Previous studies have shown the continuation of a failing project occurs in many aspects of business and government, and that the commitment to and continuation of a previous decision can even apply to waiting on a bus, attending a play and mountain climbing. The continuation of a failing project or decision has also been called escalation of commitment. Several theories have been suggested to explain the reasons managers continue failing or doubtful projects. Among those theories are Agency Theory, Self-Justification Theory, Prospect Theory, Approach Avoidance Theory, Self-Efficacy Theory and National Culture Theory. This study incorporates Agency Theory, Approach Avoidance Theory and Self-Justification Theory to explain the effects of an alternative investment, magnitude of loss and monitoring on the likelihood of continuing a project. The experimental design of the study was a 2 (presence of an alternative investment: yes or no) x 2 (monitoring: low or high) x 3 (magnitude of loss: low, medium or high) between-subjects factorial design. Likelihood of continuing a project was measured in two ways: first, dichotomously (either "yes" the subjects continued the project, or "no" they did not) and second, on a 0-100 continuous scale. Data were analyzed using an analysis of variance for both dependent variables, as well as a priori contrasts to make planned comparisons. As predicted, main effects were found for the presence of an alternative investment and magnitude of loss. However, no significant effect was found for monitoring. It was also hypothesized that the combination of the presence of an alternative investment, "high" monitoring and "high" magnitude of loss would be enough of a psychological deterrent to cause decision makers to stop the project, even though it was 90% complete. However, this prediction was not validated. Interestingly, though, the combination of the presence of an alternative investment, "high" magnitude of loss and "low" monitoring was enough to cause decision makers to stop the project at a level significantly less than by chance for the continuous dependent variable, and marginally significant less than by chance for the dichotomous dependent variable. Most importantly, these findings suggest for the first time that decision makers are willing to stop a project even though it is 90% complete.

This thesis examines the different areas of agency theory including managerial discretion, corporate governance compliance, voluntary disclosure policies and regulation. The institutional setting for these studies will be the Alternative Investments Market (AIM) as this market provides a unique regulatory environment and distinctive corporate governance features that makes it suitable for analysis. Specifically, AIM, unlike its FCA-regulated main market counterpart, operates under a self-regulated environment, where application of the FCA rules and combined codes are voluntary. This allows great discretion in a firms operation leading to potential agency problems as mandatory disclosure is limited to price-sensitive information, allowing for the presence of information asymmetry. As well as agency theory, one of the main arcs of this thesis explores the role of Nomads. As principle regulator, these firms are charged with ensuring the compliance of their clients with the AIM rules, as well as ensuring the continued success of AIM itself. The first investigation creates a Nomad reputation index to test how the market responds when companies change to more reputable Nomads. To do this, event study methodology is utilised to examine the abnormal returns earned around Nomads switches. The key findings indicate that when managers switch-up to a more reputable Nomad, a proxy for managerial bonding, the market responds favourably, in spite of the costs associated with hiring a more reputable Nomad. Similarly, when managers make the unnecessary decision to switch to a Nomad of equal rank, the market responds negatively. As there is no intuitive advantage to switching to a Nomad of equal rank, it might therefore be seen as a costly and unnecessary move that will not improve the value of the firm. Therefore, the market reacts negatively, indicating the presence of market discipline as investors are punishing managers for making a decision perceived as unnecessary. The final analysis introduces the concept of ‘strict’ Nomads who are perceived to follow the AIM rules more closely than other Nomads. The reporting lag is used as a proxy and finds a positive relation with switches to a strict Nomad over a lenient one. The second study examines the determinant of corporate governance compliance with a focus on the effect of regulation. The findings document that regulation has not influenced the level of compliance, but rather there has been a convergence in governance standards over time given the increased awareness and demand for governance attributes. The findings also extend the Nomad reputation analysis with regards to governance and find a significant positive relation indicating Nomads influence governance standards as part of their monitoring role. The final study examines how the extent of voluntary disclosure is influenced by the company’s corporate governance attributes and the reputation of the Nomad. This study finds a positive relation between the level of voluntary disclosure, board independence and the presence of a nomination committee. Furthermore, this study reveals that voluntary earnings disclosure is a signal for bad news as the LS regression documents a negative relation between abnormal returns and the level of voluntary disclosure. This is corroborated in the event study where the announcement of a notification of results and the subsequent earnings announcement are associated with negative abnormal returns being earned.

