Newshttp://finance.aalto.fi/en/current/news/2013-05-21T13:40:41+00:00FeedCreator 1.7.6(BH) (info@mypapit.net)Matti Keloharju appointed Eero Kasanen Professor of Finance2013-02-07T13:23:07+00:002013-02-07T13:23:07+00:00http://finance.aalto.fi/en/midcom-permalink-1e2712982b56f5c712911e28704076ce8e3fb36fb36Aalto-www <verkkotoimitus@aalto.fi>Professor Matti Keloharju has been invited to take up the new Eero Kasanen Chair established for the Aalto University School of Business. Professor Keloharju has worked as Professor of Finance at the Helsinki School of Economics and at the Aalto University School of Business since 1999.
In 2010, Aalto University established three professorships to honour the work of the rectorsof the three founding universities. Persons who are especially distinguished in their field of science are appointed to the professorships.
Professor Eero Kasanen served as the Rector of the Helsinki School of Economics between 1996 and 2009. In addition to the professorship now filled, the Yrjö Sotamaa Chair (New frontiers in design) and the Matti Pursula Chair (Sustainable energy solutions) have been established. The process of filling the two last-mentioned professorships is under way.
Professor Matti Keloharju is an internationally recognised and scientifically distinguished Professor of Finance at the Aalto University School of Business. He has worked at the school since 1992 and as a professor since 1999. He has been a visiting scholar at the Anderson School of Management of the University of California and at the Stern Business School of New York University in the United States.
Matti Keloharju is one of the world's leading researchers especially in the field of Behavioural Finance. He has published several articles in the most high-ranking finance journals. He is one of the most cited researchers in Europe in the field of finance.
]]>Professor Matti Keloharju has been invited to take up the new Eero Kasanen Chair established for the Aalto University School of Business. Professor Keloharju has worked as Professor of Finance at the Helsinki School of Economics and at the Aalto University School of Business since 1999.
In 2010, Aalto University established three professorships to honour the work of the rectorsof the three founding universities. Persons who are especially distinguished in their field of science are appointed to the professorships.
Professor Eero Kasanen served as the Rector of the Helsinki School of Economics between 1996 and 2009. In addition to the professorship now filled, the Yrjö Sotamaa Chair (New frontiers in design) and the Matti Pursula Chair (Sustainable energy solutions) have been established. The process of filling the two last-mentioned professorships is under way.
Professor Matti Keloharju is an internationally recognised and scientifically distinguished Professor of Finance at the Aalto University School of Business. He has worked at the school since 1992 and as a professor since 1999. He has been a visiting scholar at the Anderson School of Management of the University of California and at the Stern Business School of New York University in the United States.
Matti Keloharju is one of the world's leading researchers especially in the field of Behavioural Finance. He has published several articles in the most high-ranking finance journals. He is one of the most cited researchers in Europe in the field of finance.
]]>Jylhä wins OP-Pohjola Best Doctoral Thesis Prize2013-01-31T13:49:49+00:002013-01-31T13:49:49+00:00http://finance.aalto.fi/en/midcom-permalink-1e26bad14f838e06bad11e2a36fef641e13ee0bee0bAalto-www <verkkotoimitus@aalto.fi>Petri Jylhä won the OP-Pohjola Group Research Foundation Doctoral Dissertation Award, for his doctoral dissertation “Essays on the Economics of Hedge Funds”. Petri's PhD studies were supervised by Professor Matti Suominen. Currently Petri is an Assistant Professor of Finance at Imperial College Business School.
]]>Petri Jylhä won the OP-Pohjola Group Research Foundation Doctoral Dissertation Award, for his doctoral dissertation “Essays on the Economics of Hedge Funds”. Petri's PhD studies were supervised by Professor Matti Suominen. Currently Petri is an Assistant Professor of Finance at Imperial College Business School.
]]>Finance Summer Internship 20132012-11-29T14:18:43+00:002012-11-29T14:18:43+00:00http://finance.aalto.fi/en/midcom-permalink-1e23a2fae27ff5a3a2f11e2b1f1b53f2fd2e294e294Aalto-www <verkkotoimitus@aalto.fi>What would I do during the internship?
You would be working with the faculty on scientific research projects during the summer months. Exact dates are flexible. You would participate in data collection and organization for research projects. Literature reviews are another possible job. If you are a good programmer, there are many things where you could contribute. Whatever research-related skills you have, we will try to tailor your work to make the best out of those skills.
What's in it for me?
As a member of our community, you will have the opportunity to learn research skills on the job. These skills will not only be helpful in your Master's thesis but are also in demand in many finance and consulting sector occupations. If you want to pursue an academic career, you will greatly benefit from an early integration into the research community. And of course, you will get flexible working hours and a salary.
What is required?
We are primarily looking for Finance students in their second to fourth year of studies. Completion of a Bachelor's thesis or other relevant experience is a plus. In previous years the majority of our interns have come from Finland, but we have also had interns from abroad, including Bulgaria, China, India, Iran, Nepal, and the United States. First and foremost, we want dedicated people who fit well into our community, who are interested in the financial world and financial research, and who have the potential to develop into excellent researchers.
How can I apply?
Contact Professor Matti Keloharju, tel. +358 40 353 8043, email matti.keloharju@aalto.fi. Include in your application a personal cover letter, CV, and a transcript of your university grades. The application deadline is January 25, 2013.
We are flexible with the starting and ending dates as long as the internship lasts at least two months. The first intern usually arrives in mid-May and the last intern leaves in early September.
