The effect of working capital on profitability in computer and electrical equipment industry

Although working capital is one of the key issues in managing day-to-day operations, it has not gained sufficient emphasis in financial literature until the late 1990s. Since then, efficient working capital management has been highlighted more in both academic research and managerial decision-making, thus raising acknowledgement of competitive advantage it can create. This master's thesis studies the impact of working capital on corporate profitability and shareholder value in 1,683 publicly listed US computer and electrical equipment companies in 1990?2013. Using fixed effects regression methodology in a relatively homogenous sample of 16,481 observations, this thesis contributes to existing literature by presenting an in-depth analysis of working capital management in a specific industry. Previous research mainly supports the theoretical assumption of a negative impact of working capital on profitability. However, unlike most prior papers solely assuming a linear effect of working capital on profitability, this thesis also addresses a quadratic relationship. The empirical results show a concave impact of cash conversion cycle on return on assets, which indicates that there exists an optimal level of working capital, resulting in a balance between risks and returns, hence maximizing profitability. Accordingly, deviations from the optimum reduce return on assets as a too low level of working capital increases the risk of illiquidity and distress costs, whereas too high level increases tied-up capital and thus opportunity costs. By contrast, cash conversion cycle is found to have a negative impact on return on equity and stock return. Consistent with previous studies, this indicates that an in increase in the level of working capital reduces the company value for equity holders. In that way, investors prefer excess funds to be used in long-term investments or paid out as dividends. The findings accentuate the contradiction of different benefits for the company itself and its shareholders regarding working capital management. Different time frames for different measures need also to be taken into account since profitability reflects the magnitude of current earnings, whereas market value shows the future expectations of shareholders. However, shareholders are also more interested in short-term returns, whereas holding a sufficient level of working capital may ensure long-term profitability. Consequently, the level of working capital maximizing return on assets does not necessarily lead to high stock returns and vice versa. Above all, managers in computer and electrical equipment industry can increase returns and market value by paying more attention on effective working capital management and acknowledging the difference of benefits for the company and its shareholders. In any case, working capital is a particularly important topic in computer and electrical equipment industry due to the continuous development of technology and rapid changes in business environment. However, as this thesis is limited to one industry and country only, caution is needed when generalizing the results to different kinds of samples

Determinants of bankruptcies in leveraged buyouts

OBJECTIVES OF THE STUDY: In this thesis, I study the determinants of bankruptcies in leveraged buyouts. By constructing a large cross-sectional sample, my objective is to recognise factors that are associated with the probability that a leveraged buyout would go bankrupt. Factors of interest are deal source, financial strength, leverage, industry cyclicality, prevailing economic condition and credit market favourability and initial financial distress risk. Overall, the focus of this study is to explain determinants of failed LBOs rather than successful ones. Hence, the events of bankruptcy form the most prolific data points. All non-bankrupt buyouts, regardless of their eventual return-on-investment, are considered non-failed. DATA AND METHODOLOGY: My sample consists of 22,796 leveraged buyouts conducted in the U.S., Canada and Europe from 1982 to 2013. The data is derived from Capital IQ database which quite well represents the actual population of leveraged buyouts for the period. I determine bankruptcies by using multiple sources and methods, and conclude that the sample's bankruptcy rate (6.1%) is in line with previous literature. I assess the determinants of the binary event of bankruptcy with probit regressions and apply Heckman sample-selection model to correct misspecification errors for the estimates considering scarcely available financial statement information. The analysis of initial financial distress risk, measured as Altman Z, is performed with ordinary least squares regression. FINDINGS OF THE STUDY: The initial deal source significantly affects the outcome of the buyout. Buyouts of previously bankrupted, publicly listed and younger companies are associated with higher bankruptcy rates. Meanwhile secondary buyouts, privatizations and cross-border transactions are significantly less likely to go bankrupt. Also, management equity participation appears to reduce the risk of insolvency. Club deals on the other hand appear to have no significant effect on bankruptcies. The results also indicate that financial strength is an important factor in explaining buyout bankruptcies. Portfolio firms' greater ability to convert EBITDA to free cash flow after capital expenditures, lower indebtedness, higher interest coverage and higher profitability are associated with lower bankruptcy rates. Furthermore industry cyclicality, favourable economic conditions and flex credit market appear to be associated with higher probability of bankruptcy. Also, strength of creditor rights appears to have a very significant effect on the bankruptcy probability

