[gradu] Kauppakorkeakoulu / BIZ
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- The role of Instagram fashion influencers in shaping consumer purchasing
School of Business | Master's thesis(2024) Linnainmaa, MiraExisting research on influencer marketing emphasizes its impact on brand visibility and consumer engagement but has given less attention to how influencers shape purchasing behavior in specific industries. This thesis aims to address this gap by exploring the role of Instagram fashion influencers in shaping consumer purchasing decisions. The research was guided by the following two research questions: (1) How do Instagram fashion influencers impact consumer purchasing behavior? (2) What types of influencer marketing are most effective in this context? The study employed a qualitative research methodology, conducting semi-structured interviews with six participants who actively follow Instagram fashion influencers. The participants were chosen using purposive and convenience sampling to ensure relevant and accessible insights. Data collected through interviews were analyzed thematically to identify recurring patterns and themes. The findings reveal that trust and authenticity are critical to the effectiveness of influencer marketing. Influencers perceived as genuine and relatable were more likely to inspire trust and influence purchasing behavior. Additionally, influencers were identified as key sources of style inspiration, bridging the gap between aspirational fashion and accessible everyday choices. The study also found that influencers play a pivotal role in brand discovery and purchasing behavior, with visually engaging content often leading to product exploration and eventual purchase. This research contributes to the growing body of knowledge on influencer marketing. It underscores the importance of authenticity, relatability, and strategic content creation in enhancing the impact of influencer marketing within the fashion industry. These findings offer valuable insights for both marketers and researchers aiming to navigate the dynamic and competitive landscape of digital marketing. - Evaluating the suitability of auditing tasks for robotic process automation
School of Business | Master's thesis(2025) Teerisalo, JussiThis master’s thesis examines the identification of auditing tasks and evaluates their suitability for robotic process automation (RPA). In the context of small and medium-sized auditing companies, operational efficiency and scalability are critical factors for maintaining competitiveness. The study addresses these challenges by applying a systematic framework developed by Eulerich et al. (2022) to evaluate the technical feasibility and benefits of automating specific auditing tasks. The research applies a group interview to gather a comprehensive overview of auditing tasks and a Delphi expert panel to gather opinions and achieve a consensus on the most suitable candidates for automation. Through the group interview, a total of 202 auditing tasks were identified. These tasks were then categorized into 29 process groups which were then further narrowed down to 15 high-priority processes. These processes are characterized by repetitive and rule-based nature. During the Delphi rounds these tasks were analysed to evaluate their alignment with automation criteria, including for instance data structure, process stability, and organizational value. Findings indicate that tasks such as data extraction from financial statements and collecting documents are particularly well-suited for RPA. Automating these tasks offers benefits in terms of both accuracy and efficiency. The findings highlight the numerous tasks within the auditing process that have the potential for automation. This research contributes to the theoretical discourse on identifying the potential for automating auditing tasks. It also highlights the importance of the socio-technical systems (STS) theory in RPA implementation. The study also reinforces the view that there is a need for systematic evaluation frameworks for identifying processes for automation. The managerial implications emphasize three key actions for organizations to take. First, to focus on these identified high-impact processes. Second, to adopt a structured framework grounded in STS theory for evaluating auditing processes. Third, actively engaging employees on the RPA implementation process. By applying these strategies, auditing companies can ensure successful adoption of RPA. - ESG and stock performance link under economic crisis: The Australian evidence