Nearly all individuals who purchase a property will have to get a mortgage, which raises the issue of repayment of the loan. Is it more profitable to get out of debt or can we make the money grow faster through alternative investments? The purpose of this paper is to examine whether there are incentives for individual households to refrain from amortize. In general, one can identify three reasons to amortize; the first is a general need to save, the second reason is to save specifically for retirement and the third reason is the household's assessment of the probability of large negative shocks, such as a a decline of the real estate market. But the question is whether the principal is what is the most profitable for households? Based on actual interest rates and yields for the last 30 years and empirical research, this paper will analyze whether it is more advantageous for households to save by investing in financial assets such as mutual funds than by amortizing. Acknowledgement: This bachelor thesis is the final part for me at the bachelor program Real Estate and Finance at The Royal Institute of Technology and has been implemented in the spring of 2014. I would like to express my gratitude to everyone who has contributed information to this paper. / Näst intill samtliga personer som köper en fastighet kommer att behöva ta ett lån för att ha råd med köpet, vilket väcker frågan om återbetalning på lånet. Är det mest lönsamt att bli skuldfri eller kan pengarna växa snabbare genom alternativinvesteringar? Målsättningen med denna uppsats är att undersöka om det föreligger incitament för enskilda hushåll att avstå från att amortera. I stort kan man identifiera tre skäl till att amortera; det första är ett generellt behov av att spara, det andra skälet är att spara specifikt till pensionen och det tredje skälet är hushållens bedömning om sannolikheten för stora negativa chocker, exempelvis ett stort fall i bostadspriserna. Men frågan är om amortering är vad som är mest lönsamt för hushållen? Baserat på faktiska räntor och avkastningar under de senaste 30 åren samt empirisk forskning kommer denna uppsats att analysera frågan om det är mer förmånligt för hushåll att spara genom att investera i finansiella tillgångar såsom aktie- och räntefonder än genom att amortera. Förord: Denna kandidatuppsats utgör det avslutande momentet för mig på kandidatprogrammet Fastighet och Finans vid Kungliga Tekniska högskolan och har genomförts under våren 2014. Jag vill rikta ett stort tack till alla som har bidragit till information till denna uppsats.

The population of high-net-worth-individuals (HNWIs) in Ghana is projected to increase from 2,400 in 2015 to 4,900 by 2024. HNWIs in Ghana desire to have access to alternative investment instruments to enhance diversification and improve investment returns on their portfolios. Guided by the product-market-grid-model, the purpose of this qualitative multiple case study was to explore diversification strategies some fund managers use to improve returns for HNWIs. Twelve participants from 3 investment firms in the Greater Accra Region of Ghana, including CEOs and fund managers with more than 5 years of professional and industry experience, participated in semistructured interviews. Observations and company documents served as secondary sources of data collection. Five themes emerged from the analysis of interview and document data: investment objectives and risk appetite level, product availability, asset allocation, limited knowledge and lack of sophistication, and, performance benchmarking. Findings may be used by fund managers to combine knowledge and innovation in identifying alternative investment options for HNWIs and improving investment returns. HNWIs may use their disposable income from returns to engage in entrepreneurial activities that may create employment opportunities and improve the economic environment in Ghana.

