The purpose of this research is to study the effect of market conditions on the performance of IPOs which is relevant information for investors and companies alike, involved with IPOs. The long-term underperformance of IPOs has been previously discussed by Loughran & Ritter (1995) which has later been named as the “New Issuance Puzzle” of IPOs. This underperformance, however, has later been contradicted by research from Carter et al. (2011) who did not find long-term underperformance of IPOs. By studying the previous research of Helwege & Liang (2004), who examined IPO issuances under different hot and cold IPO periods, we found a research gap of what effect the market conditions have on the IPO issuance.   By analysing the performance under different time periods, we compare the results to an index benchmark with matching time periods of the IPO issuing companies under our full sample period. We can then analyse the performance of the IPOs compared to their respective benchmark. By adding an analysis of hot/cold and bull/bear market conditions under which the IPOs were conducted, we will observe the effect of IPO performance under different market conditions.   Our positivistic and ontological view guided our article and research process. We relied on a deductive approach in order to test our anticipated outcomes and hypotheses. Articles yielding substantive theories, based on the explanation of middle-range theories serve as the benchmark of our theoretical framework.   The research came to a conclusion where we did not observe underperformance of the IPOs in the long-term, which contradicts the “New Issuance Puzzle” of Loughran & Ritter (1995). We could observe underperformance (overperformance) of IPOs under hot (cold) period market conditions when we defined the hot and cold market periods in accordance with the number of IPO issuance during each year. In accordance to initial first month IPO returns, we observe overperformance (underperformance) of hot (cold) period IPOs. We also included bull and bear market conditions into our research, where we could find patterns that the number of issuance had the same distribution as the bull and bear market conditions currently consisting on the market. The index of OMXS30 had the same price movement as the number of issuance each year. Therefore the number of issuance each year could hypothetically be used as an indicator of the future market performance of the OMX Stockholm. We did not find statistical significance of abnormal returns on the IPO market under different market conditions

abstract: Firms compete for profitable positions in their technological environments by capitalizing on their design and other capabilities to conceive and realize marketplace strategies more effectively and more efficiently than rivals do. However, research on how technological environment characteristics change the payoff from these capabilities is minimal. Given that possessing superior firm capabilities is a primary source of competitive advantage for firms, this study seeks to fill these critical research gaps in the literature. This dissertation, which is composed of two essays, seeks to answer what capabilities pay off more in various technological conditions. It benefits from the most comprehensive sample to date that includes 2132 publicly traded firms in the United States (US) over 34 years. All the technological industry conditions are captured by using the entire data of utility patents in the US. The first essay shows that design is a firm capability that enhances sales growth. Its effect, however, is attenuated by technology intensity because, in markets with high technology intensity, design attributes become less salient. Moreover, technological competitive intensity and maturity amplify design capability’s positive effect because when technical attributes of products provide limited differentiation, design attributes receive more attention, and consumers overweight them in decision making. The second essay examines the effect of marketing and research and development (R&D) capabilities on return on assets (ROA) in three technological market conditions: Technological turbulence, uncertainty, and acceleration. It shows that all the technological environments amplify the positive ROA performance outcomes from marketing capability, with technological turbulence having the most potent effect. R&D capability, however, is most influential in technologically accelerating markets. Finally, the second essay unveils that marketing and R&D capabilities are complementary only in technologically turbulent markets. These studies thus provide valuable insights to researchers and managers on the payoff from these capabilities and offer new guidance on which capabilities firms should emphasize on under different technological market conditions. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2020

