The art of valuation : using visual analysis to price classical paintings by Swedish Masters

This study seeks to address the difficulty of pricing art and the limitations of conventional valuation models by using visual analysis to determine the price of paintings. We examine a large hand-collected sample of classical paintings by Swedish Masters, categorize them based on various dimensions, and reduce measurement error by visually examining and classifying each painting into a theme. We compare this ‘visual’ approach with the conventional ‘terminological’ approach. We find that the technique, theme, and auction house all have a substantial impact on the price. We argue that a visual inspection should take precedence over analysis based on the artwork’s title. This is because the latter leaves many artworks unclassified and results in a systematic bias. The study demonstrates the importance of using art-informed characteristics to reduce measurement error in pricing paintings.Publisher PDFPeer reviewe

Implementation of Buy-Back Programs Implementation of Buy-Back Programs

Abstract This paper documents how Swedish firms implemented and executed open-market share repurchases over the period 2000 to 2007 by using a unique hand-collected data set with detailed information of each repurchase transaction. I find that my sample firms have a higher repurchase fraction in the first half of the repurchase year. Analysis of liquidity of stocks offers 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 abnormal returns following approval of the repurchase program is documented and large repurchase programs are associated with higher abnormal returns. My multivariate analysis indicates a positive correlation between abnormal return and repurchase size. Finally, I also find that managers in repurchasing firms exhibit market timing skill, a skill which is more pronounced for firms with multiple programs. Implementation of Buy-Back Programs Abstract This paper documents how Swedish firms implemented and executed open-market share repurchases over the period 2000 to 2007 by using a unique hand-collected data set with detailed information of each repurchase transaction. I find that my sample firms have a higher repurchase fraction in the first half of the repurchase year. Analysis of liquidity of stocks offers 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 abnormal returns following approval of the repurchase program is documented and large repurchase programs are associated with higher abnormal returns. My multivariate analysis indicates a positive correlation between abnormal return and repurchase size. Finally, I also find that managers in repurchasing firms exhibit market timing skill, a skill which is more pronounced for firms with multiple programs.

Implementation of Buy-Back Programs

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 200

SHARE REPURCHASES AND FIRM BEHAVIOR

Share repurchases have become an increasingly popular method for companies to distribute cash to its shareholders as many countries have removed restrictions related to this activity. By using a new and unique data set with complete information of each repurchase program, the long-run share price performance following actual share repurchases and whether managers trade strategically are examined for a sample of Swedish firms. I find that the announcement effect surrounding the first repurchase date is small but that repurchasing firms on average outperform several benchmarks during the first three years and thereby exhibit superior information of the stock price. Evidence of strategic trading is documented in small market cap firms. Finally, I document that Swedish firms repurchase more in the first half compared to the second half of the program and also that a higher completion rate is associated with high abnormal return.Buy-backs, long-run performance, strategic trading, market efficiency, undervaluation, completion rate, Sweden

Implementation of Buy-Back Programs

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 200

Share Repurchases : Does Frequency Matter?

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.QC 20130515</p

The liquidity impact of open market share repurchases

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.QC 20130515</p

Surogacy and its legal regulation

Bakalaura darba tēma ir “Surogācija un tās tiesiskais regulējums”. Tēma ir aktuāla, jo pēdējā laikā īpaši ir saasinājušās problēmas saistībā ar cilvēka reproduktīvām tiesībām. Neapšaubāmi, cilvēku radīšana mēģenēs un jebkādi eksperimenti ar cilvēka ģenētisko materiālu pārvērš bērnus par sava veida preci, radot situāciju, kad bagātie cilvēki varētu nolīgt sievietes pēcnācēju iznēsāšanai, izmantojot, piemēram, sievietes grūto materiālo stāvokli. Maternitāte šajā gadījumā kļūst par līguma darbu, kurā, kā jebkurā biznesā, prevalē personīgs labums, kas nozīmē ka surogācija ir tirgus, bizness, komercija. Tajā pašā laikā ļoti daudziem cilvēkiem surogācijas pakalpojumi ir vienīgā iespēja iegūt bērnu, un tie saduras ar dažām grūtībām gan tiesiskā regulējuma, gan sabiedrības negatīvā viedokļa dēļ. Ņemot vērā apstākli, ka tiesu prakses šajā jomā ir kritiski maz, kā arī lielā daļā Eiropas Savienības dalībvalstīs surogācijas joma vispār nav regulēta un valstu starpā vienprātības šajā jautājumā nav, šajā darbā tiks apskatīti surogācijas pamatjautājumi, piemēram, par surogācijas līgumiem un vienošanām, un to spēkā esamību Eiropas Savienības teritorijā, par sabiedrības attieksmi pret šo institūtu. Lai šo problēmjautājumu atspoguļotu, darba autore izmanto - Eiropas Savienības tiesas un Eiropas Cilvēktiesību tiesas praksi, analizē ES dalībvalstu un citu valstu nostāju šajā jomā, kā arī tiesību aktus, kas kādā mērā skar surogācijas jomu un varētu ietekmēt iznākumu surogācijas lietās, kā arī apskata iespējamos variantus šīs jomas sistematizēšanai.Theme of the Bachelor Thesis is “Surrogacy and its legal regulation”. This Thesis is up to date because of the recent problems due human procreation rights. No doubt that the human creation in the test tubes and experiments with human genetic material turns children into akin of a merchandise, creating a situation, where rich people can hire women for bearing heirs, thus, abusing her difficult financial situation. Motherhood in such situation becomes contractual, which, as any other business, is dominated by self-interest, meaning that surrogacy is a market, business, commerce. At the same time for many people such services of surrogacy are the only opportunity to get a child. The negative point of view in society and difficulties caused by law is what future parents, who choose surrogacy services, are facing from the moment they decide to use such services. Even though there are a few judicial practices in this area and in many EU countries surrogacy is not regulated by law at all, this work will discuss the main issues, which appear from surrogacy contracts, contract validity in the EU, the attitude of society towards this institution. To present this problem, the author uses judicial practice of the European Court of Justice and European Court of Human Rights, analysis of EU and other countries’ opinion in this area, as well as Regulations, which to some extent affect the surrogacy area and could influence the outcome of a case, connected with surrogacy. Additionally, this Thesis will analyze some possible options for systemizing this field

Do Stock Prices Conform to an Absolute Price Level?

We study nominal and real stock prices in Sweden over the one hundred and ten year period 1900-2009. We find that the average stock price has declined over time; consistent with the drop in price levels found by Chittenden et al. (2010) but while falling they do not exhibit the constant price level suggested by Weld et al. (2009) given the continued decline in prices over time. In a multivariate setting, the frequency of stock splits, stock dividends and IPOs are positively related to the frequency for these events the prior year and the recent 2-year overall return on the market. We find that there is a greater propensity for a stock split, a stock dividend or an IPO when market returns are higher. In further tests of the price change we find a positive relationship between the price difference to the median price for stock splits and stock dividends and a positive relationship to the 2-year overall market return for stock splits. We conclude that the primary reason for an action such as a stock split, “to make the stock affordable”, is valid for our sample