How many interns do you hire?
This depends on the strength of the applicant pool and faculty needs. In recent years, we have usually hired on average six interns.
How many applications do you get?
In recent years, we have received 50-100 applications.
When do you process the applications?
We expect the selection process to last for a week or at most two weeks. Interviews will probably take place on week 5.
Which universities do the interns come from?
The vast majority of the interns come from Aalto University. Foreign interns have come from the Indian Institute of Technology, LSE, MIT, Queens University, and Vanderbilt University.
How much do you pay for the interns?
We expect the salary to be 1850 euros per month.
Do you pay for the interns’ travel, possible visa or work permit, or housing?
No. Interns are expected to pay for their own costs. So far, foreign interns have found affordable housing through HOAS.
What is the placement record of the internship program?
Below is an exhaustive list of the first jobs of our interns after graduation (generally with a Master’s degree).
Banking: Deutsche Bank (1), Nomura (1), Nordea (1)
PhD studies: Aalto Univ. (2), Boston College (1), Columbia Univ. (1).
]]>What would I do during the internship?
You would be working with the faculty on scientific research projects during the summer months. Exact dates are flexible. You would participate in data collection and organization for research projects. Literature reviews are another possible job. If you are a good programmer, there are many things where you could contribute. Whatever research-related skills you have, we will try to tailor your work to make the best out of those skills.
What's in it for me?
As a member of our community, you will have the opportunity to learn research skills on the job. These skills will not only be helpful in your Master's thesis but are also in demand in many finance and consulting sector occupations. If you want to pursue an academic career, you will greatly benefit from an early integration into the research community. And of course, you will get flexible working hours and a salary.
What is required?
We are primarily looking for Finance students in their second to fourth year of studies. Completion of a Bachelor's thesis or other relevant experience is a plus. In previous years the majority of our interns have come from Finland, but we have also had interns from abroad, including Bulgaria, China, India, Iran, Nepal, and the United States. First and foremost, we want dedicated people who fit well into our community, who are interested in the financial world and financial research, and who have the potential to develop into excellent researchers.
How can I apply?
Contact Professor Matti Keloharju, tel. +358 40 353 8043, email matti.keloharju@aalto.fi. Include in your application a personal cover letter, CV, and a transcript of your university grades. The application deadline is January 25, 2013.
We are flexible with the starting and ending dates as long as the internship lasts at least two months. The first intern usually arrives in mid-May and the last intern leaves in early September.
How many interns do you hire?
This depends on the strength of the applicant pool and faculty needs. In recent years, we have usually hired on average six interns.
How many applications do you get?
In recent years, we have received 50-100 applications.
When do you process the applications?
We expect the selection process to last for a week or at most two weeks. Interviews will probably take place on week 5.
Which universities do the interns come from?
The vast majority of the interns come from Aalto University. Foreign interns have come from the Indian Institute of Technology, LSE, MIT, Queens University, and Vanderbilt University.
How much do you pay for the interns?
We expect the salary to be 1850 euros per month.
Do you pay for the interns’ travel, possible visa or work permit, or housing?
No. Interns are expected to pay for their own costs. So far, foreign interns have found affordable housing through HOAS.
What is the placement record of the internship program?
Below is an exhaustive list of the first jobs of our interns after graduation (generally with a Master’s degree).
Banking: Deutsche Bank (1), Nomura (1), Nordea (1)
PhD studies: Aalto Univ. (2), Boston College (1), Columbia Univ. (1).
]]>Matti Keloharju's paper accepted in The Review of Financial Studies2012-06-04T11:57:25+00:002012-06-04T11:57:25+00:00http://finance.aalto.fi/en/midcom-permalink-1e1ae3c735820a0ae3c11e1bc2be5f96500da0eda0eAalto-www <verkkotoimitus@aalto.fi>Article “Do investors buy what they know? Product market choices and investment decisions,” by Matti Keloharju, Samuli Knüpfer (London Business School), and Juhani Linnainmaa (Chicago Booth) has been accepted for publication in The Review of Financial Studies.
Abstract This paper shows individuals' product market choices influence their investment decisions. Using microdata from the brokerage and automotive industries, we find a strong positive relation between customer relationship, ownership of a company, and size of the ownership stake. Investors also are more likely to purchase and less likely to sell shares of companies they frequent as customers. These effects are stronger for individuals with longer customer relationships. A merger-based natural experiment supports a causal interpretation of our results. We find weaker causality in the other direction: inheritances and gifts of stocks have only a modest effect on individuals' patronage decisions. A setup in which customer-investors regard stocks as consumption goods, not just as investments, seems to best explain our results.
]]>Article “Do investors buy what they know? Product market choices and investment decisions,” by Matti Keloharju, Samuli Knüpfer (London Business School), and Juhani Linnainmaa (Chicago Booth) has been accepted for publication in The Review of Financial Studies.
Abstract This paper shows individuals' product market choices influence their investment decisions. Using microdata from the brokerage and automotive industries, we find a strong positive relation between customer relationship, ownership of a company, and size of the ownership stake. Investors also are more likely to purchase and less likely to sell shares of companies they frequent as customers. These effects are stronger for individuals with longer customer relationships. A merger-based natural experiment supports a causal interpretation of our results. We find weaker causality in the other direction: inheritances and gifts of stocks have only a modest effect on individuals' patronage decisions. A setup in which customer-investors regard stocks as consumption goods, not just as investments, seems to best explain our results.