School of Business | Master's thesis(2024) Korhonen, Santeri89 percent of investors consider ESG issues in some form but the academic community is debating whether ESG investing leads to higher returns. Earlier research has shown that ESG investing could be related to risk resilience, which might indicate higher financial performance, however, there is lack of recent empirical evidence from the Australian markets. In this research, I address these topics and study the link between ESG Performance and financial performance in ASX markets during Covid-19 crisis. I use an investor-focused perspective, with stock performance as the key financial performance metric due to its universal acceptance as a corporate financial performance measure. Using ESG performance data from Refinitiv, I conduct correlation and single and multiple linear regression analyses for two time periods (panic-period and Covid-19 period) to investigate whether higher ESG performance led to higher stock performance during the pandemic in Australia. I also conduct an additional portfolio analysis with a matching methodology to further study the industry and size factors. The results indicate no statistically significant relationship during panic-period, while weak negative and statistically significant relationship is found during Covid-19 period. However, the Covid-19 period link is challenged by the additional analysis, and this study concludes that ESG performance and stock performance had no significant link during the Covid-19 pandemic in Australia. Importantly, the findings are inconsistent with the instrumental stakeholder theory. The main academic contributions of this study relate to recent empirical evidence from the ASX markets (1) offering new empirical evidence to ESG performance and stock performance link under economic crisis, (2) suggesting that higher ESG performance may have provided risk resilience towards the Covid-19 pandemic and (3) suggesting that ESG investing strategies do not harm financial returns. Additionally, (4) this study developed the methodology by Bialkowski & Slawik (2022) further and the developed, new methodology could be used in future studies. - Solar panel trade collided with sanction
School of Business | Master's thesis(2024) Yang, XiaochunIn the context of global climate change, shifts in geopolitics and the resulting changes in trade policies not only impact economies in traditional ways but also influence the progress of the green transition. This thesis examines the effects of Sino-U.S. trade frictions on the photovoltaic (PV) industry. The analysis integrates an industrial assessment of the PV value chain with a quantitative Difference-in-Differences (DiD) model to evaluate the impact of the Uyghur Forced Labor Prevention Act (UFLPA) on China’s PV exports. Building on the DiD model results, the study further investigates the occurrence of trade migration phenomena. The findings reveal that the UFLPA has significantly affected China’s PV exports, leading to observable trade migration patterns. - Multifaceted circular economy: how to define criteria for circular textile products and services – Case circular shopping mall
School of Business | Master's thesis(2025) Karhi, HeliThe textile industry, responsible for 20% of global water pollution and greenhouse gas emissions, underscores the need for circular strategies throughout the product lifecycle. Despite the vast amount of research on Circular Economy (CE) the concept lacks a unified definition. A project organization commissioning this thesis is an initiative with a goal to create a circular economy-based shopping mall in Helsinki, Finland. This thesis seeks to help the client organization gain a deeper understanding of what kinds of clothing and textile products and services align with the concept of CE by examining the principles that define a product or service as “circular.” The empirical qualitative data for this intensive case study was gathered through 14 semi-structured interviews with participants including seven SME company representatives. The interviewees were joined by seven expert participants with professional expertise in circular textiles and fashion. The research findings suggest that in the context of CE material characteristics are important but should not be the central focus. Instead, the emphasis lies on business models relying on reuse strategies, product longevity, Product-Service Systems (PSS) and sufficiency logic. The companies participating in this study incorporate sufficiency-driven and service-oriented models to promote strong sustainability, despite challenges in scaling these practices. One of the main findings is the need for conceptual clarity for the circular mall itself before establishing a set of criteria for any products, services or businesses involved. The practical contribution of this thesis is the acknowledgement that when developing the set of criteria for shopping mall’s offering, the scope should be broadened to business models and strategies emphasizing upper-level R-strategies (R3-R0). The case organization should prioritize businesses extending product life by emphasizing durability and repairability. The mall concept should consider supporting Finnish SMEs with scalability and profitability challenges. Future research should focus on R-strategies beyond recycling (R8), particularly on R3-R0 strategies which are less explored in academia but crucial for meeting the sustainability challenges in today’s textile industry. - IPO stabilisation in the Nordics