Työturvallisuuden hallinta 12 tunnin vuorojärjestelmässä : Vireyden, turvallisuuskäyttäytymisen ja työympäristöaltisteiden väliset yhteydet pitkissä työvuoroissa

Tiivistetyn työajan ratkaisut ovat yleistyneet erityisesti teollisuudessa. Yksi esimerkki on 12 tunnin kaksivuorojärjestelmä, jonka etuja suhteessa perinteiseen kahdeksan tunnin kolmivuorojärjestelmään ovat vuoronvaihtojen vähentyminen, ns. tuplavuorojen ja lyhyiden vuorovälien poistuminen sekä pitkä yhtenäinen vapaa työvuorojakson jälkeen. Tässä hankkeessa tutkittiin 12 tunnin kaksivuorojärjestelmän yhteyksiä työturvallisuuteen ja sen hallintaan yhdessä pakkausteollisuuden (Ball Beverage Packaging Mäntsälä Oy) ja yhdessä kaivosteollisuuden (Terrafame Oy) yrityksessä. Tutkimuksellisena tavoitteena oli selvittää turvallisuuskäyttäytymistä 12 tunnin työvuorojen aikana sekä sen yhteyksiä vireyteen, stressiin ja palautumiseen. Toisena tavoitteena oli selvittää 12 tunnin työvuoroihin liittyvää väsymysriskiä työmatkaliikenteessä. Lisäksi selvitettiin 12 tunnin kaksivuorojärjestelmän yhteyksiä työturvallisuuteen sekä altistumiseen kemiallisille ja fysikaalisille tekijöille. Altisteille asetettujen raja-arvojen soveltuvuutta pitkiin työvuoroihin tarkasteltiin erillisessä kirjallisuuskatsauksessa

Developing a spatially explicit modelling and evaluation framework for integrated carbon sequestration and biodiversity conservation: application in southern Finland

The challenges posed by climate change and biodiversity loss are deeply interconnected. Successful co-managing of these tangled drivers requires innovative methods that can prioritize and target management actions against multiple criteria, while also enabling cost-effective land use planning and impact scenario assessment. This paper synthesises the development and application of an integrated multidisciplinary modelling and evaluation framework for carbon and biodiversity in forest systems. By analysing and spatio-temporally modelling carbon processes and biodiversity elements, we determine an optimal solution for their co-management in the study landscape. We also describe how advanced Earth Observation measurements can be used to enhance mapping and monitoring of biodiversity and ecosystem processes. The scenarios used for the dynamic models were based on official Finnish policy goals for forest management and climate change mitigation. The development and testing of the system were executed in a large region in southern Finland (Kokemäenjoki basin, 27 024 km2) containing highly instrumented LTER (Long-Term Ecosystem Research) stations; these LTER data sources were complemented by fieldwork, remote sensing and national data bases. In the study area, estimated total net emissions were currently 4.2 TgCO2eq a-1, but modelling of forestry measures and anthropogenic emission reductions demonstrated that it would be possible to achieve the stated policy goal of carbon neutrality by low forest harvest intensity. We show how this policy-relevant information can be further utilised for optimal allocation of set-aside forest areas for nature conservation, which would significantly contribute to preserving both biodiversity and carbon values in the region. Biodiversity gain in the area could be increased without a loss of carbon-related benefits.The challenges posed by climate change and biodiversity loss are deeply interconnected. Successful co-managing of these tangled drivers requires innovative methods that can prioritize and target management actions against multiple criteria, while also enabling cost-effective land use planning and impact scenario assessment. This paper synthesises the development and application of an integrated multidisciplinary modelling and evaluation framework for carbon and biodiversity in forest systems. By analysing and spatio-temporally modelling carbon processes and biodiversity elements, we determine an optimal solution for their co-management in the study landscape. We also describe how advanced Earth Observation measurements can be used to enhance mapping and monitoring of biodiversity and ecosystem processes. The scenarios used for the dynamic models were based on official Finnish policy goals for forest management and climate change mitigation. The development and testing of the system were executed in a large region in southern Finland (Kokemäenjoki basin, 27,024 km2) containing highly instrumented LTER (Long-Term Ecosystem Research) stations; these LTER data sources were complemented by fieldwork, remote sensing and national data bases. In the study area, estimated total net emissions were currently 4.2 TgCO2eq a−1, but modelling of forestry measures and anthropogenic emission reductions demonstrated that it would be possible to achieve the stated policy goal of carbon neutrality by low forest harvest intensity. We show how this policy-relevant information can be further utilized for optimal allocation of set-aside forest areas for nature conservation, which would significantly contribute to preserving both biodiversity and carbon values in the region. Biodiversity gain in the area could be increased without a loss of carbon-related benefits.Peer reviewe

