[gradu] Kauppakorkeakoulu / BIZ

Permanent URI for this collectionhttps://aaltodoc.aalto.fi/handle/123456789/127

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Improving project order management: A case study on shipment preparation process in an industrial valve manufacturing company
(2025-02-05) Linnapuomi, Ruut
School of Business | Master's thesis
Optimising order fulfilment operations is essential for the business performance of industrial valve manufacturers. Shipment preparation is a process within order management, where the shipment documentation is created based on customer requirements. This thesis is a case study exploring the shipment preparation process of project orders in a global manufacturing company offering flow control solutions. The objective of the thesis is to understand how internal stakeholders perceive the value generated by the shipment preparation process and to propose concrete improvements to streamline the process based on these value perceptions. Semi-structured interviews are used as a data collecting method to gain insights from various internal stakeholders of the process, including project order management specialists, dispatch department staff, project managers and project business line management. The study adopts a structured approach to process discovery and analysis from the business process management framework. Specifically, process modelling is used to create a visual representation of the shipment preparation workflow. Value-added analysis is used to categorize process steps based on the value they create, identifying steps that could be potentially eliminated or streamlined. The study identifies factors through which shipment preparation is perceived to create business and customer value by the internal stakeholders. Shipment preparation is seen to create business value by enabling timely deliveries, enhancing customer satisfaction, and impacting financial outcomes. Factors creating customer value include providing transparency and logistics support for the customers and enabling timely deliveries. The findings suggest that business and customer value of shipment preparation are connected. The study found process improvement suggestions in two areas: the information flow between internal stakeholders and the operational execution of the process. The value of the research lies in the concrete operational changes identified through the stakeholder interviews, which have the potential to improve the efficiency of shipment preparation process and project execution. The study contributes to the limited body of research on operational improvements in the industrial valve manufacturing sector.
Training new professionals into the Finnish Salesforce ecosystem - A case study of ecosystem roles and entry-level employee profitability, onboarding and educational cooperation in a consultancy company
(2025-02-18) Jauhiainen, Sari
School of Business | Master's thesis
Salesforce, a rapidly growing enterprise applications company, follows a typical SaaS (Software-as-a-Service) business model: focusing on product development while relying on partners for client implementations. These partners help local clients adopt and customize Salesforce, but face challenges due to the specialized skills required and a shortage of qualified professionals. This has led them to train new professionals, balancing customer needs with profitability and employee development. This thesis explores this phenomenon from multiple perspectives, including the ecosystem level, professional growth, onboarding, entry-level employee profitability, and educational cooperation. This thesis synthesizes existing research on SaaS ecosystems and professional development to create a framework for understanding a Salesforce-centered training ecosystem. It integrates this framework with empirical findings from profitability calculations and the thematic analysis of semi-structured interviews with employees of a Salesforce implementation partner and a university lecturer. This mixed-methods approach reveals the dynamics of training Salesforce professionals, highlighting the strategies of partner companies and educational institutions. The findings indicate that training entry-level employees is profitable for implementation partners, especially when aligned with project demands and internal support capacity. While junior employee recruitment was profitable, trainee programs were not, potentially due to trainees having less experience, increased competition for project work amongst trainees, or market conditions. Further research is needed to explore this. Implementation partners play a crucial role in socializing newcomers and providing domain-specific technical training. They also influence higher education to ensure a supply of qualified applicants. This thesis contributes to academic literature by describing junior employment and educational cooperation strategies of SaaS partners both on operational and ecosystem level. It also identifies opportunities for future research. Practical contributions include propositions on how to improve entry-level recruitment, onboarding, and educational cooperation.