Private Equity har länge utgjort ett attraktivt tillgångsslag på grund av dess höga riskjusterade avkastning. Den historiskt höga avkastningen i kombination med dagens låga räntor och starka kapitalmarknad har bidragit till ett växande intresse för tillgångsslaget, däribland hos privatpersoner. Syftet med arbetet var att kartlägga den svenska Private Equity-marknaden och privatpersoners möjlighet till exponering mot tillgångsslaget, genom att undersöka för- och nackdelar för företag att ha med privatpersoner som investerare samt för- och nackdelar för privatpersoner att exponeras mot Private Equity. För att fastställa respektive för- och nackdelar applicerades en kvalitativ forskningsmetod bestående av semistrukturerade intervjuer med nyckelpersoner inom området.  Av studiens resultat framgick det att främst kapitalstarka privatpersoner som anses som professionella eller semi-professionella investerare har möjlighet att investera direkt i Private Equity. Det framgick även att möjligheten för mindre kapitalstarka individer att investera i tillgångsslaget är begränsad, främst på grund av lagstiftningen och högt satta lägsta investeringsgränser. Utefter studiens resultat och analys kunde slutsatsen dras att det föreligger flertalet tydliga för- och nackdelar med att ha med privatpersoner som investerare och för privatpersoner att investera i tillgångsslaget. Att ha med privatpersoner som investerare kan bidra med fördelar i form av att de kan bidra med kunskap, kompetens, erfarenhet och affärsmöjligheter. Privatpersoner utgör även en intressant källa till kapital för Private Equity-fonder och företag. Privatpersoners delaktighet innebär även nackdelar. Privatpersoner som investerare medför stora administrationskrav, en möjlig operationell risk samt utgör en osäker källa till kapital. En ytterligare nackdel med att ha med privatpersoner som investerare, sett till att enbart ha institutionella investerare, är att det kräver fler investerare för att uppnå samma nivå av kapital. Fördelarna för privatpersoner att investera i Private Equity är främst att tillgångsslaget bidrar till hög avkastning och diversifiering. Vidare kunde slutsatsen dras att investering i tillgångsslaget innebär en inlåsningseffekt som förhindrar irrationella beslut och bidrar följaktligen till högre avkastning. Nackdelarna för privatpersoner vid investering i Private Equity kunde fastställas till mindre likviditet, brist på transparens och höga förvaltningsavgifter. Komplexitet hos tillgångsslaget och individens generella kunskapsbrist påvisades även vara nackdelar som bidrar till lägre lönsamhet. / Over the past decades Private Equity has been an attractive asset class due to its high risk-adjusted return. The historically high return in combination with today's low interest rates and strong capital markets has contributed to increased interest for the asset class, including among private individuals. This study was set out to identify the Swedish Private Equity market and private individuals' access to the asset class by examining the advantages and disadvantages for companies to have private individuals as investors and the advantages and disadvantages for private individuals to be exposed to Private Equity. To determine the advantages and disadvantages, a qualitative research method was applied in which semi-structured interviews were conducted with key people within the field. The results of the study showed that mainly high-net-worth individuals who can be considered as professional or semi-professional investors have the opportunity to invest in Private Equity. It also emerged that the opportunity for less wealthy individuals to invest in Private Equity is limited, mainly due to the legislation and high minimum investment limits. From the study it could be concluded that there are several clear advantages and disadvantages with both having private individuals as investors as well as for private individuals to invest in the asset class. Having private individuals as investors can contribute with benefits in the form of knowledge, competence, experience and business opportunities. Private individuals also constitute an interesting source of capital for Private Equity funds and companies. The main disadvantages, with having private individuals as investors, concluded from the study was that their participation places great demand on administration, may pose an operational risk and that they compose an uncertain source of capital. A further disadvantage with having private individuals as investors, compared to having only institutional investors, is that a larger number of investors is needed to raise the capital that the funds require. The main advantages for private individuals to invest in Private Equity, concluded from the study, are the high returns and contribution to diversification. Furthermore, it could be concluded that investing in the asset class has a lock-in effect that prevents individuals from making irrational decisions, which in turn contributes to a higher return. The disadvantages of investing in the asset class are concluded to be less liquidity, the lack of transparency and high management fees. The complexity of the asset class and individuals general lack of knowledge are also shown to be a disadvantage that contributes to lower profitability.