School of Business | Master's thesis(2024) Heikinheimo, MikkoIn a weak IPO the underwriter may attempt to prevent the share price of the issuer from falling below the offer price by undertaking stabilisation activities on the aftermarket. This paper examines the price support activities of underwriters in the Nordics providing direct evidence of IPO stabilisation with a sample of 344 Finnish and Swedish IPOs spanning from 2005 to 2023. I find that aftermarket stabilisation is very common in the Nordic IPO market with more than one-third of all IPOs in the full sample being stabilised for 10.3 days on average. Moreover, I find that the underwriter manages the stabilisation process using both the overallotment option and stabilisation in combination. Naked short positions are extremely rare and small in size while pure stabilisation where the underwriter accumulates a positive inventory position is non-existent. Characteristics of stabilised IPOs also differ significantly from non-stabilised offerings. In addition to being larger and taken public by a higher number of underwriters, the stabilised IPOs have on average significantly lower first-day returns. Finally, I find that stabilisation activities are significant in explaining aftermarket returns. Whether the price support has a permanent or temporary impact seem to be dependent on how close to the real market value the offering has been priced at by the underwriter to begin with. - Rational behaviour during epidemics
School of Business | Master's thesis(2024) Schultz, OttoThis thesis studies rational behaviour during epidemics and also aims to strengthen the foundations of economic epidemiology. Thus, a modelling framework based on utility maximisation during an SIR-model epidemic is developed. It proves to work well for analysing models and results in the focal literature. The thesis employs three models that use a linear utility function, which turns out make the solutions conceptually easy to understand. The central determinant of behaviour is an infection level threshold. The optimal solution steers the epidemic towards it as quickly as possible. The interior control or mitigation is solved analytically in all three models. This allows deciphering the influence of considering the epidemic dynamics and the disease externality on the interior mitigation. Numerical solutions show that there is more mitigation in the societal than in the private optimum. Disease severity, captured by the MRS, increases the duration of mitigation, while contagiousness (R_0) has a non-linear effect. The privately optimal solution fits empirical data fairly well, which suggests that real-world utility is only slightly concave. Based on simple policy simulations, vaccinations and quarantining of infected people are the most effective policies. Policies that change incentives can bridge most of the gap in utility between privately and societally optimal behaviours of susceptible people. - Yleisen tietosuoja-asetuksen osoitusvelvollisuuden toteutuminen startup-yrityksissä
School of Business | Master's thesis(2024) Turunen, EeTässä tutkielmassa tarkastelen yleisen tietosuoja-asetuksen (GDPR) osoitusvelvollisuuden toteutumista startup-yrityksissä. Osoitusvelvollisuus edellyttää, että rekisterinpitäjät pystyvät osoittamaan noudattavansa yleisen tietosuoja-asetuksen mukaisia tietosuojaperiaatteita, kuten esimerkiksi lainmukaisuutta, minimointia ja käyttötarkoitussidonnaisuutta. Tutkimuksen tavoitteena on selvittää, kuinka hyvin innovaatiokeskeiset ja usein resursseiltaan rajalliset startupit noudattavat osoitusvelvollisuutta, millaisia haasteita ne kohtaavat ja mitä käytännön toimenpiteitä ne ovat toteuttaneet vaatimusten täyttämiseksi. Tutkimuksessa yhdistyy sekä oikeusdogmaattisen analyysi että empiirinen kyselytutkimus. Lainopillisen analyysin avulla avaan osoitusvelvollisuuden tarkoitusta ja vaatimuksia. Kyselytutkimuksella taas valotan osoitusvelvollisuuden käytännön toteutumista kohdeyrityksissä. Kyselyyn osallistui 105 startup-yritystä, jotka toimivat EU-alueella. Tulokset osoittavat, että vaikka suurin osa startupeista ovat tietoisia tietosuoja-asetuksen vaatimuksista, ei osoitusvelvollisuus toteudu erityisen hyvin tutkimuksen kohteena olleissa yrityksissä. Merkittäviä puutteita löytyy esimerkiksi dokumentaation, prosessien ja lainmukaisuuden kohdalla. Tähän syynä on monesti resurssien tai tietosuojaosaamisen puute. Lopussa tutkimus tarjoaa startup-yrityksille käytännön suosituksia tietosuojan parantamiseksi. Osoitusvelvollisuuden laiminlyönti voi johtaa merkittäviin sanktioihin, ja sen noudattaminen on edellytys vakaalle liiketoiminnalle. Tulokset kuitenkin korostavat mahdollista tarvetta selkiyttää yleisen tietosuoja-asetuksen vaatimuksia erityisesti pienille ja resursseiltaan rajallisille yrityksille. - Yhdistykset ja säätiöt testamentin saajina. Testamenttilahjoituksesta seuraavat oikeudet ja velvollisuudet painottuen yhdistysten ja säätiöiden erityispiirteisiin
