DHanken Digital Repository of Hanken School of Economics

Recent Submissions

  • González Osorio, David Humberto (Svenska handelshögskolan, 2016-05-27)
    In this dissertation we use a network approach based on cross-fund correlation to calculate metrics that can help to describe the existence of common features not captured by common factors. Previous studies have found that measurements of performance adjusted by risk factors are explained by some fund characteristics, like size, age, expenses and turnover. This dissertation specifically studies performance in the mutual fund industry utilizing a network approach to address the following three questions. Do the characteristics of the mutual fund network help to explain the performance of mutual funds? Is the position of a mutual fund in the network related to persistence of abnormal performance of the fund? Do changes in the structure of the network of mutual funds signal the presence of herd behavior? In the first essay of this dissertation we argue that performance is also explained by other features of the funds related to informational linkages. We argue that managers with different types of information will invest differently. In the same line of argument, managers with access to only free public information and poor private information should behave similarly, and their investments should perform close to the market, while managers of the type that holds quality private information should outperform the market. In that sense, funds with similar type of information will be correlated. We propose that informational linkages can be approximated by measurements of centrality in a network of mutual funds. Centrality of a fund in the network, as explained later, can be interpreted as a measure of how closely correlated the returns of a fund are to other funds in the market. In the second essay we build on the foundations of the first essay to include measures of the mutual fund network in order to establish a link between persistence and correlation across funds. If there are informational linkages, those connections could help to test for persistence. Then, we expect that the returns of those funds will be correlated to each other; if the returns of those funds were correlated by luck, it is expected that in the next period, those linkages will disappear. However, when those linkages remain from one period to another, we can consider that the returns of the funds are not correlated by chance and we expect to find persistence. Finally, we consider how correlation across funds can help to explain herd behavior in the mutual fund industry. The third essay argues that an aggregate centrality measure in the network of mutual funds could signal the existence of herd behavior in the market.
  • Siekkinen, Jimi (Svenska handelshögskolan, 2016-05-27)
    In order to achieve well-functioning capital markets, firms have to provide investors and other stakeholders with relevant and reliable information. Especially, for financial firms a large amount of assets and liabilities are measured at fair value in accordance with International Financial Reporting Standards (IFRS). The complexity and lack of liquid markets of certain financial instruments has made the valuation of such financial instruments complicated. Hence, fair value accounting for financial instruments leads to some subjective estimation of input data used in the valuation process. This subjectivity can be misused by managers for their own interest (i.e. opportunistic behaviour). However, opportunistic behaviour can be reduced with efficient and sophisticated internal and external control mechanisms. This dissertation investigates which control mechanisms that are suitable in monitoring managers related to fair value accounting of financial instruments in financial firms. In the first essay, the effect of corporate governance on the value relevance of fair values is analysed. The assumption is that stronger boards with an appropriate structure are more effective in monitoring managers. The results indicate that board independence and gender diversity have a positive effect on the information quality of fair value estimates. In addition, the results indicate that board size is negatively associated with the value relevance of fair value estimates. Thereby, firms with smaller, more independent, and more diverse boards disclose fair value estimates of the highest quality. The second essay examines whether the value relevance of fair values varies across investor protection environments. The premise is that the better the investor feels protected from the firm, the more likely the investor will trust in the manager’s ability to estimate reliable and relevant fair values. This essay finds evidence that the value relevance of fair values is positively associated with the investor protection environment of the firm’s home country. In countries with undeveloped investor protection traditions, investors do not trust managers when it comes to estimating the fair value of financial instruments. The third essay examines whether audit quality has an impact on the value relevance of fair values. It can be assumed that managerial opportunism is mitigated by independent high quality auditing. The results suggest that client importance affects the information quality of fair value estimates negatively and that non-audit services have a positive effect on the value relevance of fair values. Hence, the results imply that higher level of information quality of financial instruments can be achieved with independent audit of high quality.
  • Roos, Annikki (Hanken School of Economics, 2016-05-10)
    Information practices are human activities that are related to seeking, managing, giving, using, and producing information in context. This thesis concentrates on the information practices of the researchers in the scientific domain of biomedicine. The object of this study has been to understand the special nature of the information related work and practices as a part of the biomedical research work. It is argued that to be able to build efficient tools and advantageous information services for researchers in the biomedical domain, these efforts should be based on the understanding of knowledge creation processes and work practices in this domain. The domain analytical approach forms an alternative view to those models, which try to identify similarities in patterns of seeking and use of information across the research domains. In this study, this approach has been used as an alternative to the generalizing model. The findings of the thesis support the arguments, which oppose the general view of information needs and uses. In information science, the study of information practices is quite a new research orientation. There are no previous studies, where the domain of biomedicine would have been in focus. Another important contribution of this study is the use of the activity theory as a theoretical research frame in the study of information practices. The activity theory appeared to be very helpful in setting information practices in the context. When implementing the activity theoretical research framework, information practices are comprehended as one mediating tool in the activity system of the research work. It aids the researcher to achieve the objectives of the research work.
  • Uusitupa, Jussi (Svenska handelshögskolan, 2016-05-10)
  • Löfberg, Johan (Svenska handelshögskolan, 2016-05-10)