamily firms increase their holdings. Hence, the results support the under-performing hypothesis for women in nonfamily firms solely. URI: http://hdl.handle.net/10417/4707 Files in this item: 1
rubecca_duggal.pdf (1.089Mb) -
Rakneberg, Kristoffer; Teigen, Jørgen Stadheim (Frederiksberg, 2015)[More information][Less information]
Abstract: As the Federal Funds rate had hit the zero lower bound and with the objective to counter the contracting economy following the recent financial crisis, the Federal Reserve introduced unconventional monetary policies in the period from 2008 to 2014. As the zero lower bound had left the Federal Reserve`s conventional tools inoperable, the Federal Reserve sought to ease the overall financial conditions, by infusing credit markets with liquidity. Specific assets were targeted with the aim of reducing their yields thereby reducing borrowing costs for households and businesses. This paper examines how quantitative easing works under monetary policy transmission channels and further analyze the channels relevance in the US economy and their effect on asset prices. In doing so, an extensive report and review of the theoretical foundation that advocates for and against the existence of the transmission mechanisms of quantitative easing is conducted. The existing literature on the subject were assessed and summarized along with a report on the effects of the mechanisms and the response in asset prices. Movement in asset prices was assessed by examining day-to-day price changes and cumulative changes across the relevant time horizons. The review suggest that quantitative easing can successfully influence asset prices, at least under favorable conditions. The results imply that the effect can spread from the assets targeted by the Federal Reserve, to other assets which aids the reduction of real borrowing costs in financial markets. Further, this is consistent with the existence of a portfolio balance channel. We find that portfolio balance effects is likely to represent up to 70 percent of quantitative easing`s effect on Treasury yields. However, MBS purchases in QE1 and QE3 demonstrate that direct targeting of assets related to a specific sector is more effective than targeting US Treasuries. Due to financial stress during the QE programs, the bank-lending channel is found to be ineffective. As for the confidence channel, even in broad, relative terms, it is hard to access whether there has been a direct effect of QE on consumer and business confidence. Measures from investor confidence indicate that quantitative easing can affect stock prices. Our research supports that quantitative easing may provide the Federal Reserve with an effective tool at the zero lower bound URI: http://hdl.handle.net/10417/6254 Files in this item: 1
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A portfolio and investor study of climate change risk in the U.S. and EuropeFreter, Julia (Frederiksberg, 2016)[More information][Less information]
Abstract: The physical and transition risks of climate change on financial investments have become increasingly discussed in the financial world, but lack academic research into the topic. Therefore, the aim of this study is to investigate how climate change impacts the investment decision of capital market actors. The study combined a quantitative portfolio study with a qualitative interview approach to increase the external validity of the study. In the portfolio analysis, two mutually exclusive portfolios with different climate change characteristics were composed for the U.S. and European market respectively between 2010-2016. Monthly performance data was used to estimate the Capital Asset Pricing Model (CAPM) and the Carhart four-factor model. The high-ranked U.S. portfolio significantly outperformed the lowranked. The same result was found in the European market although not significant. The findings suggest a positive relation between climate change risk and stock performance. In addition, seventeen interviews were conducted with representatives from asset managers, banks and institutional investors in Austria, Denmark, Germany, Sweden and Switzerland. The findings suggest that capital market actors consider climate change as a financial risk, partly driven by customer pressure and reputation risk. Positive and negative screens or a best-in-class approach are already used to include climate change into the investment process. Individual financial markets will be influenced differently as their exposure to companies impacted by climate change differs. The lack of transparent and consistent data and political uncertainty was identified as the major obstacles to be overcome in the further integration of climate change into the investment process. To conclude,climate change influences the investment decision of capital market actors by introducing additional financial risk concerns that diverge between national financial markets. URI: http://hdl.handle.net/10417/6100 Files in this item: 1
julia_freter.pdf (3.020Mb) -
Operationalizing corporate cultureBrøste Olsen, Carina; Roy-Bonde, Alexander Peter (Frederiksberg, 2008)[More information][Less information]
