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One of the most conspicuous features of mergers is that they come in waves that are correlated with increases in share prices and price/earnings ratios. We use a natural way to discriminate between pure stock market influences on firm decisions and other influences by examining merger patterns for both listed and unlisted firms. If "real" changes in the economy drive merger waves, as some neoclassical theories of mergers predict, both listed and unlisted firms should experience waves. We find significant differences between listed and unlisted firms as predicted by behavioral theories of merger waves. (author's abstract)

An increased mortgage cap was introduced in 2010, and as of May 1st 2016 an amortization requirement was introduced in an attempt to slow down house price development in Sweden. Fluctuations in the house prices can significantly influence macroeconomic stability, and with house prices in Stockholm rising even more rapidly than Sweden as a whole makes the understanding of Stockholm’s dynamics very important, especially for policy implications. Stockholm house prices between the first quarter of 1996 and the fourth quarter of 2015 is therefore investigated using a Vector Error Correction framework. This approach allows a separation between the long run equilibrium price and short run dynamics. Decreases in the real mortgage rate and increased real financial wealth seem to be most important in explaining rising house prices. Increased real construction costs and increased real disposable income also seem to have an effect. The estimated models suggest that around 40-50 percent, on average, of a short-term deviation from the long-run equilibrium price is closed within a year. As of the last quarter 2015, real house prices are significantly higher compared to the long run equilibrium price modeled. The deviation is found to be around 6-7 percent.

The growth performance of the South African economy over the past two and a half decades has been disappointing. The economy has not reached the high growth rates of the 1960s, which is desperately needed to alleviate poverty in the country. While the sources of growth have been a subject of much debate, recently the notion that the Real Exchange Rate (RER) level of a country matters for growth has attracted attention. While it is generally expected that the value of the currency should not remain constant and that the exchange rate fluctuates over time, in the long-term, it is expected to converge to an equilibrium level South Africa follows an inflation targeting framework and a free floating exchange rate regime. The exchange rate has been highly volatile since the abolishment of the dual exchange rate system in 1995. This implies that there were periods of overvaluation and undervaluation from the equilibrium level; in other words the rand experienced times of misalignment. In the event of misalignments, the RER is moved to levels which make it difficult for an economy to sustain international competitiveness over the long-run, and this is harmful to growth rates in the economy. This is especially true for countries, such as South Africa, which is heavily dependent on exports. The RER is therefore very powerful and has been argued to be the cause of loss of competitiveness and growth slowdowns. This study investigates this notion for South Africa. The main aim of this study is therefore to investigate the effects of RER misalignment on economic growth in South Africa. This implies that the study aims to determine the level of RER equilibrium, the misalignment in the real value of the rand, and how this misalignment has affected economic growth in the country. The Behavioural Equilibrium Exchange Rate (BEER) approach is followed to determine the Equilibrium Exchange Rate (EER), which allows for the use of fundamental macroeconomic variables to determine the real equilibrium level of the rand. Identified fundamental variables, which are the main drivers of the current RER in South Africa, include GDP per capita, trade openness, terms of trade, gross fixed capital formation and the real interest rate differential. A Vector Error-Correction Mechanism (VECM) is used in the estimation of the Real Equilibrium Exchange Rate (REER). Misalignment is calculated as the difference between the actual and the equilibrium real exchange rate. It is found that during the period under investigation (1985 to 2011) there have been substantial misalignments in the RER of the rand, though the currency was mostly overvalued. It is also shown that the rand does revert to its equilibrium level over time. The least square method is used to determine the effect of this RER misalignment on economic growth. Additional variables such as the initial level of GDP per capita, trade openness, terms of trade as well as gross fixed capital formation, are included in the growth specification. Trade reforms emphasise the importance of export-led growth in a commodity-rich economy, such as South Africa. The results indicate that the RER misalignment has a positive coefficient; this implies that a misalignment in the rand has not necessarily been harmful to economic growth. Therefore, it can be concluded that in the case of South Africa, misalignment is generally stimulating growth, but more so when the currency is undervalued. The results therefore show that the RER should be kept at competitive levels in order to boost economic growth in the country. The results also show support for the strategy of export-led growth in South Africa. / Thesis (MCom (Economics))--North-West University, Potchefstroom Campus, 2013.

