NHH Brage (Norges Handelshøyskole)
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How Do Firms Respond to Unions?
Get PDFThis paper provides a comprehensive assessment of the margins along which firms in Norway respond to increased union density, using legislative changes in the tax deductibility of union dues as a quasi-exogenous shock to firm-level unionization rates. Despite higher personnel costs driven by a union wage premium, the average manufacturing firm increases employment and scales up production, charges higher prices in the product market, enjoys higher nominal value added per worker, and experiences no decrease in profits. We show that this result is a direct implication of the labor- and product-market power that the average manufacturing firm possesses, in combination with a reallocation of inputs and industry revenue shares from smaller and less unionized firms to larger and more unionized firms. Larger firms are, therefore, increasing employment and output at the same time their ability to mark up prices is growing, thereby preventing negative profit effects. For the broader private sector in which firms do not hold much price- or wage-setting power, we observe the opposite result: the average firm reduces employment and profit falls. We synthesize these findings through a partial-equilibrium model of firm decision-making that incorporates union bargaining, product-market price-setting power, and labor market monopsony power
Key Drivers of Electricity Price Volatility in Germany's Electricity Market : An empirical analysis of exogen factors in the German Power market
Get PDFThis master's thesis delves into the intricate dynamics of electricity price fluctuations in Germany, particularly within the context of the Day-Ahead market. Germany's "Energiewende," an ambitious transition towards renewable energy while phasing out nuclear and fossil fuels, is at the heart of this research. This transition, coupled with geopolitical shocks like the Russian invasion of Ukraine, has introduced new complexities into the energy market, particularly regarding price stability. These factors are analyzed using an autoregressive regression analysis, assessing the influence of various determinants on electricity prices.
The research uncovers that the price of the commodities, natural gas, and coal, are dominant factors in the price fluctuations, with price increases in gas and coal proportional to increases in electricity prices. A 1% increase in gas price leads to an expected increase in the price of electricity in Germany with 0,525%, and 0,495% with a 1% increase in the price of coal. These effects highlight the persistent footprint of fossil fuels within the energy sector. On the other side of the merit order, wind power in Germany also plays a vital role in electricity prices. The results identify that a 1% increase in wind power generation is associated with an expected decrease in electricity prices by 0,254%, underscoring the significance of renewable energy in the electricity market's pricing mechanisms.
The model encounters problems with autocorrelations in the residuals and near-threshold test results for heteroskedasticity. By incorporating HAC robust standard errors, we mitigate this problem. Furthermore, the model needed to go through some changes to satisfy the classical assumptions of time series regression. Some of the time series were treated with adjustments, including seasonality and inflation adjustments, logarithmic transformation, and first-differencing.nhhma
Bærekraftig virksomhetsstyring i Storebrandkonsernet : En kvalitativ casestudie av hvordan en sentral aktør i den nordiske bank- og finansnæringen implementerer bærekraft i styringen av egen virksomhet.
Get PDFFinansnæringen vil være sentral i arbeidet med å nå målene i Parisavtalen frem mot
2050. Næringen spiller en nøkkelrolle i EUs grønne giv ved å tilrettelegge for bærekraftige
investeringer som skal sikre den grønne omstillingen. Hensikten med denne studien er
å bidra til økt forståelse av hvordan en foregangsbedrift innen arbeid med bærekraft i
den nordiske bank- og finansbransjen implementerer bærekraft i egen virksomhetsstyring.
Dette undersøker vi gjennom en kvalitativ casestudie. På denne måten håper vi å belyse
elementer som kan hjelpe finansmarkedsdeltagere å lykkes med sitt bærekraftsarbeid og
fullbyrde sin nøkkelrolle i det grønne skiftet.
Studien er strukturert i henhold til typologien for styringsverktøy som en pakke. Vi finner
at Storebrand benytter mange ulike styringsverktøy for bærekraft, og at disse til sammen
utgjør et sammenkoblet og robust bærekraftig styringssystem. Virksomhetsstyringen for
bærekraft samsvarer med teoretisk innsikt, og vi finner at den er passende for Storebrand
som organisasjon. Særlig den kulturelle og administrative styringen for bærekraft er sentral.
Vi utviklet en modell som illustrerer Storebrands styringspakke for bærekraft. Videre
undersøkte vi hvordan de identifiserte styringsverktøyene legger til rette for at bærekraft
integreres fullstendig i selskapets strategi. Vi finner at styringsverktøyene gir grunnlaget
for teknisk, kognitiv og organisatorisk integrasjon av bærekraft i organisasjonen, og at
Storebrand dermed har de nødvendige forutsetningene for en integrert bærekraftsstrategi.