Abstract: A large number of international mergers and acquisitions have failed for no apparent reason. Most of these mergers seemed sensible in terms of strategy and finance. However, after completing the mergers it was found that profit was negated or even destroyed due to a lack of focus on the cultural fit between the companies involved. This paper proposes a framework for analyzing the cultural dimensions of a merger process. We have elected to focus on two dimensions as determinants for corporate culture: organizational structure and values. Furthermore national culture is seen as an underlying influence on these determinants. Together these dimensions describe how a company will react in a given situation providing a measure of predictability to the merger process. By being able to predict the reaction of a company we can identify factors that are important to manage in order to fully realize the potential of a merger or acquisition. Inherent in a merger or acquisition is a strategic consideration of how such a deal will benefit the companies involved. In our paper we have examined the strategic motivations and aspirations which the companies have for the merger, and concluded that these factors in combination with the corporate culture create an individual scenario unique to each merger. In order to apply our findings practically we have conducted case studies on the acquisition of Zanussi by Electrolux and the merger between Daimler-Benz and the Chrysler Corporation. Through the use of primary and secondary sources we have investigated culture and how the companies involved have dealt with obstacles in relation to cultural dissimilarities. Based on these findings we have provided some general guidelines to what is important when merging across borders. Our primary case is the acquisition of Metalock Denmark A/S by the MAN Group and was conducted in order to validate the applicability of our framework in a contemporary setting. Our analysis enabled us to determine how the acquisition process has proceeded so far and to predict how further integration of the two companies should be managed in order to minimize resistance to change. URI: http://hdl.handle.net/10417/382 Files in this item: 1
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Abstract: The purpose of this study is to investigate what kind of effect austerity had on income inequality. Many experts criticize austerity, as it does not fulfill its intended purpose. Here for, Ireland has been selected as a case to show the change of income inequality as a consequence of the austerity measures taken in 2010. The study builds on theories of income inequality, and more specifically how to measure changes in equality based on specific indicators, like the Gini coefficient. Data has been retrieved, mainly from Eurostat, in most cases for the period 2005 to 2014 to give a full picture of the development before and after the financial, the economic and the debt crisis, as well as before and during the austerity measures were taken. The findings of this study show, that in contrast to what experts claim, in the case of Ireland income inequality has decreased as a result of austerity. However, the level of social welfare indicator suggests that inequality of social welfare has increased between the employed and unemployed. URI: http://hdl.handle.net/10417/5835 Files in this item: 1
florian_kuck.pdf (4.667Mb) -
Industry Analysis of the Digital Video Player industryTranæs, Henrik Cort (Frederiksberg, 2009)[More information][Less information]
Abstract: This thesis draws upon theory from strategy management theory. More specifically it draws upon strategic position and dynamics theory. It applies a strategy oriented perspective to define current and new industries and narrow in their boundaries. The thesis theoretical foundation is build upon industry dynamics theory combined with theories on sustaining competitive advantage in network economies. The thesis constructs an managerial model based upon the above mentioned theories. The model can be used to measure and evaluate an industry’s evolutionary trajectory and to align the industry’s assets and activities to the phases of industry convergence by creating new value in form of partnerships, standards and complementors. The managerial model is then used for an real industry analysis on the incumbent physical disc based digital video player industry and the emerging industry of digital media players to understand if the model can be of use in a real world setting. The analysis based on the model concludes that the firms in the incumbent industry are facing threats to their core assets and core activities from IT hardware firms. These companies that are emerging are offering digital media players that are based upon non physical discs which in some aspects offer better performance than the incumbent industry’s products. The incumbent are under threat of being substituted by the new products that cater to the same demand, but the products are coming from other the emerging industry with uses different buyers, suppliers and complementors. Thus, the companies are seeing that their industry current assets and activities are being threatened by the other industry’s emergence. This changes their industry evolution to be on a radical trajectory where the stage of evolution in it’s convergence phase. The analysis concludes that it is most urgent that firms in the incumbent industries validate their current industry evolution and use the findings from the analysis to align their assets and activities and creating the necessary partnerships and complements with other firms in order to stay competitive in the future. URI: http://hdl.handle.net/10417/813 Files in this item: 1
henrik_cort_tranaes.pdf (1.663Mb) -
An experimental approachGoede, Julia Luise (Frederiksberg, 2015)[More information][Less information]
