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A Technological Construction of Society: Comparing GPT-4 and Human Respondents for Occupational Evaluation in the UK
Get PDFDespite initial research about the biases and perceptions of large language models (LLMs), we lack evidence on how LLMs evaluate occupations, especially in comparison to human evaluators. In this paper, we present a systematic comparison of occupational evaluations by GPT-4 with those from an in-depth, high-quality and recent human respondents survey in the UK. Covering the full ISCO-08 occupational landscape, with 580 occupations and two distinct metrics (prestige and social value), our findings indicate that GPT-4 and human scores are highly correlated across all ISCO-08 major groups. At the same time, GPT-4 substantially under- or overestimates the occupational prestige and social value of many occupations, particularly for emerging digital and stigmatized or illicit occupations. Our analyses show both the potential and risk of using LLM-generated data for sociological and occupational research. We also discuss the policy implications of our findings for the integration of LLM tools into the world of work.publishedVersio
Auditors and client investment efficiency: a quasi-replication and further insights from a regulatory change
Get PDFThis study is a quasi-replication and extension of Bae et al. (Account Rev 92(2):19– 40, 2017), which examines the relationship between auditors’ characteristics and their audit clients’ investment efficiency. Whereas Bae et al. (Account Rev 92(2):19–40, 2017) use U.S. public firm data, we draw a more general picture by using both public and private firm data from Norway. Overall, the results for Norwegian public and private firms are in line with those Bae et al. (Account Rev 92(2):19–40, 2017) find for public U.S. firms. That is, audit clients invest more efficiently if their auditors have more knowledge and resources, measured by auditor market shares or whether a Big N audit firm performs the audit. Further, an auditor’s influence on its client’s investment efficiency is more pronounced when clients have a higher demand for information, proxied by client complexity. Finally, exploiting a regulatory change in 2011 that allowed small private Norwegian firms to opt out of previously mandatory auditing, we extend the study by Bae et al. (Account Rev 92(2):19–40, 2017). We find that audits can increase investment efficiency for small private firms. Specifically, firms that dismiss their auditors tend to overinvest more than similar firms that are not eligible to opt out of auditing. Further, firms that voluntarily keep their auditor have an overall higher investment efficiency than similar firms that are not audited.Auditors and client investment efficiency: a quasi-replication and further insights from a regulatory changepublishedVersio
Herd Behavior in Asian Stock Markets: A Meta-Analysis
No full textMasteroppgave(MSc) in Master of Science in Business - Handelshøyskolen BI, 2024The thesis examines herd behavior in Asian stock markets through a meta-analytical approach to understand its manifestation during financial crises compared to normal conditions. The focus on Asian markets is relevant due to their significant growth and diverse economic and regulatory landscapes.
The study delves into herd behavior, defined as investors following others' trades rather than using independent analysis. This behavior often leads to market inefficiencies and contradicts the Efficient Market Hypothesis. It integrates behavioral finance theories to provide a comprehensive understanding of market dynamics.
A systematic meta-analysis was conducted, rigorously selecting empirical studies on Asian markets to ensure a robust analysis. The findings reveal that herd behavior is widespread across all Asian stock markets, though its intensity varies among different exchanges and is influenced by local conditions and regulations. Notably, herd behavior intensifies during periods of high volatility, such as financial crises, driven by heightened uncertainty and risk.
The thesis highlights the complexity of financial markets and challenges traditional theories by demonstrating the significant impact of herd behavior. It advocates for nuanced financial regulation and informed investor strategies to enhance market stability and efficiency. The insights could assist in developing policies to mitigate risks associated with herd behavior and improve investment decisions, especially during market stress.