Vi utviklet en modell som viser hvilke empiriske funn og type styringsverktøy som var
mest sentrale for disse integrasjonene.
Studien bidrar med innsikt i hvordan en foregangsbedrift innenfor bærekraft arbeider med
virksomhetsstyring for bærekraft, og viser at omfattende arbeid med intern styring er
nødvendig for at aktører i næringslivet skal bidra til bærekraftig utvikling. Modellene som
er utarbeidet kan være et utgangspunkt for videre forskning på bærekraftsarbeid i andre
selskaper og bransjer.nhhma
Effekten av Kredittrating på Kapitalstruktur : En empirisk studie av hvordan kredittratinger påvirker kapitalstruktur blant amerikanske selskaper
Get PDFVår studie har replikert og utvidet Kisgen (2006) forskning om hvordan kredittrating
påvirker bedrifters kapitalstruktur og finansielle atferd. Gjennom en grundig analyse av
dataene som dekker perioden 1986-2022, gir vår studie innsikt i hvordan store økonomiske
hendelser som dotcom-boblen, finanskrisen i 2008 og covid-19 pandemien kan ha påvirket
disse forholdene.
Ved å anvende data fra Compustat-databasen, har vi gjennomført en rekke
regresjonsanalyser, inkludert “Pluss eller Minus” testen, “Kredittscore” testen, samt en
“Interaksjonstest” og en “Investeringsgrad og Spekulativ-Grad” test. Målet har vært å
nøye undersøke hvordan bedrifter justerer sin gjeldsstruktur i lys av endringer i deres
kredittrating.
I vår Pluss eller Minus test fikk vi lignende resultater som Kisgen, selv om vi observerte noen
avvik som kan skyldes strukturelle endringer i økonomien etter hans studieperiode. Vår
Kredittscore-test utfordret imidlertid våre opprinnelige hypoteser ved å vise at selskaper
nær en nedgradering faktisk økte sin gjeldsutstedelse. Dette skiller seg fra Kisgens funn
og antyder at det er andre underliggende effekter vi ikke har fanget opp. Videre viser vår
analyse av selskaper ved grensen for investeringsgrad og spekulativ-grad at det var et
ytterligere behov for å justere for egenkapitalutstedelser. Dette var nødvendig for å oppnå
resultater som samsvarte med Kisgens funn.
Samlet sett har vi lykkes med å replikere Kisgens resultater i både Pluss eller Minus testen
og Investeringsgrad og Spekulativ-grad testen. Våre funn viser til at selskaper nær en
ratingendring adopterer en konservativ finansieringsstrategi, og det kan gjenspeiles i at
selskapene utsteder mindre netto gjeld. Imidlertid kunne vi ikke bekrefte Kisgens hypotese
i Kredittscore testen, hvor det er uklart om det skyldes strukturelle endringer over tid
eller forskjeller i datasett. Dette underbygger viktigheten av å oppdatere modeller som
Kisgens til dagens dynamiske finansmarkeder.nhhma
Does Board Gender Diversity Affect Inventor Productivity? A comparison of inventor productivity before and after enactment of gender quota mandate on boards of publicly listed companies in Norway
Get PDFNorway was the first country to mandate a gender quota for corporate boards of publicly
listed firms. This quota mandates that publicly listed companies in Norway must have
40% representation of each gender on the board of directors. We analyze the effect, if any,
of the 2003 regulatory change on the innovative productivity of inventors in Norway. The
regulation was enacted for all publicly listed companies in Norway on 15. August 2007 and
required non-abiding firms to be disbanded. Firms’ research and development efforts rely
heavily on problem-solving; creating the best possible premise for this is critical. Previous
studies have shown that a broader composition of development teams, for example a better
gender balance, improves team performance. We research whether the regulatory change
requiring more female directors affected inventor teams and female inventor productivity.
We employ fixed effects ordinary least squares regression on a sample with 5,218 unique
patents by 6,906 inventors from 1995 to 2014. We find no significant impact of the
regulation on Patent Count or Citation-Weighted Patent Count for inventors employed by
listed or unlisted firms. This finding is in agreement with previous literature, which is
characterized by ambiguous results and non-significant coefficients signaling a minimal
impact of the regulation on innovation and financial measures.nhhma
Capital Structure in The Nordics : An empirical cross-country analysis on determinants of capital structure in listed, non-financial firms from 2007 to 2022
Get PDFWe examine determinants of capital structure by analyzing the financing decisions of
listed, non-financial firms in Denmark, Sweden, Norway, and Finland from 2007 to 2022.
At an aggregate level, firm leverage is fairly similar across the Nordic countries, and
many firm-specific factors appear to be similar. We find market-to-book value, liquidity,
profitability, size, non-debt tax shields, tangibility, bankruptcy risk, corporate tax rate,
and term spread to be the most reliable determinants of capital structure in the Nordics.