The growth performance of the South African economy over the past two and a half decades has been disappointing. The economy has not reached the high growth rates of the 1960s, which is desperately needed to alleviate poverty in the country. While the sources of growth have been a subject of much debate, recently the notion that the Real Exchange Rate (RER) level of a country matters for growth has attracted attention. While it is generally expected that the value of the currency should not remain constant and that the exchange rate fluctuates over time, in the long-term, it is expected to converge to an equilibrium level South Africa follows an inflation targeting framework and a free floating exchange rate regime. The exchange rate has been highly volatile since the abolishment of the dual exchange rate system in 1995. This implies that there were periods of overvaluation and undervaluation from the equilibrium level; in other words the rand experienced times of misalignment. In the event of misalignments, the RER is moved to levels which make it difficult for an economy to sustain international competitiveness over the long-run, and this is harmful to growth rates in the economy. This is especially true for countries, such as South Africa, which is heavily dependent on exports. The RER is therefore very powerful and has been argued to be the cause of loss of competitiveness and growth slowdowns. This study investigates this notion for South Africa. The main aim of this study is therefore to investigate the effects of RER misalignment on economic growth in South Africa. This implies that the study aims to determine the level of RER equilibrium, the misalignment in the real value of the rand, and how this misalignment has affected economic growth in the country. The Behavioural Equilibrium Exchange Rate (BEER) approach is followed to determine the Equilibrium Exchange Rate (EER), which allows for the use of fundamental macroeconomic variables to determine the real equilibrium level of the rand. Identified fundamental variables, which are the main drivers of the current RER in South Africa, include GDP per capita, trade openness, terms of trade, gross fixed capital formation and the real interest rate differential. A Vector Error-Correction Mechanism (VECM) is used in the estimation of the Real Equilibrium Exchange Rate (REER). Misalignment is calculated as the difference between the actual and the equilibrium real exchange rate. It is found that during the period under investigation (1985 to 2011) there have been substantial misalignments in the RER of the rand, though the currency was mostly overvalued. It is also shown that the rand does revert to its equilibrium level over time. The least square method is used to determine the effect of this RER misalignment on economic growth. Additional variables such as the initial level of GDP per capita, trade openness, terms of trade as well as gross fixed capital formation, are included in the growth specification. Trade reforms emphasise the importance of export-led growth in a commodity-rich economy, such as South Africa. The results indicate that the RER misalignment has a positive coefficient; this implies that a misalignment in the rand has not necessarily been harmful to economic growth. Therefore, it can be concluded that in the case of South Africa, misalignment is generally stimulating growth, but more so when the currency is undervalued. The results therefore show that the RER should be kept at competitive levels in order to boost economic growth in the country. The results also show support for the strategy of export-led growth in South Africa. / Thesis (MCom (Economics))--North-West University, Potchefstroom Campus, 2013.

The aim with this thesis is to investigate whether increased capital flows to ESG screened indexes create higher price-to-earnings (P/E) ratios and momentum in the included stocks during the chosen time period of three years, from 2018 to 2020. The thesis will evaluate the capital flows to ESG indexes and compare both performance and P/E ratios between those and their corresponding Mother indexes. The study will also look at the development of capital flows, performance and P/E ratios separately in the four chosen geographical indexes; Global, Europe, US and Emerging Markets. The theoretical framework goes through four relevant subjects for this study; passive investing, ESG, momentum and the P/E ratio. The study has shown that the capital flows in all four ESG indexes increased during the chosen time period. Moreover, it could be proven that three out of four ESG indexes outperformed their Mother indexes, namely, Global, Europe and Emerging Markets. In the U.S. the Mother index outperformed the ESG index. Three out of four geographical indexes also had a higher increase in the average P/E ratio than their mother indexes. Here, the Global market stood out as the one that had a lower increase in P/E ratio than its Mother index. Lastly, regression analyses were made to see the relationship between the variables capital flows, average P/E ratios in the indexes and the performance of the indexes. The study showed significantly that capital flows is the explanatory variable for the increased P/E ratios on the European ESG index. However, for the other indexes no significant correlation could be proved. This led to an interesting discussion and conclusion, and also left us with a question mark. What is the reason behind this result on the European market, and why was it not possible to see any significant correlation on the other markets? Further research in this field is needed and some ideas are discussed in the last chapter of the thesis.

De nos jours, nous remarquons la transition marquante d’une économie fondée sur les actifs matériels vers une économie basée sur les actifs immatériels. Cette tendance s'illustre à travers l’augmentation des investissements en R&D donnant lieu au dépôt d’un nombre important de brevets. Néanmoins, une minorité seulement détient une valeur financière. Ces constats nous ont conduits à nous interroger sur les facteurs favorisant le renouvellement ou l’abandon d’un brevet. Dans notre quête d’éléments de réponse à cette première problématique, nous avons défini trois phases stratégiques du cycle de vie des brevets : l’abandon de procédure, l’abandon naturel, et l’abandon tardif. De plus, les résultats des régressions logistiques mettent en évidence deux variables : la durée de délivrance et le nombre cumulé de brevets citant. En l’absence d’un traitement adéquat, la valorisation des intangibles demeure au centre des recherches et débats. Les théoriciens et chercheurs confirment que ces actifs influencent significativement la perception du marché de la valeur financière des entreprises détentrices d’actifs immatériels (surévaluation). Ce faisant, cette recherche tente de répondre par ailleurs à la question : comment le marché financier réagit-il à la diffusion de nouvelles informations relatives aux brevets détenus par une firme ? Nos recherches nous ont permis de mettre en évidence le rôle de l’asymétrie d’information dans la valorisation des brevets. Ainsi, la capitalisation boursière de l’entreprise détentrice du brevet est positivement corrélée avec l’information disponible relative aux brevets même si l’ampleur de la rentabilité anormale cumulée est fonction de l’industrie / Recently we notice a striking transition from an economy based on tangible assets to a knowledge economy based on intangible assets. This trend is illustrated through increased investment in R&D resulting in the filing of a large number of patents. However, only a minority of these has a financial value. These facts led us to wonder about the factors that lead to the renewal or abandonment of a patent.In our quest for answers to this first issue, we defined three strategic phases of patent life cycle: process abandonment, natural abandonment, and late abandonment. In addition, results of simple logistic regressions reveal two variables: the duration of delivery and the cumulative number of citing patents.The incorporation of intangible assets in the balance sheet is a real dilemma without an adequate treatment. Even though the valuation of intangibles remains at the heart of many studies and debates, theorists and researchers confirm that these assets significantly influence the market's perception of the financial value of holding companies (overvalued). Within this framework, this research attempts to answer this question as well: How does the financial market react to the dissemination of new information on patents held by a company?Our research allowed us to highlight the role of informational asymmetry in the valuation of patents. Thus, the market capitalization of the patent holder is positively correlated with available information. Finally, we notice that the magnitude of the cumulative abnormal return is a function of the industry

