Annual Report 2010

We mean business.

O ulu Business School ANNUAL REPORT 2 0 1 0

A Message from the Dean..........................................................3

CONTENTS

Oulu Business School, Important Milestones.........................4 Oulu Business School at a Glance 2010 .................................8 Education......................................................................................10 Research ......................................................................................16 Alumni ...........................................................................................22 Department of Accounting........................................................26 Department of Economics........................................................30 Department of Finance..............................................................34 Department of International Business...................................38 Department of Management....................................................42 Department of Marketing.........................................................46 Martti Ahtisaari Institute of Global Business and Economics.............................................................................50 Research Projects.......................................................................58 Strategic Research Projects in Martti Ahtisaari Institute ........................................................................................64

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A MESSAGE from the Dean

The Future of Oulu Business School Business schools have sometimes been accused in academic journals and the business press of being out of touch with the business world, conducting irrelevant research and of failing to emphasise ethical values in leadership.The ongoing financial crisis has also amplified the scepticism of some sections of the media about the value of business school research and education.

As the debate rages on, the global business environment is changing in parallel. Future generations of business leaders will operate in increasingly integrated economies with radically different population demographics.

Advances in information and communication technologies will also lead to the restructuring of many industries through global sourcing of services.

The current turning points in management education make the future of business schools very challenging. At Oulu Business School, our aim is to develop strategies both in research and education with an eye to the future.

and EFMD in Europe will be crucial to our development. Both organisations have closely examined the future development of business schools and management education.The aim of Oulu Business School is to develop our activities in cooperation with them and gain international accreditation within 3 - 5 years.

Being the leading business school in the whole of northern Finland, we benefit from strong financial and motivational support from a myriad of companies and organisations.We would like to thank the City of Oulu and the Oulu Chamber of Commerce in particular. In order to be a world-class academic institution, we recognise that we also need solid support from our university – both in word and deed.

At Oulu Business School, we mean business.

Professor Kimmo Alajoutsijärvi Of course, we cannot do it alone. We need unwavering support from our partners.

Firstly, the two main professional associations in management education – AACSB International in the USA

OULU Business School We mean business.

IMPORTANT MILESTONES 1958 – University of Oulu founded.

1959 – Professorship in Economics established.

Students graduate with Bachelor of Science in Philosophy.

1980 – First Bachelors of Social Science graduate from Economics.

1984 – Associate Professorship in Business Economics in the field of development and management of business created.

1991 – Professorship in Corporate Economics and Business in the field of accounting established.

1992 – Associate Professorship in Marketing established, followed by a full professorship in 1994.

2000 – Faculty of Economics and Business Administration established in the University of Oulu.

2002 – Degree programme in Management and Organisation launched.

2007 – International Business becomes the latest degree programme in Oulu Business School.

2008 – In spring 2008, President Martti Ahtisaari opens an international research and education institute, the Martti Ahtisaari Institute of Global Business and Economics.

Currently Oulu Business School (OBS) provides education and research in all the main areas of business including accounting, economics, finance, international business, management and marketing.

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Professor Kimmo Alajoutsij채rvi (left), Dean 2006 - 2011, Professor Rauli Svento, Dean 2000 - 2006 and Emeritus Professor Osmo Forssell, Head of the Department of Economics 1990 - 1996.

Oulu Business School

Dean Council Support Staff Marketing

Management

Int. Business

Accounting

Finance

Economics

Martti Ahtisaari Institute of Global Business and Economics Research Groups and Educational Programs: FMA, MF, IB, MBA, eMBA

KEY FACTS 2010 Financial Data (in Euros) Budget funding External funding Tekes Graduate schools Other domestic Structural funds Other income Total funding Staff expenses Other expenses Depreciation Total costs Internal items Surplus/(deficit) Faculty Staff Over past 5-year period Professors Teaching and research Other Total Education Activities over past 5-year period Applications /accepted Bachelor's and Master's programmes Master's programmes (+2) International Master's programmes Degrees Bachelor of Science Master of Science Doctor of Science Credits of minor subjects Credits produced inside the OBS Credits produced for other faculties 2010 Total credits produced

4 542 911

70,5 %

222 081 331 165 102 778 286 859 960 047 6 445 841 4 785 570 1 084 947 8 230 5 878 747 439 470 127 624

3,4 % 5,1 % 1,6 % 4,5 % 14,9 %

2006 12 47 19 78

2007 18 61 18 97

2009 17 58 20 95

2010 16 56 18 90

2006

2007

2009

2010

902/155 295/59 188/9

942/155 352/59 146/9

1298/212 321/75 736/55

1634/212 348/70 567/61

15 103 4

48 133 5

129 138 4

137 161 9

2010 36568 6221 42789

85,5 % 14,5 %

74,2 % 16,8 %

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RESEARCH*** Activities over past 5-year period Scientific articles (refereed) Other scientific publications (refereed)**** Activities in scientific publications Other publications Scientific presentations Activities related to scientific conferences Other*** International visits (own staff) International visits (foreign staff) Education in university pedagogy Impact on society ***Figures are based on the Oulun yliopisto tutkii database ****Includes refereed scientific conference papers and compliances

2009 36 50 46 83 59 17

2010 27 38 55 81 45 23

20 9 4 38

17 15 12 51

Staff Distribution 80

Professors

70

Teaching and research

60

Distribution of budgetary state funding at the University of Oulu 2010

Other

61

58

50

58

56

47

40 30 20 10 0

12

19

2006

18

18

2007

16

22

2008

17

20

2009

16

18

Distribution of Master of Science degrees at the University of Oulu 2010

6,6 %, Faculty of Humanities

12,6 %, Faculty of Humanities

17,3 %, Faculty of Education

12,7 %, Faculty of Education

3,9 %, Oulu Business School

11,1 %, Oulu Business School

19,8 %, Faculty of Science

15,0 %, Faculty of Science

34,8 %, Faculty of Technology

35 %, Faculty of Technology

17,5 %, Faculty of Medicine

13,6 %, Faculty of Medicine

2010

OULU Business School at a Glance 2010

OULU BUSINESS SCHOOL has sole responsibility for university level Business Education in northern Finland. In recent years, we have also strengthened our position as an international business school and become the largest supplier of courses and degree programmes taught in English at the University of Oulu. Over the past few years the number of applicants has grown substantially and at the same time, our student intake has increased.There are currently approximately 1400 students and almost 100 staff members at Oulu Business School.

The main financial resources in 2010 were 6 445 841 EUR, of which about 70% is

budgetary state funding. The most significant portion of external funding, approximately 15 %, was received as income from executive education. The main sources of research project funding are the Finnish Funding Agency for Technology and Innovation (TEKES) and EU structural funds like the European Regional Development Fund (ERDF) and the European Social Fund (ESF).

Oulu Business School is the most efficient faculty at the University of Oulu. Despite taking only a small proportion of allocated budgetary state funding (3.9 %), the business school accounted for 11 % of all the Master’s degrees awarded at the University of Oulu in 2010.

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The Dean of Oulu Business School is Professor Kimmo Alajoutsijärvi. Professor Mikko Puhakka is the Vice Dean for research, and Professor Petri Sahlström the Vice Dean for education. The following are the chairs of their respective departments: Professor Petri Sahlström, Department of Accounting Professor Juha Junttila, Department of Economics Professor Hannu Kahra, Department of Finance Professor Petri Ahokangas, Department of International Business Professor Vesa Puhakka, Department of Management M.Sc.(Tech), Lecturer, Pertti Paakkolanvaara, Department of Marketing, until the end of 2010.

D.Sc.Veikko Seppänen, Director of the Martti Ahtisaari Institute of Global Business and Economics.

Our education and degree programmes are attractive and interesting.

