1,721,017 research outputs found
An analysis of the Norwegian economic policy during COVID-19
Full text linkThis paper discusses the impact of COVID-19 on the Norwegian economy in the short, medium,
and long term. Moreover, it will discuss and analyze the economic policy response and its
effects. In addition, we will look at Norway in comparison with the rest of the world, primarily
other OECD countries.
The motivation for this is gaining perspective for the unique situation we are in and how it may
affect the future. COVID-19 affects day-to-day lives unlike any previous recessions in modern
times, and while most countries have taken on debt, Norway can fall back on transfers from the
Government Pension Fund Global. Therefore, it is highly relevant to look closer at how the
pandemic impacted the Norwegian economy and discuss how economic policy handled the
turbulence. For this purpose, we will discuss the impact and economic policy response from the
first quarter of 2020 until the end of the first quarter of 2021.
We will primarily look at how the real economic variables were hit when analyzing the impact.
The real economic variables involve the variables that affect Norway's GDP in aggregate form.
We will also discuss potential long-term consequences as a result of the pandemic. To do so, we
will look at consequences for long-term trend growth on output and regulations of the economic
framework. By this, we mean covering the most important factors of the Norwegian economy.
This will lay a good foundation to clarify and discuss the economic-political response. In that
way, we will cover monetary policy, fiscal policy, and the interaction between them.
The basis for the economic policy framework is established in chapter 2. We provide the theory
that is used for discussing and analyzing the economic response here. For monetary policy,
Norges Bank's flexible inflation targeting is used as a basis. This involves Norges Bank
stabilizing inflation near the target in the medium term. Flexible inflation targeting implies that
the central bank weighs stable inflation against the developments in output and demand. A model
established by Røisland and Sveen (2018) will be used for the monetary policy analysis.
When it comes to fiscal policy, Norway is in a unique position due to the oil fund. The usage of
oil revenues and fiscal policy's influence on aggregate output is crucial for this part of the paper. 3
Moreover, the potential effects of increased public spending are covered. Lastly, the chapter
covers the interaction between fiscal and monetary policy.
Chapter 3 starts with a presentation of how the impact and responses of COVID-19 around the
world were. Further, we cover how the world's economies are connected and how it affects
Norway. The chapter continues and ends with data and economic responses from the real
economy, inflation, the labor market, and the foreign exchange market.
In chapter 4, we discuss and analyze the economic policy response. We cover Norges Bank's
assessments and its rate decisions from the first quarter of 2020 until the first quarter of 2021.
Further, we assess this against the model we established in chapter 2 and compare this to other
OECD countries. Additionally, we discuss how the credit market was impacted.
In the next part of the chapter, we discuss the role of fiscal policy during the pandemic and
which long-term consequences it faces. We then discuss how the balance between monetary- and
fiscal policy is crucial and how the roles have changed since the financial crisis. We end the
chapter with a discussion of the long-term development and structural changes.
Finally, chapter 5 concludes the paper
Hvilke fordeler og ulemper fører økt fokus på digitalisering av finansinstitusjoner til?
Full text linkStudien fokuserer på samfunnsøkonomisk forskning, med det formål å undersøke hvordan digital transformasjon av finansinstitusjoner påvirker samfunnet, med SR-Bank som case-studie.
Oppgavens problemstilling
“Hvilke fordeler og ulemper fører økt fokus på digitalisering av finansinstitusjoner til?”
Studien leder gjennom en analyse av fordeler og ulemper ved digitalisering, samt konsekvensene dette har for samfunnet som helhet. Vi har benyttet tre metoder for å innhente data. Metodene som ble brukt var kvantitativ data gjennom spørreundersøkelse og kvalitativ data i form av intervjuer. Det ble også tatt i bruk en kostnytte analyse for å fremlegge kostnader knyttet til digitalisering i SR-Bank.