The effects of multiplayer features on user retention in the video game industry
(2025-01-31) Valtanen, Matias
School of Business | Master's thesis
The aim of this master’s thesis is to study the impact of multiplayer features on user retention in the video game industry. The study was conducted using a literature review studying prior research on the topic, as well as primary research in the form of interviews was conducted. The literature review and primary research were discussed to reach supported arguments, answering the set research questions. The thesis studied multiplayer features in the form of four categories: social interactions, competitive and ranked gameplay, matchmaking features, and finally in-game customizations. The categories were studied individually and their effects on user retention were evaluated. The effects on purchasing decision were also studied, to get an idea of how the various features vary when comparing their impact to user retention and purchasing decision. The study also addressed gaps in prior research such as the impact of networking effects on user retention rates. The final results of the thesis showcase the importance of social interactions and matchmaking features which were considered the most impactful. The other categories were deemed to have an impact but not considered essential to user retention. Finally, the results discuss the importance of non-multiplayer related factors to user retention. Non-multiplayer related features were argued to be as important as the discussed multiplayer features, and studies show both are required for a good user retention rate.
Beyond the crystal ball -- How contingent payments and bidding with securities can help alleviate problems arising from information asymmetries in mergers and acquisitions
(2025-02-24) Kupila, Sohvi
School of Business | Master's thesis
This literary review focuses on understanding the theoretical framework of contingent payments in auctions and their role in alleviating adverse selection and moral hazard issues in the specific context of mergers and acquisitions. Adverse selection and moral hazard arising from information asymmetry and unobservability of action can have major effects on deal characteristics, wealth outcomes, and deal completion, such as over- or underpayment, missing out on synergy gains, agreeing to a suboptimal payment structure, or the collapse of an otherwise mutually beneficial deal. Thus, understanding how to effectively structure a deal when asymmetric information is present is of paramount importance to targets, acquirers, and advisors, especially in sectors where the problem is particularly prominent, such as in human capital or intangible asset heavy industries. To understand the theoretical framework, four key models are reviewed. Hansen (1985, 1987) states that the use of stock can increase target revenues and, under double-sided information asymmetry, stock can be used as a signaling device. Liu and Bernhardt (2021) allow for combinations of cash, stock, and options, and conclude that even when the target is at an information disadvantage, the target can extract all rents from the acquisition by taking advantage of the high-value, high-synergy acquirers' reluctance to give up claims to equity. The findings of DeMarzo et al. (2005) add to this conclusion by recognising the importance of the target’s commitment power on its ability to use contingent payments to extract value. Finally, Lukas et al. (2012) state that earnouts can effectively incentivise target performance post-transaction by linking part of the compensation on meeting a cash flow target. Empirical findings are briefly reviewed, although empirical challenges prevent measurement of acquisition gains and wealth effects on private targets and acquirers.
Nudging for environmentally friendly food choices with valence framing – a field experiment in a university cafeteria
(2025-02-18) Kuismin, Jussi
School of Business | Master's thesis
Climate change is a global issue that must be mitigated in the upcoming years in order to avoid accelerating global warming. As it can be classified as a ‘wicked problem’ with no silver bullet solution available, novel ways of combatting it should be constantly researched. The production of our food is a major source of CO2 output which makes it an interesting field of experimenting with new ways of cutting the carbon emissions. Applying interventions that are inspired by findings in the field of behavioural economics have proven to be effective in influencing people’s dietary choices. This is why I want to continue on the existing literature and research how changes in the decision architecture affect consumers’ dietary choices. In this thesis I examine whether providing university cafeteria customers information about the difference in CO2 output of the available dishes affects their consumption behaviour. Additionally, I explore whether it makes a difference if the CO2 footprint information is provided in a positive or a negative frame. I answer these questions by conducting an observational experiment in a university cafeteria located in Otaniemi. Based on the results obtained from the experiment it can be concluded that the numerical intervention did not make any difference in the customers’ behaviour. This is likely due to the difficulty in interpreting the significance of the numerical CO2 output information. The results suggest that using exact numerical amounts in a labelling scheme is not an effective nudge approach and it also suppressed the effect of the valence framing.
