
Ossi Lindström
The thesis deals with the dynamic interactions between investments and corporate financing caused by market imperfections. Unlike the... | Finland
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Ossi Lindström’s Location Finland
Ossi Lindström’s Expertise The thesis deals with the dynamic interactions between investments and corporate financing caused by market imperfections. Unlike the previous static and linear studies, this study accounts for the effects of non-linear decision-making on the results. The main contribution rests on the development and application of non-linear methods to the problem area. The thesis is based on the introduction and three essays, in which the empirical in nature and one is theoretical. (1.) Empirically the interaction of investment and debt decisions within the manufacturing firms using a system of non-linear panel data models. The developed model takes better into account heterogeneity, dynamic interaction within and between the decisions and joint adjustment costs, and improves a grouping of overlapping variables between variables between these. (2.) The interaction of supply and demand conditions in European bank lending that there are differences between different sizes of manufacturing firms, banks, countries and over time. Yet, the common European monetary policy could have most effect on the small, bank-dependent firms across countries. However, not only differces in regulation across countries but also the tough inter-bank competion over medium-sized growth-orientated firms and the large firms' unpredictable demand for bank loans are going to make the policy planning more difficult. (3.) A stochastic programming model for dynamic portfolio into a study of financial real options. According to the study, these firm- and financial instrument specific options enable firms to take advantage of its growth options. Option values for cash, debt and equity financing depend largely on the risk-aversion rate, the real and financial irreversibility and the portfolio effects. Higher risk aversion increases the option values, while higher irreversibility decreases the value of debt option opposite to the others.
Ossi Lindström’s Current Industry Aalto University
Ossi
Lindström’s Prior Industry
Aalto University
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Aalto University
L.Sc. (Management Science)
Fri Nov 01 2013 00:00:00 GMT+0000 (Coordinated Universal Time) — Present