Analysen av SR-Banks digitale tjenester viser sterke fordeler, inkludert effektivisering og kostnadsminimering for banken, samt økt tilgjengelighet og brukervennlighet for kundene. I tillegg til å identifisere positive funn, belyser studien også ulemper ved digitalisering, spesielt knyttet til nedleggelse av lokale filialer. Til tross for dette viser majoriteten av kundene seg tilfredse med bankens digitale tilbud. Intervjuobjektene uttrykker også positivitet overfor endringer, og fremhever kunstig intelligens og chatbots som viktige elementer for fremtidig digitalisering.
Et interessant funn er at Sparebank 1 ikke nødvendigvis følger bransjenormen om å ivareta ikke-digitale kunder, og det kan se ut til at fokuset på kostnadsminimering har hovedprioritet. Dette funnet kan indikere en prioritering av effektivitet og lønnsomhet over opprettholdelse av tradisjonelle fysiske banktjenester og kundeinteraksjon. Dette aspektet av funnene peker på viktigheten av å balansere økonomiske hensyn med hensynet til kundetilfredshet og samfunnsmessige behov når man gjennomfører digital transformasjon i finanssektoren.
Samlet sett konkluderer studien med at digitalisering er svært attraktivt for bankene, med mange fordeler og positive ringvirkninger.Abstract
The study focuses on socio-economic research, aiming to examine how the digital transformation of financial institutions affects society, using SR-Bank as a case study.
Research Question
"What are the advantages and disadvantages of increasing focus on the digitalization of financial institutions?"
The study conducts an analysis of the advantages and disadvantages of digitalization, as well as its consequences for society as a whole. We utilized three methods to collect data. The methods included quantitative data through a survey and qualitative data through interviews. A cost-benefit analysis was also employed to present the costs associated with digitalization in SR-Bank.
The analysis of SR-Bank's digital services reveals strong advantages, including efficiency and cost minimization for the bank, as well as increased accessibility and user-friendliness for customers. In addition to identifying positive findings, the study also highlights disadvantages of digitalization, particularly related to the closure of local branches. Despite this, the majority of customers are satisfied with the bank's digital offerings. Interviewees also express positivity towards the changes and highlight artificial intelligence and chatbots as important elements for future digitalization.
An interesting finding is that Sparebank 1 does not necessarily follow the industry norm of catering to non-digital customers, and it appears that the focus on cost minimization is a priority. This finding may indicate a prioritization of efficiency and profitability over the maintenance of traditional physical banking services and customer interaction. This aspect of the findings view the importance of balancing economic considerations with customer satisfaction and social needs when implementing digital transformation in the financial sector.
Overall, the study concludes that digitalization is highly attractive for banks, with many benefits and positive ripple effects
I hvilken grad påvirker valutakursen importprisen av norsk laks i USA, med hensyn til en tredjelands påvirkning fra Chile?
Full text linkMaster's thesis in EconomicsThe salmon industry has experienced a positive development the last decades, especially in Norway, where almost all salmon production is exported. This study will examine to what extent import prices of Norwegian salmon in the US are affected by a change in the exchange rate from year 2010 to 2018. In the research process, the influence of a third country impact from Chile is taken into consideration. The importance to include a third country effect in studies of the relationship between exchange rate and trade flows is reflected in existing literature and is one of the main prerequisites for the study. To solve the presented problem, a theoretical structural model is derived to include a third country effect. The model is then solved for Exchange Rate Pass-Through (ERPT), which is defined by own-price and cross-price elasticity of demand, supply elasticity and a custom cross-ERPT term based on the relationship between import prices of Chilean salmon and exchange rate between the US and Norway. A linear Almost Ideal Demand System (AIDS) is used to estimate demand elasticities. After adjusting for supply elasticity, ERPT elasticity is estimated and simulated for four scenarios. The first scenario looks at a case without incorporating the influence of a third country, while remaining scenarios considers the third country influence by including assumed values of cross-ERPT.