This dissertation addresses issues concerning liquidity and its volatility. It consists of two essays. The first essay, "Liquidity, Macro Factors and the U.S. Equity Flows to Emerging Markets", examines the role of liquidity on equity flows from the U.S. to fifteen emerging markets around the world. Since liquidity has many dimensions, an emphasis is placed on utilizing various measures of liquidity. Moreover, both static and dynamic analyses, as well as short and long-horizon regressions, are performed to investigate the research questions. The results suggest that a liquid market attracts flows, after controlling for market size, political openness, exchange rate and other macro factors. Additionally, evidence indicates that the importance of liquidity varies across regions. For instance in the Asian region, the relation between equity flows and volume-related liquidity is weak while that between flows and price impacts of trading is strong. Evidence also supports the relevance of macro factors such as a country's economic freedom. The second essay, "Liquidity Risk Premium Puzzle and Possible Explanations", attempts to resolve the liquidity risk puzzle: a negative relation between returns and liquidity risk, documented by Chordia, Subrahmanyam, and Anshuman (2001b), by employing alternative liquidity measures and by incorporating factors that might potentially affect the relation. The main findings are as follows. The relation between stock returns and volatility of liquidity depends on the measure of liquidity. When liquidity measures are based on trading volume, the results are largely mixed, but when liquidity is measured based on price impact of trading, the relation between returns and volatility of price impacts is positive, as expected. The results are sensitive to time periods examined. Moreover, during extreme down markets, the aversion to liquidity volatility is lower, suggesting behavioral bias might potentially address the puzzle. Empirical findings also suggest that liquidity risk premium tends to be greater for small stocks. Finally, when the VIX index is included as a proxy for investor sentiment, the results indicate that the relation between returns and liquidity risk is significantly positive in four out of five liquidity measures. In sum, the empirical analysis partially but not completely addresses the puzzle.

Problemställning: Riksbanken införde en minusränta för första gången i svensk historia i februari 2015. Sedan dess har Sverige befunnit sig i en högkonjunktur och den låga reporäntan har möjliggjort billigare belåning. Ur ett historiskt perspektiv har en ökad ekonomisk tillväxt utvecklats tillsammans med högre räntesatser. Idag befinner vi oss däremot i motsatt situation. Detta bör påverka företagens finansiering och kapitalstruktur då de har möjlighet att nå en hög tillväxt till en lägre kostnad. Syfte: Syftet med denna uppsats är att undersöka och analysera hur nuvarande ränteläge påverkar olika industriföretags strategiska och finansiella beslut kring kapitalstruktur. Forskningsfrågor:-       Tar företag olika räntelägen i beaktning vid val av kapitalstruktur? -       Har arbetet kring kapitalstruktur förändrats sedan minusränteläget började i februari 2015? -       Vilka likheter och skillnader finns det i arbetet kring kapitalstruktur med utgångspunkt från                  rådande ränteläge mellan noterade, onoterade, stora samt små och medelstora företag? Resultat: Företag tar hänsyn till nuvarande ränteläge till följd av förändrade villkor på kapitalmarknaden. Räntan ses däremot som en sekundär aspekt vid strategiska och finansiella beslut i jämförelse med risk och flexibilitet. Generellt sett har minusräntan inte förändrat hur företag arbetar med kapitalstrukturen. De främsta likheter och skillnader är variation i arbetet med reporäntan och olika sätt att utnyttja kapitalmarknaden. Kunskapsbidrag: Studien har bidragit till fördjupad kunskap kring hur företag hanterar minusräntan samt hur detta arbete skiljer sig mellan olika företagsstorlekar och noterade samt onoterade företag. Studiens resultat är i linje med Market Timing Hypotesen och Pecking Order Teorin. Till skillnad finner studien inga belägg för Modigliani och Millers första proposition. / Problematisation: In February 2015, the Swedish central bank introduced an interest rate below zero for the first time. Since then the economy has been booming and the low interest rates has enabled cheaper debt. Historically, increased economic growth has occurred together with higher interest rates. However, we find ourselves in the opposite situation today. This should affect how companies are working with their capital structure, as they are now able to achieve high growth at a lower financial cost. Purpose: The purpose of this study is to investigate and analyze how the current interest rate affects different industrial companies strategic and financial decisions related to their capital structure. Research Questions:-       Do companies consider different interest rates when choosing their capital structure? -       Have companies started working with capital structure in a different way since the interest rate below          zero was introduced in February 2015? -       Based on the current interest rate, what are the similarities and differences in how companies work              with their capital structure between listed, unlisted, large, medium and small sized companies? Conclusion: Due to changed market conditions, companies take the current interest rate into consideration. However, it is seen as a secondary aspect when making strategic and financial decisions in comparison to risk and flexibility. In general, the interest rate below zero has not changed how companies work with their capital structure. The main similarities and differences are variation in how to work with the interest rate and utilize the capital market. Knowledge contribution: The study has deepened the knowledge of how companies manage an interest rate below zero and how this work differs between different company sizes and listed and unlisted companies. The results of the study are in line with the Market Timing Hypothesis and the Pecking Order Theory, but with no evidence in accordance with Modigliani and Miller's first proposition.

