NHH Brage (Norges Handelshøyskole)
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Innovation Under Pressure: How Covid-19 Affected Corporate Venture Capital Investment Patterns
Full text linkCorporate Venture Capital (CVC) has been attracting heightened global attention as a distinctive mechanism for accessing novel ideas and innovative opportunities through minority-share investments in startups. Entrepreneurship and innovation are important drivers of economic growth, with corporate venture capital playing a key role in fostering innovation through funding and resources. Economic shocks like the Covid-19 pandemic disrupt financing and innovation, creating both challenges and opportunities. Understanding how CVC investment patterns changed during this period is essential, especially in Europe, where addressing the innovation gap is increasingly critical.
In this explanatory study, we investigate how the investment activity of the CVC segment is affected by the external shock caused by the pandemic. Then, we examine how the investment patterns in terms of industry diversification and geography diversification change as a result of the Covid-19 crisis. Our findings imply that the CVC units increase their investment activity as a result of the pandemic, which support the evidence of existing literature regarding external shocks. Following, the results of the analyses regarding diversification show that the CVCs diversify more in terms of industry and geography as a result of the Covid-19 crisis, which also coincide with existing literature. This research seeks to enhance the understanding of CVC units’ investment behavior during the pandemic crisis, highlighting its critical role in fostering innovation and driving economic growth
The Role of Committed Investors in Initial Public Offerings
Full text linkThis thesis investigates the effect committed investors have on the long-term performance of IPOs in the Scandinavian market. Specifically, it explores whether cornerstone investors reduce uncertainty by certifying firm quality and whether strategic investors additionally influence IPO performance through active involvement. The research contains a sample of 346 IPOs from 2014 to 2024 across Norway, Sweden, and Denmark. The aftermarket performance is measured using Buy-and-Hold Abnormal Returns (BHAR) over 6 months, 1 year, and 2 years. Multivariate regression models are used to evaluate the effects of the committed investors while controlling for firm-, issue- and market-specific variables. The analysis finds limited evidence of a relationship between committed investors and long-term IPO performance. The results suggest that the certification effect from cornerstone investors diminishes over time, while the impact from strategic investors appears to have limited influence within the time horizon analyzed. Although not consistently significant, the results suggest that committed investors have a greater impact on smaller companies and that their influence varies based on their allocation size. Additionally, we find that periods of high IPO issuance significantly lower aftermarket performance, highlighting the influence of broader market conditions and trends. This thesis contributes to the literature by offering insights into the role of committed investors in the Scandinavian equity market. To the best of our knowledge, this is the first study to examine the role of strategic investors and their potential value-added effect on Scandinavian IPOs. The research highlights the region-specific dynamics of investor involvement and provides practical insight for issuers, investors and policymakers
Beyond the Buyout: How Private Equity Ownership Impacts Norwegian Companies
Full text linkPrivate equity (PE) has experienced remarkable growth in the past decade, with its share of the global public equity market rising from 4% in 2010 to 9% in 2022. This trend is also evident in Norway, where PE investments have grown significantly. This expansion raises questions about how PE buyouts impact the companies they acquire.
This thesis examines the effects of PE buyouts on the growth, profitability, productivity, and capital structure of Norwegian companies, focusing on short- and medium-term impacts. The analysis is based on 160 buyout deals for the short-term and 123 for the medium-term horizon, using data from Argentum Fondsforvaltning, Orbis, and SDC Platinum, combined with accounting data from Norwegian Corporate Accounts. We apply propensity score matching and a difference-in-differences framework to compare PE-backed firms with similar non-PE-backed firms.
The results show that PE ownership drives significant growth. Over four years, sales grow 20.3%, assets 38.5%, and employment 25.4% more than in comparable firms. However, this growth comes at the expense of short-term profitability, with ROA declining in the first two years after the buyout. Productivity metrics, such as revenue per employee, show no significant improvement, suggesting a focus on growth rather than efficiency. Over time, profitability begins to recover, following a J-curve pattern as initial investments mature. The leverage increases by 38.8%, while the equity ratio remains stable, indicating that additional debt is used to finance growth rather than replace equity.