The Swedish housing market has been subject to extensive attention in the media recently, and the existence of a housing bubble has been questioned. The purpose of this thesis is to analyse the Swedish housing market to investigate if there are reasons to believe that the market is overvalued. The current situation in the housing market will be compared to the United States market prior to the crash of 2007. The models that are used in the paper is the house price-to-income, price-to-rent and imputed rent-to-rent. Other fundamental factors such as rent control, household debt, interest rates, and other policies effecting the housing market will be discussed. The main findings indicate that the Swedish housing market in 2010 is overvalued, however one has to consider that there are limitations to these models such as the extra benefits of owning a house compared to renting.

The Swedish housing market has been subject to extensive attention in the media recently, and the existence of a housing bubble has been questioned. The purpose of this thesis is to analyse the Swedish housing market to investigate if there are reasons to believe that the market is overvalued. The current situation in the housing market will be compared to the United States market prior to the crash of 2007. The models that are used in the paper is the house price-to-income, price-to-rent and imputed rent-to-rent. Other fundamental factors such as rent control, household debt, interest rates, and other policies effecting the housing market will be discussed. The main findings indicate that the Swedish housing market in 2010 is overvalued, however one has to consider that there are limitations to these models such as the extra benefits of owning a house compared to renting.

För att upprätthålla en blomstrande ekonomi i samhället är det viktigt att marknaderna och de finansiella systemen är välfungerande och rationella, eftersom stabil ekonomisk tillväxt ökar välfärden i samhället. En grundläggande förutsättning för detta antagande är att företag värderas med förnuft och rationalitet för att undvika övervärderingar, vilket i sin tur kan ledatill volatilitet och minskad likviditet som inte är fördelaktigt för att upprätthålla förtroende föraktievärdering. Den digitala eran vi lever i har gjort det möjligt för nästan vem som helst att agera investerare på olika börser. Börserna är och har under de senaste åren varit högre värderade än någonsin tidigare. Att investera är att fatta ekonomiska beslut genom att allokera medel i tillgångar, där du förväntar dig en avkastning på investeringen. När en investerare förvärvar sådana tillgångar baserar de vanligtvis sitt beslut på tillgängliga ekonomiska data. Denna ekonomiska data kan komma i olika former, det kan vara årsredovisningar, kvartalsrapporter, värderingar, nyheter om företaget, globala externa faktorer och i vissa fall rekommendationer från andraköpare. Alla investerare har inte den djupgående kunskap som krävs för att sätta ett fundamentaltvärde på en aktie i ett företag, detta medför en risk för övervärdering för företag. Det finns många modeller och metoder för att värdera ett företag och en typisk metod som används är substansvärdering. Kortfattat betyder det att du drar av ett företags totala skulder från de totalatillgångarna, vilket ger dig ett substansvärde på aktierna. Man skulle snabbt inse att detta inte speglar det verkliga värdet av alla företag och därmed inte ger den fullständiga bilden av marknaden och tillväxten. / To sustain a thriving economy in society it's important that the markets and financial systems are well functioning and rational, since stable economic growth increases welfare in society. A fundamental condition for this assumption is that companies are valued with reason and rationality to avoid overevaluations, which in turn may lead to volatility and decreased liquidity that are non-beneficial for maintaining a trust in stock valuation. The digital era we live in has made it possible for almost anyone to act as an investor indifferent stock exchanges. The stock markets are and have for the past years been higher value than ever before. To invest is to conduct economic decisions by allocating means in assets, in which you expect a return on the investment. When an investor acquires such assets they usually base their decision on the economic data available. This economic data may come in different shapes, it could be annual reports, quarterly reports, valuations, news about the company, global external factors and in some cases recommendations from other buyers. All investors don't possess the profound knowledge required to put a fundamental value on a stock in a company, this brings a risk of overvaluation for companies. There are numerous models and methods to value a company and a typical method that is applied is substance valuation. In short, that means that you subtract a company's total liabilities from the total assets, that gives you a substance value of the stocks. One would quickly realize that this doesn't reflect the true value of all companies and thus not giving the full picture of the market and growth. This study is written in Swedish language.