Browsing by Issue Date, starting with "2024-01-25"
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- Corporate purpose in startups and established companies : the effect of company maturity and leadership on purpose enactmentPublication . Hellenkamp, Nick; Cavicchini, AndreaThis study examines how purpose enactment varies in start-ups compared to established and growth-stage companies, and the extent to which leadership is involved in this process. It em ploys a mixed methods approach that entails extensive literature research and case studies on the current state of research, two qualitative expert interviews and an employee survey as the primary instrument. Interviewees noted that start-ups tend to establish purpose more easily than established companies, mainly due to their less complex structures and lack of extensive histories. According to quantitative data, start-ups exhibit a higher perception of purpose than established or growth-stage firms, with founder-led companies showing also significantly higher levels of purpose than those led by external CEOs. The literature and expert interviews empha size the agility and less rigid structures of start-ups as advantageous for purpose enactment, an observation confirmed by the survey data. The research consistently highlights the struggle of aligning purpose with practical implementation, particularly in larger, hierarchical organizations, pointing to the need for clear communication, the breaking down of silos, and a real commitment from senior management to effectively embed purpose in day-to-day operations. In conclusion, although organizational purpose – when implemented correctly – would have the potential to navigate organizations through stages of growth and serve as a unifying and guiding force, purpose enactment tends to diminish with increasing company maturity.
- FOMC and ECB effect on stock marketPublication . Falco, Antonio De; Georgievska, LjubicaThis study explores how unexpected changes in monetary policy influenced the stock market from 2006 to 2022. Using a method inspired by previous research, the analysis looks at various types of stock portfolios, including different market indexes and portfolios of various sizes and sectors. By focusing on the unexpected aspects of Federal Fund Rate changes, the study aims to uncover asymmetries in the market's response during different economic conditions, such as bull and bear markets. The results show that, while not all industry portfolios exhibited significant effects, there was a strong and statistically significant impact of monetary policy shocks on certain portfolios (CRSP EV and VW portfolios, including their deciles). Interestingly, this impact was more pronounced during bear markets. In simpler terms, the research helps us understand how unexpected changes in monetary policy specifically affect different types of stocks, shedding light on how the market responds under different economic circumstances.
- Cultivating heritage, tasting excellence : a case study on Carcavelos Villa Oeiras’ internationalization strategyPublication . Nascimento, Margarida; Cardeal, NunoThis dissertation delves into the internationalization journey of Carcavelos Villa Oeiras, a publicly-owned project, renowned for producing a distinguished centenary wine in one of the smallest demarcated regions worldwide. Carcavelos wine’s international trade dates back to the XVII century, establishing itself as one of the most prestigious Portuguese wines. However, during the XX century, the wine industry faced a downfall, and it was not until 1983 when the Oeiras Municipality took over the winemaking project that the production of Carcavelos wine resurged. This case study explores Carcavelos Villa Oeiras’ strategic entry into foreign markets, highlighting the key elements that have contributed to the project’s international success, namely the region’s historical heritage and the distinctive quality of its processes. Additionally, the case underlines the brand’s selective distribution approach in its international entry strategy, emphasizing its focus on specialized markets. This strategic choice stems from the project’s niche positioning, pointing to the importance of its partners in amplifying Carcavelos Villa Oeiras’ global presence and competitiveness. Despite the brand’s successful internationalization, the case study unveils several challenges that the project faces regularly, including the constraints imposed by its public nature, the international perception of Portuguese wines as bargains, and the impact of international regulations on Carcavelos Villa Oeiras’ operations. Lastly, the case outlines numerous strategic initiatives designed to fortify Carcavelos Villa Oeiras’ international presence, aiming to propel the brand into unexplored markets and ensure sustained success in the ever-changing wine industry.