School of Business | Master's thesis(2024) Hallaperä, RinaSuomalaisista yli puolet lahjoittaa eläessään yhdistyksille ja säätiöille kokien lahjoittamisella voivansa ”olla mukana muuttamassa ja parantamassa maailmaa”. Suomalaisten suhde yhdistyksiin ja säätiöihin on siis läheinen ja tunnejohteinen jo heidän elinaikanaan, joten ei ole yllättävää, että monet haluavat muistaa niitä myös kuolemansa jälkeen testamentissaan, tällä hetkellä vuosittain noin 60 miljoonalla eurolla. Testamenttilahjoituksia yhdistyksien ja säätiöiden näkökulmasta on käsitelty silti ennestään vain hyvin niukasti. Tämän tutkielman tarkoituksena on paikata kyseistä aukkoa ja selvittää, mitä oikeuksia ja velvollisuuksia testamenttilahjoituksesta voi seurata yhdistyslain (503/1989) mukaiselle yhdistykselle tai säätiölain (487/2014) mukaiselle säätiölle suomalaisen kansallisen oikeuden valossa. Tutkielma on oikeusdogmaattinen eli toteutettu lainopillisena tutkimuksena, jonka metodissa painottuvat hajallaan olevan lähdeaineiston systemaattinen tulkitseminen sekä systematisoimalla sen järjestäminen helpommin käsiteltävään muotoon. Yhdistyksien ja säätiöiden erityispiirteinä oikeustoimen tekemiseen liittyvät seikat sekä lahjoitustulon verotus- ja kirjanpitokohteluun vaikuttavat asiat voivat vaikuttaa hyvin moninaisesti siihen, millaisia oikeuksia tai velvollisuuksia testamenttilahjoituksesta seuraa. Erityisesti tutkielman tuloksissa korostui hallituksen huolellisuusvelvoitteen merkitys: yhdistyksellä tai säätiöllä on lisävelvollisuuksia verrattuna luonnolliseen henkilöön erityisesti harkittaessa, onko ylipäänsä edellytyksiä ottaa osoitettu testamenttilahjoitus vastaan. Edellytysten harkitseminen ei rajoittunut vain testamenttioikeuden voimassaoloon tai oikeustoimikelpoisuuteenkaan, vaan yksittäiseen lahjoitukseen kohdistuvat ehdot ja rajoitukset, kuten määräys lahjoituksen kohteesta ja käyttötavoista ja asunnoissa lesken elinikäinen käyttöoikeus, sekä yleisesti näiden ehtojen ja yhteisön oman toiminnan yhteensopivuus. Ehdot tulee myös toteuttaa sekä käytännön toimenpitein että huomioida kirjanpitokäsittelyn määrittämisessä. Harkinnan on siis oltava tapauskohtaista. Tämän lisäksi yhdistyksellä tai säätiöllä on samat velvoitteet kuin luonnollisella henkilöllä koskien esimerkiksi testamentin tiedoksiantoa perillisille sekä yleissaannon tapauksessa kuolinpesän osakkuuteen liittyvät velvollisuudet esimerkiksi perunkirjoituksesta, joskin yleishyödylliseksi tuloverotuksessa katsotut yhdistykset ja säätiöt ovat lähtökohtaisesti perintöverosta vapaita. Myös oikeudet esimerkiksi testamenttikanteiden nostamiseen ovat yhtenevät. Tutkielman yhteydessä todettiin, että nykyinen perintökaari ei ota kantaa oikeushenkilön asemaan testamentin saajana, ja tämä todettiin myös keskeiseksi tarpeeksi tulevaisuuden laille. Koska aihe on varsin koskematon ajankohtaisuudestaan huolimatta, se tarjoaa useita mahdollisuuksia jatkotutkimukselle, kuten toisaalta syvällisempi ymmärrys testaattorien tahdonilmauksien taustoista mutta myös siitä, millaisia testamentteja yhdistykset ja säätiöt ovat tähän mennessä vastaanottaneet ja tulkinneet niitä. - Corporate acquisition success in the Finnish product and service sectors
School of Business | Master's thesis(2024) Linnainmaa, HenriThis study examines the effect of corporate mergers and acquisitions (M&A) on the performance of acquiring companies as measured by stock price development, using data from Finnish publicly listed companies in 2002-2021. First, a theoretical background of the general effects of corporate mergers and acquisitions on both the acquiring companies and the broader economy is established, and then an event study is conducted to assess the effects of M&A by measuring abnormal returns (AR) of the companies in the dataset until 6 and 24 months after the transaction, using the OMX Helsinki Price Index as a benchmark. The results are first analysed as a whole, and then divided into service and product sectors to see if any differences are found between the two. The results show that on average, there were statistically significant positive abnormal returns for both product and service companies after M&A transactions. Service companies saw clearly higher abnormal returns than product companies, which could be due to more value tied to intangible assets that could be easier to transfer to a new owner than the tangible assets of product companies, thus leading to better and faster synergy realization. When the announcement effect was included in the event window, the positive abnormal returns were higher and more statistically significant. Much of the positive mean AR is attributed to a small portion of companies that saw very high abnormal returns, as the amount of transactions receiving negative and positive AR after completion were almost equal. The study provides evidence towards M&A producing shareholder value over time, even beyond the initial announcement effects on stock price. - Ethical issues in NFT collectibles: A case study of NBATopshot
