Contributions in Merlin

This chapter introduces the practice theory developed by Theodore Schatzki and highlights its implications for organization studies. In particular, it shows how his theory contributes to our understanding of the micro-foundations of organizations, the embeddedness of organizations in their wider social context, and the temporal and spatial dimensions of organizations. It also discusses how Schatzki’s theory can be applied in empirical research on organizations.

We investigate the effects of macroeconomic announcements made in the United States on trading activity of stocks listed in Borsa Istanbul. The influence of these releases on the selected variables are an important source of information for market participants. Results show a clear negative impact on weighted bid, ask and mid-prices in the five-minute period post-release. Available liquidity measured by pending orders in limit order book decreases with the news arrival. These results present implications for market dynamics and signal that liquidity consumption (through market orders) largely dominates liquidity provision (through limit orders) in the five-minute period following the release.

Wireless Sensor Networks (WSN) are networks composed of constrained devices. One problem related to WSN is how to secure the communication between the nodes of such a network, as cryptographic algorithms are usually resource intensive. Therefore, in this thesis, ECCforContiki, a security solution for WSNs is presented. ECCforContiki uses elliptic curve cryptography (ECC) for key generation and key exchange, and various symmetric key techniques for encryption between the network nodes. It does not rely on a certificate authority to provide authenticity, but uses asymmetric pre-shared keys. The solution was implemented on a WSN running the aggregation protocol TinyIPFIX on the operating system Contiki. As shown by the performed evaluation, the presented solution successfully secures the communication between sensor nodes without a central certificate authority.

In this paper, we examine the interaction between social outreach and financial return in microfinance. Running multivariate regression models and using 1,805 observations of microfinance institutions between 2004 and 2013, we find strong evidence suggesting that institutions with more social engagement – in terms of outreach to the poor – earn higher portfolio yields. We also find that measures of outreach are associated with increased operating expenses. As return figures are influenced by both costs and yield, and because both increase to a similar degree with the depth of outreach, these two effects lead to a zero sum result on return measures. This finding could explain why existing studies assessing the interaction between social outreach and different measures of financial performance in microfinance (such as return on assets/equity, operating expenses, operational self-sufficiency) have not produced consistent results.

Gut getarnter Lockvogel Dabei zur Hand geht ihm BILANZ, die den Bitcoin-Multimillionär kurzerhand zum Lockvogel im diesjährigen Private-Banking-Rating gemacht hat. In einer Art Mystery Shopping werden so bei den wichtigsten Schweizer Privatbanken zum elften Mal Anlagevorschläge eingeholt und die Dienstleistung als Gesamtpaket bewertet. Um dies möglichst unauffällig zu gestalten, hat BILANZ auf die Dienste von ValueWorks zurückgegriffen. Das Multi-­Family Office hilft Privatpersonen und ­Familien unter anderem bei der Auswahl der passenden Vermögensverwalter. Gut getarnt wurden im Auftrag von BILANZ knapp 100 Banken angeschrieben. Ein grosser Teil schickte detaillierte Anlagevorschläge zurück. Die Jury (siehe unten) unter der Leitung von Finanzprofessor Thorsten Hens wählte die 17 qualitativ höchstwertigen Offerten aus. Banken wie die UBS fielen bereits hier heraus. Das Münchner Institut für Vermögensaufbau (IVA) unterzog die verbliebenen Vorschläge einer umfangreichen Detailanalyse.