]]>Political connections and zoning of ABC service stations2012-05-03T11:41:10+00:002012-05-03T11:41:10+00:00http://finance.aalto.fi/en/midcom-permalink-1e19514e11370f4951411e1ba6321cab336afd8afd8Aalto-www <verkkotoimitus@aalto.fi>Heli Huvinen's Finance Master's thesis “Easy as ABC? Political connections and zoning of service station stores” investigates whether the political connections of the S Group coincide with more favorable zoning decisions for the S Group owned ABC service stations compared to the service stations of their less politically connected peers.
Keywords: ABC, S Group, Service Stations, Zoning Decisions, Political Connections
SUOMEKSI: Poliittiset kytkökset ja ABC-asemien kaavoitus
Heli Huvisen rahoituksen pro gradu “Easy as ABC? Political connections and zoning of service station stores” tutkii S-ryhmän poliittisten kytkösten vaikutuksia ABC-liikennemyymälöiden kaavoituspäätöksissä verrattuna vähemmän poliittisesti kytkeytyneiden kilpailijoiden kaavapäätöksiin.
Avainsanat: ABC, S-ryhmä, liikennemyymälä, kaavoituspäätökset, poliittiset kytkökset
]]>Heli Huvinen's Finance Master's thesis “Easy as ABC? Political connections and zoning of service station stores” investigates whether the political connections of the S Group coincide with more favorable zoning decisions for the S Group owned ABC service stations compared to the service stations of their less politically connected peers.
Keywords: ABC, S Group, Service Stations, Zoning Decisions, Political Connections
SUOMEKSI: Poliittiset kytkökset ja ABC-asemien kaavoitus
Heli Huvisen rahoituksen pro gradu “Easy as ABC? Political connections and zoning of service station stores” tutkii S-ryhmän poliittisten kytkösten vaikutuksia ABC-liikennemyymälöiden kaavoituspäätöksissä verrattuna vähemmän poliittisesti kytkeytyneiden kilpailijoiden kaavapäätöksiin.
Avainsanat: ABC, S-ryhmä, liikennemyymälä, kaavoituspäätökset, poliittiset kytkökset
]]>Matti Keloharju's research discussed in The New York Times2012-02-27T09:47:41+00:002012-02-27T09:47:41+00:00http://finance.aalto.fi/en/midcom-permalink-1e16128177d098c612811e193679f277af688058805Aalto-www <verkkotoimitus@aalto.fi>The New York Times article "What High-I.Q. Investors Do Differently" by Robert Shiller that appeared on February 26, 2012 discusses the results of "IQ and Stock Market Participation" by Mark Grinblatt (UCLA), Matti Keloharju, and Juhani Linnainmaa (Chicago Booth).
The "IQ and Stock Market Participation" article was published in The Journal of Finance December 2011 issue. Download the article as a pdf file.
]]>The New York Times article "What High-I.Q. Investors Do Differently" by Robert Shiller that appeared on February 26, 2012 discusses the results of "IQ and Stock Market Participation" by Mark Grinblatt (UCLA), Matti Keloharju, and Juhani Linnainmaa (Chicago Booth).
The "IQ and Stock Market Participation" article was published in The Journal of Finance December 2011 issue. Download the article as a pdf file.
]]>European Bank Capital Requirement Report2012-01-19T08:02:49+00:002012-01-19T08:02:49+00:00http://finance.aalto.fi/en/midcom-permalink-1e14273faa44488427311e1afdc0963f7347e827e82Aalto-www <verkkotoimitus@aalto.fi>Professor Vesa Puttonen and Finance students Tomi Fyrqvist, Eetu Isto, Jukka Leponen, Teemu Mattila, Markku Tervo, Tuomas Toiviainen, Kaisa Valtanen, and Katrin Vatiska prepared a report on the European Banking Authority's stress test results of European Banks.
]]>Professor Vesa Puttonen and Finance students Tomi Fyrqvist, Eetu Isto, Jukka Leponen, Teemu Mattila, Markku Tervo, Tuomas Toiviainen, Kaisa Valtanen, and Katrin Vatiska prepared a report on the European Banking Authority's stress test results of European Banks.
]]>Finance Summer Internship 20122011-12-07T10:21:24+00:002011-12-07T10:21:24+00:00http://finance.aalto.fi/en/midcom-permalink-1e120bd3740405a20bd11e1a06873a2175abc2bbc2bAalto-www <verkkotoimitus@aalto.fi>Apply for a summer 2012 internship at the Finance Faculty. Application deadline January 27, 2012.
What would I do during the internship?
You would be working with the faculty on scientific research projects during the summer months. Exact dates are flexible. You would participate in data collection and organization for research projects. Literature reviews are another possible job. If you are a good programmer, there are many things where you could contribute. Whatever research-related skills you have, we will try to tailor your work to make the best out of those skills.
What’s in it for me?
As a member of our community, you will have the opportunity to learn research skills on the job. These skills will not only be helpful in your Master’s thesis but are also in demand in many finance and consulting sector occupations. If you want to pursue an academic career, you will greatly benefit from an early integration into the research community. And of course, you will get flexible working hours and a salary.
What is required?
We are primarily looking for Finance students in their second to fourth year of studies. Completion of a Bachelor’s thesis or other relevant experience is a plus. In previous years the majority of our interns have come from Finland, but we have also had interns from abroad, including Bulgaria, China, India, Iran, Nepal, and the United States. First and foremost, we want dedicated people who fit well into our community, who are interested in the financial world and financial research, and who have the potential to develop into excellent researchers.