This dissertation explores how migration responds to economic conditions, particularly differences in responsiveness for various segments of the population. After a brief introduction and motivation of my work in Chapter One, Chapter Two estimates the responsiveness of households’ interstate migration to origin state labor market conditions and surrounding state labor market conditions. Each percentage point increase in origin state unemployment insurance claims leads to a 3.2 percent increase in household’s propensity to migrate interstate and each percentage point increase in the unemployment insurance claims rate of surrounding states reduces interstate migration propensity by 5.2 percent. I then examine how this responsiveness varies by demographics and how it has changed over time. I determine that the responsiveness of migration to labor market conditions is weaker for several groups at high poverty risk, including less educated, non-employed and rural households and households with children present. I also show that between the early 1980s and mid 1990s labor market conditions became a smaller factor in household migration decisions, but since then labor market conditions have gained in importance. While Chapter Two examines short-run migration responsiveness, Chapter Three explores the size of the long-run outflow (or inflow) of skilled labor occurring in local areas in response to economic conditions, amenities and other area characteristics. I estimate the extent of this brain gain and brain drain within localities in the United States between the early 1990s and late 2000s, describing both absolute changes (percentage growth in the stock of educated individuals) and relative changes (growth in the share of educated individuals). For each of three measures of brain gain estimated, I show substantially more positive flows of educated individuals towards local areas with strong initial economic conditions. I also show that non-metropolitan areas are more likely to experience all three measures of brain drain. I present evidence that nonmetropolitan areas’ inability to attract and retain educated individuals stems primarily from labor market disparities including the urban-rural wage differential.

This paper includes a study of the mutual fund market investors during a selected time period. The reader is given a descriptive picture of how people in different age groups have  acted  in  conjunction  with  the  last  major  financial  crisis.  It  has  been  studied whether people in the different age categories have saved, purchased or sold during this time  period  based  on  theories  and  analytic  material  from  one  of  the  largest  fund operators in Sweden. The result enlightens people’s activity and risk appetite in relation to the fund market. The essay results in an explanation of the underlying cause of the behavior        of         the         people         in         the         different         age         categories. The paper assumes that the market is cyclical and that more crises will occur in the future. The most recent crisis developed during the years 2007-2008 and has therefore been  selected  to  represent  the  analyzed  period.  Among  other  things,  a  general hypothesis  was  applicable  to  recurring  tendency  of  nonprofessional  retail  client  in extreme market situations to buy fund shares at a high value and sell them at low value in the market. The starting point was to criticize this hypothesis, which clearly turned out   to   be   in   favor   for   one   of   the   mutual   funds   that   have   been   observed. The result shows that more people in the middle age save more than those in their young years as well as those in the retirement age. The conclusion of the study shows that when this crisis occurred there were no major withdrawals from any of the mutual funds. In fact the sales transaction was reduced in the period of time from the peak of the stock market in 2007 to the time market touched the ground in 2008. / I denna uppsats undersöks fondmarknadens investerare under en vald tidsperiod. Läsaren ges en beskrivande bild av hur personer i olika ålderskategorier har agerat i samband med den senaste stora finanskrisen. Det har studerats, med stöd av teorier och analysmaterial från en av Sveriges största fondaktörer, huruvida personer i de olika ålderskategorierna har sparat under denna period. Resultatet belyser personers aktivitet och riskbenägenhet i förhållande till fondmarknaden. Uppsatsen mynnar ut i en förklaring till vad som är och kan vara bakomliggande orsaker till beteendet hos personerna i de olika ålderskategorierna. Undersökningen utgår från att marknaden är cyklisk och att fler kriser kommer uppkomma i framtiden. Den senaste krisen ägde rum under år 2007-2008 och har därför valts ut för att representera den tidsperiod som avser att analyseras. Bland annat har en generell hypotes testats gällande att icke-professionella kunder har en återkommande tendens att i extrema marknadslägen köpa vid uppgång och sälja vid nedgång i de utvalda tillväxtmarknadsfonderna. Utgångspunkten var i detta hänseende att förkasta denna hypotes, vilket tydligt visade sig stämma i en av de fonder som studerats. Resultatet visar i korthet att fler personer i medelåldern investerar mer än de i ungdomens år och pensionsåldern. Slutsatsen av undersökningen visar på att när detta krisläge uppstod skedde inga större uttag ur någon av fonderna. De facto minskar säljtransaktionerna överlag från toppnoteringen på börsen under år 2007 till bottennoteringen år 2008.