Empirical results reveal significant differences in the value of estimated ERPT elasticity with and without the influence of a third country. The value of ERPT that did not account for an influence is significantly lower than a typical ERPT on US import prices compared to existing research. The study concludes that a third country influence is crucial to avoid bias estimation of ERPT. The finding is assumed to be of relevance for ERPT research in its entirety, which has implication for subsequent research. The estimation results show a partial ERPT for import prices of Norwegian salmon in the United States with a value varying between 0,288 and 0,623. These results reveal that only parts of the exchange rate variations are affecting the import price. The study finds no evidence of an asymmetric ERPT, suggesting there is no use of market power from the exporter. Findings are consistent with existing literature and can help both the Norwegian salmon industry, and the Norwegian policy makers in making forecasts of price developments in relation to a change in the exchange rate, as well as provide an insight into market power dynamics in the destination market
An analysis of the Norwegian economic policy during COVID-19
Full text linkThis paper discusses the impact of COVID-19 on the Norwegian economy in the short, medium,
and long term. Moreover, it will discuss and analyze the economic policy response and its
effects. In addition, we will look at Norway in comparison with the rest of the world, primarily
other OECD countries.
The motivation for this is gaining perspective for the unique situation we are in and how it may
affect the future. COVID-19 affects day-to-day lives unlike any previous recessions in modern
times, and while most countries have taken on debt, Norway can fall back on transfers from the
Government Pension Fund Global. Therefore, it is highly relevant to look closer at how the
pandemic impacted the Norwegian economy and discuss how economic policy handled the
turbulence. For this purpose, we will discuss the impact and economic policy response from the
first quarter of 2020 until the end of the first quarter of 2021.
We will primarily look at how the real economic variables were hit when analyzing the impact.
The real economic variables involve the variables that affect Norway's GDP in aggregate form.
We will also discuss potential long-term consequences as a result of the pandemic. To do so, we
will look at consequences for long-term trend growth on output and regulations of the economic
framework. By this, we mean covering the most important factors of the Norwegian economy.
This will lay a good foundation to clarify and discuss the economic-political response. In that
way, we will cover monetary policy, fiscal policy, and the interaction between them.
The basis for the economic policy framework is established in chapter 2. We provide the theory
that is used for discussing and analyzing the economic response here. For monetary policy,
Norges Bank's flexible inflation targeting is used as a basis. This involves Norges Bank
stabilizing inflation near the target in the medium term. Flexible inflation targeting implies that
the central bank weighs stable inflation against the developments in output and demand. A model
established by Røisland and Sveen (2018) will be used for the monetary policy analysis.
When it comes to fiscal policy, Norway is in a unique position due to the oil fund. The usage of
oil revenues and fiscal policy's influence on aggregate output is crucial for this part of the paper. 3
Moreover, the potential effects of increased public spending are covered. Lastly, the chapter
covers the interaction between fiscal and monetary policy.
Chapter 3 starts with a presentation of how the impact and responses of COVID-19 around the
world were. Further, we cover how the world's economies are connected and how it affects
Norway. The chapter continues and ends with data and economic responses from the real
economy, inflation, the labor market, and the foreign exchange market.
In chapter 4, we discuss and analyze the economic policy response. We cover Norges Bank's
assessments and its rate decisions from the first quarter of 2020 until the first quarter of 2021.
Further, we assess this against the model we established in chapter 2 and compare this to other
OECD countries. Additionally, we discuss how the credit market was impacted.
In the next part of the chapter, we discuss the role of fiscal policy during the pandemic and
which long-term consequences it faces. We then discuss how the balance between monetary- and
fiscal policy is crucial and how the roles have changed since the financial crisis. We end the
chapter with a discussion of the long-term development and structural changes.
Finally, chapter 5 concludes the paper
Ringvirkninger og bærekraftig påvirkning ved etablering av datasenter: en case studie av Kalberg
Full text linkRegjeringen Solberg lanserte i 2018 en strategi som skulle gjøre Norge til verdens beste
datasenternasjon. Samtidig har regjeringen Solberg et mål om å holde omdisponering av
jordbruksareal nede. Hva skjer når disse interessene havner i konflikt med hverandre? Denne
oppgaven skal se på om det jærske matfatet er et egnet sted for plasseringen av et gigantisk
datasenter sett i norsk målestokk. Er en slik etablering bærekraftig?
