NHH Brage (Norges Handelshøyskole)
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Conventional or organic cattle farming? Trade-offs between crop yield, livestock capacity, organic premiums, and government payments
Get PDFCONTEXT An important question for farmers is whether to run their farm conventionally or organically. This choice can significantly affect the farm's financial performance and its impact on the environment. OBJECTIVE The primary objective of this study is to compare the profitability of conventional and organic cattle systems and investigate how it is associated with individual farm characteristics, like forage production capacity, forage quality, milk quota, animal housing capacity, and their relative presences. METHOD We employ a whole farm optimization model, customized for Norwegian cattle farming. The primary goal of this model is to maximize the gross margin by optimizing decisions related to land usage and animal inventory while adhering to a set of constraints. We systematically solve more than 200,000 model instances, with varying farm characteristics. RESULTS AND CONCLUSIONS The results can be distilled to the following key points: If forage of good quality is readily available, but the livestock operation cannot be expanded due to animal housing and milk quota restrictions, organic may outcompete conventional farming. Otherwise, gross margin is maximized with conventional farming. These findings emphasize the crucial role of forage production capacity and quality in relation to available milk quota and infrastructure when considering the transition from conventional to organic farming. Extensive sensitivity analyses affirm the robustness of these conclusions. Regional regulatory factors, such as government farm payments, also play a significant role, and influence the optimal farming approach. Additionally, we show that increases in organic price premiums can markedly impact the competitiveness of organic farming, even in a system where government payments make out a significant part of the farm revenue. SIGNIFICANCE The model can support farmers to make informed decisions about converting to organic or conventional farming. It can also be used by policymakers to determine the level of support required to make it worthwhile for different types of farms to convert. We also show that existing government payment schemes give rise to regional differences in the incentives for organic farming in Norway. To ensure equal incentives for organic farming across the country, the organic payments would have to be regionally adjusted, in line with the other already regionally dependent government payments. This insight may be of significant interest to policymakers and other stakeholders.Conventional or organic cattle farming? Trade-offs between crop yield, livestock capacity, organic premiums, and government paymentspublishedVersio
Merger Remedies: Is the Cure Effective in Restoring Competition? An Assessment Based on Merger Remedy Decisions Across Selected European Jurisdictions
Get PDFThe purpose of this thesis is to analyse the structuring and effectiveness of merger remedies by national competition authorities across multiple European OECD countries and industries on a quantitative as well as qualitative basis. By constructing a data set based on 100 reports by national competition authorities between 2015 and 2022 throughout eight countries on phase II remedy decisions, this thesis aims at providing more generalizable results in terms of what is driving remedy decision outcomes
Forutsigbare boligmarkeder og regionale motsetninger
Get PDFI denne masteroppgaven har vi undersøkt forskjellene i boligprisvekst mellom urbane og rurale områder i Norge. Basert på boligprismodellen til Jacobsen og Naug (2004), har vi bygget en revidert boligprismodell basert på oppdatert kvartalsvis data fra perioden 2005 til 2023. Modellen er en økonometrisk feiljusteringsmodell konstruert for å observere forskjeller i regionale boligprisdrivere. Modellen anvendes ved to separate datasett for henholdsvis urbane og rurale områder som sammen dekker samtlige kommuner i Norge. Resultatene fra hver analyse danner grunnlaget for komparasjon og videre diskusjon tilknyttet utfallet av demografisk utvikling i forbindelse med boligmarkedet.
Studien kan oppsummeres i seks funn. Først og fremst finner vi store regionale forskjeller i boligprisvekst mellom 2005 og 2023. Vi finner imidlertid at denne utviklingen i stor grad kan forklares av fundamentale forhold og at konvensjonelle forklaringsvariabler som rente, inntekt og forventninger forklarer en del av veksten. Samtidig finner vi at boligprisveksten i rurale områder kan forklares av fundamentale forhold i større grad enn boligprisveksten i urbane områder. Hovedfunnet i denne studien innebærer at urbaniseringstilpasningen, herunder boligmassens evne til å tilpasse seg etter demografisk utvikling, forklarer store deler av avviket i boligprisveksten mellom urbane og rurale områder.
