Corporate cash holdings is a topic constantly under review, companies hoarding cash are criticized by shareholders who rather have companies using their cash for new investments or dividend payouts. Recent academic research has discovered that levels of cash holding are high in times when risk is deemed to be high and found that levels of corporate cash holdings are substantially higher than they used to, making more coverage and a better understanding of the phenomenon crucial. This thesis is investigating an aspect of the interconnection between corporate cash holdings and shareholders by examining if there is a relationship between the level of corporate cash holdings and the risk of the company stock. This research is conducted on the Stockholm Stock Exchange during the four year period of 2009-2012 and investigates for a relationship not only on the entire stock exchange but also for each size and sector individually. In order to investigate this relationship a cash to assets ratio has been employed to represent the level of corporate cash holdings and the measures of stock beta and volatility are used to represent the risk of the stock. The cash holding ratio is tested for a relationship with both beta and volatility separately using the Spearman’s rank correlation coefficient. This thesis have adopted a quantitative research and implemented an archival research strategy by using official records and numbers. Through these statistical tests this thesis establishes significant relationships between both the cash holding ratio and stock beta and stock volatility separately for the entire stock exchange and some differences arises between different sizes and sectors. For cash holding and stock beta a negative correlation relationship has been discovered for the entire sample, the medium cap size and the health care and industrial sectors. For cash holdings and stock volatility positive correlation findings have been made for the entire sample as well as the small cap size and the sectors of basic materials, health care and technology. This finding implicates that cash holdings to some extent relates stock risk and several potential explanations to this relationship are given and connected to well-established financial theories.

A survey is conducted through an event study on the Stockholm Stock Exchange based on 119 historical stocks splits with a split factor of at least two, for the years between 1997 and 2012. This study has tested if there is an increase in return variance and systematic risk followed by a stock split. This is a quantitative study with the deductive approach and the positivistic epistemological standpoint. By matching 8925 squared daily returns for 75 days of pre- and post- split data, the sample of stock splits showed an increased return variance 0.515 of the matched squared daily returns, this number is significant at the 1% level in our binomial z-statistics. If the returns are compared on a 15 week interval instead of 75 days, the change in variance disappears; this confirms Dubofsky (1991) findings. When 52 weeks of pre- and post- split data is used, there is an increased variance in a proportion if 0.55 of the 6186 matched observations, this proportion is far greater than our daily sample and tells us that there is a long term effect on the return variance. The systematic risk measured as beta derived from the CAPM, did not show any increase in any of the three different time periods (75days, 16weeks and 52 weeks); the results confirms Wiggins (1992) findings; beta changes are just illusory.  The results suggest that there is an average increase in returns variance in the short and long term after a stock split, that confirms some existing studies by Ohlson and Penman (1985) and Dubofsky (1991). The increase in returns variance can be viewed as the management’s success of signaling the market, enhancing liquidity and reducing information asymmetry without any additional cost of capital. Our findings also contradict the theory of economic irrelevance of shares outstanding. This study is expanding Ohlson and Penman (1985) and Dubofsky (1991) studies, on a European stock market.

This is a study to see the relationship between earnings per share and dividends during a period of both boom and depression. The study will focus on companies listed on Stockholm stock exchange and see if they follow theories from the past and if the dividend is smooth over times with a fluctuant economy. To see this we had this problem: Is it a relationship between earnings per share and dividend during a fluctuant economy, also if there is a difference between the different Caps on Stockholm stock exchange? We studied 163 stocks of the 293 listed stock on Stockholm stock exchange during a period of 8 years. The study is focused on the time period between year 2005 and year 2012. We used IBM SPSS statistics to see the correlation and regression between earnings per share and dividend and analysed that. We used Microsoft Excel to make graphs and analysed them. The study didn’t find any strong relationship between earnings per share and dividend. The strongest connection we found was for companies listed on Small Cap where the correlation was 0,461. The weakest connection that was found was for companies listed as Mid Cap where the correlation was 0,211. For companies listed as Large Cap the correlation was 0,283.