Abstract: Even though the countries in the European Union aim at providing the same opportunities for men and women in the business world, this effort has not lead to gender equality in the highest management positions. Male dominance is still the everlasting. With this, the introduction of a gender based promotion quota has become a common approach to tackle the gender imbalance in top management positions over the recent years. Yet, the influences of the implementation of such a quota have not been thoroughly evaluated. This paper, therefore, analyses the influences of an introduction of a gender quota on work motivation for top management employees. In the field of work motivation, tournament theory is a commonly used approach that suggests that people are best motivated when they are able to win a prize. A clear cut between what the winner and what the losers receive, provides the most important incentive. Yet, what happens if the tournament is unfair? With the introduction of a gender quota, women need to be promoted first in order to fulfill the requirements. While women enjoy this privileged treatment, the promotion possibilities of men are severely limited. This thesis, therefore, analyzes how the work motivation of top management employees is impacted by the implementation of a gender quota using tournament theory as a framework. The evaluation comes to a mixed conclusion. On the one hand side, the analyzed theory clearly implies that the work motivation, especially of men, is likely to be seriously deprived, while female motivation remains the same. Yet, the empirical data collection, on the other hand side, in form of an experiment, did not allow for the validation of the implications of tournament theory. Even though, the chances of winning differed for the participants, the subjects seemed to be equally motivated across groups. This outcome, therefore, implies that not all work motivation can be explained by the incentives suggested by tournament theory, but additional intrinsic factors are influential. For the business world the analyzed theory, thus, signalizes that the implementation of a gender quota has a negative influence on work motivation, especially of the male workforce. Yet, the results of the experiment suggest the contrary: Employee motivation remains the same, even in an unfair tournament. URI: http://hdl.handle.net/10417/6256 Files in this item: 1
Julia_Goede.pdf (3.655Mb) -
The Case of Lake Turkana Wind Power in KenyaHedegaard Pedersen, Kasper; Ryelund, Niklas Kløve (Frederiksberg, 2018)[More information][Less information]
Abstract: In light of the lack of public funding to close the infrastructure gap in emerging markets, the purpose of this paper is to find strategies for foreign private investors to deal with the institutional challenges in these markets. The paper is motivated by the limited literature on the dynamics between institutions and infrastructure investment strategies; therefore a case study of Lake Turkana Wind Power in Kenya was applied as a force of example. Based on existing literature, five propositions were derived and evaluated on the case on the foundation of indepth interviews with stakeholders and industry experts. The results indicate that the unique institutional context require several tailored strategies that are demanding for the investors. The right team of partners is required to support navigation through the institutional context and increase bargaining power over the state. In particular, the investors need to safeguard against the informal institutions and contracts with the state. In regards to the existing literature, the propositions were confirmed to a moderate extent. The findings of the paper can be generalized in an analytical nature to derisk future infrastructure projects in emerging markets and offer a new line of thoughts on the dynamics between institutions and strategies. URI: http://hdl.handle.net/10417/6285 Files in this item: 1
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In an International CompanyKernø Jørgensen, Kasper (Frederiksberg, 2013)[More information][Less information]
Abstract: Quilt of Denmark – in short QOD – is a Danish producer of bedding material in form of duvets and pillows. QOD was established in 2000 and produce at its own production facility in the western part of Denmark. The founders have a long experience in producing and selling commodity based bedding material out of China, but have also had a vision of producing and selling premium quality products based on European raw material and production skills. After having consulted their main customers and made some market research the founders saw enough market potential to establish QOD and built a state-of-art production facility to supply the upper segment of the bedding market. From the very beginning QOD employed experienced people so no steep learning curve was needed and great autonomy and responsibility was given, which benefited the company in this stage of the life-cycle. QOD soon realized that making premium products was not sufficient to be successful. They also had to be innovative and if possible even be the front runner of the industry. In consequence they applied a NASA-developed technology to give their beddings new improved features. This proved to be a good strategy as the new bedding-concept was exceptionally well accepted by the market and within short placed QOD in a front position in the bedding market. Through a series of innovative developments QOD has managed to keep this position and is today a medium-sized company with a very high export share. Although only 13 years of age QOD has already been through several stages of a company´s lifecycle and experienced the opportunities and challenges each individual stage represents. They have learned that what is beneficial in one stage of the company life may have to be changed in the next stage in order to remain vital. They have also learned that they must focus on organizational goals, production efficiency and administrative