- Novel polymeric nanoparticles as nanofertilisers for alkaline iron-deficient conditionsPublication . Pinho, Simão Pedro Fagundes de; Vasconcelos, Marta Wilton Pereira Leite de; Abreu, Tânia Alexandra Fernandes de Sousa MonizIron deficiency chlorosis (IDC) is a nutritional disorder adversely affecting plant health and crop yields, particularly in the approximately 30% of the world's arable land, which is composed of calcareous alkaline soils. The condition compromises effective iron uptake in crops such as soybeans (Glycine max), leading to chlorosis and stunted growth. This study introduces a novel nanotechnology-based intervention utilising 3-hydroxy-4-pyridinones (3,4HPO) iron (III) chelates-loaded nanoparticles (NPs) to address IDC, offering a controlled and sustainable release of iron and demonstrating effectiveness in enhancing plant health and chlorophyll content. Counteracting the limitations of traditional iron chelates like EDTA, which suffer from poor biodegradability and potential environmental risks, the 3,4-HPO chelates, such as Fe(mpp)3 and Fe(dmpp)3, emerge as a sustainable alternative, showing increased iron bioavailability with minimal toxicity. Comparative analysis highlights the superior efficiency of these chelates over conventional treatments in preventing IDC symptoms, fostering greener, more robust plant growth, and higher iron accumulation. Innovative nanocarriers were developed for fertiliser delivery, capitalising on the nano-porous structure of plant roots and leaves, with the aim of enhancing nutrient uptake and correcting IDC. The research progressed through the production, optimisation, and characterisation of rhodamine B-labelled polymer-based NPs. Their uptake by soybean plants was assessed, identifying the most favourable characteristics for plant absorption. Building on this, the methodology was adapted to encapsulate the iron chelates Fe(dmpp)3 and Fe(mpp)3 within the NPs. Subsequent in vivo studies utilised Fe(dmpp)3 NPs for seed priming in soil, evidencing significant improvements in chlorophyll content, growth rates, and biomass in iron-deficient conditions. Furthermore, the study's foray into genetic expression analysis revealed upregulated iron-related genes, pointing to a profound molecular impact of NP treatment and an improved mechanism for iron transport and storage. The findings indicate that Fe(dmpp)3-loaded NPs not only alleviate IDC but also present a potential paradigm shift in the fertiliser industry, promoting more sustainable and efficient agricultural practices. The implications extend beyond increased crop yields, suggesting that engineered NP treatments could be instrumental in the future of agriculture, integrating environmental responsibility with enhanced productivity.
- Risk management in bond markets : a country-specific study of volatility scaling strategiesPublication . Ferreira, Leonor Conde; Barroso, PedroThis study takes a close look at how to deal with the market’s time-variation in risk, with a particular focus on applying volatility-management strategies to bond portfolios, featuring different levels of credit risk and maturities in international fixed-income markets. Notably, the volatility-managed high-yield portfolio, consistently outperforms its original counterpart, both in terms of positive alpha in the spanning regression and significant increase in the Sharpe ratio. However, for high-quality bonds, there is no evidence indicating an enhancement in risk adjusted returns. Mixed evidence is found on the performance of volatility-managed government bond portfolios, with longer maturities portfolios being more likely to profit from the dynamic strategy. When analysing the risk-return trade-off, I show that the reported difference across markets mainly arises from differences in return timing. By applying different volatility estimation methods, I highlight the sensitivity of results to distinct methodologies. In addition to the methodology used, the selected sample and prevailing market dynamics have been shown to have a significant influence on the outcomes. Nevertheless, although evidence seems to suggest some potential benefits, universal improvements in fixed-income markets remain elusive.
- Investing in a warming world : a deep dive into investor awareness and stock returns across European citiesPublication . Antunes, Teresa Mateus; Venter, ZoëThis paper examines the effect of people’s attention to climate change issues on the returns of European stocks from 2005 to 2021. To this end, I use the google Trends’ monthly Search Volume Index to proxy the attention to global warming and find no difference in investors’ awareness of the risks associated with climate change especially when experiencing extreme weather or after natural disaster shocks in a particular city. However, when examining temperature quartiles at the country level, investors seem less concerned about global warming during both unusually warm and cool months. Contrary to expectations, my results show that stock returns are unrelated to investors’ experience with abnormal local weather and natural disaster shocks in both high- and low-carbon emission firms. Surprisingly, when examining temperature quartiles, abnormal temperatures positively impact stock returns. Moreover, I find a proactive commitment from companies to address climate change during abnormal temperature months, as evidenced by a reduction in carbon emissions. The study contributes to the understanding of investor behavior in the context of climate change, shedding light on the complex dynamics between climate events, public awareness, and financial markets.
- Investment strategies in dynamic economies : application of the Bakshi Chen Dong valuation model on a sample of 25 stocksPublication . Sarkis, Ayline; Silva, NunoThis dissertation studies the effectiveness of the Bakshi-Chen-Dong (2001) valuation model (BCD) in selecting stocks for investment. The BCD model has a closed-form solution where the firm’s equilibrium stock price is a function of its (1) current net earnings per share, (2) expected growth of earnings, and (3) current interest rates. A stock is deemed mispriced whenever the percentage difference between the model price and the actual market value of the stock is far from zero. The performance of this mispricing measure in picking profitable stocks is compared to three indirect valuation indicators (earnings-to-price, size, and past return momentum) in the case of 25 stocks in the Dow Jones Industrial Average Index of 2022. First, alike Dong (2000), the mispricing measure is shown to be close to zero, and mean-reverting every ten months, allowing for potentially profitable trades. Second, when taken explicitly, exploiting the model mispricing is proven to be the most profitable strategy in picking stocks for investment over a one-month time horizon. Finally, a strategy that combines high momentum stocks with low mispricing showed the best performance among all studied.
