Browsing by Author "Liljeblom, Eva"

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  • Liljeblom, Eva; Vaihekoski, Mika (Elsevier, 2010-12-31)
    Increased media exposure to layoffs and corporate quarterly financial reporting have created arguable a common perception – especially favored by the media itself – that the companies have been forced to improve their financial performance from quarter to quarter. Academically the relevant question is whether companies themselves feel that they are exposed to short-term pressure to perform even if it means that they have to compromise company’s long-term future. This paper studies this issue using results from a survey conducted among the 500 largest companies in Finland. The results show that companies in general feel moderate short-term pressure, with reasonable dispersion across firms. There seems to be a link between the degree of pressure felt, and the firm’s ownership structure, i.e. we find support for the existence of short-term versus long-term owners. We also find significant ownership related differences, in line with expectations, in how such short-term pressure is reflected in actual decision variables such as the investment criteria used.
  • Brunzell, Tor; Liljeblom, Eva (Emerald Group Publishing Ltd, 2014-08)
    ´Purpose – The purpose of this paper is to survey chairmen’s perceptions of female board representation in five Nordic countries, focusing on whether the chairman’s perception of board work is related to gender diversity, and on differences between high- and low-risk firms. Design/methodology/approach – The authors combine data from a questionnaire directed to the chairmen of the boards in Nordic listed companieswith data on firmcharacteristics and board composition. Findings – The authors find that the chairmen (97.5 percent male) are significantly less satisfied with female board members as compared to male ones. The authors also find that firms with nomination committees have more gender diverse boards, as well as indications of a more positively perceived contribution of female representation in high-risk firms. Research limitations/implications – The study is restricted to perceptions of chairmen for listed Nordic firms. The low response rate of 20.1 percent is a severe limitation. Practical implications – The increasing practice of using nomination committees in the Nordic countries seems advantageous from gender balance perspective. Originality/value – The authors contribute to the literature on gender diversity in boards by providing results from a board intern perspective. Keywords Diversity, Board of directors, Board effectiveness, Gender minority Paper type Research paper
  • Brunzell, Tor; Liljeblom, Eva; Vaihekoski, Mika (Wiley-Blackwell Publishing Asia, 2013-03-18)
    We study the determinants for the choice of capital budgeting methods and the setting of hurdle rates (WACCs) in five Nordic countries. Combining survey data with a rich set of determinants, including ownership data, CFO characteristics, and financial data, we find that the use of the Net Present Value method and the sophistication of the capital budgeting are related to firm characteristics, vari- ables proxying for real option features in investments and CFO characteristics (age and education). We also find support for significantly higher hurdle rates than motivated by economic theory. The premium is weakly positively related to managerial short-term pressure and strongly negatively related to the sophistica- tion level of the firm’s capital budgeting.
  • Brunzell, Tor; Liljeblom, Eva; Löflund, Anders; Vaihekoski, Mika (Elsevier BV * North-Holland, 2014-08)
    In this paper we analyze the results from a survey among all publicly listed Nordic firms on their dividend payout policy. The results show that 72% of the Nordic companies have a specified dividend policy. Larger andmore profitable companies aremore likely to have a defined dividend policy in place. The dividend policy is mostly influenced by capital structure considerations and the outlook of future earnings. We also find that the likelihood for a firm having an explicit dividend policy is positively related to ownership concentration as well as to the presence of large long-term private or industrial owners. Our results support the use of defined dividend policies for agency or monitoring reasons rather than signaling reasons.
  • Maury, Benjamin; Liljeblom, Eva (Wiley-Blackwell, 2010-12-31)
    This paper examines the impact of a regime shift on the valuation of politically powerful oligarch firms. Focusing on the Yeltsin-Putin regime shift in Russia, we find that the valuations of outside shareholders claims are significantly higher under the Putin regime than under the Yeltsin regime after controlling for industry and time effects. The findings suggest that the increasing cost of extracting private benefits outweigh the reduction in the value of political connections following the political regime change. The results are also consistent with changes in the risk of state expropriation. Our results show that effects driven by the political regime change complement the traditional view stating that increased ownership concentration improved the performance of Russian oligarch firms.
  • Korkeamaki, Timo; Liljeblom, Eva; Pasternack, Daniel (Elsevier, 2011-01-03)
    Changes in taxation of corporate dividends offer excellent opportunities to study dividend clientele effects. We explore payout policies and ownership structures around a major tax reform that took place in Finland in 2004. Consistent with dividend clienteles affecting firms’ dividend policy decisions, we find that Finnish firms altered their dividend policies based on the changed tax incentives of their largest shareholders. While firms adjust their payout policies, our results also indicate that ownership structures of Finnish firms also changed around the 2004 reform, consistent with shareholder clienteles adjusting to the new tax system.