routines even though the founders are mostly entrepreneurial and market oriented. Furthermore QOD has learned that they must focus on their core business, which is duvets and pillows in order not to waste resources on side projects, where they have no competitive advantage. In the company's learning curve, the personal capacities and specific qualifications of the individual employee have been taken into consideration in order to be effective. It is important that there is a good mixture of Entrepreneurial spirit, Production effectiveness, Administrative discipline and Integrational feeling to make the organization function. QOD has managed to come through several different stages of the company life-cycle. Most things they have made right, but they have also made mistakes. However, they have been quick to realize when it was necessary to make changes and they are now maturing and further organizing for the future. URI: http://hdl.handle.net/10417/4766 Files in this item: 1
kasper_kernoe_joergensen.pdf (1.345Mb) -
A case study of SpiderCloud Wireless Inc.Stensaker, Hans-Henrik (Frederiksberg, 2010)[More information][Less information]
Abstract: This thesis has addressed the internationalization process of an entrepreneurial start up, trying to identify the most critical factors to address in regards to the entry mode decision. SpiderCloud Wireless Inc. has been applied as case company. SpiderCloud Wireless Inc. is a Silicon Valley start-up serving on the telecommunication technology market. Main focus of the thesis has been to provide the case company with a plan on how to enter the European market with its product. SpiderClouds system is designed to increase the capacity and coverage on the 3G network and the company is targeting mobile operators as their customers. The system is currently not available on the market. The essence of the research has been to find the most suitable entry mode for the company and the theoretical framework different schools of thought of internationalization theory has been applied to provide the company a number of factors to analyze in the pursuit of the most effective entry mode. In the research are the European market, and then especially Germany, France and the United Kingdom, viewed as the natural starting point for SpiderCloud, due to the valuable relationships existing between mobile operators in Europe and the executives of SpiderCloud Wireless Inc. The expected growth in 3G usage combined with the introduction of the smartphone and the density of people in the three markets is central factors defending a market entry. Through the analysis a number of factors were discussed to conclude with the most effective entry mode. The factors discussed in the research reflected the different levels of commitment possible when deciding an entry mode. In the end it was recommended that SpiderCloud Wireless Inc. should try to establish a market presence in Germany, France and the United Kingdom through a Joint Venture entry mode in collaboration with one of the mobile operators present in the markets. Ideally should the company try to collaborate with one of the mobile operators they have prior relationships with. This increases the possibility of taking the product into new markets through the Joint Venture, with the help of the mobile operator. URI: http://hdl.handle.net/10417/1969 Files in this item: 1
hans_henrik_stensaker.pdf (1.219Mb) -
Towards a model of internationalization capacityHavn, Martin; Juell-Sundbye, Henrik (Frederiksberg, 2012)[More information][Less information]
Abstract: This thesis identifies a research gap in the literature on small and medium-sized enterprise (SME) internationalization, which currently lacks an integrated approach. Within this research field, there are multiple strands of literature that focus on drivers of the internationalization process of SMEs. In the literature review, a shared assumption related to organizational learning and capabilities emerge, concepts that are covered by the concept of absorptive capacity. Using absorptive capacity as the central element, this thesis constructs a model that includes prior knowledge, absorptive capacity, networks, and entrepreneurship, as they are identified as the most important organizational capabilities in the internationalization process of SMEs. The model depicts an SME’s internationalization capacity, which is the aggregate of prior knowledge, networks, and entrepreneurship to absorptive capacity. To further develop the model, this thesis conducts a multiple-case study of a sample of 14 Danish SMEs to learn about their internationalization process. Their accounts are interpreted and analyzed through propositions based on the model of internationalization capacity. The analysis shows that there are mutual dependencies between the organizational capabilities, and that the internationalization processes of the SMEs are dynamic processes, where focusing on the contribution of components in isolation becomes less valuable. The descriptive model is found to not sufficiently reflect the dynamics of mutual dependencies between the organizational capabilities, and is revised to better reflect these dynamics. It is adapted to be an analytical framework, and the key analytical dimensions identified in the analysis are added. Instead of placing absorptive capacity as the central element of the model, it becomes a model component on the same level as networks and entrepreneurship, while prior knowledge is removed. The analytical framework depicts the mutually reinforcing effects of the model components, and can be used by both researchers and practitioners as a vantage point for analysis of internationalizing SMEs. URI: http://hdl.handle.net/10417/3902 Files in this item: 1