The adoption of car-sharing among young adults in Finland – Examining barriers, drivers and incentives
(2025-02-20) Karesoja, Maria
School of Business | Master's thesis
This thesis examines the potential of car-sharing in replacing private car-ownership among young adults in Finland. Ten semi-structured interviews were conducted with young adults who have previous experience using car-sharing. The barriers and drivers of car-sharing adoption were explored through the Diffusion of Innovations framework, focusing on the five innovation characteristics: relative advantage, compatibility, complexity, trialability, and observability. For the use of car-sharing, the flexibility of owning a car and frequent need for a vehicle were the most important barriers, whereas high costs of car ownership and carefreeness of car-sharing were considered drivers. Generally, ease and costs had the most influence on the mobility decisions of young adults, whereas environmental values were found less important than previous literature suggests. Among the innovation characteristics, relative advantage and compatibility were the most influential, while complexity had the least impact on adoption. For the willingness to share one’s own car, economic benefits were the single largest motivator, but their importance was somewhat diluted by concerns over problem situations. Regarding the business models, interviewees saw a clear distinction in the mobility needs P2P and B2C car-sharing address. While more concerns were associated with P2P car-sharing, it was noted to offer a variety of cars at a lower cost. Service providers should implement targeted marketing campaigns to increase familiarity, highlight benefits and ease concerns. Financial incentives were also named an efficient way to promote adoption. To ensure favourable operating conditions for car-sharing companies, public decision-makers should more proactively incorporate them in policymaking and urban planning. While attitudes towards and experiences with car-sharing are positive, it is not perceived as a proper replacement of car ownership, if the need for a car is frequent. Nevertheless, car-sharing can delay car purchases and optimise the use of resources when own car is shared with others.
Developing an AI-driven predictive procurement framework: Strategies for enhancing procurement efficiency in the digital era
(2025-02-07) Korhonen, Jesse
School of Business | Master's thesis
The rapid development of artificial intelligence (AI) has introduced new ways for transforming procurement into a more strategic and value-generating function. This thesis explores the potential of AI to improve procurement processes, particularly through supplier segmentation and classification. The research was done as a case study in a global manufacturing company, utilising real-world procurement data. Machine learning methods, including clustering and predictive classification models, are applied to develop an AI-driven supplier segmentation framework. Based on the dynamic capabilities theory and the HTOI (human, technological, organisational, informational) framework, this study also investigates how organisations can use AI for value creation and higher efficiency. Fur-thermore, the challenges and opportunities in developing predictive procurement frameworks and the effectiveness of AI-driven models for supplier segmentation are explored. The findings show that even though AI excels in automating routine tasks and predicting trends, its success really depends on foundational elements such as data quality, technological integration, and organisational readiness. Challenges that were noticed included fragmented datasets, cultural resistance, and the limitations of legacy systems. However, the opportunities for scalability and dynamic adaptation are significant. The results also outlined the complementary roles of clustering and classification models in refining supplier segmentation. Additionally, the Kraljic matrix and its relevance was critically re-evaluated in the context of modern AI tools. This research shows how AI can turn procurement from reactive processes into proactive strategies. By addressing implementation barriers and combining domain expertise with machine learning solutions, organisations can develop predictive procurement frameworks that greatly improve decision-making and supplier relationships. The findings also emphasise that balanced investments across the HTOI dimensions are essential for unlocking AI’s full potential in procurement.
Integrative analysis and predictive modelling of IT service management data: A data-driven approach to informed decision making
(2025-02-15) Tran, Xuân
School of Business | Master's thesis
This thesis explores the integration of data-driven decision making (DDDM) in IT Service Management (ITSM), with a focus on incident management for a case company’s cloud managed services project. As a third-party provider, the company delivers cloud infrastructure, application management, and support services to its clients. Incidents are unexpected errors or failures in IT systems, and effective incident management ensures swift resolution to maintain seamless IT operations (Gupta, Mohania, & Prasad, 2008). The study employs descriptive and inferential analytics, time-series predictive modelling, and feasibility studies to gain more insight into the project, forecast daily ticket volume, and identify automation opportunities. Using a dataset of over 31,000 tickets, the study uncovers 7-day seasonal patterns in ticket volume, statistically significant differences in business time to resolution (BTTR) - the time from ticket reporting to closure, calculated on business hours -across categories, and the category with the longest BTTR. Predictive models, including SARIMA and recently developed models such as Prophet, NeuralProphet, and Orbit’s Local Global Trend (LGL) model, demonstrate limited accuracy in ticket volume forecasting due to high mean absolute errors. Automation candidates are assessed based on both technical and economic feasibility. Key categories such as CPU, Disk Space/IO, Memory Usage, Storage, and Backup are identified as prime candidates for automation, representing nearly 48% of the total ticket volume. By automating these areas, significant manual intervention can be reduced at a minimal cost. While predictive modelling faces challenges, this research provides actionable insights into leveraging analytics and automation to enhance ITSM workflows, improve service quality, and achieve cost savings. Recommendations include broadening the research scope, improving datasets for better prediction, and standardizing metrics across IT providers for cross-organizational analysis.