I document the difference in sensitivity to interest rate change, that stocks with different dividend yield characteristics exhibit as well as how this sensitivity changes as the economy moves into low interest rate periods. Additionally I inquire about the presence of a difference in reaction to interest rate changes in the short term, specifically during the FOMC Fed Funds Target Rate announcements, evaluating both the reaction to the expected as well as the unexpected portion of the change in the Fed Funds Target rate. Finally I evaluate the existence of a difference in short term price drift immediately before and after the FOMC announcement day. The results of the analysis prove the existence of a difference in interest rate sensitivity between high and low dividend yield stocks. Additionally after analysing different interest rate periods, I prove that this interest rate sensitivity of high dividend yield stocks becomes stronger in the most recent extremely low interest rate period that came after the financial crisis of 2008. In the short term I present findings that back up the theory that no observable difference in reaction between high and low dividend yield stock is present both in the reaction to the FED Funds Target Rate, as well as with regards to the pre-FOMC meeting drift. Finally I discuss possible explanation for these observations based on the Clientele and the "Reaching for Dividends" hypothesis.

Diversification is not possible only from the personal perspective, but firm can also engage into various activities to decrease the correlation of profits across their operations. Diversification in theory can have value increasing effects due to reduction in the earning`s volatility, hedging the unsystematic risk on the firm level, higher operating efficiency, better access to capital markets, tax optimization and additional growth opportunities. In contrary, diversification can come in the cost of using the extra resources to fund negative net present value projects, potential higher agency costs and possibility for the worse performing sectors living of better performing sector. Research studies tried to answer the question if the benefits or costs prevail with the inconclusive answer. The first wave of studies in USA found the value increasing effects dominates, which was reversed by later studies in USA. However, the results of the second wave were questioned on the ground of endogeneity and selection bias, benchmarking of the diversification discount and segment reporting manipulation. The international evidence also was not able to fully explain this discount, but it tried to assign it to on attributes such as ownership, frictions in the capital, labour and products market, level of diversification and dynamisms of industries. My thesis covers the research gab in the diversification studies by focusing on the countries of Austria, Czech Republic, Hungary and Slovakia from 2013 to 2017. My analysis is using the methodology proposed by Berger and Ofek (1995), which is based on the calculation of the excess value derived from the industry multiple of the single-segment companies. The results of my study show that diversified companies are valued at significant discount of 35.5% for the sales multiple in the Basic Model with control variables of size, efficiency and growth opportunities, when the excess value is calculated with median multiplier. The main result of my thesis is finding that diversification discount is largely influenced by ownership structure, when the main driver for the diversification discount is identified as institutional ownership between 10% and 50%. Additionally, the significant results with the biggest impact on the diversification values are ownership with holdings above 50% such as corporate, government, insider and institutional ownership. My results also support the view that diversification is country varying, but I am unable to assign this diversification discount into individual countries.

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We document significant differences in the financing structure of small firms with managers of diverse cultural backgrounds. To isolate the effect of culture, we exploit cultural heterogeneity within a geographical area with shared regulations, institutions, and macroeconomic cycles. Our findings suggest that there exist significant cultural differences in the preference towards debt funding and in the use of formal and informal sources of financing (bank loans and trade credit). Our results are robust to alternative explanations based on potential differences in credit constraints and in the distribution of cultural origins across industries, trading partners, and headquarters location.

Using a real options model, this paper quantifies a gas-fired power plant’s operating value and the value of a new investment against the background of a market transition to renewable electricity. The model is run with recent data for Germany’s power sector and for different types of gas-fired power plants. The result is twofold. First, the paper achieves a more realistic value by improving on existing models: it models electricity and gas prices as a two-dimensional stochastic process, each component consisting of the sum of a seasonal pattern and a mean-reverting process; it uses high granularity by modelling hourly time-steps; and it incorporates power plant ramping times and costs. Second, it compares two types of power plant models, one with daily and one with hourly operating decisions, and thereby quantifies the value of a plant’s intraday flexibility. The hourly model replicates operators’ and investors’ decision making accurately. This is evidenced by the fact that the results trace current major developments like the recent decline and come-back of gas-fired generation in Germany. The paper contributes to a better understanding of the choices operators and investors face in current electricity markets. In the absence of large scale storage solutions flexible supply of electricity, as provided by gas, is important in the transition to renewable energies in Germany and across Europe.