School of Business | Master's thesis(2024) Yeo, JunThis thesis focuses on the ethical issues of NBATopshot, which is a National Basketball Association card -based NFT, known as “Moment”. NFTs (non-fungible tokens) are unique digital identifiers recorded on a blockchain, and they are used to certify ownership and authenticity. NFTs were launched about a decade ago and rapidly embraced by users worldwide. However, there exists ethical concerns and problems with NFTs, which could impact stakeholders negatively. This thesis examines specifically those of NBATopshot. This thesis will use a survey to find out the ethical concerns and problems faced by NBATopshot users and the relevant impacts arising from the ethical problems. This is followed by using the Association of Computing Machinery (ACM) Code of Ethics to suggest areas of improvements for NBATopshot. There will be a discussion on the causes and further consequences of ethical concerns and recommendations to mitigate ethical issues in NBATopshot. The thesis finds that NBATopshot has ethical issues that need to be resolved, and they are caused by the unethical actions of users and management. Although these ethical problems have not severely impacted its stakeholders, further ethical concerns can affect the sustainability of NBATopshot. This thesis suggests a top-down, multi prong approach. Actions are needed by key stakeholders such as governmental organisations, firms and individuals are needed to solve existing ethical problems. - Optimal mean-reversion arbitrage with machine learning and advanced hedge ratios
School of Business | Master's thesis(2024) Dao, VinhThis thesis proposes a statistical mean-reversion arbitrage strategy, commonly known as pairs trading, and evaluates its performance through a robust backtesting framework. The primary objectives are to investigate the efficacy of unsupervised machine learning techniques in identifying suitable pairs of securities and to determine the optimal hedge ratio that maximizes trading performance. The study is confined to equity trading, focusing exclusively on the constituents of the S&P 500 index, with an analysis based on historical daily price data spanning from January 2018 to December 2023. The findings underscore the effectiveness of unsupervised machine learning methodologies in the pair formation process. Specifically, Principal Component Analysis (PCA) and Ordering Points to Identify the Clustering Structure (OPTICS), when applied in conjunction with rigorous cointegration testing and multiple mean-reversion criteria, successfully identify pairs that exhibit stable cointegrating relationships and strong mean-reverting dynamics. Notably, the majority of selected pairs are cross-sector, which underscores the capability of machine learning techniques to uncover latent, non-intuitive cross-sector relationships that are not immediately discernible to market participants. In the context of hedge ratio estimation, this study implements and evaluates six distinct methods, ranging from conventional approaches such as Ordinary Least Squares (OLS) and Total Least Squares (TLS) to more advanced methodologies, including Johansen cointegration, Box-Tiao Canonical Decomposition, Minimum Half-Life, and Minimum Augmented Dickey-Fuller (ADF). Empirical results indicate that hedge ratios derived from the Minimum Half-Life and Box-Tiao methods consistently outperform those estimated by other techniques, generating statistically significant alphas and yielding superior trading performance across various evaluation metrics. To enhance the rigor and validity of future research, this study advocates for the incorporation of stratified sampling techniques to ensure an equitable representation of intra- and cross-sector pairs, thereby facilitating a more comprehensive comparative analysis. Additionally, refinements to the backtesting framework, including the adoption of systematic methodologies for selecting rolling window sizes and the integration of transaction frictions such as slippage, are recommended to bridge the gap between simulated and real-world trading conditions. This research contributes to the field of quantitative finance by advancing the application of machine learning in pairs trading and providing a comparative analysis of hedge ratio estimation techniques. The findings have significant implications for the development of more robust, generalizable, and effective trading strategies. - Optimal mean-reversion arbitrage with machine learning and advanced hedge ratios
School of Business | Master's thesis(2024) Nguyen, NiThis thesis proposes a statistical mean-reversion arbitrage strategy, commonly known as pairs trading, and evaluates its performance through a robust backtesting framework. The primary objectives are to investigate the efficacy of unsupervised machine learning techniques in identifying suitable pairs of securities and to determine the optimal hedge ratio that maximizes trading performance. The study is confined to equity trading, focusing exclusively on the constituents of the S&P 500 index, with an analysis based on historical daily price data spanning from January 2018 to December 2023. The findings underscore the effectiveness of unsupervised machine learning methodologies in the pair formation process. Specifically, Principal Component Analysis (PCA) and Ordering Points to Identify the Clustering Structure (OPTICS), when applied in