Enhancing international climate cooperation by linking emission trading schemes
(2025-02-05) Leimu, Roosa
School of Business | Master's thesis
International climate policy has developed considerably in recent decades, but international climate cooperation requires even more effective tools and means to slow down climate change. History has shown that countries’ interests regarding implementing effective climate actions have differed, which is why, for example, the goals set by international climate agreements have not been achieved. This thesis is a literature review that examines game-theoretic studies on linking emission markets. The main objective of the study is to analyse, based on different models and their results, whether broader linking of emission markets could be one way to enhance international climate cooperation. In addition, the purpose is to view, whether it would be good to take linking into account more widely in future climate agreements. The game-theoretic models viewed in the study aim to illustrate the strategic behaviour of countries in linked emission markets. Based on the literature, linking can improve the cost-effectiveness of emission reductions and overall welfare at both the individual country and global levels. In addition, broader linking of emission markets can serve as a significant tool in achieving emission reduction targets and promote cooperation between industrialised and developing countries. However, it should be noted that the results are open to interpretation, as differences can be observed in the results of the models presented in the study. A key problem in all the studies reviewed has been the notion that linking incentivizes strategic behaviour and countries to act on their own self-interest, which in turn can weaken the effectiveness of emission reduction measures.
Machine learning-based predictive modelling of house prices
(2025-02-11) Chu, Tiên
School of Business | Master's thesis
Traditionally, hedonic price models have been employed to estimate residential property prices. Nevertheless, with the era of big data, machine learning methodologies have gained reputation for providing a more sophisticated alternative for the prediction of property prices. This thesis presents a machine learning framework aimed at predicting residential property prices. The algorithms under consideration include linear regression, lasso regression, random forests, and XGBoost (extreme gradient boosting). The analysis utilizes real-world data from property transactions, including a range of location-specific and socioeconomic attributes in addition to structural features of the property. The study focuses on properties situated in the three cities: Helsinki, Espoo, and Vantaa. The types of properties examined include apartments (kerrostalo), row houses (rivitalo), and detached houses (omakotitalo). The results reveal that both random forests and XGBoost significantly outperform classical methods such as multiple linear regression and lasso regression, as evidenced by their lower mean squared errors across nearly all housing categories. This outcome aligns with previous research, suggesting that the application of machine learning techniques in the domain of housing price prediction is not only feasible but also proves to be more effective than conventional hedonic price models. One of the key findings of this study is that location definitely plays an important role in determining property prices, with independent variables demonstrating varying levels of impact across different cities. In addition, floor area and the building condition emerge as crucial factors affecting pricing among other predictors. Interestingly, despite the majority of older building structures in Helsinki, the city maintains a relatively higher average price range compared to Espoo and Vantaa. The framework developed in this thesis can be served as a pricing tool to help different stakeholders participating in the housing market make better decisions and investment strategies. This development highlights the growing importance of machine learning in real estate economics and reflects the transforming landscape of property valuation due to the availability of modern data.