EDUCATION

OULU BUSINESS SCHOOL is responsible for the development of the knowledge and competence of its students, and for equipping them to meet the criteria for future leaders at home and abroad. OBS acknowledges the importance of the interconnectivity of business education and the real world by following its specific values of Expertise, Enthusiasm, and Engagement.

Learning experience, where theoretical knowledge can be applied in actual business environments, is emphasised in the curriculum. OBS caters for the needs of its students by providing personal tutors to guide the preparation of personal study plans.

The number of applications to the University of Oulu increased by 9 % in 2010. The growth was highest in OBS where the number of new applications increased by 26 %.

We were also able to improve our attractiveness relative to other Finnish business schools. The applications for the two-year Master’s Programmes increased by over 8%. The three International Master’s Programmes in OBS have been very popular for several years, producing 567 new applications in 2010. A total of 12 International Master’s Programmes were offered at the University of Oulu and 48 % of all new applications were to the OBS.

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Applications to Bachelor's and Master's programmes 1800

1634

1600

Applications

Bachelor of Science

180

Master of Science

185

160

1400

902

942

100

800

80

600

60

400

40

200

20

0

0

2006

2007

2008

2009

2010

Students in 2010 370 new students admitted, 200 into Bachelor’s and Master’s degree programmes, 30 International Master’s Degree students, 20 doctoral students, 15 full time MBA students and 40 Executive MBA students.

In addition, more than 60 students with a Bachelor’s degree are admitted onto Master’s degree programmes.

138 129

133

120

1057

Doctor of Science

161

140

1298

1200 1000

Degree Distribution 200

137

103 77 48 15 2006

6

5

4 2007

2008

9

4 2009

2010

We emphasise managerial relevance in teaching 2010 was marked by many faculty members starting or finishing their pedagogical studies. In addition, separate teams consisting of teachers, students and alumni members have been established to better respond to job-related demands from outside the university.

OBS has been able to produce Master’s degrees much more efficiently than the other main business schools in Finland. The efficiency of doctoral education in OBS is also amongst the highest in Finland.

Doctor of Science degrees per budget-funded prof. and ass. prof. at the University of Oulu, 2010

Doctor of Science degrees per budget-funded prof. and ass.prof in main Finnish Business Schools 2010

Faculty of Humanities

University of Jyv채skyl채

Faculty of Education

Oulu Business School

Oulu Business School

University of Tampere

Faculty of Science

University of Wasa

Faculty of Technology

Lappeenranta University of Technology

Faculty of Humanities Faculty of Education Oulu Business School Faculty of Science Faculty of Technology

Aalto University

Faculty of Medicine 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9

Master of Science degrees per budget-funded prof. and ass.prof. at the University of Oulu, 2010

Faculty of Medicine

Swedish School of Economics and Bus. Adm.

0

Turku School of Economics 0,0

0,2

0,4

0,6

0,8

2

4

6

8

10

12

1,0

Oulu Business School is active at home and abroad.

IN 2010 we continued to develop our educational cooperation with other organisations and other business schools in Finland and abroad.

Visiting lecturers from foreign business schools are important resources for offering wider expertise in many disciplines in our education. Oulu Business School provides global perspectives in its education for students by inviting visits by well-known

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13

Master of Science degrees per budget-funded prof. and ass.prof. in main Finnish Business Schools 2010 University of Jyväskylä Oulu Business School University of Tampere University of Wasa Lappeenranta University of Technology Aalto University Swedish School of Economics and Bus. Adm. Turku School of Economics 0

2

4

6

industry experts and renowned professors from such business schools as Duke University, Stern School of Business, and Cass Business School.

Apart from introducing visiting lecturers to Master’s level students, the OBS research faculty benefits from research seminars where invited speakers from around the world present their most current research.This ensures that OBS is acting in line with its values and encouraging the circulation of new research knowledge through educating individuals.

Oulu Business School organises different events with the local business community. For instance, a MatchMaking event was organised in November 2010 to bring together enterprises and students from the International Master’s level programmes.

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10

12

14

Name of visitor

Affiliation

Type of visit

Topic of presentation

Ass.Prof Henrik Nilsson

Stockholm School of Economics

Guest lecturer

Corporate Governance

Prof. Per Olsson

Duke University

Guest speaker

Investors’ Reaction to Earnings

Prof. Joshua Livnat

Stern School of Business

PhD course lecturer

Advanced Financial Statement Analysis

Prof.Timo Rothovious

Vaasa University

Visiting course lecturer

Advanced Financial Analysis

Tuomas Honkamäki

PwC

Visiting course lectures

Advanced International Accounting course

Prof. Lasse Niemi

Aalto University

Visiting course lecturer

Advanced Auditing

Tapio Raappana

Chief Director of the KPMG

Visiting course lecturer

Auditing Group Accounting course

Strong foundation for management practice In a company offering expert services, one must have good interaction skills in order to be able to provide good services to the client, says Jarno Kilpinen.

LIKE MANY other alumni, Jarno Kilpinen, who works for an international corporation, is delighted with the education he received at Oulu Business School.

Mr Kilpinen graduated from Oulu Business School with a major in Accounting in 2008, joining Ernst & Young where he now works as a financial consultant. “At the university we learn the basics of budgeting and auditing, but individual tasks you master only through work. In my opinion, Oulu Business School offers an excellent platform for a career in business”, says Mr Kilpinen. He encourages current and future students to acquire a broad knowledge of business studies.

There are 30 people working at the Oulu office of Ernst & Young, almost all of whom have academic degrees.“Hav-

ing a university education is of particular importance for this kind of expert organisation in the financial sector. Our employees ought to have a solid basis in business economics upon arrival, which is to say that they must know how the economy works”, states Jari Karppinen, office director.

Mr Karppinen is equally satisfied with the education provided by Oulu Business School.

Original text written by Minna Peltola

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Executive Education for business professionals in the United Arab Emirates IN JUNE 2010, Professors Pauliina Ulkuniemi and Janne J채rvinen conducted a three-day intensive executive education seminar for a group of business professionals in Al Ain, in the United Arab Emirates.This was the launch of the export operations of Oulu Business School. The first series of seminars was followed by two more led by Professor Dirk Bunzel, Professor Petri Ahokangas and Professor Veikko Sepp채nen.

The modules dealt with conducting scientific research in business studies, and involved 12 executives from different industries and corporations in the Middle-East.

The seminars were a success in many respects. Not only did they mark the start of the education export operations of Oulu Business School, they also opened up valuable international connections on many levels. In terms of research, several interesting topics were identified that will generate further research. Seminar participants and researchers at Oulu Business School continue to work towards developing cooperative research relationships.

RESEARCH

Oulu Business School produces international level research in all main business subjects. All six departments produce papers sought after by high-quality international journals.

In 2010, OBS faculty published in many scholarly journals including

Contemporary Accounting Research Energy Economics Energy Policy Forest Science Papers in Regional Science Journal of Intellectual Capital Journal of High Technology Management Research Industrial Marketing Management International Journal of Innovation Management Management Research Review Knowledge and Process Management International Journal of Logistics Research and Applications Managing Service Quality Strategic Outsourcing: An International Journal International Journal of Services and Standards Journal of Brand Management International Journal of Entrepreneurial Venturing Review of International Comparative Management Journal of Service Management Journal of Management Research Journal of Digital Marketing

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Senior Scientist’s Position Funded by the Academy of Finland.