However, due to variations in the composition of sectors and ownership structure, some
significant cross-country differences remain.nhhma
Aggregate asset price inflation in the global economy a general review of trends in nominal wealth growth between 1900 and 2020
Get PDFThe wealth/income ratio gives an indication of the size of an economy’s asset holdings relative to income, it can also be seen as a broad definition of the capital stock. It has its limitations however, as it is difficult to say if asset prices at any given point in time actually give correct indications on an assets real economic value. This is where the phenomenon of asset price inflation comes into play. Just as for consumer goods, asset inflation generally refers to nominal price increases without corresponding real changes in value. It is however far more difficult to measure, as an asset can yield profits, or non, over long periods of time, its value is dependent on future developments, it is thereby always uncertain to some degree. This can cause bubbles to inflate in asset markets as perceived value is largely dependent on the risk willingness and general optimism or pessimism of investors.
Before the actual reviewing of data and historical events, this paper lays out some general perspectives on economic relationships and economic theory. This is done in order for the
|Aggregate Asset Price Inflation in the Global Economy| Norwegian School of Economics
reader to more easily understand chains of reasoning and argumentation in later parts. The introductory part is in large part inspired by the writings of Hyman P. Minsky, especially his book titled “Stabilizing an Unstable Economy” (Minsky, 1986). In this book he conducts a general review of modern macroeconomic theory and policy. Among other things he deconstructs Neoclassical concepts and expands on the work and theories of John Maynard Keynes, which he sees as generally misinterpreted.
The review of historical trends begins in whit a look at the pre–Great-War global economic system. Followed by a review of the inflationary events both during and after the war. In this section the central role of the government in modern inflationary processes is demonstrated. Afterwards there is a quick look at the events before and after the Great Depression, and then the Second World War. In this early section there is an almost exclusive focus on West Europe and North America. This comes from the fact that they were the most developed regions of the world in this period, and therefore kept more records. There are simply not very many data available for other economies, something which partly stems from many economies not being fully market focused and capitalistic in this period.
After having reviewed the pre-WWII events, there is a brief look at the post-war international order, followed by a discussion of its breakdown in the 1970s. In the 1970s there is the stagflation and oil crises that are looked at. There is also a special focus on the UK and Japan, who both had more dramatic developments in their economies in this period than most other developed countries. In the 1980s there is the restraining of inflation and financial liberalization that is in interesting. Also in this decade the UK and Japan deviated from the rest.
When the mid-1990s arrive the special developments that have been defining recent decades start to set in. This paper focuses on the role of deflationary pressures stemming from the rapid trade expansion of developing economies, aswell as the cheapening of IT-technology as processing power grows exponentially, as some of the main drivers of low consumer inflation and low interest rates. There is also a look at how this deflationary pressure also drives growth in asset prices, and especially housing wealth, as spending is increasingly directed at relatively inelastic goods, such as housing, while for example merchandise goods become relatively cheaper. When interest rates are low the demand for housing increases further as buyers can service more debt.
There is also a look at how the building up of foreign exchange and bond reserves by Asian governments, as their currencies are rarely revalued, affect financial markets and government budget deficits, and their consequences, in other countries.
The paper is wrapped up with a brief look into the future as the thorough deconstructions of resent events are still fresh in mind. When looking into the future with new perspectives in mind it is important to remember that these insights are gained retrospectively and thereby have most value when applied retrospectively. The uncertainties about where things are moving into the future are still to a large degree as great as they have usually been before, as we learn about the past slower than present circumstances are changing.nhhma
When the Rules Change the Game : A Case Study Analysis of Market Reactions to the Implementation of EU’s Market Abuse Regulation on the Oslo Stock Exchange
Get PDFThis paper investigates the short-term abnormal return among primary insiders at the Oslo
Stock Exchange following the implementation of the EU Market Abuse Regulation framework.
The regulatory changes involve stricter regulation governing market manipulation, false
disclosure of inside information, and reporting standards, intending to ensure the financial
market’s attractiveness in Norway. This study expands on previous literature and provides
contributing evidence on how regulatory changes affect the short-term market reaction.