Revisiting the determinants of bank capital structure in Europe and the United States
(2025-02-16) Sillanmäki, Matti
School of Business | Master's thesis
I analyse the determinants of the capital structure of publicly listed European and U.S. banks in the period 2013–2023, using three different definitions of bank leverage and a set of explanatory variables based on the economic characteristics of the individual bank. There are significant similarities between the determinants of the capital structure of banks and non-financial companies. Bank market and book leverage are explained by the bank’s size, profitability, the market-to-book ratio and asset risk. The variables otherwise have a negative effect on market leverage, but the effect of bank size is positive. The effects are otherwise identical with respect to book leverage, but the market-to-book ratio has a positive effect. The cross-sectional variables are not reliably significant with respect to regulatory leverage. Regardless of the definition of leverage, fixed effects at the level of the individual bank are the most important determinant of bank capital structure. Banks’ capital structures are specific to the individual bank and remain relatively stable over time and the role of the cross-sectional determinants is limited. The results show that in addition to regulatory requirements, bank capital structure is subject to the disciplining pressure of market forces.
From profitable to negligible: Has enhanced stock market liquidity eaten away the illiquidity premium?
(2025-02-19) Nieminen, Joonas
School of Business | Master's thesis
The illiquidity premium, the premium on illiquid-minus-liquid (IML) stock returns, has been historically positive and significant, providing opportunities for institutional investors, such as hedge funds. On the other hand, also the academic discussion related to the illiquidity premium on stock returns has continued until recently. Motivated by the ongoing discussion and the improved liquidity in the stock market, the purpose of this study is to examine the magnitude and development of the illiquidity premium over time. We suggest that although the illiquidity premium has historically been positive and significant, it has diminished over time. To address our questions, we study the magnitude and statistical significance of the abnormal risk-adjusted returns of the IML factor in the U.S. stock market between 1947 and 2023. More specifically, we construct the IML portfolios from daily NYSE and AMEX return data using three illiquidity proxies – namely, ILLIQ, ZERO, and TURNOVER – and their combinations and regress the IML portfolio returns on the Fama-French and Carhart factors. The results confirm a positive and statistically significant illiquidity premium for the overall sample period. However, the findings reveal a downward trend in both the magnitude and statistical significance of the premium, particularly in recent years. Subperiod analyses show that the illiquidity premium has diminished to the point of insignificance in the most recent period, aligning with improvements in market liquidity over time, and suggesting that the positive illiquidity premium in the overall sample period is driven by the early periods. Additionally, the premium exhibits a time-varying nature, with higher values observed during periods of market stress. Our findings highlight the diminished economic relevance of the illiquidity premium in an improved liquidity environment. These findings contribute to the recent academic discussion on the illiquidity premium, but they also have practical implications for institutional investors, such as hedge funds, suggesting that the strategies aiming to benefit from the illiquidity premium are most likely not profitable anymore.
From profitable to negligible: Has enhanced stock market liquidity eaten away the illiquidity premium?
(2025-02-19) Vartiainen, Antti
School of Business | Master's thesis
The illiquidity premium, the premium on illiquid-minus-liquid (IML) stock returns, has been historically positive and significant, providing opportunities for institutional investors, such as hedge funds. On the other hand, also the academic discussion related to the illiquidity premium on stock returns has continued until recently. Motivated by the ongoing discussion and the improved liquidity in the stock market, the purpose of this study is to examine the magnitude and development of the illiquidity premium over time. We suggest that although the illiquidity premium has historically been positive and significant, it has diminished over time. To address our questions, we study the magnitude and statistical significance of the abnormal risk-adjusted returns of the IML factor in the U.S. stock market between 1947 and 2023. More specifically, we construct the IML portfolios from daily NYSE and AMEX return data using three illiquidity proxies – namely, ILLIQ, ZERO, and TURNOVER – and their combinations and regress the IML portfolio returns on the Fama-French and Carhart factors. The results confirm a positive and statistically significant illiquidity premium for the overall sample period. However, the findings reveal a downward trend in both the magnitude and statistical significance of the premium, particularly in recent years. Subperiod analyses show that the illiquidity premium has diminished to the point of insignificance in the most recent period, aligning with improvements in market liquidity over time, and suggesting that the positive illiquidity premium in the overall sample period is driven by the early periods. Additionally, the premium exhibits a time-varying nature, with higher values observed during periods of market stress. Our findings highlight the diminished economic relevance of the illiquidity premium in an improved liquidity environment. These findings contribute to the recent academic discussion on the illiquidity premium, but they also have practical implications for institutional investors, such as hedge funds, suggesting that the strategies aiming to benefit from the illiquidity premium are most likely not profitable anymore.