Motivasjonen bak denne problemstillingen gav seg tydelig til kjenne da debatten om denne
datasenterutbyggingen kom klart frem i mediebildet. Det å prøve å komme seg litt bak alle tall
og lovnader om arbeidsplasser, og prøve å forstå dynamikken og prosessene bak store
utbyggingsplaner var veldig fascinerende.
Egne refleksjoner rundt problemstillingen er at det er et hett tema, uten noe helt klare svar. Med
økende arbeidsledighet, nedgang i oljeindustrien og en eventuell utfasing av oljeindustrien i
fremtiden er det hevet over enhver tvil at flere tusen arbeidsplasser til distriktet vil ha et positivt
bidrag til både regional- og nasjonal økonomi. Utfordringen er at motstridene interesser møtes
i det man er nødt til å omdisponere jordbruksareal for å få plass til datasenter. Norge har
sammenlignet med andre land i EU lite jordbruksareal. Boligutbygging, industri- og næringsliv
og utbygging av infrastruktur har de siste årene ført til at det har blitt omdisponert mye
jordbruksareal.
For å undersøke om hvorvidt etableringen vil kunne være bærekraftig er det blitt benyttet
PESTEL-analyse og det har blitt sett på alternativkostnad. Resultatene av disse analysene er at
de mange ressursene som går tapt til utbyggingen vil føre til at datasenteret ikke står seg til å
kalles bærekraftig. Allikevel bidrar datasenternæringen inn mot en bærekraftig utvikling,
spesielt innenfor økonomisk og sosial bærekraft. I tillegg har ringvirkninger i form av
sysselsettingseffekter blitt analysert opp mot sammenlignbar data. Hovedfunnet er at
sysselsettingsprognosene som legges frem av Green Mountain & Lyse ikke står seg opp mot de
andre dataene i denne analysen
Størrelse og lønnsomhet i fiskeflåten i Norge
Full text linkSelskap i markedsøkonomien varierer i størrelse, lønnsomhet, og overlevelse. Hva er faktorene som avgjør disse observerte variablene? Hvordan virksomheten driver har alltid vært et populært tema for forskning i privat og offentlig sektor. Siden fiskerinæringen er en av Norges viktigste eksportnæringer, har det alltid vært interessant å analysere lønnsomhet innenfor det området. Lønnsomhet i fiskerinæringen påvirkes av en rekke ulike faktorer som kvote, fartøyets størrelse, temperatur forandring, fiskesykdommer, giftige alger og øvrige skadelige stoffer. Fiskeriprodukter konkurrerer enten med fiskerier i andre land, fiskeproduktene fra oppdrettsfisk eller fra landbruksprodukter. Selskapets størrelse har blitt vurdert som en viktig determinant for virksomhetens lønnsomhet. I denne utredningen blir lønnsomheten til ulike fartøystørrelser i fiskeflåten analysert ved å bruke hovedsakelig et datasett over perioden 2008 til 2017. Det blir valgt 2 grupper for å analysere størrelse og lønnsomhet, ulike hjemmelslengde på konvensjonelle kystfiskefartøy samt torsketråler og pelagiske tråler. Lønnsomhet er målt av rentabilitetene (totalkapitalrentabilitet, egenkapitalrentabilitet, finansiell faktor og så videre) gjennom DuPonts modell.
Ifølge resultatene er sammenhengen mellom lønnsomhet og fartøystørrelse ikke lineært innenfor kystfartøy. Det er både negative og positive sider blant de fire typer konvensjonelle fartøy. I gruppen er 002-fartøy mest lønnsomt. Utenom 002-fartøy er sammenhengen mellom størrelse og lønnsomhet positivt. Det er en positivt og betydelig sammenheng mellom fartøystørrelse og lønnsomhet innenfor torsketråler og pelagiske tråler
Kampen mot hvitvasking: En kvalitativ studie av revisors bidrag i forebygging og avdekking av hvitvasking.