martin_havn_og_henrik_juell-sundbye.pdf (783.7Kb) -
A Potential Market Entry Strategy of FC Bayern Munich in the Indian MarketGraf von Pueckler, Constantin (Frederiksberg, 2015)[More information][Less information]
Abstract: With the on-going commercialisation process of football in the last decade, the significance of economic success has increased considerably and also become the main driving force behind sportive success of top European clubs. The emerging remunerative nature of professional football has transformed sports management into an integral part of the global business environment. As a result of the actual growth and future prospects of sports markets, football clubs have evolved into corporate entities that diligently uphold core business principles and also implement strategic management practices within their organisations. For many top football clubs in Europe, the development of national sources of revenues is nearing the limits. By way of derogation from industrial entities, which can open up new market potentials nationally as well as internationally through product diversification and alternative distribution channels, a football club such as Bayern Munich has only ‘one’ product. Therefore, internationalisation strategies have been developed by the clubs to tap into additional market potentials; of course without neglecting the respective home markets. While leading English and Spanish clubs have been generating revenues through internationalisation since the past several years, the German Bundesliga and its ‘market leader’ Bayern Munich began to explore international options just a few of years ago. A leading football club’s aim of going international is to increase the club’s recognition in foreign markets and to generate additional revenues through new sponsorship deals and merchandising. After having entered the US market in 2014, Bayern Munich’s next important plan is to open an office in China in 2015. Another prospective football market that the club is eyeing for the coming years is the Indian market. Enthusiasm for and engagement with football is increasing more and more among Indians, and this is illustrated by the successful launch of the Indian Super League in 2014 and the hosting of the Under-17 FIFA World Cup 2017. Entering any new market is a challenging process that requires systematic and strategic planning and also needs an adequate management capacity. For the sustainable implementation of its brand, it is essential to develop applicable strategies, which can facilitate the market entry and further emphasize the club’s positioning within this industry. In this context, various factors have to be considered. Against this backdrop, the current study was conducted to examine a potential internationalization and market entry strategy that Bayern Munich should pursue to successfully penetrate the Indian sport industry as well as to establish a sustainable and lucrative market share along with integrating with the dynamics of the local market. A comparison between the internationalisation process of an industrial entity and the internationalisation process of a leading European football club leads one to realize that there are a lot of similarities between the two processes. Following a comparative analysis of the findings from interviews with experts from the football market, one can conclude that regarding Bayern Munich’s market entry strategy for the Indian market, the key factor, which is also in line with the theory of classical internationalisation process, is that the club has to first invest in the target country in order to potentially generate revenues in the long-run. Therefore, Bayern Munich must make an investment in the basic infrastructure of the yet undeveloped Indian football market at the beginning to sustainably establish itself and succeed in the Indian market. Then, together with the Deutsche Fussball Liga, Bayern Munich has to popularise German football in India before the club could start promoting its brand. These are the preliminary steps that are necessary before the materialization of the investment can start. URI: http://hdl.handle.net/10417/6258 Files in this item: 1
Constantin_Graf_von_Pueckler.pdf (1.736Mb) -
From the Perspective of Value Creation Through Business ModelsBadstue, Christina (Frederiksberg, 2013)[More information][Less information]
Abstract: Only recently have academics sought to integrate the concept of business models into international entrepreneurship. The purpose of this thesis is to analyze the internationalization process of a manufacturing international new venture from the perspective of value creation through business models. Given that the literature on international new ventures mainly focuses on new ventures operating in knowledge-intensive and high technology industries, this study furthermore seeks to broaden the field of international entrepreneurship by studying the case of a manufacturing international new venture. Existing literature on business models and firm internationalization is reviewed in order to develop a theoretical framework utilized for investigating the topic of this thesis. The chapter studying business model literature consists of defining the concept, utilizing business models as a unit of analysis as well as investigating the relationship between business models and strategy and innovation respectively. Given that a manufacturing international new venture is studied, both the literature on international entrepreneurship and the traditional perspective on firm internationalization are considered. Furthermore, a set of propositions is developed in order