Market reactions to ESG index reconstitutions: Evidence from the S&P 500 ESG index
(2025-02-19) Lauronen, Jesper
School of Business | Master's thesis
This paper investigates the impact of stock inclusions to and exclusions from the S&P 500 ESG index from 2020 to 2024. The study breaks the total index inclusion and exclusion effect into the announcement effect and the implementation effect. The findings do not indicate the existence of an announcement effect; this indicates that the inclusion in and exclusion from the S&P 500 ESG index is not likely to have a strong information role. The findings reveal weak evidence on the implementation effect. Stocks added to the index experience positive abnormal returns around the implementation. Statistically significant positive abnormal returns are found on the last trading day before the effective date, indicating the existence of an implementation effect on additions. Meanwhile, stocks removed from the index experience negative, though statistically insignificant, abnormal returns around the implementation date. Additionally, the study finds statistically significant abnormal volumes observed around the effective date, particularly significant on the last day prior to the effective date, further supporting the existence of an implementation effect in the S&P 500 ESG index reconstitutions. Furthermore, to assess whether markets value companies’ membership in the S&P 500 ESG index, this paper uses two different comparisons. First, it examines the mean cumulative abnormal returns of companies newly included in the S&P 500 ESG index versus those not selected for inclusion during the reconstitution. The results show a positive difference around the implementation with respect to companies included. Conversely, the second comparison, which examines the cumulative average abnormal returns of the companies newly excluded from the S&P 500 ESG index versus those that remain included, shows a negative difference around the implementation with respect to the exclusions. However, in both comparisons, statistical significance was only observed in daily-level difference tests, with inconsistencies present in the results. Given these inconsistencies and the lack of statistical significance in the cumulative event windows, it is not possible to confidently conclude that markets value membership in the S&P 500 ESG index.
Työoikeudelliset haasteet yrityskaupan näkökulmasta - Filosofiset, joustavat sekä oikeudelliset näkökulmat
(2025-02-20) Chokairy, Amira
School of Business | Master's thesis
This thesis explores labor law challenges in the context of corporate acquisitions, especially from the perspective of employee’s dismissal rights. As the labor market becomes increasingly international and corporate restructurings more frequent, ensuring employees’ rights and fair treatment has emerged as a critical issue. The study highlights that the continuity of an employees’ position is safeguarded under both national and European Union regulations, such as the transfer or undertakings directive and the employment contracts Act. Based on these legal frameworks, employees transition to the new employer as so-called “old employees”, meaning that a change in ownership does not, at least unilaterally, justify modifications to the terms of employment. The thesis aims to highlight the philosophical, flexible, and legal perspectives regarding employees’ rights to dismissal. The philosophical examination emphasizes principles of justice and ethics, while the flexible perspectives focus on the possibilities of adapting work arrangements. Legally, this thesis concentrates on the interpretation of the employment contracts act and case law, particularly concerning the grounds for dismissal and the termination process of employment relationships. In conclusion this study emphasizes the importance of proactive risk management in corporate acquisition processes. Employers should ensure respect for employees’ rights and the equal treatment of employment conditions. At the same time, transparency and employee involvement in the process play a crucial role in reducing uncertainty and facilitating successful transitions. Future research could explore employee’s experiences and industry-specific characteristics to gain a deeper understanding of labor law challenges.