This study helps to understand the role of PE in value creation, particularly in the Norwegian market. The findings differ from earlier research, which emphasize cost-cutting as main drivers of profitability. Instead, they align with more recent studies that show that modern PE buyouts are shifting toward growth-focused strategies, such as scaling operations and increasing revenue
Project Finance in Renewable Energy Projects - An empirical study on hydropower and wind power projects in Norway from 2010 to 2023
Full text linkThis thesis explores the financing mechanisms behind renewable energy projects in Norway, focusing on the distinction between project finance (PF) vs. corporate finance (CF). Using a dataset of 75 renewable energy projects from 2010-2023, the study examines the factors influencing financing choices in a market dominated by hydropower and financially robust domestic utilities that favor CF. However, PF plays a significant role in large-scale wind power projects, particularly those involving foreign sponsors. By drawing on economic and financial theories alongside insights from prior research on Germany (Steffen, 2018), this study provides a comparative perspective to understand the drivers and limitations of PF in a stable, low-risk market like Norway.
Employing a Generalized Linear Model with a logit function, the thesis analyzes key factors influencing the choice between PF and CF. The findings challenge traditional drivers of PF, such as contamination risk and agency conflicts, showing that these factors are not decisive in Norway’s market. Instead, the financial strength and experience of Norwegian utilities enable them to rely on CF, even for larger wind power projects, by absorbing risks directly without the need for complex PF structures. However, PF remains relevant for high-risk wind projects sponsors by foreign utilities, where it mitigates information asymmetry and shields sponsors from liabilities through SPVs.
The findings highlight Norway’s unique energy landscape, where stable market conditions, public financing mechanism, and robust institutional frameworks favor CF. Nonetheless, PF plays critical role in managing risks for specific projects, particularly those involving foreign sponsors and financial investors. The research underscores the importance of contextual factors, such as market stability and sponsor capacity, over traditional PF drivers like project size or ownership structure. These findings contribute to a broader understanding of renewable energy financing in mature, low-risk markets and provide a foundation for future comparative studies
Diversity in Upper Echelon Positions and Its Influence on Corporate Sustainability Behaviors
Full text linkThis thesis presents a systematic literature review that examines the impact of diversity in top echelon positions on corporate sustainability, consolidating fragmented research and establishing a future research agenda for this evolving field. Unlike previous reviews that have predominantly focused on singular aspects of diversity or specific sustainability outcomes, this study adopts a broader perspective, integrating multiple dimensions of diversity—such as gender, age, nationality, educational background, and functional expertise—and their complex interactions with various sustainability dimensions, including sustainable performance, sustainable innovation, sustainability reporting and more.
A total of 54 publications, sourced from the Scopus database, were analyzed using an inductive qualitative approach. The findings indicate that diversity in top management is generally associated with enhanced sustainability practices and behaviors. However, variations in outcomes are observed, influenced by factors such as industry context, cultural and institutional settings, and the presence of critical mass in leadership teams.
This review identifies significant research gaps, including underexplored dimensions of diversity such as disabilities, gender identity, and socioeconomic background, as well as the limited geographic and industry-specific scope of existing studies. Recommendations for future research include expanding the range of diversity dimensions studied, incorporating qualitative methodologies, and examining underrepresented regions and sectors. By offering a comprehensive synthesis of existing knowledge and highlighting underexplored areas, this thesis contributes to both academic literature and practical applications in corporate governance and sustainability leadership
Fra partilojalitet til bærekraft
Full text linkFormålet med denne utredningen har vært å undersøke hvorvidt politiske partier har en innvirkning på velgeres holdninger til elbiler i Norge, Tyskland og Danmark. Ettersom transportsektoren står for store CO2 utslipp, er det relevant å undersøke hvilke faktorer som bidrar mest i den grønne omstillingen til elbiler. Basert på dette er det utviklet tre forskningsspørsmål, med tilhørende multiple regresjonsmodeller.