to test and discuss the theoretical framework. A single-case study design has been chosen to answer the research question, where Alpha, a manufacturing international new venture operating in the spectacles industry, is the chosen case company. Alpha employs its two founders, and it is thus their reflections and perceptions concerning the configuration of the company’s business model activities, which lay the foundation for answering the research question. The findings suggest that Alpha’s value creation logic determines the development and configuration of its business model and thereby also its internationalization process. Furthermore, it appears that Alpha’s existing network influenced the company’s internationalization process. However, the findings also suggest that factors such as psychic distance and the liability of foreignness influenced Alpha’s internationalization process, thus pointing to the fact that it seems that Alpha follows the traditional perspective of firm internationalization URI: http://hdl.handle.net/10417/4699 Files in this item: 1
christina_badstue.pdf (2.213Mb) -
Empirical research in the Italian stock marketAbbate, Nicolò (Frederiksberg, 2012)[More information][Less information]
Abstract: This research analyzes the performance of a value investing strategy in the Italian stock market from 1990 to 2011. The study has been conducted over a large sample of companies listed in the market in order to find some evidence over the presence of a value premium. The paper is composed of seven different chapters where are collected all the relevant information about the methodology and the results of the research. In the academic world there is a general agreement over the greater performance of value stocks over the growth stocks, but this result does not arise in the Italian case, where growth stocks delivers on average superior returns. The objective of the thesis is to find a possible explanation for this different behavior of the Italian stock market and what are the possible solutions to find a value premium in Italy. The theoretical framework is based on two distinctive approaches to the subject: the traditional finance and the behavioral finance. Most of the theories related to the traditional finance have their foundation in the efficiency of the markets and the use of the capital asset pricing model. The behavioral finance is a theory that puts together some aspects of cognitive psychology with financial theory, that focuses on the most realistic and human aspects of the investors, such as errors, irrationality and the lack of information. The stocks are selected according to three different criteria: Price to Earnings (P/E); Book to Market (B/M) and Dividend yield. The P/E portfolio consist of 201 companies and only the highest and lowest 30% of the companies were included in the annual analysis. The B/M portfolio contains a total amount of 251 companies and is the most complete in terms of data and representation of the Italian stock market. The Dividend yields portfolio is the smallest one represented with 57 stocks. The results have revealed a clear outperformance of the growth stocks in all the three analysis performed. The value investing strategy refuses the efficient market hypothesis, however, the results obtained in this research show in a negative performance of the value investing strategies in most of the cases. URI: http://hdl.handle.net/10417/3722 Files in this item: 8
Book to Market finito.xlsx (821.6Kb)Dividend yelds finito.xlsx (258.4Kb)nicolo_abbate.pdf (6.090Mb)Price to Earnings Finito.xlsx (374.6Kb)(more files) -
The case of NCE NODE and the clustering firms internationalization process towards BrazilHaraldstad, Øistein Offergaard (Frederiksberg, 2013)[More information][Less information]
URI: http://hdl.handle.net/10417/4703 Files in this item: 1
oeistein_offergaard_haraldstad.pdf (977.4Kb) -
A case study of knowledge sharing between HQ and subsidiaries and the integration of marketing strategiesSchou Madsen, Anna (Frederiksberg, 2014)[More information][Less information]
Abstract: EXECUTIVE SUMMARY: Effective knowledge sharing between a HQ and its subsidiaries can be one of the prerequisites for the MNC to ensure a competitive advantage, but the transfer of knowledge is affected by the relationship between the HQ and the subsidiaries. The relationship can either enhance or hinder knowledge sharing, and understanding the mechanisms behind can be valuable for the MNC. The MNC can transfer many different types of knowledge, but marketing strategies offers a particular challenge for the company as it consists of both explicit and tacit knowledge. Knowledge sharing is an area that continues to inspire researchers and managers, as knowledge is a resource that is difficult to manage. The thesis first identifies a theoretical framework based on agency theory and absorptive capacity. The purpose of this thesis is to research how the HQ can enhance the vertical knowledge sharing between itself and its subsidiaries, and how the absorptive capacity of the subsidiaries enhance the integration of HQ-initiated marketing strategies? The findings will add to the existing theoretical framework. The topic of this thesis has been researched empirically through a case study of the Danish MNC, Oticon. The empirical data were collected through interviews with managers at the HQ at Oticon and among managers in Oticon’s subsidiaries. Given the focus of the research, all managers were working with marketing or sales. My research data confirmed many of the observations found in the theoretical framework. It was found that the HQ could enhance knowledge sharing with its subsidiaries through the organisational culture, facilitation, and the IT systems. However, in those cases where the IT systems were not optimal for handling the knowledge, employees at the HQ could step in to replicate the missing functions of the system. With respect to the integration of marketing strategies, the research data also confirmed the observation in the theoretical framework, but the findings highlighted adaptation and engagement as two key areas for enhancing the integration. The latter was not part of the theoretical framework, so further research is needed before it can become part of the framework. All the findings in this thesis require some sort of investment from the HQ, highlighting that as knowledge sharing increases so does the resources needed to facilitate it. URI: http://hdl.handle.net/10417/5193 Files in this item: 1