Leveraging scenario analysis for enhanced decision-making in mergers and acquisitions - A constructive case study of a Nordic company
(2025-02-02) Nordström, Malin
School of Business | Master's thesis
The objective of this thesis is to map the possibilities for leveraging scenario analysis for enhanced strategic investment decision-making (SIDM) in mergers and acquisitions. Scenario analysis is rooted in US military-strategic thinking, and it has been used by governments and organizations since WWII to help detect potential discontinuities and design robust strategies and contingency plans for different futures. Over the last decades, the use of scenarios has become more popular in regular companies, and various scenario typologies and techniques have been presented for pragmatic use. Many companies have started to use the “traditional” scenario analysis technique initiated by Royal Shell and GE to develop their long-run strategy, while some companies seek scenario benefits from ad hoc analyses that generate information to explicitly articulated decision-making contexts. In managerial accounting, scenario analysis can be of particular use amidst uncertainty and demanding SIDM contexts that require more than simple NPV calculations and sensitivity analyses. This thesis demonstrates how a combination of predictive and explorative scenario typologies can serve as a reasonable starting point for companies looking to enrich the information available for investment decision-makers, given that adequate consideration is given to the characteristics that separate scenarios from other investment risk evaluation techniques, such as sensitivity analysis. The thesis is conducted as a single case study with a constructive approach subject to a weak market test. The pragmatic objective of the study is to design a scenario analysis process flow for a large Nordic company operating in the social and healthcare industry and which actively engages in M&A opportunities to achieve its growth targets. In the company, scenarios have hitherto been utilized in an ad hoc manner with emphasis on quantified information, and the main requirement for the construction established in this thesis is to systematize the scenario process flow while integrating some qualitative elements as well. The empirical data for this thesis was collected through five semi-structured interviews with company executives and managers, supported by documentation of prior M&A opportunity evaluations and scenarios. This thesis contributes to both pragmatic and academic domains in managerial accounting. As a constructive case study, this thesis provides the case company with a scenario analysis process flow designed for M&A in accordance with the unique requirements, concerns, and challenges identified in the company during the data collection phase. Academically, the thesis contributes to the SIDM literature by integrating insights from accounting research and futurology to examine the power of scenario analysis in investment appraisal and risk evaluation alongside other, more traditional accounting techniques.
Double materiality assessment implementation in corporate sustainability reporting
(2025-02-18) Ivaska, Alisa
School of Business | Master's thesis
In recent years, sustainability reporting has evolved into a core feature of corporate reporting. The regulatory environment around sustainability reporting has been changing as the European Union published the Corporate Sustainability Reporting Directive (2022/246/EU) and the European Sustainability Reporting Standards (2023/2772/EU). With the new regulation was introduced a concept called double materiality assessment. The double materiality assessment helps the companies to choose the themes that they must include in their sustainability reports. The assessment mandates the companies to report on both the impacts they have on people and the environment and the financial risks and opportunities arising from sustainability matters. The purpose of this thesis is to complement the prior academic literature by providing insights on the implementation process of double materiality assessment, changes in comparison to earlier materiality assessment and potential challenges within the double materiality assessment process, at the beginning stages of the implementation. Recently, some studies have been published concerning double materiality, however there is not much research concerning double materiality assessment. To meet the purpose of this research, a qualitative research method was adopted. The research is conducted as a single-case study with a large Finnish company. The data has been gathered through six semi-structured interviews and other written materials. The findings indicated that the main changes with double materiality assessment were the introduction of financial materiality to the assessment, the increased detail and complexity of both the regulation and the assessment itself and intensified collaboration within the company’s different units. Challenges regarding the double materiality assessment were resource limitations, implementing the ESG risks into the overall risk management and the difficulties with choosing the right values and assumptions. The contributions of this thesis extend the understanding of double materiality assessment and its practical implementation.