This paper documents how Swedish firms implemented and executed open-market sharerepurchases over the period 2000 to 2007 by using a unique hand-collected data set withdetailed information of each repurchase transaction. I find that my sample firms have a higherrepurchase fraction in the first half of the repurchase year. Analysis of liquidity of stocksoffers mixed results as the first proxy, turnover, improves in the second half of the program,whereas the Amihud measure of illiquidity indicates lower liquidity. Positive abnormalreturns following approval of the repurchase program is documented and large repurchaseprograms are associated with higher abnormal returns. My multivariate analysis indicates apositive correlation between abnormal return and repurchase size. Finally, I also find thatmanagers in repurchasing firms exhibit market timing skill, a skill which is more pronouncedfor firms with multiple programs. / This version: July 2009

Forskningsproblem: Det har uppmärksammats en ökad oro bland Big 4-byråerna över den tilltagande konkurrensen på revisionsmarknaden och tendensen att bolag väljer att byta revisionsbyrå mer frekvent. Det finns ett behov i att förklara varför bolag väljer att frivilligt byta revisionsbyrå. Syfte: Syftet med studien är att förklara varför bolag frivilligt väljer att byta revisionsbyrå. Metod 15 hypoteser härleds utifrån befintlig forskning och teori inom området för revisionsbyråbyten. Dessa prövas genom en kombinerad enkät- och dokumentstudie av totalt 100 bolag för perioden mellan 2010-2014. Resultat: Av studiens totalt 100 bolag visade det sig att 33 bolag (33 %) bytt revisionsbyrå under perioden mellan 2010-2014. 14 av studiens 15 hypoteser förkastas i hypotesprövningen. Kunskapsbidrag: I den statistiska analysen visas variablerna revisionskostnad, byte av ledning, bristfälligt samarbete och tredje parts påtryckningar bli signifikanta i att förklara ett byte av revisionsbyrå. Endast variabeln bristfälligt samarbete uppvisar dock ett korrekt förutspått samband, där ett ökat bristfälligt samarbete mellan revisor och bolagsledning ökar sannolikheten för ett byte av revisionsbyrå. / Problem: Increased concern regarding an enlarged competition and more frequent audit firm switching behavior has been noticed among the Big 4-audit firms. There is a need to explain why companies voluntarily choose to switch audit firm. Purpose: The aim of the study is to explain why companies voluntarily choose to switch audit firm. Method: 15 hypothesis are derived from existent research and theory in the area of audit firm switching. They are tested through a combined survey- and document study of 100 companies during the period of 2010-2014. Results: The study showed that 33 out of 100 companies (33 %) switched their audit firm during the period of 2010-2014. 14 out of 15 hypothesis are rejected in the study. Contribution: The statistical analysis showed that the variables audit fee, change in management, inadequate working relationship and third party influences are significant in explaining an audit firm switch. However, the only variable to show a correctly predicted relationship is inadequate working relationship, which implicates that an increased inadequate working relationship between the auditor and management leads to an increased probability of an audit firm switch.