Med bakgrunn i disse funnene, konkluderer vi med at det bygges for få boliger per netto innflytter i urbane områder. Konklusjonen bygger på den norske boligdiskursen som fører en eierlinje og tilhørende visjon om at flest mulig skal eie egen bolig, samtidig som bosettingsmønsteret sentraliseres. Videre finner vi at nybyggingsraten synker betraktelig ved nedgangskonjunkturer og holdes lav over lange perioder grunnet nyere tids liberalisering av byggesektoren. Ettersom både byggesektorens markedssvikt ved nedgangskonjunkturer og befolkningsveksten i urbane områder følger forutsigbare trender, finner vi at manglende politisk vilje forklarer deler av den synkende boligmassen relativ til befolkningsvekst
Blockholders and Firm Value: An Empirical Study of Blockholders, Firm Value, and Foreign Ownership in Scandinavian-Listed Companies from 2019 to 2023
Get PDFThis thesis investigates the relation between blockholders and firm value in Scandinavia, using a panel dataset of 506 companies from 2019 to 2023. We find that higher blockholder concentration positively correlates with firm value, measured by Tobin’s Q. We also find that a larger fraction of aggregated blockholders ownership is associated with lower firm value, reflecting entrenchment risks. Extending our study, we characterize foreign ownership using firm-specific attributes. The analysis reveals that foreigners show a preference for large, liquid firms but are less inclined to invest in those that pay high dividends. Foreigners also tend to be averse to firms with dominant owners
With Tailwinds Towards 30 GW: Strategic Spatial Planning of Offshore Wind Farms in Norwegian Waters - A Multi-Objective Optimization Approach
Get PDFTo address the increasing electricity demand and incentivize new industrial development, the Norwegian government has set the ambitious target of facilitating the development of 30 Gigawatts of offshore wind power by 2040. The magnitude of this goal requires careful spatial planning that takes into account wind conditions, diversification, and the suitability of potential locations for offshore installations. The aim of this thesis is to provide strictly data-driven insights as to where the ideal sites for offshore wind farms are located in Norwegian waters. Building on Markowitz’ Modern Portfolio Theory, we develop a multi-objective optimization model that finds a portfolio of wind farms that minimizes portfolio covariance while maximizing average capacity factor, implemented using the weighted sum method. Our benchmark model identifies 12 wind farm sites with an average capacity factor of 66% at a standard deviation of 0.22. In addition, the dynamic set-up of our modeling allows us to demonstrate how the set of optimal locations is responsive to different conflicts of interest. Our results can be used to draw a tentative comparison to the 20 candidate locations put forward by the Norwegian Water And Energy Directorate in 2023. We find that locations like Sønnavind A and Vestavind A are consistently part of the optimal portfolio, while areas like Utsira Nord and Vestavind are shown to have limited importance. These insights contribute to strategic spatial planning for Norway’s offshore wind ambitions.To address the increasing electricity demand and incentivize new industrial development, the Norwegian government has set the ambitious target of facilitating the development of 30 Gigawatts of offshore wind power by 2040. The magnitude of this goal requires careful spatial planning that takes into account wind conditions, diversification, and the suitability of potential locations for offshore installations. The aim of this thesis is to provide strictly data-driven insights as to where the ideal sites for offshore wind farms are located in Norwegian waters. Building on Markowitz’ Modern Portfolio Theory, we develop a multi-objective optimization model that finds a portfolio of wind farms that minimizes portfolio covariance while maximizing average capacity factor, implemented using the weighted sum method. Our benchmark model identifies 12 wind farm sites with an average capacity factor of 66% at a standard deviation of 0.22. In addition, the dynamic set-up of our modeling allows us to demonstrate how the set of optimal locations is responsive to different conflicts of interest. Our results can be used to draw a tentative comparison to the 20 candidate locations put forward by the Norwegian Water And Energy Directorate in 2023. We find that locations like Sønnavind A and Vestavind A are consistently part of the optimal portfolio, while areas like Utsira Nord and Vestavind are shown to have limited importance. These insights contribute to strategic spatial planning for Norway’s offshore wind ambitions
Surviving the Network
Get PDFThis thesis examines the role of network structure and centrality in influencing firm behavior and market resilience. Using the Text-Based Network Industry Classification (TNIC) dataset developed by Hoberg and Phillips and social network analysis (SNA), the study investigates competitive dynamics among U.S. publicly traded firms from 2013 to 2019. Key metrics such as clustering coefficients and centrality measures (degree, betweenness, and eigenvector) are analyzed to assess their impact on firm survival.
