Tom Berglund

• Dr. Econ.Sc.
• Managing Director at Hanken School of Economics

In a an overall equilibrium in asset markets there will be different types of institutions that are fundamentally different in terms of the required skill sets of their key employees. These different skill sets are optimal for pursuing different types of policies regarding what assets the institution should invest in. Our paper highlights how previ...

In this statement the European Shadow Financial Regulatory Committee (ESFRC) is advocating a conditional relief of Greek's government debt based on Greece meeting certain targets for structural economic reforms in areas such as its labor market and pensions sector. The authors argue that the position of the European institutions that debt relief fo...

Purpose – The purpose of this paper by the European Shadow Financial Regulatory Committee (ESFRC) is to provide an account of the financial crisis in Europe during the period 2010-2013 and an analysis of how the relevant authorities reacted to the crisis. Design/methodology/approach – These actions included measures taken by central banks, governm...

Purpose – The purpose of the paper is to find out which incentives are present for persons who are taking care of financial regulation in practice, and how these incentives impact their attitudes towards complexity of financial regulation. Design/methodology/approach – Based on recent contributions, reasons behind the increase in complexity observ...

Purpose – This paper aims to discuss factors that affect the socially optimal jurisdiction of financial supervision in the presence of economies of scale in banking. Design/methodology/approach – Analysis of the trade-off between likelihood of “regulatory capture” of supervisors in a small jurisdictions and benefits of greater rates of financial i...

This article discusses problems with proposed methods to estimate firm specific marginal q-ratios, where marginal q measures the value impact of new investment. The article concludes that suggested methods are likely to produce biased estimates since they fail to separate fluctuations in the value of assets in place, from the ex-post value increase...

This paper analyses data for Nordic listed companies in 2002-2008 to find out whether the market has rewarded companies that have improved their corporate governance systems as measured by the CG -quotient compiled by RiskMetrics (previously Institutional Shareholder Services, ISS). The paper also investigates which improvements have been more impo...

Owners of firms in trouble are more exposed to moral hazard problems than owners of successful firms. Foreign owners who face higher costs to monitor the firm should be more vulnerable to these problems than domestic ones. Consequently, a downward revision in a firm's expected future earnings should push foreign investors to sell their shares to a...

Following recent literature we hypothesize that when a firm's expected future earnings fall foreign investors will more likely suffer from moral hazard than domestic investors. A downward revision in a firm's expected future earnings should thus make foreign investors sell the firm's shares more extensively than domestic investors. We test this hyp...

Analysts should play an important role in making stock prices properly reflect changes in the value of listed firms' operations. Yet research shows that there are systematic biases in analysts' research induced by personal conflicts of interest faced by the analyst. This paper reports research concerning brokerage firm's clients' response to analys...

The home bias in international portfolios has been explained by foreign investors' exposure to more severe moral hazard problems than domestic investors. A drop in expected returns will increase the likelihood of these hazards, causing foreign investors to react more strongly to profit warnings than domestic investors. In data on profit warnings, i...

This paper analyses the impact of information on international portfolio investments. We decompose information into two categories: information that is observable by investors from all countries (homogeneous), and information that differs in contents between countries (heterogeneous information). In the homogeneous information set we include genera...

We use data on the country allocations of investors from several countries to test the hypothesis of Dahlquist et al. (2003). Our results show that the country allocation in the international portfolio of these investors do not seem to be influenced by the choice between the world market portfolio or the world float portfolio. The pattern of depend...

Business cycles in different regions of the United States tend to synchronize. This study investigates the reasons behind this synchronization of business cycles and the consequent formation of a national business cycle. Trade between regions may not be strong enough for one region to "drive" business cycle fluctuations in another region. This stud...

Lawrence R. Klein pioneered the work on aggregation, in particular in production functions, in the 1940s. He paved the way for researchers to establish the conditions under which a series of micro production functions can be aggregated so as to yield an aggregate production function. This work is fundamental in order to establish the legitimacy of...

This paper analyzes how a prolonged external disequilibrium, that may arise if the exchange rate is pegged, will affect the stock market. It is shown that if the central bank refuses to adjust the peg in response to the disequilibrium, stock returns are expected to remain below their equilibrium level. If the central bank finally fails in its defen...

This note shows the conclusion that the risk-premium for stocks will vanish once options are introduced which was advanced by Jin-Chuan Duan, Arthur F. Moreau, and C.W. Sealey, 1992 in a recent article is somewhat premature. Their argument is purely theoretical and concerns the simultaneous validity of a one-period APT and a continuous-time Option...

In this paper the pricing of currency options in a target zone model is discussed. The movement of the currency index is a product of the movement within the target zone and jumps in the target zone itself in the form of re- or devaluations. The probability of a re- or devaluation is modelled as dependent on the position of the exchange rate within...

This paper studies the relationship between the trading volume on the stock exchange and the properties of corresponding stock returns. The properties to be analyzed are: the dispersion of the returns, i.e. the volatility of the stock prices, the degree of leptokurtosis in the returns, and finally, the serial correlation in returns. The comparison...

This paper examines the properties of different market risk (beta) measures computed on daily data for a thin security market i.e. the Helsinki Stock Exchange in Finland. In accordance with the results by Dimson and Marsh (1983) the paper shows that differences in trading frequency between different stocks produce a serious bias towards what appear...

The net buying (selling) volume of the most net buyer (seller) brokers over a unit period is a widely followed piece of information in Istanbul Stock Market, which most market commentaries inaccurately refer to as “the net money in- or outflow”. It is, in fact, a proxy for big investors’ trading. In this note, we test whether this information has p...

Size and turn-of-the-year-related stock pricing anomalies are documented on the Helsinki Stock Exchange (HESE), Finland. This small exchange exhibits a statistically highly significant small-firm premium, even after correction for several of the shortcomings of the CRSP tape. Returns are also found to be markedly seasonal. January, and for the smal...

One of the most prominent explanations for the home bias in international portfolio investments is the moral hazard problem faced by foreign investors. Following recent literature we argue that a drop in the expected return of resources employed within the firm should increase the expected incidence of this type of moral hazard. Based on this argum...

Väitösk. lisäksi 1 irtol. Diss. -- Hfors -- Svenska handelshögskolan.