Full text linkFormålet med denne masteroppgaven er å se på hvordan revisors rolle er med å forebygge og avdekke hvitvasking i lys av gjeldende lovverk og praksis. Hvitvasking er et omfattende samfunnsproblem som truer økonomien, bedriftene og tilliten i Norge. Revisor har gjennom sitt yrke et lovpålagt ansvar for å bidra til å bekjempe økonomisk kriminalitet. I hvilken grad revisors bidrag er med på dette fremstår fremdeles som uklart. Oppgaven tar utgangspunkt i følgende hoved- og underproblemstilling:
Hvordan bidrar revisors prosesser og holdninger til å forebygge og avdekke hvitvasking?
Hvordan påvirkes revisors prosesser og holdninger av gjeldende lovverk?
Studien anvender en kvalitativ tilnærming med semistrukturerte intervjuer av revisorer i ulike revisjonsselskaper. Det benyttes en abduktiv tilnærming til den tematiske analysen for å identifisere sentrale funn. Funnene blir videre diskutert i lys av gjennomgått teori og selvstendig drøfting.
Vi finner at revisor gjennomfører grundige prosesser både før og under en revisjon, for å avdekke og forebygge hvitvasking. Historisk MT-rapportering kombinert med oppgavens funn viser at avdekkingen skjer i liten grad, hvor vår analyse indikerer at revisors arbeid primært har en forebyggende effekt. Kunder med forhøyet risiko følges særlig opp og noen oppdrag avvises som følge av arbeidet som blir gjort i forbindelse med en oppdragsvurdering. Arbeidet som legges ned er i stor grad styrt av dagens lovverk og forpliktelser, hvor det uttrykkes en frustrasjon til arbeidet som må gjøres. Det identifiseres et misforhold mellom ressursbruk og resultater, noe som påvirker holdningene negativt.
Oppgaven konkluderer med at revisors prosesser påvirker forebygging i stor grad, mens det påvirker avdekking i mindre grad. Derimot finner vi at revisors holdninger bidrar lite for vår problemstilling. Lovverket har en klar påvirkning på både prosessene og holdningene til revisor. Denne masteroppgaven gir innsikt i temaet samtidig som den fungerer som et supplerende materiale til eksisterende litteratur. Basert på våre funn bør det vurderes hvordan kompetanse, samhandling og et tydeligere regulatorisk rammeverk kan styrke revisors rolle som en effektiv tillitsperson og bekjemper av økonomisk kriminalitet.The purpose of this master’s thesis is to explore how the auditor’s role contributes to the prevention and detection of money laundering in light of current legislation and professional practice. Money laundering represents a serious societal threat, undermining both the economy and public trust. As public servants and gatekeepers, auditors have a legal obligation to help battle financial crime. However, the extent to which their efforts are truly effective remains uncertain. This study is guided by the following main- and sub research question:
How do auditors’ processes and attitudes contribute to the prevention and detection of money laundering?
How are these processes and attitudes influenced by current legislation?
A qualitative research design was employed, using semi-structured interviews with auditors from various audit firms. An abductive approach to thematic analysis was applied to identify key findings, which are then discussed in relation to relevant theory and independent reflection.
We find that auditors conduct thorough procedures both before and during the audit process to prevent and detect money laundering. Historical reporting of suspicious activity, combined with our findings, indicates that actual detection occurs to a limited extent. Our analysis suggests that auditors primarily contribute through a preventive effect. Clients deemed high-risk receive particular attention, and some engagements are declined as a result of pre-engagement assessments. Much of the work is driven by current legal obligations, and several participants express frustration with the nature and volume of the required tasks. A perceived imbalance between effort and outcome negatively affects attitudes.
The thesis concludes that the auditor’s processes contribute significantly to the prevention of money laundering, while their role in detection appears more limited. In contrast, auditors’ attitudes contribute little to addressing the research question. The legal framework clearly influences both the processes and attitudes of auditors. This master’s thesis provides insight into the topic and serves as a supplement to existing literature. Based on our findings, we recommend that improvements in competence, collaboration, and a clearer regulatory framework be considered to strengthen the auditor’s role as an effective gatekeeper and combatant of financial crime
To what extent does the exchange rate affect the import price of Norwegian salmon in the US, with respect to a third country effect from Chile?