Initially, evidence shows that the abnormal return among primary insiders declines significantly
from 4.23% to 2.70% after the government announces the future introduction of the new
framework, before declining to 1.04% after the implementation. A decline in short-term market
reaction implies fewer opportunities to exploit material non-public information. Further, we
observe that the results obtained in our report contradict that the size of the transaction solely
drives the abnormal return, as it stipulates that “Medium-sized” transactions lead to greater
short-term market reactions. Evidence supports that the ability of primary insiders to achieve
abnormal returns is influenced by their position; mainly among “Board Members” and
“Executives”. We also find that purchase transaction leads to a positive abnormal return in the
short term. Conversely, sales transactions often lead to negative market reactions, as other
market participants struggle to differentiate between the anticipation of negative updates
regarding the firm’s performance and actions taken by primary insiders for diversification or
liquidity purposes. Lastly, we discuss policy implications, such as alternative investment
strategies among primary insiders and the urge to circumvent the regulatory changes, as
possible implications to the new EU MAR framework.nhhma
Sosiale medier og skattemigrasjon : Et casestudie av Meta Platforms INCs internasjonale skatteparadis
Get PDFUtviklingen av digitale tjenester har bidratt til en stor mobilitet og fleksibilitet innen den globale økonomien. De internasjonale skattereglene i dagens samfunn tar i hovedsak utgangspunkt i at selskapene må ha fast driftssted i landet, for at selskapets inntekter skal bli omfattet av skatteplikt i det landet. For å sørge for at beskatningen faktisk finner sted der verdiskapningen skjer, har flere land samarbeidet om det såkalte BEPS-prosjektet. Videre har en rekke land individuelt innført en skatt på digitale tjenester, hvor skatten tar utgangspunkt i hvor inntekten opptjenes. Utredningen tar sikte på å undersøke vanlige skatteplanleggingsstrategier og vurdere effektiviteten av de implementerte tiltakene.
Utredningen har kartlagt at selskapet som skal undersøkes, Meta Platforms INC, også tar i bruk noen av de skatteminimerende strategiene. Her finner man at selskapet bruker komplekse organisasjonsstrukturer med datterselskaper i skatteparadiser. Videre operer selskapet med høy grad av hemmelighold, noe som er typisk for selskaper som driver med skatteplanlegging. Meta Platforms INC har store verdier i immaterielle eiendeler, noe som gjør det vanskelig for skattemyndighetene ettersom det er knyttet stor usikkerhet til hva som er den faktiske verdien av disse. Innad i Metakonsernet er det i tillegg høy grad av interne transaksjoner mellom datterselskaper. Dette gir selskapene mulighet til å utnytte usikkerhetene i prissettingen for å kunne drive med overskuddsflytting fra høy- til lavskattland. Samtidig konkluderer utredningen med at bruken av skatteminimerende strategier har falt de siste årene, hovedsakelig som et resultat av press fra EU og OECD-landene. Etter at Double Irish strukturen ble fullstendig stengt ned i slutten av 2020, har det blitt mer utfordrende for store multinasjonale selskaper å engasjere seg i overskuddsflytting. Som utredningen illustrerer, har også Meta Platforms INC blitt påvirket av dette. Selskapet måtte blant annet stenge ned visse holdingsselskaper i Irland, flytte immaterielle eiendeler tilbake til USA, og gå over til en lokal salgsmodell. Selv om disse tiltakene har hatt en betydelig effekt på skatteprovenyet internasjonalt, viser utredningen at effekten er minimal her i Norge. Implementeringen av OECDs to-pillar løsning, spesielt pillar 1, vil mest sannsynlig bidra til at skatteprovenyet i Norge øker. Som utredningen derimot illustrerer, har implementeringen av to-pillar løsningen heller ikke vært helt problemfri.nhhma
The Effect of Credit Constraints on External Financial Support: Implications for Young Home Buyers in Norway : An empirical study of how the Norwegian Financial Supervisory Authority’s introduction of a down payment requirement affected “curling”, an external form of financial support for young homebuyers, in the period 2005 - 2020
Get PDFIn this study, the effect of the Norwegian Financial Supervisory Authority’s introduction
of a down payment requirement on the extent of parental help young people received to
access the housing market in Norway, a phenomenon referred to as “curling”, is investigated.
To carry out the study, microdata from Statistics Norway ranging from 2005 to 2020
with a selection of people in the age span 20 to 40 years is used. The data is utilized to
construct the dependent variable, “curling”, to determine whether parental help has found
place. Heterogeneity is examined using regression models to uncover demographic trends
in parental help.
There is a remarkable increase in curling during the transition from the period before
the down repayment requirement to the time after the implementation. The findings
indicate that the introduction of a down payment requirement has increased parental help
of young people by as much as 18.53 percentage points for them to access the housing
market in Norway. The extended analysis of heterogeneity supports this claim and reveal
demographic trends of curling that favour Norwegian individuals of the male gender and
their economic advantage in terms of education and income in the occurrence of curling.
Particularly noteworthy is the causal effect exhibited by the down payment requirement
in Oslo, which demonstrates a 14 percentage points higher impact compared to the rest
of the country over a decade.nhhma