How can I apply?
Contact Professor Matti Keloharju. Include in your application a personal coverletter, CV, and a transcript of your university grades. The application deadline is January 27, 2012.
We are flexible with the starting and ending dates as long as the internship lasts at least two months. The first intern usually arrives in mid-May and the last intern leaves in early September.
How many interns do you hire?
This depends on the strength of the applicant pool and faculty needs. In recent years, we have usually hired four interns.
How many applications do you get?
Last year we received 100 applications from 20 countries.
When do you process the applications?
We expect the selection process to last for a week or at most two weeks. Interviews will probably take place on week 5.
Which universities do the interns come from?
The vast majority of the interns come from Aalto University. Foreign interns have come from the Indian Institute of Technology, LSE, MIT, Queens University, and Vanderbilt University.
How much do you pay for the interns?
We expect the salary to be 1800 euros per month.
Do you pay for the interns’ travel, possible visa or work permit, or housing?
No. Interns are expected to pay for their own costs. So far, foreign interns have found affordable housing through HOAS.
What is the placement record of the internship program?
Below is an exhaustive list of the first jobs of our interns after graduation (generally with a Master’s degree).
Banking: Deutsche Bank (1), Nomura (1), Nordea (1)
PhD studies: Aalto Univ. (2), Boston College (1), Columbia Univ. (1).
]]>Apply for a summer 2012 internship at the Finance Faculty. Application deadline January 27, 2012.
What would I do during the internship?
You would be working with the faculty on scientific research projects during the summer months. Exact dates are flexible. You would participate in data collection and organization for research projects. Literature reviews are another possible job. If you are a good programmer, there are many things where you could contribute. Whatever research-related skills you have, we will try to tailor your work to make the best out of those skills.
What’s in it for me?
As a member of our community, you will have the opportunity to learn research skills on the job. These skills will not only be helpful in your Master’s thesis but are also in demand in many finance and consulting sector occupations. If you want to pursue an academic career, you will greatly benefit from an early integration into the research community. And of course, you will get flexible working hours and a salary.
What is required?
We are primarily looking for Finance students in their second to fourth year of studies. Completion of a Bachelor’s thesis or other relevant experience is a plus. In previous years the majority of our interns have come from Finland, but we have also had interns from abroad, including Bulgaria, China, India, Iran, Nepal, and the United States. First and foremost, we want dedicated people who fit well into our community, who are interested in the financial world and financial research, and who have the potential to develop into excellent researchers.
How can I apply?
Contact Professor Matti Keloharju. Include in your application a personal coverletter, CV, and a transcript of your university grades. The application deadline is January 27, 2012.
We are flexible with the starting and ending dates as long as the internship lasts at least two months. The first intern usually arrives in mid-May and the last intern leaves in early September.
How many interns do you hire?
This depends on the strength of the applicant pool and faculty needs. In recent years, we have usually hired four interns.
How many applications do you get?
Last year we received 100 applications from 20 countries.
When do you process the applications?
We expect the selection process to last for a week or at most two weeks. Interviews will probably take place on week 5.
Which universities do the interns come from?
The vast majority of the interns come from Aalto University. Foreign interns have come from the Indian Institute of Technology, LSE, MIT, Queens University, and Vanderbilt University.
How much do you pay for the interns?
We expect the salary to be 1800 euros per month.
Do you pay for the interns’ travel, possible visa or work permit, or housing?
No. Interns are expected to pay for their own costs. So far, foreign interns have found affordable housing through HOAS.
What is the placement record of the internship program?
Below is an exhaustive list of the first jobs of our interns after graduation (generally with a Master’s degree).
Banking: Deutsche Bank (1), Nomura (1), Nordea (1)
PhD studies: Aalto Univ. (2), Boston College (1), Columbia Univ. (1).
]]>Esa Jokivuolle's paper accepted in Journal of Financial Stability2011-10-12T10:02:11+00:002011-10-12T10:02:11+00:00http://finance.aalto.fi/en/midcom-permalink-1e0f4b9410af164f4b911e086fec56af6e28f088f08Aalto-www <verkkotoimitus@aalto.fi>“Cyclical default and recovery in stress testing loan losses” by Esa Jokivuolle (Aalto University and Bank of Finland) and Matti Virén (University of Turku and Bank of Finland) was accepted for publication in Journal of Financial Stability.
Abstract We present a macro variable-based empirical model for corporate bank loans' credit risk. The model captures the well-known positive relationship between probability of default (PD) and loss given default (LGD; ie, the inverse of recovery) and their counter-cyclical movement with the business cycle. In the absence of proper micro data on LGD, we use a random-sampling method to estimate the annual average LGD. We specify a two equation model for PD and LGD which is estimated with Finnish time-series data from 1989-2008. We also use a system of time-series models for the exogenous macro variables to derive the main macroeconomic shocks which are then used in stress testing aggregate loan losses. We show that the endogenous LGD makes a considerable difference in stress tests compared to a constant LGD assumption.
]]>“Cyclical default and recovery in stress testing loan losses” by Esa Jokivuolle (Aalto University and Bank of Finland) and Matti Virén (University of Turku and Bank of Finland) was accepted for publication in Journal of Financial Stability.