No full textThe salmon industry has experienced a positive development the last decades, especially in Norway, where almost all salmon production is exported. This study will examine to what extent import prices of Norwegian salmon in the US are affected by a change in the exchange rate from year 2010 to 2018. In the research process, the influence of a third country impact from Chile is taken into consideration. The importance to include a third country effect in studies of the relationship between exchange rate and trade flows is reflected in existing literature and is one of the main prerequisites for the study. To solve the presented problem, a theoretical structural model is derived to include a third country effect. The model is then solved for Exchange Rate Pass-Through (ERPT), which is defined by own-price and cross-price elasticity of demand, supply elasticity and a custom cross-ERPT term based on the relationship between import prices of Chilean salmon and exchange rate between the US and Norway. A linear Almost Ideal Demand System (AIDS) is used to estimate demand elasticities. After adjusting for supply elasticity, ERPT elasticity is estimated and simulated for four scenarios. The first scenario looks at a case without incorporating the influence of a third country, while remaining scenarios considers the third country influence by including assumed values of cross-ERPT.
Empirical results reveal significant differences in the value of estimated ERPT elasticity with and without the influence of a third country. The value of ERPT that did not account for an influence is significantly lower than a typical ERPT on US import prices compared to existing research. The study concludes that a third country influence is crucial to avoid bias estimation of ERPT. The finding is assumed to be of relevance for ERPT research in its entirety, which has implication for subsequent research. The estimation results show a partial ERPT for import prices of Norwegian salmon in the United States with a value varying between 0,288 and 0,623. These results reveal that only parts of the exchange rate variations are affecting the import price. The study finds no evidence of an asymmetric ERPT, suggesting there is no use of market power from the exporter. Findings are consistent with existing literature and can help both the Norwegian salmon industry, and the Norwegian policy makers in making forecasts of price developments in relation to a change in the exchange rate, as well as provide an insight into market power dynamics in the destination market
Verdsettelse av Edda Wind ASA
Full text linkI vår bacheloroppgave gjennomfører vi en verdsettelse av Edda Wind ASA, et norsk offshore-rederi som tilbyr maritime tjenester og service for den voksende havvind næringen. Vi har lagt mest vekt på den fundamentale verdsettelsen hvor vi anvender estimerte fremtidige regnskapsprognoser og totalkapitalmetoden for å beregne fri kontantstrøm til totalkapitalen (FCFF). Deretter neddiskonterer vi disse kontantstrømmene til nåverdien ved hjelp av avkastningskravet til totalkapitalen (WACC) og summerer disse med terminalverdien til Edda Wind for så å trekke fra rentebærende gjeld for å komme frem til selskapets egenkapitalverdi.
Innledningsvis i oppgaven blir selskapet Edda Wind presentert med tilhørende historie og skipsflåte. Deretter fremstilles en overordnet presentasjon av den maritime bransjen Edda Wind tilhører. Med tanke på at selskapet tilhører en voksende fornybar industri vil vi også vie tid og fokus på bærekraft og samfunnsansvar videre i oppgaven. Oppgaven vil også gjennomgå sentral verdsettelsesteori med fokus på både komparativ og fundamental metode. I tillegg til dette benytter vi strategiske analyseverktøy som VRIO, PESTEL og Porters fem krefter for å gi en dypere forståelse av Edda Winds posisjon i markedet.
Etter dette vil vi gjennomføre en komplett regnskapsanalyse av selskapets siste fem regnskapsår, hvor alle tall og figurer er hentet direkte fra Edda Wind sine egne offentliggjorte års- og kvartalsrapporter. Basert på tilgjengelig selskapsinformasjon både fra regnskaps- og strategisk analyse, estimerer vi også fremtidige kontantstrømmer for de neste fem årene samt et avkastningskrav for selskapet på 7,7%. Deretter gjennomfører vi både den fundamentale og tilhørende relative verdsettelsen og drøfter variablene brukt til denne i en sensitivitetsanalyse.