conjunction with rigorous cointegration testing and multiple mean-reversion criteria, successfully identify pairs that exhibit stable cointegrating relationships and strong meanreverting dynamics. Notably, the majority of selected pairs are cross-sector, which underscores the capability of machine learning techniques to uncover latent, non-intuitive cross-sector relationships that are not immediately discernible to market participants. In the context of hedge ratio estimation, this study implements and evaluates six distinct methods, ranging from conventional approaches such as Ordinary Least Squares (OLS) and Total Least Squares (TLS) to more advanced methodologies, including Johansen cointegration, Box-Tiao Canonical Decomposition, Minimum Half-Life, and Minimum Augmented Dickey-Fuller (ADF). Empirical results indicate that hedge ratios derived from the Minimum Half-Life and Box-Tiao methods consistently outperform those estimated by other techniques, generating statistically significant alphas and yielding superior trading performance across various evaluation metrics. To enhance the rigor and validity of future research, this study advocates for the incorporation of stratified sampling techniques to ensure an equitable representation of intra- and cross-sector pairs, thereby facilitating a more comprehensive comparative analysis. Additionally, refinements to the backtesting framework, including the adoption of systematic methodologies for selecting rolling window sizes and the integration of transaction frictions such as slippage, are recommended to bridge the gap between simulated and real-world trading conditions. This research contributes to the field of quantitative finance by advancing the application of machine learning in pairs trading and providing a comparative analysis of hedge ratio estimation techniques. The findings have significant implications for the development of more robust, generalizable, and effective trading strategies. - Advancing portfolio management with AI
School of Business | Master's thesis(2024) Göcsei, GergőThis thesis explores the development of an AI-powered portfolio management tool utilizing ChatGPT. The research adopts a case study approach, following the principles of Design Science Research (DSR) methodology, to address the challenges faced in managing diverse financial assets. The study includes a comprehensive literature review on the intersection of artificial intelligence and financial portfolio management, emphasizing recent advancements in machine learning and language models. Based on the findings, a tailored tool was developed to automate data integration, performance tracking, and decision-making support. The results demonstrate that AI-based solutions can enhance the efficiency and accuracy of portfolio management processes, providing actionable insights and reducing manual workload. The thesis concludes with recommendations for integrating AI into financial workflows and considerations for future enhancements. - Peer pressure: The effects of IPOs on peer company returns
School of Business | Master's thesis(2025) Mursula, OskarThis thesis investigates whether initial public offerings (IPOs) affect the short-term returns of the listing firm’s peers. Analyzing 1,938 European IPOs between 2010 and 2023, we find that on average, peer companies experience significant negative valuation effects during the IPO’s listing date and the surrounding days. Depending on the used methodology, negative abnormal returns of peer portfolios range from -0.05% to -0.10% during the listing date, and two-day cumulative abnormal returns covering the listing date and the following day range from -0.07% to -0.10%. The findings are statistically significant at the 1% level for most analyses, suggesting strong evidence for the negative short-term pricing effect. Other dates within a ±5-day window around the listing date also show an overall negative effect with varying levels of significance. We also explore factors influencing the magnitude of the effect but find limited evidence of consistent drivers. The only moderately robust finding is that among European portfolios, IPOs of large firms relative to peers lead to more negative peer price adjustments, likely driven by heightened competitive pressure. The peer groups, comprised of 63,882 firm observations and 7,352 unique firms, are created using London Stock Exchange Group’s (LSEG) algorithm-based classification tool called StarMine Peers. This sets our research apart from previous studies, which have primarily relied on the much simpler SIC industry codes for peer classification. Furthermore, to compare broader industry effects with local effects, the peer groups are filtered into two distinct portfolio types: the European portfolios, which consist of peers listed in European countries and the domestic portfolios, which only include local firms listed within the same country as the IPO firm. Additionally, we test the effect using two distinct calculation methods for abnormal returns: the Market Adjusted Model and the Simplified Market Model. We find that the negative peer price effect is consistent across all four combinations of portfolio types and market models, and that all methods present similar negative peer return patterns surrounding the IPOs. - Peer pressure: The effects of IPOs on peer company returns