PROFESSOR JUHA-PEKKA KALLUNKI from the Accounting Department of Oulu Business School spent a year in a Senior Scientist’s position funded by the Academy of Finland. In his Senior Scientist’s research project, he explored whether a firm can enhance the effect of its R&D spending on its current market value and future profitability through technology-oriented M&As. On the basis of the analysis of 1,879 M&As conducted

by US acquirers, it was found that when a technology firm acquires another technology firm, the magnitude of the stock price response to the R&D spending of an acquirer more than doubled in the year of the M&A. In contrast, no such increase was observed in the stock price response to the R&D spending of a non-technology acquirer. It was also found that technology acquirers are more successful in converting their R&D spending into positive future profitability than nontechnology acquirers.

The study was co-authored by Professor Tomi Laamanen from Aalto University and Dr. Elina Pyykkö from Oulu Business School, and was published in the Journal of Business Finance and Accounting.

The Senior Scientist’s position enabled Professor Kallunki to focus solely on his research. In addition to the

project described above, he was able to pursue other research projects. In particular, he launched several projects on corporate governance, executive compensation and insider trading. One of these studies has now been published in the leading accounting journal, the Journal of Accounting and Economics. In his research, Prof. Kallunki collaborates with his colleagues from London Business School and Stockholm School of Economics.

During his tenure as Senior Scientist, Prof. Kallunki presented his research at several universities. He also spent two weeks at the Accounting Department of the London Business School.

OBS faculty members worked as editors or members of the editorial board of several scholarly journals including:

OBS faculty members refereed submissions to numerous scholarly journals including:

Journal of Management and Strategy Journal of Business & Industrial Marketing International Journal of Accounting and Finance Qualitative Market Research – An International Journal Journal of Service Management Journal of Multinational Financial Management

Journal of Business Finance and Accounting Journal of International Financial Markets Energy Economics Journal of Business and Industrial Marketing International Business Review Scandinavian Journal of Management Journal of Economic Theory Journal of Environmental Management Papers in Regional Science Journal of Service Management Scandinavian Journal of Economics Journal of Interactive Marketing Journal of Purchasing & Supply Management International Journal of Internet Marketing and Advertising International Journal of Logistics Management International Journal of Accounting, Auditing and Performance Evaluation

OBS faculty members delivered several conference presentations, including at the: European Accounting Association Congress in Finland EIBA Annual Conference in Portugal Conference on Corporate Communication in United Kingdom Nordic Conference on Financial Accounting in Denmark 2nd Annual Conference on Hedge Funds in France Annual Conference of the Money, Macro and Finance Research Group in Cyprus 8th International Industrial Organization Conference in Canada 26th Annual IMP Conference in Hungary 6th Nordic Workshop on Relationship Dynamics in Denmark

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International conference hosted by OBS gathered together about 350 professionals from different countries.

THE ACADEMY of World Business, Marketing & Management Development Conference 2010 was hosted by Oulu Business School and the Martti Ahtisaari Institute of Global Business and Economics. In this era of global economic uncertainty and environmental complexity, it is vital to produce research papers in all areas that will shed some light on issues that are of paramount importance to managing and marketing business organisations.

The Academy of World Business, Marketing and Management Development aims to share research that exists in the world in various functional areas of business through double-blind reviews of conference papers and publications. The international conference, which was held in Oulu on July 12 - 15, gathered together approximately 350 professionals from all continents.

International cooperation at the University of Pennsylvania

Our researchers visited numerous well-known international business schools.

Name of visitor

Place of visit

Type of visit

Length of visit

Kauppinen Antti

Copenhagen Business School

Teaching/Research

365 days

Seppänen Veikko

UAE-University, Al Ain, United Arab Emirates

Teaching

6 days

Pekkarinen Saara

Lancaster Management School

Teaching/Research

4 days

Pekkarinen Saara

University Hull Logisitics Institute

Teaching/Research

3 days

Pekkarinen Saara

Cardiff University Business School

Teaching/Research

4 days

Kallunki Juha-Pekka

Stockholm School of Economics

Research

5 days

Ojansivu Ilkka

Griffith University

Research

121 days

Juho Anita

Uppsala University

Research

91 days

Sandhu Masgood

UAE-University, Al Ain, United Arab Emirates

Teaching/Research

132 days

Koivuranta Matti

University of Pennsylvania

Research

92 days

Puhakka Mikko

University of Pennsylvania

Research

181 days

Myllykoski Jenni

University of Western Sydney

Research

122 days

Joenväärä Juha

Imperial College Business School

Research

63 days

Vilmi Lauri

Sveriges Riksbank

Research

273 days

Härkönen Kai

Georgia State University

Research

93 days

Orjasniemi Seppo

Bielefeld University

Research

347 days

PROFESSOR MIKKO PUHAKKA visited the Economics Department at the University of Pennsylvania during the first part of 2010.

Puhakka was returning home in a sense, since he was awarded his PhD from Pennsylvania in 1985.

According to several rankings, the Economics Department at PENN ranks among the ten best departments in the world.

During his visit, which also included the fall semester of 2009, Puhakka concentrated on his specialty, the overlapping generations models and many of their applications. During the visit he was able to work with his co-authors Professor Richard Barnett (the Lebow School of Business, Drexel University) and Professor Joydeep Bhattacharya (Iowa State University).

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Learning Experiences Oulu Business School is a great contributor to the academic world through its research in marketing, accounting, management and economics on high-tech business environments. Some examples of 2010 PhD theses related to ICT include;

Ristola, A. (2010). Insights into consumers’ emerging interest in mobile services.

Sinisalo, J. (2010). Mobile customer relationships management. A communication perspective.

Komulainen, H. (2010). Customer perceived value of emerging technology-intensive business service.

OBS’s doctoral programme produces fresh researchers that are making an impact on the scientific world. During their PhD studies they produce scientific publications that

receive recognition. Outstanding and recognised PhD theses from our junior staff include:

Author/Discipline

Award/Special recognition

Joenväärä, J. /Finance

Thesis opponent: R. Kosowski, Imperial College Business School, London

Juntunen, J. / Marketing

2010 Finnish Award in Logistics for the best Ph.D thesis

Jarva, H. / Accounting

Thesis opponent: Prof. R.G.Sloan, University of California at Berkley

Pyykkö, E. / Accounting

Martti Ahtisaari Institute of Global Business and Economics Stipend to outstanding Young Researcher PwC Award for the Best Article by a Young Researcher

ALUMNI Combining business professionals, students and faculty.

Members in the Alumni Network of Oulu Business School 500 450

450 400

400 350 300 250 200 150

THE PRIMARY aim of our alumni activities is to substantially improve the cooperation with alumni and their employers, and their influence on teachers, students and researchers. For students, teachers and researchers, the University of Oulu alumni are a significant and important link to the continuously changing business environment. Close cooperation with alumni also gives rise to possible Master’s theses and expands recruitment opportunities for graduates.

129

100 50 0 2008

2009

2010

Fast developing alumni network Oulu Business School has the most significant alumni network of all the faculties in the University of

Oulu. The increase in the alumni network has been impressive since 2008. OBS counts almost 1500 graduates since its foundation, of which about 450 are currently active members of the alumni network. Our aim is to further expand our network.

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Significant Alumni events

We organise annual events for the members of our alumni network. The first meeting was organised in October 2009 at the University of Oulu and 200 alumni attended. The event was aimed at planning the content and new forms of the future alumni activities of OBS.

ni association. In addition, Oulu Business School offers different courses, events, lectures and seminars for our alumni to improve their professional skills in the changing business environment.

We organised an event for new students in September, at which our alumni from various companies spoke of their career paths and about being active in the alum-

Mentorship programme brings together our students and corporate professionals One of OBS’s most important initiatives is its mentorship programme that was initiated in 1997. The programme brings together our students and alumni who work in managerial positions. With the help of a mentoring relationship the students can take an active part in their own

personal growth and career development and networking, while the mentors benefit from staying up-to-date on knowledge, developing their guidance and interaction skills and providing support for the development of future business professionals.