anna_schou_madsen.pdf (874.2Kb) -
Rivalry strategy impactMushtaq, Najm-Us-Saqib; Sarwar, Jalal (Frederiksberg, 2011)[More information][Less information]
Abstract: An increased focus on CO2 emission level from the road transport sector has over the years put immense pressure on the global automobile industry to lower its carbon footprint. Today, the global automobile industry is standing in front of a major technological change, as there are several competing technologies which can possibly become the mainstream in the future. Not to miss out on a potential competitive edge, represented by this technological change, automobile manufacturers have presently undertaken a multi path strategy. In addition to comply with the strict environmental regulations, like EU’s 20-20-20 carbon footprint reducing policy. These factors are creating uncertainty in the evolving future of the automobile industry. Which path will the industry take? Questions like the former are increasingly demanding a plausible look into the future of the global automobile industry in this context. Among the technologies in emergence, hybrids, plug-in hybrids and electric vehicles are identified to have the highest impact on the future of the automobile industry. How will that affect the internal rivalry among automobile manufacturers is the essential research area of this thesis. This paper follows M.E. Porter’s (1979) model of competition coupled with scenario thinking to provide a look into the future of the global automobile industry, given the impact of the fuel technologies in emergence. Key findings in the paper are that the extent of consumer acceptance of these technologies mainly depends on the volatility in the oil price. Since consumers are primarily driven by their personal economy. Automobile manufacturers, on the opposite, are pushed through the shift by the strict environmental regulations. Whether manufacturers are able to produce the desired quality or not, and to what extent are the consumers going to accept these technologies lays the basis for the industry scenario interpretation in this paper. This industry study has revealed several major implications for the automobile manufacturers in a given future industry scenario. Firstly, different firms have to strategize differently, according to their resource strengths and capabilities to take advantage of the opportunities and defend against the threats arising in a plausible future. Secondly, there is an increasing focus on electrification of vehicles in the coming years, with many manufacturers already investing millions of Euros into these technologies. Finally, in the future a vast number of changes will be evident in the global automobile industry. New players like start-up firms, third parties and even suppliers are likely to form a part of the new era of the automobile industry. URI: http://hdl.handle.net/10417/3055 Files in this item: 1
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An econometric analysis of Botswana, Ghana, Kenya, Mauritius, Nigeria & South AfricaGaronfolo, Herbert Julius (Frederiksberg, 2011)[More information][Less information]
Abstract: The purpose of this paper is two-fold. Firstly, it explores the macroeconomic environment of Sub-Saharan Africa, and accounts for mutual challenges and characteristics that might exist among these economies. Secondly, it analyzes how macroeconomic variables affect stock market capitalization by using co-integration analysis. The assumption underlying the use of market capitalization as an indicator of stock market development is that the size of the stock market is positively correlated with the ability to mobilize capital and diversify risk (Levine, 1996). Based on the two pillars mentioned above, the thesis forms an empirical platform on which African policy-makers and economists from the World Bank and IMF can learn how macroeconomic indicators interact with the stock markets in Sub-Saharan Africa. In order to provide a sufficient framework for understanding the macroeconomic environment of Sub-Saharan economies, the thesis presents stock market and macroeconomic profiles of the countries in this study. These profiles help in identifying common challenges and opportunities that apply to Sub-Saharan Africa. Understanding the interactions between macroeconomic indicators and market capitalization helps investors optimise their portfolios and guide policy-makers in forming policies that are beneficial for the development of stock markets and accessibility to financial capital through financial markets. The thesis distinguishes between two groups of economies, namely resource-driven economies and diverse economies. Each type of economy has its unique challenges and opportunities with regards to the macroeconomic environment. Diverse economies tend to be associated with a high value added from the services sector, and