Abstract We present a macro variable-based empirical model for corporate bank loans' credit risk. The model captures the well-known positive relationship between probability of default (PD) and loss given default (LGD; ie, the inverse of recovery) and their counter-cyclical movement with the business cycle. In the absence of proper micro data on LGD, we use a random-sampling method to estimate the annual average LGD. We specify a two equation model for PD and LGD which is estimated with Finnish time-series data from 1989-2008. We also use a system of time-series models for the exogenous macro variables to derive the main macroeconomic shocks which are then used in stress testing aggregate loan losses. We show that the endogenous LGD makes a considerable difference in stress tests compared to a constant LGD assumption.
]]>Matti Suominen receives AaltoEE best teacher award2011-10-05T07:37:03+00:002011-10-05T07:37:03+00:00http://finance.aalto.fi/en/midcom-permalink-1e0ef24d16cddcaef2411e08198a9db9994c95cc95cAalto-www <verkkotoimitus@aalto.fi>Matti Suominen receives the Thirst for Knowledge Best Teacher of the Year award by Aalto University Executive Education.
]]>Elias Rantapuska new Tenure Track Assistant Professor2011-10-05T07:20:28+00:002011-10-05T07:20:28+00:00http://finance.aalto.fi/en/midcom-permalink-1e0ef228054bdc4ef2211e09e2fa1a5c2229cf59cf5Aalto-www <verkkotoimitus@aalto.fi>
Elias Rantapuska has started as a new tenure track Assistant Professor on Oct 1, 2011. Elias received his D.Sc. (Econ) in 2006 from Helsinki School of Economics. His dissertation on Investor behavior of individual and institutional investors received multiple international and national awards. Elias worked for McKinsey & Company as a management consultant from 2006 to 2010.
Elias Rantapuska has started as a new tenure track Assistant Professor on Oct 1, 2011. Elias received his D.Sc. (Econ) in 2006 from Helsinki School of Economics. His dissertation on Investor behavior of individual and institutional investors received multiple international and national awards. Elias worked for McKinsey & Company as a management consultant from 2006 to 2010.
]]>Sami Torstila’s paper accepted for publication in Journal of International Business Studies2011-09-14T13:17:45+00:002011-09-14T13:17:45+00:00http://finance.aalto.fi/en/midcom-permalink-1e0ded3ef12edb2ded311e0a05a9712a526274f274fAalto-www <verkkotoimitus@aalto.fi>"Cross-border relocations of headquarters in Europe " by Tomi Laamanen (University of St. Gallen), Tatu Simula, and Sami Torstila was accepted for publication in Journal of International Business Studies. Journal of International Business Studies is on the list of 45 journals Financial Times uses to rank business schools, and is currently 3rd by impact factor (4.184) in the Business category of the ISI Journal Citation Reports.
Abstract This paper analyzes the relocations of both corporate and regional headquarters in a multi-country setting. On the basis of a dataset of 52 cross-border headquarters relocations in Europe during 1996-2006, we document an increasing trend towards relocation, push and pull factors affecting headquarters location choice, and catalyzing factors that affect the relocation decision. High taxes and a high employment rate represent push factors that we find to increase the likelihood of headquarters relocation. In particular, at the mean rate of corporate tax, a one percent point increase in tax translates into a 6.8% increase in headquarters relocation likelihood. In contrast, central location and low taxes represent pull factors that increase the attractiveness of the headquarters location. In terms of catalyzing factors, we find that export-oriented companies and regional headquarters have a higher tendency to relocate. As a whole, we extend the existing research by putting forward a conceptual framework of headquarters relocation decisions and by providing novel empirical evidence on the headquarters relocation phenomenon. Our findings contribute to an improved understanding of the determinants of corporate headquarters relocation decisions and provide important tax policy considerations for public policy decision makers in individual European countries and in the European Commission.
]]>"Cross-border relocations of headquarters in Europe " by Tomi Laamanen (University of St. Gallen), Tatu Simula, and Sami Torstila was accepted for publication in Journal of International Business Studies. Journal of International Business Studies is on the list of 45 journals Financial Times uses to rank business schools, and is currently 3rd by impact factor (4.184) in the Business category of the ISI Journal Citation Reports.
Abstract This paper analyzes the relocations of both corporate and regional headquarters in a multi-country setting. On the basis of a dataset of 52 cross-border headquarters relocations in Europe during 1996-2006, we document an increasing trend towards relocation, push and pull factors affecting headquarters location choice, and catalyzing factors that affect the relocation decision. High taxes and a high employment rate represent push factors that we find to increase the likelihood of headquarters relocation. In particular, at the mean rate of corporate tax, a one percent point increase in tax translates into a 6.8% increase in headquarters relocation likelihood. In contrast, central location and low taxes represent pull factors that increase the attractiveness of the headquarters location. In terms of catalyzing factors, we find that export-oriented companies and regional headquarters have a higher tendency to relocate. As a whole, we extend the existing research by putting forward a conceptual framework of headquarters relocation decisions and by providing novel empirical evidence on the headquarters relocation phenomenon. Our findings contribute to an improved understanding of the determinants of corporate headquarters relocation decisions and provide important tax policy considerations for public policy decision makers in individual European countries and in the European Commission.
]]>Matti Suominen's paper accepted for publication in the Journal of Financial and Quantitative Analysis2011-09-02T12:31:18+00:002011-09-02T12:31:18+00:00http://finance.aalto.fi/en/midcom-permalink-1e0d55f74fa4764d55f11e0a2b703bbcec8598c598cAalto-www <verkkotoimitus@aalto.fi>An article "Corporate governance, finance, and the real sector" by Paolo Fulghieri (UNC) and Matti Suominen was accepted for publication in the Journal of Financial and Quantitative Analysis.