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DEPARTMENT NEWS

DEPARTMENT of Accounting

Educating professionals in financial and management accounting.

A message from the Head of Department OUR PROGRAMMES provide a solid foundation for understanding the different areas of accounting.

Financial accounting covers the information and reporting systems of a firm that are used by various external interest groups. Education in financial accounting produces professionals in different areas of corporate accounting including analysis of financial statements, auditing and firm valuation.

Professor Petri Sahlström, Head of Department.

Management accounting, in turn, develops information and reporting systems needed in the decision making processes inside a firm. Master’s theses in the department are often ready-made applications for the specific needs of companies.The companies are provided with the latest know-how in the field of accounting and the students gain valuable work experience. Manage-

ment accounting professionals have skills relevant for developing and managing accounting systems as well as the capability to analyse information from those systems.Typical positions filled

by OBS graduates include chief of financial operations, controller, financial analysts, auditors and consultants.

The Department of Accounting conducts international level research covering a wide range of topics in financial and management accounting. These include company valuations, security analysis, implications of financial reporting for capital markets, international accounting, corporate governance, management control, management accounting systems and performance measurement.

Corporate scandals like those seen at Enron or WorldCom clearly indicate the importance of accounting in the management of companies. Issues of corporate governance, including the characteristics of a board of directors, management control or executive compensation are the major topics on which departmental research activities presently concentrate. The outcomes of the research will benefit investors, companies and public authorities, as well as our students.

Major Achievements 2010:

• 51 Master of Science Degrees • 2 Doctor of Science Degrees

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KEY FACTS 2010 Staff Professors Senior Lecturer Assistant Professors Doctoral students Research assistant Total Education Activities over past 5-year period Applications/Accepted Bachelor's and Master's programmes Master's programmes (+2) Degrees Bachelor of Science** Master of Science** Doctor of Science

Degrees

3 2 2 5 2 14

80 70 60 50 40

2006

2007

2008

2009

2010

30

187/41 49/12

209/42 12/6

186/50 19/6

188/50 21/9

267/51 25/10

20

7 39

15 44 3

33 74 3

49 46 1

47 51 2

0

Credits of minor subjects Credits produced inside OBS Credits produced for other faculties Total credits produced

2010 7598 549 8147

Research *** Scientific articles (refereed) Other scientific publications (refereed)**** Activities in scientific publications Other publications Scientific presentations Activities related to scientific conferences

2010 1 15 8 15 2

**Figures include degrees from cooperation with Univeristy of Lapland ***Figures are based on the Oulun yliopisto tutkii database ****Includes refereed scientific conference papers and compliances

10 2006

2007

Bachelor of Science** Master of Science**

93,3 % 6,7 % 19,0 % of total credits produced in OBS Other*** International visits (own staff) International visits (foreign staff) Education in university pedagogy Impact on society

2010 3 1 4

2008

2009

2010

Active year of research cooperation and internationalisation

THE RESEARCH STRATEGY of the Department defines corporate governance as our main research area.

Corporate governance is being explored from many angles including management control, executive compensation, and performance effects of governance. Accounting faculty members have been active in pursuing high-quality research, collaborating with researchers from top international business schools, such as Professor Eli Amir from London Business School and Professor Henrik Nilsson from Stockholm School of Economics, and in disseminating research outcomes in numerous international conferences including:

Nordic Conference on Financial Accounting in Copenhagen Business School Summer Accounting Research Conference in Stockholm School of Economics 6th International Conference on Accounting, Auditing and Management in Public Sector Reforms in Copenhagen European Accounting Association Congress in Finland The Sixth Asia Pacific Interdisciplinary Research in Accounting (APIRA), Sydney, Australia 32nd Annual congress of the European Accountin Association, Istanbul,Turkey

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Doctoral Tutorial brings together PhD students and senior researchers 7th Conference on New Directions in Management Accounting: Innovations in Practice and Research, Brussels, Belgium Research Seminar Series in Accounting and Finance in Tel Aviv University.

5th Doctoral Summer School in Siena, Italy.

THE DEPARTMENT of Accounting organised a Finnish Doctoral Tutorial in accounting. In the tutorial, held at Oulu on June 3–4, PhD students of accounting had a great opportunity to present their research or research proposals and receive personalised guidance from senior researchers. The 51 participants comprised 18 discussants, 18 presenters and 15 other partici-

pants. Professor Robert H. Chenhall from Monash University was the keynote speaker of the tutorial.

DEPARTMENT of Economics

Economics is essential for business!

A message from the Head of Department ECONOMICS HAS BEEN taught at the University of Oulu since the end of the 1950s. Economics is an important part of almost every business school curriculum.

Professor Juha Junttila, Head of Department

Most of the research topics covered by economics are relevant for business education. It is important to understand issues like how the degree of competition affects the behaviour of firms, how international risks affect domestic firms, and how might economic activity be organised most efficiently in different competitive environments.

Economics provides students with the diverse skills required for many types of jobs in the private and public sectors. Our graduates typically go on to

work as experts or managers in companies, banks or other financial institutions such as the Bank of Finland. Since economics is a tool-oriented science, the curriculum strongly emphasises quantitative methods and their application to relevant problems. As the recent financial crisis has indicated, the economic environment undergoes constant change.

The department has responded to these new developments in its teaching and research.

The diversity of research topics in economics is reflected in the research interests of our faculty and doctoral students. Research in the department is organised into two separate, but cooperating, research groups, the Applied Micro Group and the Oulu Macro Group. In the Applied Group the main research emphasis has recently been on energy markets and natural resource usage. The Macro Group has concentrated on overlapping generations models, dynamic stochastic general equilibrium models, and on financial markets and exchange rates.

Major Achievements 2010:

• 4 extended visits to top international business schools

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KEY FACTS 2010 Staff Professors Assistant Professors Doctoral students Total Education Activities over past 5-year period Applicatons/Accepted Bachelor's and Master's programmes Master's programmes (+2) Degrees Bachelor of Science Master of Science Doctor of Science

Degrees 3 1 4 8

25 22

20 16

15

2006

2007

2008

2009

2010

10

109/42 11/4

129/40 25/9

99/28 15/3

152/37 16/8

177/36 21/10

5

2 11 1

3 13 1

5 16

22 18

18 15

Credits of minor subjects Credits produced inside OBS Credits produced for other faculties Total credits produced

2010 3218 500 3718

Research *** Scientific articles (refereed) Other scientific publications (refereed)**** Activities in scientific publications Other publications Scientific presentations Activities related to scientific conferences

2010 3 8 7 4 2

***Figures are based on the Oulun yliopisto tutkii database ****Includes refereed scientific conference papers and compliances

2

3

2006

2007

Bachelor of Science

2010 4 1 6

18 15

13

11

Master of Science

86,6 % 13,4 % 8,7 % of total credits produced in OBS Other*** International visits (own staff) International visits (foreign staff) Education in university pedagogy Impact on society

0

18

5 2008

2009

2010

A year of strong internationalisation THE DEPARTMENT of Economics highlights of 2010 were the international visits of its faculty members and doctoral students to top departments and research institutes overseas. The department has a long-standing policy of sending their best doctoral students to excellent departments of economics or research institutes abroad.

The students have a chance to see how the best departments in the world operate, and they also get to know other foreign doctoral students, who are at the same stage in their careers.

Mr Lauri Vilmi visited the Bank of Sweden during the first five months of 2010 and took part in the research department’s seminar, where he presented a paper. He also attended the conference Financial Markets and the Macroeconomy: Challenges for Central Banks organised by the Central Bank of Sweden.