School of Business | Master's thesis(2025) Helineva, NiklasThis thesis investigates whether initial public offerings (IPOs) affect the short-term returns of the listing firm’s peers. Analyzing 1,938 European IPOs between 2010 and 2023, we find that on average, peer companies experience significant negative valuation effects during the IPO’s listing date and the surrounding days. Depending on the used methodology, negative abnormal returns of peer portfolios range from -0.05% to -0.10% during the listing date, and two-day cumulative abnormal returns covering the listing date and the following day range from -0.07% to -0.10%. The findings are statistically significant at the 1% level for most analyses, suggesting strong evidence for the negative short-term pricing effect. Other dates within a ±5-day window around the listing date also show an overall negative effect with varying levels of significance. We also explore factors influencing the magnitude of the effect but find limited evidence of consistent drivers. The only moderately robust finding is that among European portfolios, IPOs of large firms relative to peers lead to more negative peer price adjustments, likely driven by heightened competitive pressure. The peer groups, comprised of 63,882 firm observations and 7,352 unique firms, are created using London Stock Exchange Group’s (LSEG) algorithm-based classification tool called StarMine Peers. This sets our research apart from previous studies, which have primarily relied on the much simpler SIC industry codes for peer classification. Furthermore, to compare broader industry effects with local effects, the peer groups are filtered into two distinct portfolio types: the European portfolios, which consist of peers listed in European countries and the domestic portfolios, which only include local firms listed within the same country as the IPO firm. Additionally, we test the effect using two distinct calculation methods for abnormal returns: the Market Adjusted Model and the Simplified Market Model. We find that the negative peer price effect is consistent across all four combinations of portfolio types and market models, and that all methods present similar negative peer return patterns surrounding the IPOs. - The impact of index reconstitutions: Evidence from the FTSE 100
School of Business | Master's thesis(2024) Jaakkola, MaariaThis thesis examines the impact of FTSE 100 Index reconstitution events on stock performance, focusing on both short-term and long-term effects. Using data from 2004 to 2024, the thesis investigates abnormal returns, share turnover, and changes in index ownership for stocks added to or deleted from the index. Key findings reveal significant short-term abnormal returns for additions driven by the price pressure hypothesis, while deletions show immediate negative returns followed by long-term reversals consistent with the imperfect substitutes hypothesis. Over the observation period, short-term effects have diminished, and the timing of price reversals has shifted from around the effective date to immediately following the announcement date. This suggests that by the latter years of the study, reconstitution events were increasingly priced into stock values by the announcement date. Furthermore, the study identifies a diminishing long-term return effect for additions, while long-term reversals for deletions emerge and intensify over time, providing theoretical support for deletion-based investment strategies. Further analysis shows a sharp spike in trading turnover one day before the effective date, reflecting index fund rebalancing. While index ownership trends persist — increasing for additions and decreasing for deletions — regression analysis indicates no significant relationship between ownership changes and cumulative abnormal returns. These findings highlight the role of demand pressures and market dynamics, offering nuanced insights into the broader implications of index reconstitution events. - Rajat ylittävä etätyöskentely
School of Business | Master's thesis(2024) Söder, TessaTutkielman tavoitteena oli tarkastella rajat ylittävän etätyön vaikutuksia suomalaisen työntekijän verotukseen sekä työnantajan velvoitteisiin. Tutkimuksen pääpainopisteinä olivat vaikutukset työntekijän henkilökohtaiseen tuloverotukseen, etätyön mahdollisesti työnantajayhtiölle aiheuttama kiinteä toimipaikka sekä työnantajan sosiaaliturvavelvoitteet etätyöskentelyn aikana. Tutkimuksessa analysoitiin, kuinka nykyinen verotus- ja sosiaaliturvasääntely vaikuttaa ja soveltuu ulkomailla tehtävään etätyöhön sekä miltä osin etätyötä koskeva sääntely tulee mahdollisesti muuttumaan tai lisääntymään tulevaisuudessa. Tutkimuksessa käytettiin kvalitatiivista oikeusdogmaattista tutkimusmenetelmää, jonka avulla systematisoitiin ja analysoitiin voimassa olevaa kansallista ja kansainvälistä