Abstract This paper presents a theory of the linkages between corporate governance, corporate finance and the real sector of an economy. We examine a model of industry equilibrium with endogenous entry. We show that poor corporate governance and low investor protection generates less competitive economies, populated by firms with more insider ownership and greater leverage. The quality of the corporate governance system can also affect an economy's industrial structure: better corporate governance promotes the development of sectors more exposed to moral hazard, such as the high-technology industry. We also show that entrepreneurs may have a preference for "extreme" corporate governance systems, where the quality of corporate governance and the level of investor protection are either very high or very low. This suggests that entrepreneurs operating in economies endowed with a corporate governance system of low-quality may have little or no incentive to seek (or to lobby for) an improvement of the governance system of their economy. Finally we show that financial liberalizations facilitate firm entry and the adoption of more productive technologies, promoting economic growth. Our stylized model generates predictions that are consistent with several observed empirical regularities.
]]>An article "Corporate governance, finance, and the real sector" by Paolo Fulghieri (UNC) and Matti Suominen was accepted for publication in the Journal of Financial and Quantitative Analysis.
Abstract This paper presents a theory of the linkages between corporate governance, corporate finance and the real sector of an economy. We examine a model of industry equilibrium with endogenous entry. We show that poor corporate governance and low investor protection generates less competitive economies, populated by firms with more insider ownership and greater leverage. The quality of the corporate governance system can also affect an economy's industrial structure: better corporate governance promotes the development of sectors more exposed to moral hazard, such as the high-technology industry. We also show that entrepreneurs may have a preference for "extreme" corporate governance systems, where the quality of corporate governance and the level of investor protection are either very high or very low. This suggests that entrepreneurs operating in economies endowed with a corporate governance system of low-quality may have little or no incentive to seek (or to lobby for) an improvement of the governance system of their economy. Finally we show that financial liberalizations facilitate firm entry and the adoption of more productive technologies, promoting economic growth. Our stylized model generates predictions that are consistent with several observed empirical regularities.
]]>Markku Kaustia's paper accepted for publication in the Journal of Economic Behavior and Organization2011-06-30T11:14:50+00:002011-06-30T11:14:50+00:00http://finance.aalto.fi/en/midcom-permalink-1e0a30a2c4b059ea30a11e084e263360936da91da91Aalto-www <verkkotoimitus@aalto.fi>An article "The gender effect in risky asset holdings" by Marja-Liisa Halko (Aalto, Economics), Markku Kaustia, and Elias Alanko (OP-Pohjola Group) was accepted for publication in the Journal of Economic Behavior and Organization.
Abstract We study the relation between gender and stock holdings in Finland, a particularly gender equal country. We show that it is crucial to control for risk aversion using a measure of subjective risktaking, rather than measures derived from abstract gambles. Controls related to financial knowledge and resources also explain the gender difference. The residual effect of the male gender on the conditional equity share, after all appropriate controls, is 3 percentage points and statistically significant. The effect on stock market participation on the other hand is close to zero or negative, so men contribute more to the nonparticipation puzzle conditional on covariates. The gender difference mainly works through women’s higher risk aversion, which we find extends to finance professionals and wealthy private banking customers.
]]>An article "The gender effect in risky asset holdings" by Marja-Liisa Halko (Aalto, Economics), Markku Kaustia, and Elias Alanko (OP-Pohjola Group) was accepted for publication in the Journal of Economic Behavior and Organization.
Abstract We study the relation between gender and stock holdings in Finland, a particularly gender equal country. We show that it is crucial to control for risk aversion using a measure of subjective risktaking, rather than measures derived from abstract gambles. Controls related to financial knowledge and resources also explain the gender difference. The residual effect of the male gender on the conditional equity share, after all appropriate controls, is 3 percentage points and statistically significant. The effect on stock market participation on the other hand is close to zero or negative, so men contribute more to the nonparticipation puzzle conditional on covariates. The gender difference mainly works through women’s higher risk aversion, which we find extends to finance professionals and wealthy private banking customers.
]]>Matti Keloharju's paper accepted for publication in the Journal of Financial Economics2011-06-20T15:42:10+00:002011-06-20T15:42:10+00:00http://finance.aalto.fi/en/midcom-permalink-1e09b53dc94f2489b5311e09fc92999b08f97ec97ecAalto-www <verkkotoimitus@aalto.fi>Article "IQ, trading behavior, and performance" by Mark Grinblatt (UCLA), Matti Keloharju and Juhani Linnainmaa (Chicago Booth) has been accepted for publication in the Journal of Financial Economics.
Abstract We analyze whether IQ influences trading behavior, performance, and transaction costs. The analysis combines equity return, trade, and limit order book data with two decades of scores from an intelligence test administered to nearly every Finnish male of draft age. Controlling for a variety of factors, we find that high-IQ investors are less subject to the disposition effect, more aggressive about tax-loss trading, and more likely to supply liquidity when stocks experience a one-month high. High-IQ investors also exhibit superior market timing, stock-picking skill, and trade execution.
]]>Article "IQ, trading behavior, and performance" by Mark Grinblatt (UCLA), Matti Keloharju and Juhani Linnainmaa (Chicago Booth) has been accepted for publication in the Journal of Financial Economics.