Laskennallinen tutkimus III-V yhdistepuolijohteiden saostamisesta isovalenteilla ryhmän V epäpuhtausatomeilla ja itseispistevirheistä

In the 1990s it was observed that the optical properties of III-V compound semiconductors can be significantly modified by substituting the V component by just a small fraction of nitrogen causing the narrowing of the band gap of the material. This observation led to a huge interest towards these alloys. The interest stems from the fact that these materials can be used in high-efficiency solar cell applications by tuning the band gap of the alloy to harvest photons with certain energy as well as a base material for long-wavelenght lasers. Currently the most widely accepted theories explain the band gap narrowing with increasing nitrogen concentration by the interaction between the host material states and the nitrogen-induced states, which causes either the host material conduction band edge or nitrogen-induced states close to the bottom of the conduction band to shift into lower energies. However, it is also often suggested that the nitrogen-nitrogen interactions in these alloys lead to the broadening of the nitrogen-induced states which would then cause the band gap narrowing, even though the actual mechanism for the nitrogen-nitrogen interactions is unknown. Alongside with the band gap engineering of III-V-N compound semiconductors, defects play a crucial role in the electrical properties in these materials. GaSb is a promising material for optoelectronic applications and undoped GaSb is known to be of p-type irrespective of growth conditions. The p-type conductivity is often connected to native point defects, but the origin of p-type conductivity is still largely debated. The main result of this thesis is the development and implementation of a quantum mechanical model to describe the nitrogen-nitrogen interactions and the resulting broadening of the nitro-gen-induced states in III-V compound semiconductors. The model is further extended to GaAs1-xBix alloys. Our model reproduces qualitatively and quantitatively the experimentally observed band gap behavior as a function of nitrogen or bismuth concentration. In this thesis also the native point defect energetics in GaSb is studied using an advanced hybrid functional of the density functional theory. Special focus is given to an accurate treatment of charged defects by implementing a recently published correction scheme for electrostatic energy in periodic systems.1990-luvulla huomattiin, että III-V yhdistepuolijohteiden optisia ominaisuuksia voidaan merkittävästi muuttaa korvaamalla osa viidennen ryhmän atomeista typellä, jolloin materiaalin energia-aukko pienenee. Tämän havainnon vuoksi nämä materiaalit saivat osakseen paljon huomiota, koska niitä voitaisiin käyttää suuren hyötysuhteen aurinkokenno sovelluksissa säätämällä materiaalin energia-aukko keräämään tietyn energian fotoneita. Lisäksi säätämällä näiden materiaalien energia-aukko sopivaksi voitaisiin niitä käyttää pitkillä aallonpituuksilla toimivissa puolijohdelasereissa. Tällä hetkellä useimmissa teoreettisissa malleissa materiaalin energia-aukon pieneneminen typen määrän kasvaessa selitetään typen ja puolijohteen materiaalin tilojen välisellä vuorovaikutuksella, joka johtaa joko puolijohteen johtavuusvyön pohjan tai johtavuusvyön pohjan lähellä olevien typen tilojen siirtymiseen alemmille energian arvoille. Usein ilmiön on myös ehdotettu johtuvan typpiatomien välisien vuorovaikutuksien aiheuttamasta typen tilojen leviämisestä, vaikka tarkkaa mekanismia typpiatomien väliselle vuorovaikutukselle ei tunneta. Energia-aukon säätämisen ohella myös pistevirheillä on merkittävä vaikutus III-V yhdiste-puolijohteiden elektronisiin ominaisuuksiin. GaSb on lupaava materiaali optoelektroniikan sovelluksiin ja sen tiedetään olevan johtavuudeltaan aina p-tyyppistä riippumatta kasvatusolosuhteista. P-tyypin johtavuuden on usein esitetty liittyvän itseispistevirheisiin GaSb:ssä, mutta tästä on vielä paljon eriäviä mielipiteitä. Tämän väitöskirjan merkittävin tulos on kvanttimekaanisen teorian kehittäminen ja toteuttaminen kuvaamaan typpiatomien välisiä vuorovaikutuksia III-V yhdistepuolijohteissa ja näistä johtuvaa typen tilojen leviämistä. Malli laajennettiin koskemaan myös GaAs1-xBix seoksia. Työssä kehitetty malli ennustaa määrällisesti ja laadullisesti oikein energia-aukon suuruuden typen tai vismutin määrän funktiona verrattuna kokeellisiin tuloksiin. Tässä työssä tutkittiin myös GaSb:n itseispistevirheitä käyttämällä tiheysfunktionaaliteoriaa ja edistyksellistä hyb-ridifunktionaalia. Työssä kiinnitettiin erityistä huomioita varattujen pistevirheiden mallintamiseen toteuttamalla äskettäin julkaistu sähköstaattisen energian korjausmenetelmä periodisissa rakenteissa