sääntelyjä, verosopimuksia, EU:n asetuksia sekä OECD:n malliverosopimusta. Koska etätyötä koskevaa yksiselitteistä säädäntöä ei toistaiseksi ole olemassa kansallisella eikä kansainvälisellä tasolla, tutkimuksessa hyödynnettiin käytännönläheistä analyysiä vertaamalla etätyön erityispiirteitä perinteiseen ulkomaankomennukseen. Merkittävin ero näiden välillä on etätyön vapaaehtoisuus. Koska etätyö perustuu lähtökohtaisesti työntekijän omaan aloitteeseen, ei esimerkiksi TVL 77 §:n mukainen kuuden kuukauden verovapaussääntö sovellu etätyöhön, sillä sääntö edellyttää oleskelun johtuvan ulkomailla tehtävästä työstä. Tilapäinen etätyöskentely ei kuitenkaan muutoin vaikuta merkittävästi työntekijän verotukseen, sillä työntekijä säilyy Suomessa yleisesti verovelvollisena, mikäli hänen kotinsa säilyy Suomessa. Etätyön seurauksen työnantajayhtiölle voi muodostua kiinteä toimipaikka valtioon, jossa työntekijä tekee etätyötä. Tällöin kiinteän toimipaikan muodostumista arvioidaan OECD:n malliverosopimuksen artiklan 5 kappaleiden yleisten arviointikriteerien, kuten ajallisen ja maantieteellisen pysyvyyden, liikepaikan käytön sekä toiminnan luonteen perusteella. Lisäksi arvioinnissa tulee kiinnittää erityistä huomiota työnantajan intressiin tehtävän etätyön suhteen, kuten esimerkiksi mahdollisiin järjestelyihin, joita työnantaja voi tehdä mahdollistaakseen etätyön tietyssä valtiossa. Kuitenkin ilman työnantajan aktiivista intressiä, kiinteän toimipaikan muodostuminen etätyön seurauksena on tutkielman valossa epätodennäköistä. Jos työnantajayhtiölle muodostuu kiinteä toimipaikka työskentelyvaltioon, tulee huomioida, että kyseinen valtio saa verotusoikeuden myös työntekijän palkkatuloon. Sosiaaliturvan osalta havaittiin, että riippumatta työskentelyvaltiosta, ei työnantajan sosiaaliturvavelvollisuuksien voida nähdä kaventuvan tai poistuvan, vaikka työntekijä tekisi etätyötä toisesta valtiosta käsin omasta aloitteestaan. Työantajalla on siis yhtä laaja vastuu selvittää sekä järjestää työntekijänsä sosiaaliturva myös etätyöskentelytilanteissa. Tilapäisen etätyöskentelyn aikana työntekijä voi kuitenkin säilyä Suomen sosiaaliturvassa samoin kuin lähetetty työntekijä. - Bond tender offers in Europe
School of Business | Master's thesis(2024) Aarnio, MimosaThis study investigates the determinants of tender premiums and the impact of bond tender offers on stockholder returns within the European corporate bond market from 2010 to 2019. Building on prior research by De Jong, Roosenboom, and Schramade (2009), this work examines a new dataset of 439 tender offers involving euro-denominated bonds. The research aims to capture key factors influencing tender premiums, such as consent solicitation, takeover activity, remaining bond maturity, return on assets, and debt levels. To evaluate abnormal stockholder returns surrounding the tender offer announcements, this study uses a market model based on the Capital Asset Pricing Model (CAPM). Contrary to prior findings, no positive relationship was found between the tender premiums and consent solicitation or bond maturity, or a negative relationship with takeover activity. The average tender premium is significantly smaller, 0,58% than in previous research, likely reflecting a less liquid bond market. This study contributes to a deeper understanding of the evolvement of the bond tender offer market in Europe. - The impact of index reconstitutions: Evidence from the FTSE 100
School of Business | Master's thesis(2024) Lautanala, FannyThis thesis examines the impact of FTSE 100 Index reconstitution events on stock performance, focusing on both short-term and long-term effects. Using data from 2004 to 2024, the thesis investigates abnormal returns, share turnover, and changes in index ownership for stocks added to or deleted from the index. Key findings reveal significant short-term abnormal returns for additions driven by the price pressure hypothesis, while deletions show immediate negative returns followed by long-term reversals consistent with the imperfect substitutes hypothesis. Over the observation period, short-term effects have diminished, and the timing of price reversals has shifted from around the effective date to immediately following the announcement date. This suggests that by the latter years of the study, reconstitution events were increasingly priced into stock values by the announcement date. Furthermore, the study identifies a diminishing long-term return effect for additions, while long-term reversals for deletions emerge and intensify over time, providing theoretical support for deletion-based investment strategies. Further analysis shows a sharp spike in trading turnover one day before the effective date, reflecting index fund rebalancing. While index ownership trends persist — increasing for additions and decreasing for deletions — regression analysis indicates no significant relationship between ownership changes and cumulative abnormal returns. These findings highlight the role of demand pressures and market dynamics, offering nuanced insights into the broader implications of index reconstitution events.