Abstract We analyze whether IQ influences trading behavior, performance, and transaction costs. The analysis combines equity return, trade, and limit order book data with two decades of scores from an intelligence test administered to nearly every Finnish male of draft age. Controlling for a variety of factors, we find that high-IQ investors are less subject to the disposition effect, more aggressive about tax-loss trading, and more likely to supply liquidity when stocks experience a one-month high. High-IQ investors also exhibit superior market timing, stock-picking skill, and trade execution.
]]>Karolin Kirschenmann new Assistant Professor of Finance2011-04-11T07:16:16+00:002011-04-11T07:16:16+00:00http://finance.aalto.fi/en/midcom-permalink-1e0640b975ff24c640b11e091cfeb606a232bed2bedAalto-www <verkkotoimitus@aalto.fi>
Aalto University Finance department is pleased to welcome Karolin Kirschenmann to the position of Assistant Professor of Finance. She will receive her PhD in Finance from the University of Heidelberg in Spring 2011, and move to Aalto Finance in August 2011.
Karolin's research is focused on empirical corporate finance, financial intermediation, banking and financial institutions.
For more information, please, visit Karolin's homepage.
]]>
Aalto University Finance department is pleased to welcome Karolin Kirschenmann to the position of Assistant Professor of Finance. She will receive her PhD in Finance from the University of Heidelberg in Spring 2011, and move to Aalto Finance in August 2011.
Karolin's research is focused on empirical corporate finance, financial intermediation, banking and financial institutions.
For more information, please, visit Karolin's homepage.
]]>Markku Kaustia's paper accepted for publication in the Journal of Financial Economics2011-01-25T18:06:09+00:002011-01-25T18:06:09+00:00http://finance.aalto.fi/en/midcom-permalink-1e0442e96139d14442e11e098bea95f023f026d026dAalto-www <verkkotoimitus@aalto.fi>Article "Peer performance and stock market entry" by Markku Kaustia and Samuli Knüpfer (LBS) has been accepted for publication in the Journal of Financial Economics.
Abstract Peer performance can influence the adoption of financial innovations and investment styles. We present empirical evidence of this type of social influence: recent stock market returns that local peers experience strongly influence an individual's stock market entry decision. This effect is limited to positive returns that encourage entry, whereas negative returns do not make entry less likely. Market returns, media coverage, returns on locally held stocks, omitted local variables, and stock purchases within households do not drive our results. This type of social influence may partly explain, among other things, why participation rates tend to sharply increase in times of high market returns.
]]>Article "Peer performance and stock market entry" by Markku Kaustia and Samuli Knüpfer (LBS) has been accepted for publication in the Journal of Financial Economics.
Abstract Peer performance can influence the adoption of financial innovations and investment styles. We present empirical evidence of this type of social influence: recent stock market returns that local peers experience strongly influence an individual's stock market entry decision. This effect is limited to positive returns that encourage entry, whereas negative returns do not make entry less likely. Market returns, media coverage, returns on locally held stocks, omitted local variables, and stock purchases within households do not drive our results. This type of social influence may partly explain, among other things, why participation rates tend to sharply increase in times of high market returns.
]]>Matti Keloharju's paper accepted for publication in the Journal of Finance2010-12-21T18:14:29+00:002010-12-21T18:14:29+00:00http://finance.aalto.fi/en/midcom-permalink-1e0442fc02845fe442f11e0b214b321d12b5a6a5a6aAalto-www <verkkotoimitus@aalto.fi>Article "IQ and stock market participation" by Mark Grinblatt (UCLA), Matti Keloharju, and Juhani Linnainmaa (U Chicago) has been accepted for publication in the Journal of Finance.
Abstract Stock market participation is monotonically related to IQ, controlling for wealth, income, age, and other demographic and occupational information. The high correlation between IQ, measured early in adult life, and participation, exists even among the affluent. Supplemental data from siblings, studied with an instrumental variables approach and regressions that control for family effects, demonstrate that IQ’s influence on participation extends to females and does not arise from omitted familial and non-familial variables. High-IQ investors are more likely to hold mutual funds and larger numbers of stocks, experience lower risk, and earn higher Sharpe ratios. We discuss implications for policy and finance research.
Information: Download the article here. (The internet appendix of additional results referred to available here)
]]>Article "IQ and stock market participation" by Mark Grinblatt (UCLA), Matti Keloharju, and Juhani Linnainmaa (U Chicago) has been accepted for publication in the Journal of Finance.
Abstract Stock market participation is monotonically related to IQ, controlling for wealth, income, age, and other demographic and occupational information. The high correlation between IQ, measured early in adult life, and participation, exists even among the affluent. Supplemental data from siblings, studied with an instrumental variables approach and regressions that control for family effects, demonstrate that IQ’s influence on participation extends to females and does not arise from omitted familial and non-familial variables. High-IQ investors are more likely to hold mutual funds and larger numbers of stocks, experience lower risk, and earn higher Sharpe ratios. We discuss implications for policy and finance research.
Information: Download the article here. (The internet appendix of additional results referred to available here)
]]>Matti Keloharju won the EFA 2010 Best Conference Paper Award2010-09-06T17:22:20+00:002010-09-06T17:22:20+00:00http://finance.aalto.fi/en/midcom-permalink-1e04430d8aaf9fe443011e0a246fdfe35c456c656c6Aalto-www <verkkotoimitus@aalto.fi>Professor Matti Keloharju has won the Best Conference Paper Award at the 2010 European Finance Association Meeting in Frankfurt. The title of the winning paper is “Do Smart Investors Outperform Dumb Investors?” and it is a joint work with Professors Mark Grinblatt (University of California in Los Angeles) and Juhani Linnainmaa (University of Chicago).