Vi har, ved hjelp av både den fundamentale og komparative verdsettelsen kommet frem til en estimert aksjeverdi for Edda Wind ASA på 27,41 kroner per våren 2024 og den 4. april. Vi presiserer til slutt også usikkerheter og de mange forutsetningene når man estimerer en aksjeverdi særlig for et vekstselskap som Edda Wind. I tillegg belyser hvordan en selskapsverdi ikke bare kan måles i kontantstrømmer med tanke på hvor viktig bærekraft og miljøutfordringer er for næringslivet både i nåtiden og i fremtiden samt Edda Wind sin særskilte rolle i det grønne skiftet.In our bachelor thesis, we conduct a valuation of Edda Wind ASA, a Norwegian offshore shipping company that provides maritime services and support for the growing offshore wind industry. We have primarily focused on fundamental valuation, employing estimated future financial forecasts and the firm valuation method to calculate Free Cash Flow to Firm (FCFF). These cash flows are discounted at present value using the Weighted Average Cost of Capital (WACC) and then added to the terminal value of the company, then subtracting interest-bearing debt to arrive at the company's equity value.
Initially, the thesis presents Edda Wind along with its history and fleet. Subsequently, a comprehensive overview of the maritime industry in which the company is operating. Given that Edda Wind conducts business in a growing renewable industry, we also dedicate time and attention to sustainability and corporate social responsibility (CSR) throughout the thesis. The thesis will also review central valuation theories, focusing on both comparative and fundamental methods. Additionally, we utilize strategic analysis tools such as VRIO, PESTEL, and Porter's Five Forces to provide a deeper understanding of Edda Wind's position in the market.
Following this, we conduct a complete financial analysis of the company's last five fiscal years, with all data sourced directly from Edda Wind's publicly released annual and quarterly reports. Based on available company information from both financial and strategic analysis, we also estimate future cash flows for the next five years, along with a cost of capital of 7.7%. Subsequently, we conduct both fundamental and relative valuations and discuss the variables used in a sensitivity analysis.
Utilizing both fundamental and comparative valuation methods, we have estimated a share value for Edda Wind ASA at 27.41 Norwegian kroner per the spring of 2024, and as of april 4th. Ultimately we also emphasize uncertainties and the numerous assumptions involved in estimating the share value, particularly for a growth company like Edda Wind. We also highlight how a company's value cannot solely be measured in cash flows, given the importance of sustainability and environmental challenges for businesses both currently and in the foreseeable future, as well as Edda Wind's unique role in the green transition
Three Essays in Financial Accounting
Full text linkThe global business landscape is undergoing a paradigm shift. As stakeholders increasingly prioritize not only financial returns but also social and environmental impact, the concept of Environmental, Social, and Governance (ESG) has gained significant prominence (Henisz, 2023). Firms today are evaluated not merely on their profit margins but on their commitment to sustainability, ethical practices, and governance structures (Christensen et al., 2021; Albuquerque et al., 2019). A central aspect of this transformation is the recognition of reputation risk related to ESG practices, and diversity – both at the board level and throughout the organizational hierarchy. Reputation, long considered an intangible asset, has quantifiable implications on a firm's financial performance. In the context of ESG, reputation risks arise when firms fail to meet stakeholder expectations concerning environmental stewardship, social responsibility, or ethical governance. One such area under the spotlight is diversity, with an increasing body of evidence suggesting that firms with diverse leadership and workforce exhibit better financial performance. Board gender diversity has emerged as a critical factor. While progress has been made, women remain underrepresented in many boardrooms globally. This underrepresentation not only raises ethical concerns but also deprives firms of diverse perspectives that could enrich decision-making processes. Similarly, diversity among employees, encompassing education, race, ethnicity, and other parameters, offers a mosaic of perspectives that can foster innovation and improve risk management.
Yet, the question remains: How do these elements – ESG reputation risk, board gender diversity, and broader employee diversity – influence a firm's financial performance and behavior?
The purpose of this dissertation is to investigate the relationship between firms' financial performance and behavior, ESG reputation risk, board gender diversity, or employee diversity
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