33

Other scientific highlights of the year Mr Seppo Orjasniemi visited BIGSEM at the Universität Bielefeld for the first eight months of 2010, where he attended courses and seminars and gave a talk at the Bielefeld economics seminar.

Mr Matti Koivuranta visited the Economics Department of the University of Pennsylvania during the fall semester of 2010. Mr Koivuranta took part in two special courses in macroeconomics and attended workshops. Discussions with younger UPENN faculty members on the topic of Koivuranta’s thesis contributed to his thesis work.

Best paper prize in the 8th Annual International Industrial Organization Conference in Vancouver Publications in high-quality journals: Energy Economics Energy Policy Papers in Regional Science Forest Science.

Active research collaboration with researchers from the University of Turku, University of Helsinki, Gröningen University (the Netherlands) Universität Bielefeld (Germany), Drexel University (Philadelphia, PA), Iowa State University, University of Colorado University of Hokkaido.

Major Achievements 2010:

DEPARTMENT of Finance

Educating professionals in corporate finance and security markets.

A message from the Head of Department THE DEPARTMENT of Finance at Oulu Business School educates professionals to meet the expanding needs of the finance sector.

Professor Hannu Kahra, Head of Department

The Department of Finance offers education in two main areas of finance theory; the theory of corporate finance and the pricing theory of various securities in the markets. Corporate finance examines how firms acquire and allocate capital.

The theory on security pricing helps us to understand how different securities are priced in the securities markets.

• 2 Doctor of Science degrees in last two years • 30 % increase in applications into Bachelor’s and Master’s programmes.

The teaching is based on the latest research evidence covering all the most important financial branches with an emphasis on asset allocation, delegated portfolio management and behavioural finance. We are constantly developing our study programmes to include real examples and illustrations in order to prepare our students for the transition to professional working life.The strategy has been a success and our alumni are working as financial directors, consultants, associate directors of corporate banking and researchers, to name but a few. Through our global academic cooperation network we also provide our students with many international career opportunities.

35

The main research themes in the department focus on important topical areas in finance, including behavioural finance, security pricing, portfolio theory and management and hedge funds. The Department of Finance has contributed significantly to the important research area of behavioural finance by analysing the observed irrational behaviour of investors.

KEY FACTS 2010 Degrees 15

Staff Professors Assistant Professors Doctoral students Total

15

10 8

8 7 6

5

3 0

2006

2007

Bachelor of Science Master of Science

2008

2009

2010

2 3 3 8

Education Activities over past 5-year period Applications/Accepted Bachelor's and Master's programmes Master's programmes (+2) Degrees Bachelor of Science Master of Science Doctor of Science

2006

2007

2008

2009

2010

26/10

32/12

134/20 38/12

124/20 44/12

161/21 43/10

8

7 1

15

6 1

3 8 1

Credits of minor subjects Credits produced inside OBS Credits produced for other faculties Total credits produced

2010 3279 175 3454

Research *** Scientific articles (refereed) Other scientific publications (refereed)**** Activities in scientific publications Other publications Scientific presentations Activities related to scientific conferences

2010

***Figures are based on the Oulun yliopisto tutkii database ****Includes refereed scientific conference papers and compliances

1 3 6 1

94,9 % 5,1 % 8,1 % of total credits produced in OBS Other*** International visits (own staff) International visits (foreign staff) Education in university pedagogy Impact on society

2010 1 2 1 2

37

The Department of Finance engages in international research cooperation

Other scientific highlights

Professor Robert Kosowski Imperial College Business School

One staff member spent two months as a visiting researcher at the Imperial College Business School, Centre for Hedge Fund Research in London.

Professor Hersh Shefrin Leavey School of Business, Santa Clara University Professor Antti PetäjistÜ New York University Stern School of Business

Scientific presentations at international conferences Annual Meetings of the Financial Management Association (FMA) European Finance Association (EFA) 2nd Annual Conference on Hedge Funds

The Department of Finance organised a research seminar, Hedge Fund Investing after the Financial Crisis, in collaboration with the Global Association of Investment Professionals (CFA) and Varma Pension Fund in Helsinki.

DEPARTMENT of Inter national Business

Creating new knowledge of strategies of internationalisation in growthoriented companies and international ventures

Major Achievements 2010:

• 21 refereed scientific publications • 19 other publications

A message from the Head of Department TODAY, internationalisation and globalisation affect all firms and organisations regardless of size. International Business is the most recent major subject at the Oulu Business School. It focuses on the practices of international business among internationalising and growth-oriented companies within high technology, high context, or high touch (service) businesses.

Professor Petri Ahokangas, Head of Department

There are three core learning and research themes within International Business: approaches to international business, the practice of international business, and building up international businesses.

A close connection between theory and practice is maintained in all research, teaching, and projects within the field.

International Business studies provide graduates with the skills and competences needed for practice and the development of efficient, evidencebased management and leadership in today’s internationally diverse, and multicultural business environments. Those skills and competences are transferred through a variety of tuition methods: lectures, seminars, case studies and analyses, team work, simulation and gaming, as well as company visits. A Master of Science graduate in International Business typically works in an international company or a growth company which is planning for internationalisation. Our education provides excellent skills for operating in different management positions or in demanding expertise-related tasks.

39

KEY FACTS 2010 Staff Professors Senior Lecturer Assistant Professors Doctoral students Research assistant Total Education Activities over past 5-year period Applications/Accepted Bachelor's and Master's programmes Master's programmes (+2)

2 2 3 2 1 10 2008

2009

2010

157/20

226/22 51/11

226/20 44/14

Credits of minor subjects Credits produced inside OBS Credits produced for other faculties Total credits produced

2010 3297 847 4144

Research *** Scientific articles (refereed) Other scientific publications (refereed)**** Activities in scientific publications Other publications Scientific presentations Activities related to scientific conferences

2010 5 16 7 19 3 3

***Figures are based on the Oulun yliopisto tutkii database ****Includes refereed scientific conference papers and compliances

79,6 % 20,4 % 9,7 % of total credits produced in OBS Other*** International visits (own staff) International visits (foreign staff)

2010 2 1

Productive year in research

Our research focuses on the strategies and processes of internationalisation in growth-oriented companies and new international ventures. By the year 2010, the research strategy of the department had been refined to focus on intensified and accelerated internationalisation of the high technology, high context, and service-oriented businesses.

The research projects of the department cover topics such as innovation, IPRs, internationalisation strategies and processes, international entrepreneurship, international project business, and competence for internationalisation, multicultural leadership and cross-cultural management.

In 2010, considerable efforts were made to improve the amount and quality of research in the department, in spite of its youth and limited resources. The faculty of the department contributed to several international research activities, and attended and presented their research at international conferences.

International Conference on Information Resources Management in Jamaica ICSOB The First International Conference on Software Business in Jyv채skyl채, Finland EIBA (European International Business Association) in Portugal McGill International Entrepreneurship Conference in Canada 26th Annual Industrial Marketing and Purchasing Conference in Hungary 19th IPSERA Conference in Lappeenranta, Finland 22nd Annual Nordic Logistics Research Network - NOFOMA Conference

41

International visits Two-week research cooperation visit by Yaprak Attila (USA) 5-month combined teaching and research visit from United Arab Emirates University, Al Ain 4-month visit to the University of Western Sydney to promote doctoral dissertation and post graduate studies

DEPARTMENT of Management

Educating professionals who are capable of change and development.

A message from the Head of Department MANAGEMENT IS one of the key subject areas in business schools worldwide.

Professor Vesa Puhakka, Head of Department

Our mission-based “business-idea” is to produce and publish highly-valued academic research, to transfer science-based knowledge into education in order to educate knowledge activators and to develop local communities in practical collaboration with our partners.