Aus der Einführung "Kreative Ideen sind die Grundlage für Unternehmen, um eigene Produkte an sich verändernde Marktbedingungen anzupassen, neue Möglichkeiten zu nutzen und auf dem Markt zu bestehen (Shalley et al. 2004). Organisationen versuchen deshalb, kreativitätsfördernde Arbeitsbedingungen zu schaffen, indem die Unternehmenskultur und Arbeitsumgebungen entsprechend gestaltet oder spezielle Werkzeuge zur Verfügung gestellt werden. Ein im Produktentwicklungsprozess häufig eingesetztes Werkzeug ist das parametrisch assoziative CAD-System (Computer-Aided Design). Die effiziente Bedienung einer umfangreichen WIMP (Window, Icon, Menu, Pointing)- basierten Software muss durch umfangreiche Schulungen erlernt und regelmäßig angewendet werden, um die Modellierfähigkeiten zu erhalten. Die zur Bedienung erforderliche kognitive Leistung führt häufig zur Beeinträchtigung der Kreativität eines Konstruktionsingenieurs (Chandrasegaran et al. 2013), v. a. bei wenig geübten Nutzergruppen. Am Übergang zwischen Konzeptphase und der frühen Entwurfsphase (Arbeitsabschnitt 5 der VDI 2221) wird deshalb vorwiegend mit Skizzen und noch nicht im parametrischen CAD-System gearbeitet (VDI 2223 2004). Für die Erstellung der Vorentwürfe wäre es im Sinne des „Frontloading“ jedoch wünschenswert, früh erste rechnergestützte Methoden zur Gestaltung einsetzen zu können. Durch den Einsatz von virtueller Realität (VR) eröffnet sich die Möglichkeit zur Entwicklung intuitiver Interaktionsmethoden, die eventuell neue Modellierstrategien ermöglichen. Diese erlauben dem Produktentwickler, natürlich mit den virtuellen Modellen umzugehen. Durch die im Vergleich zum parametrisch assoziativen CAD-System intuitive Bedienung würde die Kreativität bei der groben Gestaltung der Vorentwürfe weniger eingeschränkt. ..."

We evaluate the validity of the Adaptive Market Hypothesis (AMH) in a Swedish context by testing for stock return predictability on the OMXS30 stock index between 1986 and 2014 using daily returns and monthly two year moving subsamples. To our knowledge, this is the first study to evaluate the AMH in a Swedish context. Three tests for linear independence based on Lo and MacKinlay (1988) variance ratio test, namely the Chow and Denning joint test as well as Wright (2000) joint rank and sign tests are used. We also test for non-linear independence using the BDS test statistics. Presented in our findings is evidence of time-varying predictability where stock returns go through periods of return predictability and non-predictability. When evaluating the different market conditions (volatility, bull, bear, up, down and normal markets) we find that these different market conditions govern the degree of stock return predictability in different ways. Our findings support the AMH on the OMXS30 stock index and in contrast to previous research regarding market efficiency on the Swedish stock market, we do not find persistent stock return predictability over the short and long term.