The Best Paper Award is the highest distinction awarded for an academic paper during this prestigious conference. More than 1,300 manuscripts were submitted to the conference, 220 were selected to its program, and three papers were awarded the Best Paper Prize.
The awarded paper is the first to uncover a direct link between cognitive ability and investment performance. Combining data from ability tests performed by the military with trading records of 87,000 investors, the paper finds that smart investors’ purchases are informative about future stock price movements. The influence of ability on stock-picking skill is particularly strong for returns measured two days after the trade, when the purchases of the smartest investors outperform the purchases of their below-average ability peers at an annualized rate of about 11% per year. High ability investors’ purchases earn superior and significant returns up to one month in the future. The performance of smart investors’ sell transactions does not differ significantly from that of their lower-ability peers.
]]>Professor Matti Keloharju has won the Best Conference Paper Award at the 2010 European Finance Association Meeting in Frankfurt. The title of the winning paper is “Do Smart Investors Outperform Dumb Investors?” and it is a joint work with Professors Mark Grinblatt (University of California in Los Angeles) and Juhani Linnainmaa (University of Chicago).
The Best Paper Award is the highest distinction awarded for an academic paper during this prestigious conference. More than 1,300 manuscripts were submitted to the conference, 220 were selected to its program, and three papers were awarded the Best Paper Prize.
The awarded paper is the first to uncover a direct link between cognitive ability and investment performance. Combining data from ability tests performed by the military with trading records of 87,000 investors, the paper finds that smart investors’ purchases are informative about future stock price movements. The influence of ability on stock-picking skill is particularly strong for returns measured two days after the trade, when the purchases of the smartest investors outperform the purchases of their below-average ability peers at an annualized rate of about 11% per year. High ability investors’ purchases earn superior and significant returns up to one month in the future. The performance of smart investors’ sell transactions does not differ significantly from that of their lower-ability peers.
]]>Kaustia and Puttonen won Emerald Management Reviews Citation of Excellence award2010-07-13T17:40:20+00:002010-07-13T17:40:20+00:00http://finance.aalto.fi/en/midcom-permalink-1e044335c20cdde443311e0851a0b821c6cb4e7b4e7Aalto-www <verkkotoimitus@aalto.fi>Markku Kaustia, Heidi Laukkanen and Vesa Puttonen won the Emerald Management Reviews Citation of Excellence award for their article "Should good stocks have high prices or high returns?" published in Financial Analysts Journal in 2009.
Emerald Management Reviews Citation of Excellence is awarded to the 50 best articles published in 2009 and covered by the Emerald Management Reviews. Emerald Management Reviews is an abstracting and indexing database that covers every article in the top 400 business and management journals world-wide such as American Economic Review, Harvard Business Review, Journal of Finance, Journal of Marketing, Strategic Management Journal and Administrative Science Quarterly. The top 50 articles were selected from 15,000 articles reviewed by Emerald throughout 2009.
Using a design involving a between-subjects experimental manipulation, this study surveyed 742 Finnish financial advisers about requiring a risk premium in one mode and about expected returns in the other mode. Company-level risk factors (e.g., leverage) caused an increased return requirement in the first mode but led to lower return expectations in the second mode. Sensitivity to the form of the question revealed an inconsistency in the advisers’ perception of risk and return. Advisers seemed to associate safe stocks with relatively lower discount rates (and thus higher valuations), but also with higher return expectations. This inconsistency may contribute to the overpricing and subsequent inferior performance of glamour stocks. Giving consistent advice is a necessary condition for providing valuable client service.
Citation
Kaustia, Markku, Heidi Laukkanen, and Vesa Puttonen, 2009, "Should good stocks have high prices or high returns?", Financial Analysts Journal 65, No. 3 (May/June), 55-62.
]]>Markku Kaustia, Heidi Laukkanen and Vesa Puttonen won the Emerald Management Reviews Citation of Excellence award for their article "Should good stocks have high prices or high returns?" published in Financial Analysts Journal in 2009.
Emerald Management Reviews Citation of Excellence is awarded to the 50 best articles published in 2009 and covered by the Emerald Management Reviews. Emerald Management Reviews is an abstracting and indexing database that covers every article in the top 400 business and management journals world-wide such as American Economic Review, Harvard Business Review, Journal of Finance, Journal of Marketing, Strategic Management Journal and Administrative Science Quarterly. The top 50 articles were selected from 15,000 articles reviewed by Emerald throughout 2009.
Using a design involving a between-subjects experimental manipulation, this study surveyed 742 Finnish financial advisers about requiring a risk premium in one mode and about expected returns in the other mode. Company-level risk factors (e.g., leverage) caused an increased return requirement in the first mode but led to lower return expectations in the second mode. Sensitivity to the form of the question revealed an inconsistency in the advisers’ perception of risk and return. Advisers seemed to associate safe stocks with relatively lower discount rates (and thus higher valuations), but also with higher return expectations. This inconsistency may contribute to the overpricing and subsequent inferior performance of glamour stocks. Giving consistent advice is a necessary condition for providing valuable client service.
Citation
Kaustia, Markku, Heidi Laukkanen, and Vesa Puttonen, 2009, "Should good stocks have high prices or high returns?", Financial Analysts Journal 65, No. 3 (May/June), 55-62.