The values we commit ourselves to in research, teaching and development are relevance, innovation, processuality, ambition, living in contexts and the

Major Achievements 2010:

• 355 applications into Bachelor’s and Master’s programmes.

• Impact on society at a high level.

continual challenging of ideas. We want our teaching to ignite an enthusiasm for learning, to educate experts who are skilled at making things happen in international, ambiguous and turbulent situations, and to bring students into real organisational situations to observe and feel managerial work practices.

We strive to be a valuable partner to our stakeholders. Our main interest groups are the scientific community of management and entrepreneurship research, internationalising and growing companies, the students of our university, central research and development financiers, the cities and municipalities of the Oulu region, development and consultancy organisations and publishing houses and the media.

43

We have recently noticed that mature industries are moving out of Finland and consequently many jobs are being lost. Therefore, Finland needs an understanding of high-growth ventures because we expect that new jobs will be created by highgrowth ventures in future. Our solution is to establish a world-class research and education unit for high-growth venturing.

Degrees 20

15 10

9 4

0

2006

3 2007

Bachelor of Science Master of Science

7

16

17

7

4 2008

2009

KEY FACTS 2010 Staff Professors Senior Lecturer Assistant Professors Doctoral students Researcher Project manager Research assistant Total Education Activities over past 5-year period Applications/Accepted Bachelor’s and Master’s programmes Master’s programmes (+2) Degrees Bachelor of Science Master of Science Doctor of Science

2 1 1 2 4 2 1 13 2006

2007

2008

2009

2010

278/21 109/10

275/20 151/10

233/31 115/7

301/30 97/8

355/31 117/10

4

3 9

4 7 2

7 15 2

16 17 1

Credits of minor subjects Credits produced inside OBS Credits produced for other faculties Total credits produced

2010 4313 1037 5350

Research *** Scientific articles (refereed) Other scientific publications (refereed)**** Activities in scientific publications Other publications Scientific presentations Activities related to scientific conferences

2010 4 5 4 8 3 3

80,6 % 19,4 % 12,5 % of total credits produced in OBS

2010

***Figures are based on the Oulun yliopisto tutkii database ****Includes refereed scientific conference papers and compliances

Other*** International visits (own staff) International visits (foreign staff) Impact on society

2010 2 3 22

Bachelor’s and Master’s level education in the Department of Management changed dramatically in 2010. The department responded to recent societal demands and designed new courses on new venture creation, firm growth, strategy, and business design.

As companies move away from the principles of governing and defending their territories towards the ongoing creation of new businesses, the skills required by dynamic business are changing from managing existing businesses more efficiently towards leading the creation of novel value. The focus of education has kept pace, moving from organisational sociology towards instilling the competences to create and manage growing businesses in the globalised economy.

The Department of Management has successfully acquired supplementary funding for research, and a significant part of our research was financed by externally-funded projects. External funding, mostly covered by different EU structural funds, contributed 22.7 % of total funding.

A rapidly growing department – both in terms of education and research activities

45

Research on management seeks to understand the management challenges facing business organisations in a globalising environment. The research focuses on the processual and contextual dynamism of organisations. Central topics are (1) the creation and management of new business; (2) managing knowledge, learning and competencies; (3) the globalisation of organisations, change and growth; and (4) organisational creativity and strategic practices of organisations.

An active year of international cooperation Visiting scholars from the Netherlands, Denmark and Romania.

A one-year teaching and research visit to Copenhagen Business School.

Our researchers served as reviewers at conferences including Academy of Management’s World Congress Academy of International Business’s World Conference

Major Achievements 2010:

DEPARTMENT of Mar keting

Close cooperation with local business yields practical relevance for education.

A message from the Head of Department

M.Sc. (Tech), Lecturer Pertti Paakkolanvaara, Head of Department 2010

THE MARKETING discipline at Oulu Business School educates professionals for international and domestic businesses.With our 64 Master’s degrees, 5 Doctoral degrees and 14 journal articles achieved in 2010 with budgetary state funding of less than one million EUR, the Department of Marketing is probably the most efficient academic department in the whole of Finland!

Our education is based on high-quality international research focusing on two main areas. The first area is business-to-business marketing, especially business relationships and value-creat-

• 64 Master of Science degrees • 5 Doctor of Science degrees • 30 refereed scientific publications • 36 other publications

ing networks. The second area is concerned with electronic business – the way consumers and organisations accept and use technology, and also mobile commerce.

Our close cooperation with the local business community in northern Finland allows us to combine theory and practice both in teaching and research. The smooth transitions of our graduates into professional positions evidence the successful cooperation.Typical careers for our Marketing graduates include the management of marketing activities of various enterprises, product marketing, product management and relationship management. Our former students work as marketing directors, CEOs, researchers, consultants, key account managers, and product

47

managers.

KEY FACTS 2010

Our global academic cooperation network also provides our students with many international career opportunities. For example, continued cooperation with the University of North Carolina offers students the chance to visit North Carolina and complete an international double degree, while Erasmus scholarships allow students of the Department of Marketing to visit European universities as exchange students.

Degrees 80 70 67

60 50

49

49

40 37

30

64 52 45

35 27

20 10 0

6 2006

2007

Bachelor of Science**

2008

2009

Master of Science**

2010

Staff Professors Senior Lecturer Assistant Professors Doctoral students Research assistant Total Education Activities over past 5-year period Applications/Accepted Bachelor’s and Master’s programmes Master’s programmes (+2) Degrees Bachelor of Science** Master of Science** Doctor of Science

4 3 4 10 1 22 2006

2007

2008

2009

2010

328/51 73/13

329/53 92/11

248/50 67/10

307/53 60/10

448/53 98/16

6 37 3

27 49

35 67 1

49 45

52 64 5

Credits of minor subjects Credits produced inside OBS Credits produced for other faculties Total credits produced

2010 7122 1522 8644

Research *** Scientific articles (refereed) Other scientific publications (refereed)**** Activities in scientific publications Other publications Scientific presentations Activities related to scientific conferences

2010 14 16 18 36 14 12

**Figures include degrees from cooperation with Univeristy of Lapland ***Figures are based on the Oulun yliopisto tutkii database ****Includes refereed scientific conference papers and compliances

82,4 % 17,6 % 20,2 % of total credits produced in OBS Other*** International visits (own staff) International visits (foreign staff) Education in university pedagogy Impact on society

2010 5 6 5 13

The year of active development in education

MARKETING TEACHING development activity in the department has been guided by the Department of Marketing’s Teaching and Learning Development Team since 2006.

The team of four students and four staff met eight times in 2010. In addition, the marketing manager of the local newspaper and graduate of the department was invited to work with the team to enhance the relevance of teaching to working life. The feedback process is also a major focal point that we wish to continue to improve and develop. In recent years, we have continued to develop the activities related to personal study plans that focus on strengthening the basis for personal curriculum work among our students.

Workshops and Marketing Mix networking events were organised for new students during the fall.The workshops were successful, and the more informal and relaxed Marketing Mix networking event was organised according to tradition in the bar 45 Special in the evening.

49

Other highlights of the year External funding contributed almost one-third to the total funding.

The Marketing and Logistics Departments were merged, which increased the teaching resources of the department.

18 studies were presented in the department’s research seminars, including some by visiting scholars.

MARTTI AHTISAARI Institute of Global Business and Economics

THE MARTTI AHTISAARI Institute of Global Business and Economics is a research and education unit that was established as a part of Oulu Business School in 2008.

D.Sc.Veikko Seppänen, the Director of Martti Ahtisaari Institute of Global Business and Economics

President Ahtisaari graduated as a teacher from the University of Oulu in its first year of operation in 1959. He is also an Honorary Doctor of the University. President Ahtisaari was willing to support the Institute in its pursuit of added value in education and research and was very pleased with the increased interest in the field of global business and economics within the University of Oulu. The Institute’s focus coincides naturally with the central issues of Martti Ahtisaari’s career.