Aus der Einführung "Kreative Ideen sind die Grundlage für Unternehmen, um eigene Produkte an sich verändernde Marktbedingungen anzupassen, neue Möglichkeiten zu nutzen und auf dem Markt zu bestehen (Shalley et al. 2004). Organisationen versuchen deshalb, kreativitätsfördernde Arbeitsbedingungen zu schaffen, indem die Unternehmenskultur und Arbeitsumgebungen entsprechend gestaltet oder spezielle Werkzeuge zur Verfügung gestellt werden. Ein im Produktentwicklungsprozess häufig eingesetztes Werkzeug ist das parametrisch assoziative CAD-System (Computer-Aided Design). Die effiziente Bedienung einer umfangreichen WIMP (Window, Icon, Menu, Pointing)- basierten Software muss durch umfangreiche Schulungen erlernt und regelmäßig angewendet werden, um die Modellierfähigkeiten zu erhalten. Die zur Bedienung erforderliche kognitive Leistung führt häufig zur Beeinträchtigung der Kreativität eines Konstruktionsingenieurs (Chandrasegaran et al. 2013), v. a. bei wenig geübten Nutzergruppen. Am Übergang zwischen Konzeptphase und der frühen Entwurfsphase (Arbeitsabschnitt 5 der VDI 2221) wird deshalb vorwiegend mit Skizzen und noch nicht im parametrischen CAD-System gearbeitet (VDI 2223 2004). Für die Erstellung der Vorentwürfe wäre es im Sinne des „Frontloading“ jedoch wünschenswert, früh erste rechnergestützte Methoden zur Gestaltung einsetzen zu können. Durch den Einsatz von virtueller Realität (VR) eröffnet sich die Möglichkeit zur Entwicklung intuitiver Interaktionsmethoden, die eventuell neue Modellierstrategien ermöglichen. Diese erlauben dem Produktentwickler, natürlich mit den virtuellen Modellen umzugehen. Durch die im Vergleich zum parametrisch assoziativen CAD-System intuitive Bedienung würde die Kreativität bei der groben Gestaltung der Vorentwürfe weniger eingeschränkt. ..."

This thesis project examines the liquidity of the residential market in Stockholm under different phases of the real estate cycle. Using time-on-market (TOM) as a liquidity indicator, the aim is to get an insight of the influence of prices, property characteristics and macroeconomic variables. The housing price index of residential apartments in Stockholm witnessed a significant fluctuation following the economic shock of the COVID-19 pandemic and the invasion of Ukraine. This unique situation provided an excellent opportunity to explore the relationship between TOM and prices, a topic that has been subject to recurrent research. Due to competing retail theory and the search theory, the TOM-price relationship is still debated between positive or negative. By dividing the sample data into quarters and market phases, this study demonstrates that the residential market in Stockholm has a negative TOM-price relationship in all market conditions. However, the magnitude of the effect of price over TOM varied depending on the market phase. The results suggest that sellers adopt a rational approach in which they are motivated to capitalize on the positive market conditions before the situation becomes unfavorable. Conversely, when the market is experiencing a decline, sellers choose to wait for a more favorable market environment. Further research could test a different empirical methodology to confirm this relationship and identify other factors that could be affecting the liquidity of the market. / Detta examensarbete undersöker likviditeten på bostadsmarknaden i Stockholm under olika faser av fastighetscykeln. Med hjälp av tid på marknaden (TOM) som likviditetsindikator är syftet att få en inblick i hur priser, fastighetsegenskaper och makroekonomiska variabler påver-kas. Noterbart är att bostadsprisindexet för bostadslägenheter i Stockholm upplevde betydande fluktuationer efter den ekonomiska chocken av covid-19-pandemin och invasionen av Ukraina. Denna unika situation gav ett utmärkt tillfälle att utforska förhållandet mellan TOM och priser, ett ämne som har varit föremål föråterkommande forskning. På grund av konkurrerande retail teori och search teori, diskuteras TOM-prisrelationen fortfarande mellan positivt och negativt. Genom att dela upp provdatan i kvartals- och marknadsfas, visar denna studie att på bostads-marknaden i Stockholm är förhållandet mellan TOM och pris negativt under alla marknadsför-hållanden. Storleken på effekten av pris över TOM varierade dock beroende på marknadsfas. Resultaten tyder på att säljare antar ett rationellt tillvägagångssätt där de motiveras att kapitalisera på de positiva marknadsförhållandena innan situationen blir ogynnsam. Omvänt, när marknaden upplever en nedgång väljer säljarna att vänta på en mer gynnsam marknadsmiljö. Ytterligare forskning kan använda en annan empirisk metod för att bekräfta detta förhållande och identifiera andra faktorer som kan påverka marknadens likviditet.