Det første forskningsspørsmålet undersøker hvordan politisk tilhørighet, representert av hvilket parti velgere stemmer på, korrelerer med holdninger til elbiler. Det andre undersøker hvordan partienes plasseringer på de ideologiske dimensjonene GALTAN og LRECON, korrelerer med velgernes holdninger. Det tredje undersøker hvordan andre underdimensjoner, som partiers fokus på urbane eller rurale områder (Urban-rural), korrelerer med velgernes elbilholdninger. Regresjonsmodellene er kjørt separat for hvert enkelt land, med omtrent 1 100 observasjoner i hver. Data for de ideologiske dimensjonene er komplimentert av Chapel Hill Expert Survey, da dette gir et mer nyansert bilde av hvilke aspekter ved partiene som har betydning for velgernes holdninger til elbiler.
Funnene indikerer at typisk grønne partier har en signifikant positiv sammenheng med elbilholdninger for samtlige av landene, mens typisk konservative partier har en negativ sammenheng. Vi finner ikke bevis for at LRECON har en signifikant påvirkning i noen av landene. En endring fra 0 til 10 på GALTAN-skalaen reduserer holdninger til elbiler med over et halvt nivå (-0,63) i Norge, og under et halvt nivå i Tyskland (-0,37) og Danmark (-0,23), på en Likert-skala fra -2 til 2, hvor -2 er veldig negativ til elbiler og 2 er veldig positiv. Enkelte underdimensjoner, som Urban-rural, er kontekstavhengig og bare signifikant i spesifikke land. Andre, som Environment, er derimot signifikant i alle tre land. Funnene viser hvordan politiske preferanser er korrelert med holdninger til elbiler. Dette kan bidra til en dypere forståelse av de politiske forutsetningene for en vellykket overgang til bærekraftig transport.
GALTAN er en politisk skala der GAL står for grønne, alternative og liberale verdier, mens TAN representerer tradisjonelle, autoritære og nasjonalistiske verdier. Lav skår indikerer en konservativ og autoritær orientering, mens høy skår reflekterer progressive og liberale holdninger (Jolly et al., 2022).
LRECON beskriver hvor partier plasserer seg på en tradisjonell økonomisk venstre-høyre-akse. Lav skår indikerer venstreorienterte økonomiske verdier som omfordeling og sterk velferdsstat, mens høy skår reflekterer høyreorienterte økonomiske verdier som frie markeder og lavere skatter (Jolly et al., 2022)
Echoes of Exuberance? Detecting Bubble Patterns in AI through the Lens of Dot-Com
Full text linkThis thesis explores the predictive capabilities of machine learning models in identifying speculative financial bubbles, with the focus on emerging technologies such as the internet and artificial intelligence. The thesis seeks to draw parallels between the dotcom bubble following the exuberance of the late 1990s internet boom and the current AI-driven market excitement. The goal is to investigate whether machine learning models trained on overpriced stocks during the dotcom bubble can detect bubble patterns in AI companies of the present.
The study employs diverse machine learning algorithms including LASSO logistic regression, random forest, gradient boosting, and support vector machines. The models are trained on firm-level data retrieved from the databases CRSP, Compustat and IBES. Key financial indicators and analyst sentiment data are incorporated to ensure the capture of the
complex dynamics of stock valuation during speculative phases. Furthermore, the bubble indicators are classified through the Generalized Supremum Augmented Dickey-Fuller (GSADF) test, an econometric tool for identifying periods of explosive price growth.
The findings highlight the complexities of bubble-prediction, which proves to be a challenging endeavor. The findings highlight the ongoing expansion for AI firms, but the lack of true labels creates a challenge in terms of making any conclusion. Our findings show signs of speculative tendencies, and whether these reflect rational optimism in a growth-oriented market or are based on over-optimism will only be proved in time. Our findings should therefore be considered a sign of caution, rather than a conclusion.