The findings reveal that the network exhibits characteristics of a scale-free structure, with dominant hubs playing a crucial role in maintaining structural cohesion and facilitating resource flow. In addition, central network positions are shown to enhance resilience by improving access to critical information and resources. However, excessive clustering poses risks, as it can lead to over-embeddedness, reduce adaptability, and create uncertainty regarding firm survival.
This research demonstrates that the benefits of centrality, including degree, betweenness, and eigenvector measures, depend on broader market dynamics and a firm’s ability to leverage its network position effectively. By contributing to the theoretical understanding of network-driven advantages, this study offers valuable insights for firms and policymakers seeking to improve market stability and manage systemic risks by improving their network positioning. It underscores the importance of strategic adaptability in interconnected markets, highlighting the delicate balance between collaboration and competition in shaping firm and network outcomes
Institutional Investors and Chapter 11. An Empirical Study of Institutional Ownership during Chapter 11 Bankruptcy Filings
Get PDFThis study investigates institutional ownership in publicly traded firms undergoing Chapter 11 bankruptcy in the United States. Although existing research focuses mainly on hedge funds, we expand this research by including all institutional investors with at least \$100 million in assets under management in 13F securities. By including all institutional investors, the study addresses a significant gap in the existing literature on their influence on corporate restructuring.
The study examines three hypotheses about institutional ownership and their influence on bankruptcy filings. By analyzing a data set consisting of 1,147 Chapter 11 bankruptcy filings from 1999 to 2022 the study reveals interesting results. First, the findings indicate that institutional investors prefer to own the debt of larger companies. This is because they are seen as more stable and have a greater probability of emerging from bankruptcy. Second, we observe that institutional ownership in equity leads to a significant decrease in the likelihood of a company choosing a prepackaged filing. Lastly, no evidence is found to support the idea that institutional ownership leads to a higher cumulative abnormal return (CAR) during the Chapter 11 bankruptcy filing compared to companies without such ownership. This indicates that institutional ownership does not mitigate the negative market perceptions commonly associated with Chapter 11 filings.
The research contributes to a foundation for more informed decision-making between stakeholders and provides a deeper understanding of how institutional ownership acts in distressed firms filing for Chapter 11 bankruptcy
Tail Risk and Market Dependency
Get PDFThis thesis evaluates the performance of Value at Risk (VaR) models applied to the Oslo Stock Exchange Benchmark Index (OSEBX), Brent crude oil futures (BCO), 10-year Norwegian government bonds (TYB), and an equally weighted portfolio of these three assets. The analysis focuses on three distinct approaches: Filtered Historical Simulation
(FHS), Filtered Bootstrap Simulation (FBS), and copula-based models (Gaussian, Student’s t, and Clayton copulas).
We test the models on data spanning January 2020 to September 2024, a period marked by the COVID-19 outbreak, the Russia-Ukraine war, and the Russia-Saudi Arabia oil price dispute. This allows us to assess the models' ability to measure risk under adverse market conditions. The models are trained on data from 2005 to the end of 2019, a period that
notably includes the global financial crisis, ensuring they are well-equipped to handle market stress during the test period. We incorporate an EGARCH volatility model to account for time-varying effects. Model performance is evaluated using a robust backtesting framework,
which focuses on the frequency of VaR violations and the relative distances between violations and the VaR estimates.