Problem: An efficient market fully reflects all available information about a company in its share price. Furthermore any new information presented about a company will lead to an instant adaptation in the share price. Henceforth an investor can not reach abnormal returns on an efficient market. The Stockholm stock exchange is afairly large stock exchange with a turnover of SEK 14000 millions per day. Prior studies conducted regarding the efficiency of the Stockholm stock exchange have stated that the stock exchange was efficient on a semistrong level. However these studies were conducted with a time frame of several weeks and therefore the authors distinguished a need for a study aiming at short term efficiency. Furthermore this thesis aims to investigate the effects of the presentation of positive annual and interim reports. A positive report is defined as a report that leads to an increase in share price the day it is presented and consequently includes all events on the day of the presentation, e.g. the press conference. The thesis was written from an investors’ perspective, who is about to buy shares. Purpose: The purpose of this thesis was to describe and analyze the Stockholm stock exchange market’s efficiency. This was done during the days surrounding the presentation of annual and interim reports rendering an increase in share price. Furthermore the possibilities of making abnormal returns by buying shares during this period were investigated. Method: To investigate the efficiency of the Stockholm stock exchange an event study was carried out. Data regarding the performance of the shares of the fifteen most traded com-panies on the Stockholm stock exchange were collected from the OMX groups’ homepage. The chosen companies together represented more than fifty percent of the turnover of the OMXS 30 index. The index was used as a benchmark for measuring the efficiency. The share price movement was analyzed with a quantitative approach through a statistical T-test with the assistance of the SPSS 13.0. Result: The authors claim that the Stockholm stock exchange is not efficient on a semistrong level the day after the presentation of a positive report, as the shares displayed a negative abnormal deviation from the OMXS 30 index. The deviation was statistically verified. However the authors state that no abnormal returns can be reached by buying shares during this period since the deviation was negative. The period as a whole and the other tested days came out as efficient on a semi-strong level.

The main purpose of this thesis is to investigate the differences between family and non-family businesses that are listed on the stock exchange, more specifically which factors that is being used in the valuation process and why family businesses as a rule seem to be undervalued. We also look at if family ownership is a factor in this process. By conducting interviews with analysts and journalists working with valuation we hope to be able to not only find out what factors differ but also why family busi-nesses are undervalued. Our conclusion is that while the two forms of ownership has several negative factors that differ between them that are more common among family businesses, such as conservative dividend policy, this is not connected to the family business as a form but is rather an individual factor differing from company to company. Family ownership as such was however not in any way a factor in the valuation since the valuations instead looks at the individual company and does not generalize.

This paper examines the stock performance around initiation announcements of open market share repurchase programs, the price impact of repurchase trading and the long-run abnormal stock performance following the initiation announcements in a European regulatory framework. The study uses a unique dataset on initiation announcements and actual repurchases conducted by firms listed on the Stockholm Stock Exchange during the period 2000-2009. The results show that initiation announcements of open market repurchase programs exhibit a two-day abnormal return of approximately 2%. The price impact on the actual repurchase days is positively correlated with the daily repurchase volume, and is both statistically and economically significant during the first 3 repurchase days in a repurchase program. The long-run abnormal stock performance is positively associated with the fraction of shares bought in the program and is approximately 7% the first year following the initiation announcement. The results indicate that repurchase trading provides price support and that the market participants detect and perceive the initiation announcement and the first repurchase days in a repurchase program as a signal of undervaluation. / <p>QC 20130515</p>

We examine differences in market performance of Swedish firms that initiate repurchase programs infrequently (1-2 programs), occasionally (3-4 programs) and frequently (5 or more programs) over the period 2000-2009, and examine the relationship between abnormal return and repurchase size in repurchase months. We find that infrequent repurchase programs are greeted with a stronger positive reaction than occasional and frequent programs. However, over long term, infrequent repurchase programs show no abnormal return while occasional and frequent repurchase programs show a significant positive abnormal return. A positive relationship between abnormal return and repurchase size in repurchase months is documented on average for all types of repurchase programs. / <p>QC 20130515</p>

We examine the market liquidity impact of open market share repurchases in a computerized order driven market. Using a detailed dataset of daily repurchase transactions on the Stockholm Stock Exchange together with intraday data on bid-ask spreads and order depths enable us to examine liquidity effects on the actual repurchase days. Overall, we find that repurchase trades inside the order driven trading system contributes to market liquidity through narrower bid-ask spreads and deeper market depths. After controlling for total trading volume, price, and volatility we still find a significant decrease of the bid-ask spread on repurchase days relative to surrounding non-repurchase days. However, repurchases executed as block trades outside the order driven trading system have a detrimental effect on the bid-ask spread, consistent with a negative response to the presence of informed managerial trading. / <p>QC 20130515</p>