Overall, the thesis enriches the understanding of market dynamics in Asian contexts, offering valuable insights for investors, policymakers, and academics focused on financial market behavior and regulation
Does the EU Emissions Trading System Influence the Valuation of European Firms
Get PDFMasteroppgave(MSc) in Master of Science in Sustainable Finance, Handelshøyskolen BI, 2024This thesis investigates the impact of the European Union Emissions Trading System (EU ETS) on the firm value of companies listed on the STOXX 600 Europe index, using Tobin’s Q as the valuation metric. Covering the period from 2012 to 2022, the research spans the three latter phases of the EU ETS, focusing on 827 firms. EU Allowance (EUA) prices are used as the primary independent variable to assess the influence of the EU ETS, complemented by various financial indicators to make the results more accurate. The empirical results indicate that while the EU ETS correlates positively with the broader European market, it has a distinctly negative impact on firms directly subject to the system. This trend is more pronounced when considering the costs of emissions and the volatility of EUA prices. After the introduction of the Market Stability Reserve (MSR) in 2019, subject firms are shown to decrease in value compared to the wider market. Furthermore, the study relates the empirical findings to the possibility of asset stranding induced by a stringently evolving ETS. These findings underscore the need for policies that facilitate a transition to a low-carbon economy, supporting industries in mitigating financial risks associated with environmental compliance
How can companies in the oil industry form and implement better crisis management strategies within industrial crises by learning from BP's Deepwater Horizon's oil spill?
Get PDFMasteroppgave(MSc) in Master of Science in Business, Strategy - Handelshøyskolen BI, 2024By answering this research question: “How can companies in the oil industry form and implement better crisis management strategies within industrial crises by learning from BP’s Deepwater Horizon oil spill?”; we delve into the aftermath of one of the most significant disasters in the oil industry's recent history. The Deepwater Horizon oil spill, which took place on April 20, 2010, shook the industry to its core as millions of barrels of crude oil were spread into the Gulf of Mexico over 87 days, leaving behind a trail of environmental devastation and economic repercussions.
This research seeks to dissect the crisis management strategies deployed during the Deepwater Horizon disaster and to extract valuable insights that could fortify future crisis responses within the oil sector. It wishes to study the impact of this crisis on the oil industry’s risk and crisis management strategies and to form best practice advice.
It takes a qualitative approach, focusing on a single case study methodology enriched by primary data from expert interviews and secondary data from media reports, official documents, organizational responses, and scholarly literature. Through this lens, the thesis traces the evolution of crisis management strategies in the oil industry and assesses their relevance to the industry's resilience.
The study underscores several critical findings. First and foremost, it emphasises the imperative of risk management—a proactive stance that anticipates and prepares for potential crises before they materialize. Second, effective communication emerges as another cornerstone, both internally within the company and externally with stakeholders and the broader public. Furthermore, the research underscores the pivotal role of stakeholder engagement in crisis mitigation and resolution. Lastly, it advocates for the development and implementation of comprehensive crisis management plans tailored to the unique challenges of the oil industry.
Ultimately, the thesis elaborates on a culture of learning from past mistakes to bolster preparedness and response capabilities within the oil sector. By assimilating the lessons gleaned from the Deepwater Horizon disaster, companies can fortify their resilience and minimize the impact of future industrial crises
The Robustness of Betting Against Beta: Implications of Portfolio Weights and Skewness Risk
Get PDFMasteroppgave(MSc) in Master of Science in Finance/Master of Science in Quantitative Finance - Handelshøyskolen BI, 2024This thesis examines the robustness of the factors introduced by
Frazzini and Pedersen (2014) and Asness et al. (2020) evaluating
their performance since 2012. Further, we compare the effects of
rank-weighted versus value-weighted portfolios. Lastly, we investigate
whether the return of the Betting Against Beta factor could
be explained by skewness which is derived from OTM equity options.