By applying machine learning in bubble prediction on a company level, this thesis contributes a new angle to the growing field of financial- and bubble prediction. Also, by applying the GSADF test on individual stocks rather than entire indexes, as previously done in the literature, we explore the tests applicability in terms of detecting periods of explosive growth on a smaller scale. These findings might provide practical insights for further research into this complicated field of bubble detection
Win-win or lose-win? Economic-climatic synergies and trade-offs in dual-purpose cattle systems
Full text linkCONTEXT Researchers have identified numerous strategies to improve economic performance and reduce greenhouse gas (GHG) emission intensity in combined milk and beef production on dairy farms. However, there remains a need to better understand how the effectiveness of these strategies varies under different operational conditions. OBJECTIVE This study aims to examine how the economic and GHG emission intensity mitigation effectiveness of increased milk yield, extended longevity of dairy cows, reduced age at first calving, and intensified beef production from bulls depend on operational conditions in dual purpose cattle systems. METHOD We present a quantitative framework to (1) economically optimize production at farm level under various constraints and (2) calculate corresponding GHG emissions. The framework is tailored for Norwegian dual-purpose cattle systems and used to assess the economic and GHG emission intensity mitigation effects of incremental adjustments in relevant decisions. RESULTS AND CONCLUSIONS The results show that increased milk yield, extended productive life of dairy cows, reduced age at first calving, and lower slaughter age of bulls can lead to economic and climatic win-wins in terms of higher gross margins and reduced emissions per kg of protein produced. However, they may also result in lose-win and win-lose outcomes depending on the operational conditions. All four measures free up roughage production capacity, which, if used to maintain/increase milk and/or beef production, typically results in economic gains. However, if e.g., the available milk quota or space prevent this, economic losses may occur. The climate impact also depends on how the freed-up capacity is used: if it boosts production, the effects vary based on the scale and type of increase and the farm's initial setup, while unused capacity leads to reduced emission intensity. Conflicts typically arise when: 1) the extra capacity increases less climate-friendly production, raising emission intensity despite economic gains, or 2) extra capacity cannot be used, causing economic losses despite climate benefits. Our results also show that what can be labeled a win in climate terms, and to what extent, depends on the selected target metric(s). SIGNIFICANCE Governments and societies strive to balance food production with environmental goals. In this context, it is essential to identify farm-level economic and climatic win-win and lose-win scenarios, not only for farmers but also for policymakers and the broader society. This study could inform decision-making and policy development, potentially enhancing economic and climatic performance in combined milk and meat production.Win-win or lose-win? Economic-climatic synergies and trade-offs in dual-purpose cattle systemspublishedVersio
Convergence between the Baltic and the Nordic economies: Some reflections based on new data for the Baltic countries
Full text linkThis short paper uses recent estimates of GDP per capita for the Baltic countries for the 1919-2020(22) period to test for convergence between the Baltic and the Nordic economies. Drawing from the methodology used in Bernard and Durlauf (1996) and Greasley and Oxley (1997), we utilise a time-series approach to test for bivariate convergence between the various Baltic and Nordic economies. We find some evidence of conditional convergence and catching up for the interwar period, 1919-1939 and the post-Soviet era 1993-2022, when for the communist growth period until 1988 we find no trace of convergence, when thereafter during the last years of communism, the Baltic economies went into a severe and devastating recession
Worker Power, Immigrant Sorting, and Firm Dynamics
Full text linkThis paper examines how worker power shapes the allocation of immigrants across firms, and the subsequent consequences of such sorting on firm performance and the careers of incumbent workers. Our analysis highlights several key results. First, unions push immigrants to enter less unionized, lower-paying, and lower-quality firms. Second, the less unionized firms are able to utilize the access to cheaper immigrant labor to scale up production, thereby outcompeting the more unionized firms and capturing market share. Third, incumbent workers in less unionized firms benefit by shifting into management positions and capturing some of the firm’s increased rents. Fourth, despite benefiting incumbent workers in less unionized firms, these workers are more likely to become union members themselves in response to greater contact with new immigrants. Broadly, our results cut across nearly all sectors, but are heightened in labor intensive firms, and muted in competitive markets