with less vulnerability to shocks in the terms-of-trade. Resource-driven economies, on the other hand, are subject to increased vulnerability due to fluctuations in commodity prices. Hence, resource-driven economies have a tendency towards more unstable macroeconomic environments. However, having a rich natural resource base also has some obvious advantages. If exploited successfully, natural resources provide a country with goods that can be traded, and hence guarantee a certain revenue stream from exports. Due to the many risks associated with being highly dependent on a limited number of resources, a diversified economic structure is something that in principle is desirable. To foster and maintain a diversified economy, mechanisms for efficiently allocating investment resources across and not merely within economic sectors are important. To allow for this process, it is crucial to set up a framework allowing the development of a sound banking sector and strong stock markets. The macroeconomic and fiscal management has greatly improved during the last decade, and most of the economies are succeeding in controlling inflation and ensuring reforms that allow for a strong and healthy growth. A firm commitment to improving infrastructure and enhancing the business environment through more efficient public administration and reduction of red tape is observed. Concerning stock exchanges, market capitalization and the number of listed companies are generally on par with EU frontier markets, except for South Africa which exhibits levels comparable to the BRIC countries. When it comes to turnover ratios, we observe that Sub-Saharan Africa is plagued by low ratios. The turnover ratio reveals that compared to other regions, market liquidity is low in Sub-Saharan Africa and the level of transaction costs is high. Furthermore, the low turnover ratio is interpreted as a sign of limited access to the markets. The variables that were found to have the strongest influence on MC are GDP, CPI, the money supply, imports & exports, FDI and value added from the banking, gas, electricity & water, manufacturing and the services sector. From a purely macroeconomic point of view, it is therefore recommended that developing economies interested in enhancing their financial system with a stock market pay special attention to creating the best possible environment for GDP growth by ensuring: That inflation is under control through prudent monetary policy (managing the size and growth rate of the money supply and the level of the interest rate). Openness of the economy through international trade and FDI. A focus on developing the banking sector and infrastructure (gas, electricity & water) of the economy. Furthermore, services and manufacturing drive the development of MC through their contribution to diversifying the economy and increasing the international trade. URI: http://hdl.handle.net/10417/3064 Files in this item: 1
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A study of Scandinavian companies in RussiaNilsson, Catja; Nilsson, Maria Katarina (Frederiksberg, 2010)[More information][Less information]
Abstract: Saturated markets in the western world compel companies to seek new opportunities. For Scandinavian companies operating within the business-to-consumer segment, Russia constitutes great potential, foremost due to its increasing affluent middle class who has a fondness for western-branded goods. However, it is evident that Scandinavian companies face challenges when operating in the Russian market. The aim of the research project was therefore to investigate why Scandinavian companies, operating within the business-toconsumer segment, face operational challenges in Russia, and how the Scandinavian companies should manage these challenges. In order to answer the research questions, a qualitative study was conducted, which included interviews with respondents from Scandinavian companies and experts within the subject field. The collection of data was partly executed through a field trip to Moscow. Based on the findings, it is evident that the operational challenges have to be understood by taking on a wider context-specific perspective. The development of the ISC framework hereby resulted from the analysis. According to the ISC framework, the formal and informal rules in the Russian business environment influence the corporate behaviour of Russian stakeholders. In turn, the unfamiliar behaviour of Russian stakeholders creates challenges for the Scandinavian companies, since Russian corporate behaviour differs from Scandinavian corporate behaviour. Managerial implications on how to handle the challenges where identified on three levels: the individual, the company and the country level. On the individual level it is crucial for Scandinavian companies to find a balance between the number of expatriates and local staff members employed, as well as to create appropriate compensation for them. On a company level it is essential to take on a stakeholder approach in order to understand how the Russian stakeholders may impact the operations of the Scandinavian companies. On a country level, the findings emphasise a thorough investigation of the Russian business environment and long-term investments, whereas Scandinavian companies may ultimately influence the norms and rules regulating economic exchange. It is argued that the findings from the research project are significant for Scandinavian companies wanting to operate on the Russian market. Hereby, it is fair to state that a deeper understanding of the findings is crucial, whereas the research project is deemed essential. URI: http://hdl.handle.net/10417/1510 Files in this item: 1