The Institute focuses on various development challenges inherent in developing a networking and glo-

Major Achievements 2010:

• 5 business seminars • Attractiveness of international Master’s programmes • Good start for Executive Education

bal economy. The main activities of the Institute are the development of OBS international activities to a high international standard, coordination of OBS international degree programmes and selected strategic research programmes, executive education (eMBA, MBA and education exports), as well as expert seminars and business forums. The planning of an international doctoral programme has been ini-

51

tiated. The Institute is one of the competence centres in the Oulu Innovation Alliance.

The International Master´s Programme in Finance (MF) focuses on corporate investments and finance as well as financial analysis.

The International Master´s Programme in Financial and Management Accounting (FMA) is divided into financial and management accounting, offering insights into the decision making behind financial and management accounting and the various systems of accounting.

The International Master´s Programme in International Business (IB) focuses on the processes, management and development of international business from a variety of perspectives.

The full time Master of Business Administration (MBA) Programme is a broad Master’s level programme in business administration, which equips students by developing international business competence.

Executive Master of Business Administration (eMBA), on the other hand, is designed for business professionals in key positions in their companies who wish to develop their competencies, particularly in the field of strategic management.

KEY FACTS 2010 Staff Director Deputy Director Programme Managers Programme Coordinator Total Education Activities over past 5-year period Applications/Accepted FMA* MF* IB*

1 1 2 1 5 2006

2007

2008

2009

2010

188/9

146/9

114/7 148/14 178/14

172/15 220/20 344/20

104/15 149/15 314/31

Performance from MBA and eMBA Executive MBA programme diplomas Full Time MBA programme diplomas Specialization programme certificates JOKO Seminar Series certificates *FMA = International Master’s Programme in Financial and Management Accounting *MF = International Master’s Programme in Finance *IB = International Master’s Programme in International Business

20 8 2 2

Applications to International Master’s Programs 800 700

736

600 567

500 400

440

International Master’s Programmes

Kauppaneuvos (Honorary Finnish title) Taisto Riski, Chair of the Board

THE INTERNATIONAL Master’s Programmes have proved very attractive since their establishment. The admission criteria were tightened in 2010 in line with OBS’s student recruitment strategy, which resulted in applications of an exceptionally high standard. International Business has been the most popular programme, with over 300 applications annually in the past two years.

Kauppaneuvos (Honorary Finnish title) Ilkka Lantto, Deputy Chairman Director Marko Ahtisaari, Member of the Board

300 200

Professor Eva Liljeblom, Member of the Board

100 0

Martti Ahtisaari Institute Managing Board 2010:

2008

2009

2010

Dean Kimmo Alajoutsijärvi, Member of the Board Professor Juha-Pekka Kallunki, Member of the Board Professor Vesa Puhakka, Member of the Board Professor Rauli Svento, Member of the Board Professor Maria Kopsakangas-Savolainen, Member of the Board Deputy Director Sauli Sohlo, Secretary of the Board.

In 2010, a total of 30 new students began their studies in the programmes. The intake in 2011 is slightly higher: 35 students distributed across the following programmes: IB (15), FMA (10) and MF (10). Furthermore, the number of graduates is expected to increase steadily in the coming years.

The cultural backgrounds of the students are very diverse and the programmes include nationals of Bangladesh, Iraq, Pakistan, Russia, Turkey, Austria, China, Ecuador, The United States, and Canada.

53

International visits Professor Gilad Livne from Cass Business School, London City University, visited Martti Ahtisaari Institute on May 4th - 7th. Professor Livne was invited by the MASG (Mergers and Acquisitions as a Strategy for Growth) research team to lecture on special issues of financial reporting in the FMA programme. In addition, Professor Livne presented his latest research in the FMA research seminar series.

Executive Education

2010 should be counted a successful year for our Executive Education programmes in many respects. The beginning of the year saw the executive MBA programme, previously coordinated by the University of Oulu Learning and Research Services, brought within the remit of the Martti Ahtisaari Institute.

In January 2010, the executive education portfolio of OBS included the following programmes

International operations played a more active role in Executive Education in 2010. A group of 30 International MBA students from our very close partner university, EM Lyon, France, visited Oulu for a “Business the Scandinavian Way” study module in early March.

Further, we continued our annual eMBA cooperation with EM Lyon with a four-day module “Building and Leading Multicultural Teams”, as we have done since 2008.

• International Full Time MBA for Technology-driven Business • Executive MBA in Oulu and in Kuusamo region in north-eastern Finland

• Specialisation courses in - Strategic Management, - Human Resource Management, - Marketing Management, - Technology Management and - Safety Management • JOKO Seminar Series

Graduation celebrations in 2010 included the first graduates from the Full Time MBA programme. The graduation ceremony in June was organised together with Full Time MBA and Executive MBA programmes for the first time.

Martti Ahtisaari Institute seminars for business “Bring together representatives of business life and universities.”

Doing Business Abroad – a seminar at the University of Oulu on 21.1.2010 The Doing Business Abroad seminar, organised in cooperation with AIESEC Oulu and TEKES, attracted a full auditorium of over 150 business leaders, academics and students, comprising an exception-

55

ally international group. Eleven speakers from eleven different countries shared their knowledge on doing business in their home countries, more than just “common sense.�

President Martti Ahtisaari: Global Problems and Challenges of the 2010s seminar, 8th February 2010 at the University of Oulu.

Nobel Peace Prize Laureate, President Martti Ahtisaari, visited The University of Oulu during the seminar organised by the Martti Ahtisaari Institute of Global Business and Economics. In his seminar speech, President Ahtisaari focused on the coming decade’s likely global problems and challenges, focusing closely on the current state, development and future prospects of the global economy. The extremely interesting and topical seminar attracted an audience of over 400 people.

Experts of Russian Business – a seminar at the University of Oulu on 19th May 2010 The most important success factors for a foreign business in the Russian market are a respect for business partners and knowledge of Russian culture and language.The seminar Experts of Russian Business brought together a group of experts from companies, academia and the public sector. Russian business, its opportunities and bottlenecks stimulated lively discussions both during the seminar and during the networking event that followed.

The Speaker of the Finnish Parliament Sauli NiinistĂś spoke at the University of Oulu on 19th October 2010 The Speaker of the Finnish Parliament, Mr. Sauli NiinistĂś, visited the University of Oulu to give a speech at a seminar organised by the Martti Ahtisaari Institute. In his seminar speech, he focused on the issues facing the European economy in the forthcoming decade, outlined crucial events for the development of the European Union and discussed the future prospects of the European economy.

This profound and inspiring seminar attracted more than 400 people, including leaders of local businesses, key figures from the City of Oulu and the University of Oulu, as well as University staff and students.

57

RESEARCH PROJECTS

Research cooperation on mergers and acquisitions as a strategy for growth in the high-technology firms.

MASG - Mergers and Acquisitions as a Strategy for Growth

Length of the project: 1.3.2008 - 30.06.2010 The amount of admitted funding: 165 859 € Description of the project: MASG was a two-year research project funded by the Finnish Funding Agency for Technology and Innovation (TEKES) and partner firms. In this research project, we explored the role of cross-border M&As in executing the strategies for growth of firms operating in the high-technology field. Research questions to be addressed are as follows. How do firms structure acquisition programmes to better achieve strategy and growth objectives? How are M&As managed within an acquisition programme?

What country-specific conditions provide the most beneficial envi-

ronment for technology acquirers to benefit from cross-border M&As? What value drivers do acquirers rely on in valuing targets in different market conditions?