Epileptiformisen piikkidetektorin kehittäminen

Monitoring of the most crucial parameters describing the status of patients heart and lungs are already fully automated in modern intensive care unit (ICU) patient monitoring. However, many of the ICU patients also suffer from neurological complications, which are associated with increasing mortality rates and longer medical ICU and hospital lengths of stay. Electroencephalogram (EEG) is widely used method to monitor these complications, but it is one of the last routine clinical procedures to be fully automated. Epilepsy is the name of a brain disorder. It is characterized by epileptic seizures, which are recurrent and unpredictable interruptions of normal brain function. Seizure prediction and early recognition are primary research priorities in development of an automated EEG monitoring. Typical features in the EEG activity that are characteristic to epilepsy are spikes, sharp waves and bursts of spike and wave. That is why detecting these spikes and sharp waves is one way trying to observe EEG seizure. The aim of this master's thesis is to develop an automated single channel epileptiform spike detector. Easy measurement setup, which restricts the number of measuring electrodes, is a demand for any monitoring system to be accepted in routine use in the ICU. In this work a new spike detection method is introduced. This method uses both wavelet and sequential analysis to identify features characteristic for epileptiform spikes. Obtained results were 88.4% sensitivity and 90.4% positive predictive value in the case of test data. Clinical applicability of the developed spike detector was evaluated using two different data sets containing 152 patients in total.Potilaan kannalta tärkeimpien sydämen ja keuhkojen tilaa kuvaavien parametrien monitorointi on jo täysin automatisoitu nykyaikaisessa tehohoitoympäristössä. Moni tehohoidossa oleva potilas kärsii kuitenkin myös neurologisista komplikaatioista, jotka ovat yhteydessä kohonneeseen kuolleisuuteen ja pidempiin hoitojaksoihin tehohoidossa ja sairaalassa. Aivosähkökäyrä (EEG) on laajalti käytetty menetelmä näiden komplikaatioiden havaitsemiseen, mutta se on viimeisiä rutiinitoimenpiteitä, joita ei ole täysin automatisoitu modernissa tehohoidossa. Epilepsiaksi kutsutaan aivojen sairautta. Sille ovat ominaisia epileptiset kohtaukset, jotka ovat toistuvia ja ennustamattomia normaalin aivotoiminnan häiriöitä. Epileptisen kohtauksen ennustaminen ja aikainen havaitseminen ovat tärkeimpiä tutkimuskohteita automaattisen EEG-monitoroinnin kehittämisessä. Tyypillisiä piirteitä EEG:ssä epileptisen kohtauksen aikana ovat piikit, terävät aallot ja piikin ja sitä seuraavan aallon purskeet. Näiden piikkien ja terävien aaltojen havaitseminen on yksi keino epileptisen kohtauksen havaitsemiseksi. Tämän työn tarkoituksena on kehittää automatisoitu yksikanavainen piikkidetektori. Helppo mittausjärjestely on vaatimus jokaiselle monitorointijärjestelmälle tehohoidossa, joka rajoittaa käytössä olevien EEG kanavien määrää. Tässä työssä esitellään uudenlainen menetelmä epileptisten piikkien havaitsemiseksi. Menetelmä käyttää sekä wavelet-analyysiä että sekventiaalista analyysiä piikeille tyypillisten piirteiden havaitsemiseksi. Menetelmällä saavutettiin 88.4 % sensitiivisyys ja 90.4 % selektiivisyys testidatalle. Menetelmän kliinistä soveltuvuutta evaluoitiin kahdella eri data ryhmällä, jotka koostuivat yhteensä 152 potilaasta

Modeling Bi-induced changes in the electronic structure of GaAs 1-xBix alloys

We suggested recently that the band-gap narrowing in dilute GaAs 1-xNx alloys can be explained to result from the broadening of the localized N states due to the N-N interaction along the zigzag chains in the âŒPeer reviewe