- Markov regime-switching models : implications for dynamic and long-short strategiesPublication . Alves, Ana Barata Feyo Engelking; Barroso, PedroConventional wisdom posits that investors should refrain from market timing. Challenging this, recent work using Markov regime-switching models argues that the market and a set of other risk premiums can be effectively timed and thus investors can avoid periods of high volatility diminishing losses, whilst still taking advantage of positive returns in a stable economy. Existing literature focuses mostly on in-sample predictability. This thesis tests those conclusions in an out-of-sample setting, contributing to existing literature by further investigating how to time the market’s conditions using a Markov regime-switching model. More specifically, I estimate regime presence based on different variables, such as market turbulence, inflation, and economic growth. Regimes relate to either a highly volatile state, defined by economic contraction, or a more stable state, defined by economic growth. Additionally, in this thesis, I analyze different assets and risk premiums’ performance out-of sample, by comparing both a regime-based dynamic and a long-short strategy against a static one. The regime-based strategies’ allocations are adapted to maximize returns whilst diminishing volatility given the presence of the regimes identified. I find that using a Markov regime-switching model to time the market and adjust portfolio allocations significantly decreases volatility, greatly improving risk-adjusted performance. However, regime-based strategies do not appear to yield higher returns than a simple static allocation. Truly, they struggle to outperform a static strategy and market benchmarks. Nonetheless, some strategies based on market turbulence produce interesting alphas, suggesting that more research on regime-based strategies is warranted.
- The relevance of connected car features on brand loyalty and customer satisfactionPublication . Noronha, Madalena Lobo Antunes de Matos e; Tavares, PedroEvery day, we are becoming more connected. Our phones have become the ultimate connectivity device, and soon, the car will follow in the same footsteps. The future car will be more sophisticated and tailored to consumers, becoming an extension of our smartphones. Connectivity will be an essential source of value creation for brands, as it may generate revenue, optimise costs, and overall increase and improve the driver experience. This dissertation explores the relevance of connected car features to brand loyalty and customer satisfaction. An extensive literature review was performed to gain knowledge on the topic. Both qualitative and quantitative research were conducted to answer the research question. For the qualitative research, in-depth interviews were conducted. The study aimed to gain insights into the motivations, habits, and attitudes behind purchasing a vehicle and comprehend the role of connected car features in the purchase process. For the quantitative research, an online survey was formulated. The questions focused on the motivations and habits towards purchasing a car, followed by the general perceptions of connectivity features. Most questions used were statements using a 5-point Likert scale regarding the level of importance or agreement with the statement. The data collected from the research was then imported into the statistical program SPSS and analysed. Along with an analysis of the data, hypothesis testing was also used. From the study of the research conducted, both qualitative and quantitative, it was possible to conclude that connected car features do have a positive impact on customer satisfaction.
- How did a niche wholesaler adapt its strategy in response to the challenges posed by the EU REACH regulation, leveraging its resources and dynamic capabilities?Publication . Schmidt, Niclas; Cardeal, NunoSince the EU’s REACH regulation, the flavor and fragrance industry has faced significant challenges. Especially for small and medium-sized enterprises (SMEs) adapting to these stringent regulatory demands has been a complex and resource-intensive effort. This thesis investigates the strategic response of an anonymized wholesaler, WFF, to the regulation. A pedagogical case study is used in which students are given a real-world scenario to assess the strategic alignments. By utilizing semi structured interviews and secondary data, it aims to explore the adaption through dynamic capabilities and strategic alignment. The main findings can be broken down into 3 main points: The need for SMEs in the flavor and fragrance industry to adopt advanced technologies and innovation responses to regulative hurdles. (2) The importance of restructuring both internal and external processes to maintain compliance and efficiency. This includes revising business models to adapt to the evolving regulatory and market landscape. (3) The necessity for advanced risk management and strategic foresight and to leverage technological advancements and data sharing within the industry. This broad approach highlights the importance of holistic management practices in navigating industry regulations.