Expatriate adjustment process: the influence of colonial history and status evaluations
(2025-01-31) Virtanen, Linda
School of Business | Master's thesis
International assignments have become increasingly common in global organizations. However, a successful assignment requires organizations to take measures to support expatriate adjustment. Research has extensively examined the factors influencing this process, and building on this, the present study introduces a new perspective by incorporating the historical relations between an expatriate’s home and host country, as well as the status evaluations made by the host country supervisor, into the research on expatriate adjustment. The impact of these factors in the expatriate context remains understudied. However, based on previous research, it can be assumed that a history of colonization is linked to adjustment, particularly through status evaluations. Additionally, support from the host organization is expected to mediate the relationship between status evaluations and adjustment. A key focus of this study is the relationship between the expatriate and their host organization supervisor. The theoretical framework draws on both the expatriate adjustment model and the social identity approach, which examines expatriate adjustment through intergroup relations. The study’s quantitative data consists of 244 expatriate-supervisor pairs, collected in Russia, a former colonizer of some expatriates' home countries. The primary research method is regression analysis using the PROCESS macro tool, which is applied to examine the mediating effects of both expatriate status and host organization support in the adjustment process. The findings indicate that both status and organizational support play a mediating role in the examined relationships. However, the impact of status on the connection between colonial history and adjustment is more complex than expected, while its influence on host organization support and adjustment is clear. The results provide new insights into the factors shaping the relationship between expatriates and host country supervisors, emphasizing the significance of supervisors’ attitudes toward the support expatriates receive from the host organization and its effects on adjustment. The study encourages organizations to invest in developing the relationships between expatriates and their host country supervisors.
Corporate governance and board composition: Diversity and independence of Norwegian boards
(2025-02-02) Vuori, Teemu
School of Business | Master's thesis
The board of directors plays a critical role in tackling the issues arising from separated control and ownership. In the corporate governance research, the board composition and its diversity continue to garner the attention of academics. The importance of the board composition has also been signalled to law makers, as legislative action has been taken to ensure certain composition of the boards in some countries. One of these countries where gender quota is imposed is Norway. This study replicates previous studies by Niinikoski (2018) and Kang et al. (2007) to understand how shareholder concentration, board size and industry type affect to board gender diversity, board age diversity and independence. Studies by Niinikoski (2018) and Kang et al. (2007) were performed by using Finnish and Australian companies, respectively, as their sample data. The sample of this study is 80 largest Norwegian companies at the June of 2024. The data from the companies were manually collected from the most recent annual reports of the companies and utilizing Orbis database data in some occasions. First descriptive statistics based on the data are drafted and then the hypotheses are tested by utilizing regression analysis. The results of the study show that shareholder concentration had negative impact to board independence. Industry was found to have impact on board independence and board gender diversity, but not to board age diversity. There was a surprising result of board size negatively impacting to independence of the board. This finding is further discussed in the paper. Based on the sample of this study, it seems that Norwegian companies are mostly complying with the gender quota, and the gender quota has increased the level of female representation on the corporate boards.
Integrating sustainability into enterprise risk management (ERM) in alignment with CSRD
(2025-02-03) Krook, Ida
School of Business | Master's thesis
The purpose of this study is to examine how sustainability can be effectively integrated into Enterprise Risk Management (ERM) in compliance with the Corporate Sustainability Reporting Directive (CSRD). This research investigates the current state of Sustainability Risk Management (SRM) within a case company and identifies gaps in its alignment with existing ERM processes to highlight areas for improvement. The study also analyzes the findings in relation to the CSRD requirements, pinpointing gaps and proposing recommendations to address these challenges. This research explores the SRM process of a Finnish company through a qualitative case study. Data were collected through semi-structured interviews and analyzed alongside internal and external documents. Thematic analysis was applied to uncover recurring patterns and challenges within the current SRM framework Key findings indicate that the case company faces significant obstacles integrating sustainability into its ERM framework. These obstacles stem from a lack of a systemic approach to SRM, resulting in issues such as unclear conceptualization of sustainability risks, fragmented risk identification processes, and inconsistencies in the evaluation of sustainability-related risks. In the context of the CSRD, the study highlights the need for clearer thresholds and enhanced governance structures to better align SRM with regulatory requirements. Based on these results, it can be concluded that integrating sustainability into ERM in alignment with CSRD requirements necessitates embedding sustainability considerations into the organization’s governance structures and strategic processes. Given the complexity of sustainability risks, this requires greater incorporation of stakeholder expectations into ERM. This research contributes to the existing body of literature on SRM by addressing obstacles regarding integration of sustainability into ERM. By acknowledging the CSRD requirements and their implications for SRM, the study provides timely insights for organizations adapting to these evolving regulatory demands.

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