Browsing by Author "Atie, Josephin"

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Offentliga venture capital-bolags motiv till att syndikatinvestera
(2017-07-06) Höijer, Josefin; Atie, Josephin; University of Gothenburg/Department of Business Administration; Göteborgs universitet/Företagsekonomiska institutionen
This paper examines the incentives among governmental venture capital-firms in Sweden to syndicate their investments. The results are based on qualitative, semi-structured interviews with investment managers at six different public venture capital firms. The interview questions are derived from five different perspectives on syndication that are frequently described in finance literature; the risk spreading- and risk reducing perspective, the capital perspective, the value-added perspective, the screening- and selection perspective and lastly the deal-flow perspective. The existing literature on syndication is primarily based on quantitative studies, which this paper aims to complete by providing a qualitative view on syndication. In addition, previous studies mainly focus on private venture capital firms, from which public firms differ for two main reasons; firstly they are financed by public funds and secondly they are established to fulfil certain purposes, such as investing in a specific sector. This paper therefore aims to examine the applicability of finance theory on public venture capital firms, in light of their distinctive role on the market. The empirical evidence shows that all perspectives are of importance to public venture capital firms in Sweden, but to various degrees. The conclusion has been drawn that the capital perspective and the valueadded perspective are portrayed among the respondents as major reasons for syndicating investments. The risk spreading- and risk reducing perspective, the screening- and selection perspective and lastly the deal-flow perspective on the other hand are portrayed as relatively weak motives for syndicating investments. This result can be partly explained by the public firms’ distinctive role on the venture capital market.
The market reaction to goodwill impairment announcements - Do investors value information content, tone and opportunistic managerial behavior?
(2019-08-08) Atie, Josephin; Elmberg, August; University of Gothenburg/Graduate School; Göteborgs universitet/Graduate School
What make goodwill impairment announcements especially noteworthy for investors is that fairvalue measurements require managers to make unverifiable estimations due to the absence of quoted market prices, meaning that choices whether goodwill is impaired or not could be subject to biased decisions. This study examines the stock market reaction of goodwill write-offs in respect to the information content (the provided reason for the write-down decision) and tone (the sentiment used by managers to explain the write-down decision) of the announcements. In addition, this study investigates if stock market investors evaluate signals of managerial opportunistic behavior (CEO transitions and executive compensation) and adjust their expectations accordingly. By using a sample of 155 goodwill impairment announcements published by Nordic listed companies during the time period 2005 - 2019, this study does not find significant differences between external and internal write-down reasons. However, the findings suggest that the market reaction is in fact associated with the tone of the goodwill impairment announcement. Investors respond less negatively when the language used in the press release is more positive, and they react more negatively when the message is more superfluous. The results also indicate that investors do evaluate signals of managerial opportunistic behavior by reacting less negatively to goodwill impairment announcements in case of CEO transitions. Still, this study does not find that the market reaction differs between firms having executive compensation tied to either earnings or equity, comparing to companies that do not offer the CEO performance-based compensation.