This analysis aims to provide insights into the robustness,
performance, and validity of the Betting Against Beta components
Solving a real-life multi-skill resource-constrained multi-project scheduling problem
Get PDFThis paper addresses a multi-skill resource-constrained multi-project scheduling problem (MSRCMPSP) with different types of resources and complex industrial constraints, which originates from SNCF heavy maintenance factories. Two objective functions, that have been rarely addressed in the literature, are independently considered: (i) Minimization of the sum of the weighted tardiness of the projects and (ii) Minimization of the sum of the weighted duration of the projects. A time-indexed mixed-integer linear programming model is presented with both resource assignment and capacity constraints. To solve large instances with several thousand activities, a new memetic algorithm combining a novel hybrid simulated genetic algorithm with a simulated annealing is implemented. The memetic algorithm is compared with popular solution approaches. Computational experiments conducted on real instances and benchmark instances validate the efficiency of the proposed algorithm.publishedVersio
Examining the relationship between leverage and implied volatility in the Oslo stock exchange
Get PDFBacheloroppgave i Økonomi og administrasjon fra Handelshøyskolen BI, 2024This thesis investigates the relationship between the leverage of Norwegian companies and the implied volatility of their stock options. Implied volatility reflects market expectations of future stock price fluctuations and is a key factor in option pricing. This thesis examines whether companies with higher leverage levels exhibit higher implied volatility, suggesting greater perceived risk by investors. A reduced form linear regression specification was conducted to explore this relationship. The analysis employed data on Norwegian companies, including leverage ratios and corresponding implied volatilities on a quarterly interval from Q1 2014 to Q4 2023. The results of the analysis yielded no consistent correlation between leverage and implied volatility. This suggests that market participants may not place a substantial emphasis on debt ratios when assessing risk in a quarterly timeframe. Potential explanations for the findings and their implications in relation to previous empirical evidence are discussed to provide a nuanced perspective
Norconsult : Situasjonsanalyse av CRM
No full textBacheloroppgave i Økonomi og administrasjon fra Handelshøyskolen BI, 2024Norconsult, Nordens største tverrfaglige rådgiver selskap, har hatt suksess med å implementere et Customer Relationship Management (CRM)-system for å optimalisere anbudsprosessen. Microsoft Dynamics 365, løsningen Norconsult bruker, har bidratt til å forenkle prosesser og forbedre håndtering av kunderelasjoner. Ved Norconsult sitt tilfelle har CRM gitt betydelig innsikt til oppdragsmuligheter og håndtering av kunderespons, noe som har resultert i bedre innsikt i kundens behov og etterspørsel. Deretter utformet vi følgende problemstilling:
Hvordan kan bruken av eksisterende CRM-system optimaliseres internt i Norconsult?
Gjennom vår analyse av Norconsults CRM-bruk har vi tatt i bruk både kvalitative og kvantitative metoder. Funnene som har blitt gjort tilsier at selskapet kan dra nytte av å utvide bruken av CRM-systemet til flere faser av prosjektstyringen. Flere investeringer rundt teknologi sektoren som systemtilpasning og brukeropplæring, vil på lang sikt gi betydelige fordeler rundt ressursutnyttelse, økt innsikt og effektiv prosjektgjennomføring.
Resultatene av analysen som er gjennomført tilsier at opplæring i CRM-systemet har variasjon blant ansatte, noe som viser behov for mer strukturert og obligatorisk opplæring. Målet er å sikre at alle ansatte som bruker CRM har nødvendig kunnskap og kompetanse til å bruke CRM-systemet effektivt, og dermed maksimere potensialet som ligger i systemet.
Konkludert har Norconsult lagt et solid grunnlag for vellykket CRM-bruk, men i den størrelse og omfang de opererer på er det alltid rom for forbedringer. Ved å legge fokus på en tydeligere implementering i rammeverket, obligatorisk opplæring og en bredere bruk av CRM vil dette kunne styrke effektiviteten og bruken i selskapet
Systematic Correlations and Municipal Bond Yields
Get PDFMasteroppgave(MSc) in Master of Science in Finance - Handelshøyskolen BI, 2024This study analyzes the impact of a local state’s systematic risk exposure on tax-adjusted municipal bond yields in the United States. We generate a proxy for the area’s systematic exposure, which we refer to as the state beta, and examine its effect on yields with various controls for corporate bond factors, remaining maturities, states, and macroeconomic conditions. We find that the state beta demonstrates a statistically significant effect on yield primarily in medium to long remaining maturity bonds. However, we find evidence that the systematic exposure of the state is likely non-time varying as seen by a reduced effect after controlling for state-fixed effects