Private equity har under lång tid varit ett attraktivt alternativ vid allokering av kapital. Under de senaste fyrtio åren har tillgångsslaget fått mer fäste i Sverige. Som en följd av detta har det genom det stigande intresset gjorts mer omfattande forskning kring ämnet och tillgångsslaget fått en mer tilltalande förknippning som investeringsalternativ. Svenska institutioner anser att tillgångsslaget har flera attraktiva egenskaper och därför idag utgör en del i flera svenska institutioners portföljsammansättning. Syftet med arbetet var att undersöka hur beslutsprocessen ser ut när institutionellt kapital allokeras i onoterade tillgångar i form av private equity. Ambitionen var att ge en mer nyanserad bild av vilka faktorer som väger tyngst vid beslutsfattandet om en placering i private equity. Utöver en förståelse bakom de avgörande argumenten fanns även en önskan om att förstå vilka de avgörande faktorerna är samt hur de vägs gentemot varandra. För att fånga dessa olika parametrar utfördes en kvalitativ undersökning med semistrukturerade intervjuer. Argumentet bakom valet av en kvalitativ metod grundade sig i att det möjliggjorde för en mer djupgående analys. Undersökningen visade att svenska institutioner anser att private equity har väldigt goda diversifierande egenskaper som bidrar till en portföljoptimering. Då tillgångsslaget har en värderingsmetod som sker på kvartalsbasis bidrar detta till en lägre synlig volatilitet i portföljen. Genomgående eftersträvar institutioner att, genom investeringar i private equity, uppnå diversifierande effekter i portföljen men även ges möjligheter till högre avkastning i och med tillgångsslagets karaktär och de inlåsningseffekter som är ett resultat av fondens struktur vanligtvis är låst i åtta till tio år. Respondenterna poängterade även vikten av att ha förtroende för teamet bakom fonden och att de agerar i linje med de av organisationen själva uppsatta placeringsriktlinjer. En avgörande faktor som framgår från majoriteten av respondenterna är att deras placeringspolicy hindrar dem från att investera i oetiska verksamheter såsom koldioxidintensiva eller vapen. Man ser även att man genom sin allokering kan ha möjligheter att påverka affärsstrukturer dels, men även kapitalflöden i samhället. / Private equity has for a long time been an attractive alternative when allocating capital. Over the past forty years, the asset class has gained more traction in Sweden. As a result of this, due to the growing interest, more extensive research has been done on the subject and the asset class have gotten a more appealing association as a investment alternative. Swedish institutions consider the asset class to have several attractive traits which is why it constitutes to several Swedish portfolio compositions.  The aspiration of this study was to examine how the decision-making process looks when institutional capital is allocated in unlisted assets in the form of private equity. The ambition was to provide a more nuanced understanding of the key arguments that weigh the most when deciding to make an investment in private equity. In addition to an understanding behind the decisive arguments, there was also a desire to understand what the decisive factors are and how they are weighed against each other. To capture these different parameters, a qualitative survey was carried out by employing semi-structured interviews. The argument behind the choice of a qualitative method were since it allowed for a more in-depth analysis. The findings of the study revealed that Swedish institutions perceive private equity as having excellent diversification elements, contributing to portfolio optimization. The asset class has a valuation methodology, which occurs on a quarterly basis, that leads to lower visible volatility in the portfolio. Institutions consistently seek diversification effects and higher returns through private equity investments, due to the asset class´s characteristics and the lock-up effects associated with closed-end fund structures. The respondents emphasized the importance of having trust for the fund´s team and their adherence to the institution's own investment guidelines. An important factor highlighted by majority of respondents was the restriction imposed by their investment policy to avoid unethical activities such as carbon intensive or weapons, The respondents also tend to see through their allocation possibilities to influence the business structure partly, but also the capital flows in society.

The subject of the diploma thesis is to evaluate the development in post-crisis years and to determine the impacts that affect the current financial investment environment in the USA but also its future and create the prerequisites for other risks, which the market can affect in the next perspective and influence the global development. On this basis, a portfolio of the mutual fund will be drawn up, according to the assignment of its manager with an alternative investment component, which can adequately complement it in the current period of low interest rates.

台灣壽險業的利差損問題持續存在，但若想要進一步開放新投資項目，應先檢視新投資工具之特性以及研究對應之保險監理規範之修訂。 本研究針對國外另類投資進行實證分析，考慮風險與報酬之間的抵換關係(Trade-Off)，以Rockafeller and Uryasev (2000)以及Campbell,Huisman and Koedijk (2001)提出之投資組合模型，建立平均值-風險 值(Mean-Value-at-Risk)之 效 率 前 緣 和 平 均 值-條 件 風 險 值(MeanConditional Value-at-Risk)之效率前緣，探討另類投資對投資組合效率的影響，並檢視相關保險監理規範的適宜性。 實證結果顯示不同資產類別(Assets Class)之間的相關性低，加入另類投資的標的能夠提升投資組合的效率，因此建議可以開放一些另類投資的項目，或是設定門檻進行監理。 / Recently, many insurance companies in Taiwan increased their investments in foreign countries substantially due to the inadequacy of domestic investment markets. Some insurers started or have been preparing to invest in emerging alternative investment tools such as private equity funds and hedge funds. However,there is a trade-off between return and risk. In this study we utilized the methods developed by Rockafeller and Uryasev (2000) and Campbell, Huisman, and Koedijk (2001) to conduct risk-return analyses for the insurance companies who are interested in alternative investments. Our approach extends the traditional Mean-Variance approach by introducing value at risk (VaR) and conditional VaR as risk measures. We found that the correlations among asset classes were low and alternative investments could enhance the investment efficiency of insurance companies. We suggest loosening some regulations accordingly.

This project deals with historical precious metals price development as gold, silver, platinum and palladium in connection to analysis of the precious metals investment benefits. There are discussed international market prices and retail prices as well. There is also mentioned the issue of price structure from the premium and other costs point of view, including possible risks coupled with investment. Approximated are also basic terms and forms of investment metals, alternative options of precious metals investment as well. The project also includes the issue of tax investment aspects and other advantages connected to it. Further there is indicated medial disinformation criticism and insufficient legal support for customers investing to the precious metals.