The findings reveal that FBS produces fewer violations and smaller relative distances than FHS, while the Gaussian copula outperforms both. However, all three models are mostly rejected in the backtests. The most effective models are the Clayton and Student’s t copulas, both of which pass most backtests while providing lower relative distances between actual losses and VaR estimates. The Student’s t copula passes all backtests for the equally weighted portfolio, underscoring its strength in capturing joint tail dependencies. Although portfolio diversification aims to mitigate risk, this approach proves inadequate when all three asset classes experience simultaneous market crashes. By effectively modeling these dependencies, the Student’s t copula demonstrates superior performance in assessing risk in interconnected markets
Effects of political priming on evalutions of US export products: Is Trump an asset or a liability?
Get PDFThe purpose of this thesis is to investigate the relationship between political framing in advertising and consumer`s product evaluations, focusing on the moderating role of political affiliation and the mediating effect of emotional responses. Specifically, it examines how different types of political priming (Biden/Trump/Neutral) influence consumer attitudes toward export products and whether alignment between a consumer's political affiliation (Republican/Democrat) and the priming message enhances or diminishes product evaluations. Political framing has the potential to evoke strong emotional reactions and influence consumer evaluations, especially when linked to well-known political figures like Donald Trump and Joe Biden. This thesis explores how political emotions triggered by advertisements referencing these figures affect consumer evaluations of the Apple Watch in the U.S. and Germany. By addressing these dynamics, the thesis aims to provide insights into how politically charged messages shape consumer behavior in both American and European markets.
Using an experimental design, 433 participants from these countries were exposed to advertisements primed around Trump, Biden, or American authorities. Their emotional responses, purchase intentions, and attitudes were subsequently measured to assess the interaction between political emotions and consumer behavior.
The findings reveal significant cross-cultural differences. American participants exhibited distinct reactions to Trump priming, with aligned participants providing favorable evaluations, while misaligned participants reported notably negative responses. In contrast, Biden priming revealed reversed trends, where misaligned participants often gave higher evaluations than aligned participants; however, these differences were less pronounced. In contrast, German participants demonstrated weaker effects overall, with limited influence of both Trump- and Biden- priming. These results highlight the importance of cultural context, product type, and political framing in shaping consumer behavior.
These findings highlight the complex interactions between cultural context, emotional mediation, and product symbolism. Future research should explore longitudinal designs, diverse cultural settings, and additional theoretical frameworks to deepen our understanding of political priming in global consumer markets.The purpose of this thesis is to investigate the relationship between political framing in advertising and consumer`s product evaluations, focusing on the moderating role of political affiliation and the mediating effect of emotional responses. Specifically, it examines how different types of political priming (Biden/Trump/Neutral) influence consumer attitudes toward export products and whether alignment between a consumer's political affiliation (Republican/Democrat) and the priming message enhances or diminishes product evaluations. Political framing has the potential to evoke strong emotional reactions and influence consumer evaluations, especially when linked to well-known political figures like Donald Trump and Joe Biden. This thesis explores how political emotions triggered by advertisements referencing these figures affect consumer evaluations of the Apple Watch in the U.S. and Germany. By addressing these dynamics, the thesis aims to provide insights into how politically charged messages shape consumer behavior in both American and European markets.
Using an experimental design, 433 participants from these countries were exposed to advertisements primed around Trump, Biden, or American authorities. Their emotional responses, purchase intentions, and attitudes were subsequently measured to assess the interaction between political emotions and consumer behavior.
The findings reveal significant cross-cultural differences. American participants exhibited distinct reactions to Trump priming, with aligned participants providing favorable evaluations, while misaligned participants reported notably negative responses. In contrast, Biden priming revealed reversed trends, where misaligned participants often gave higher evaluations than aligned participants; however, these differences were less pronounced. In contrast, German participants demonstrated weaker effects overall, with limited influence of both Trump- and Biden- priming. These results highlight the importance of cultural context, product type, and political framing in shaping consumer behavior.
These findings highlight the complex interactions between cultural context, emotional mediation, and product symbolism. Future research should explore longitudinal designs, diverse cultural settings, and additional theoretical frameworks to deepen our understanding of political priming in global consumer markets