Business Finance and Accounting and the Journal of Multinational Financial Management, one academic dissertation and 2 Master’s Theses.

The research consortium or cooperation partners:

Contact person:

Professor Tomi Laamanen (Helsinki University of Technology), Professor Juha-Pekka Kallunki (OBS), Researcher Elina Pyykkö (OBS), Corporate Partners; Componenta Oyj and Wärtsilä Oyj Abp.

The results of the project: 2 scientific articles in refereed international journals Journal of

Professor Juha-Pekka Kallunki, juha-pekka.kallunki@oulu.fi

59

Economic Risk Taking – Personality and Biological Factors

Length of the project: Up to the end of 2013 The amount of admitted funding: 65 000 € Description of the project: The purpose of this research project is firstly to investigate whether personality and biological factors are related to stock market participation while controlling the previously reported determinants of stock market participation such as income and IQ.The second objective is to establish how personality traits and genetic factors affect trading activity in stock markets. The third objective is to establish how the propensity to realise losses varies across individuals depending on personality. This research utilises a unique database that will be created by combin-

ing the Finnish Central Securities database and the Northern Finland Birth Cohort database. This combined database will be unique world-wide because it will make it possible to study the relationships between economic risk taking, personality and biological factors in a novel and ground breaking way.

The research consortium or cooperation partners: Professor Rauli Svento (OBS), Professor Marjo-Riitta Järvelin (Faculty of Medicine, University of Oulu), Imperial College (London, UK), Professor Jukka Perttunen (OBS), Professor Hersh Shefrin (Leavey

School of Business, Santa Clara University, US), Postdoctoral Researcher Petri Kyröläinen (OBS) and Doctoral Student Andrew Conlin (OBS).

The results of the project: 2-3 scientific publications in top tier financial economics journals, Doctoral Thesis.

Contact person: Professor Rauli Svento, rauli.svento@oulu.fi

Interdisciplinary research cooperation on the characteristics of risk-taking.

International research cooperation on innovative tools in measuring systematic risk.

Innovative Tools in Measuring Systematic Risk

Length of the project: 60 months The amount of admitted funding: 60 000 € for databases annually divided such that Oulu Business School 30 000 € per year and Imperial College Business School 30 000 € per year.

Description of the project: The main objective of this research project is to develop a set of innovative tools to monitor and predict systematic risk in levered financial institutions (LFI). We focus our analysis on alternative investment funds and banks’ trading operations since these levered financial institutions are potentially important sources of systematic risk, but have received relatively little attention in the literature so far. The first deficiency that we address relates to the challenge of distinguishing skill from excessive risk appetite when interpreting levered financial institutions’ perform-

ance. As part of this project we construct the most comprehensive data base of alternative investment funds which is designed to allow policy makers and supervisors to track systemic risk in aggregate.

The expected results of the project:

The research consortium:

Contact person:

Professor Robert Kosowski (Imperial College Business School, London Director of Risk Management Lab and Centre for Hedge Fund Research at Imperial College), Professor Antti Petäjistö (New York University, Stern School of Business) and Assistant Professor Juha Joenväärä (OBS).

1-3 papers in top tier financial economics journals, e.g. Journal of Finance, Journal of Financial Economics and Review of Asset Pricing Studies, and one Dissertation.

Assistant Professor Juha Joenväärä, juha.joenvaara@oulu.fi

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YKO – Competences for Internationalization

Length of the project: 1.1.2010 - 31.12.2012 The amount of admitted funding: 213 540 € Description of the project: The project is funded by ERDF and ESF funds and focuses on the development of competences in SMEs. The project strengthens the local business sector by helping local traders to understand the requirements and complexity of international business. Giving essential support and guidance to a selected group of small and medium-size enterprises in the area of North-Savolax, Finland, YKO is working to answer the growing demand of internationalisation. The main objective for YKO is thorough concentration on boosting the knowhow on the areas of service, training, and research. Each company will be offered tailored solutions with internationally applicable stand-

ards The specific focus of the project is to help SMEs to identify and develop competences for their international activities.

The research consortium or cooperation partners: Savonia Polytechnic, the University of Eastern Finland, Kuopio, Finpro, Kuopio Innovation Ltd., Kuopio’s Chamber of Commerce, The City of Kuopio, The Centre for Economic Development, Transport and the Environment Technopolis Ltd., The City of Varkaus and Ylä-Savon Kehitys Ltd.

More information can be found in http://yko.savonia.fi/

Answers to the internationalisation practices of SMEs.

International cooperation on the intellectual and participatory element of competition.

InnoCoop 2.0

Length of the project: 1.11.2010 - 30.4.2012 The amount of admitted funding: 200 000 â‚Ź Description of the project: InnoCoop2.0 research project funded by the Finnish Funding Agency for Technology and Innovation (TEKES) investigates the intellectual and participatory element of competition and the theory of multi-disciplinary framework for service innovation. The project is implemented in five pilot and industrial trials.

The research consortium or cooperation partners: University of Oulu, UC Berkeley (USA), Lund University (Sweden).

The expected results of the project: The project will produce results on how various services business challenges can be solved by collaborative competitions.

Contact person: Professor Vesa Puhakka, vesa.puhakka@oulu.fi

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ModSeC - Modularity Enabling the Development of New Service Offerings

Length of the project: 1.8.2008 - 31.10.2010 The amount of admitted funding: 376 185 € Description of the project: The project, funded by TEKES Serve Innovative Services, explored how modular design principles can facilitate the development of innovative solutions in business-to-business services.

The research consortium or cooperation partners: The ModSeC project was conducted by researchers from the University of Oulu and Helsinki School of Economics, with collaboration of researchers at Copenhagen Business School, Denmark, Georgia State University, U.S.A., and the University of Hull, U.K., as well as Lancaster University Management School, UK, and University of West Georgia, USA.

The project involves the following Finnish industrial collaborators: Pöyry Civil Ltd, Herman Andersson Ltd, Nokia Plc and Itella Corporation.

visits from Georgia State University, USA, Copenhagen Business School, Denmark, Hull University, Lancaster University and Cardiff University, UK.

The results of the project:

Contact person: Project Leader Saara Pekkarinen (saara.pekkarinen@oulu.fi)

17 journal articles and conference papers, 1 Doctoral Thesis and 3 Master’s Theses, 2,5-month-visit to Hull University by Ass.Prof. Jouni Juntunen (2008), a 2-month-visit to Lancaster University (2009) and a 2-week-visit to three universities in UK by Research Professor Saara Pekkarinen (2010).

In 2009: a one-week-visit to OBS from University of Lancaster University, UK and a one-month-visit from University of West Georgia, USA. In addition, short, 2–4-day-

More information: http://www.taloustieteet.oulu.fi/ index.php?486

The successful and productive research project on development of innovative solutions in business-to-business services.

STRATEGIC RESEARCH PROJECTS IN MARTTI AHTISAARI INSTITUTE

Programmes of the strategic research portfolio produce new knowledge regarding the functioning of global growth companies and of the global economy.

EBN – Energy, Biodiversity and Natural Resources

The research programme focuses on the functioning of the global energy markets from the economic point-of-view and the cost and benefit of securing nature´s biodiversity.

Professor Maria Kopsakangas-Savolainen gave a presentation in a top-rated International Industrial Organization Conference at the University of British Columbia in

Vancouver on 14th – 16th May 2010. The presentation, that was based on a research paper by Prof.

Kopsakangas and Prof. Rauli Svento, discussed and compared the welfare effects of different regulation schemes in the context of the electricity distribution industry.

Professor Kopsakangas was one of the chosen invited guest speakers in the conference. The presented research paper was awarded the

Public Utility Research Prize for the Best Paper In Regulatory Economics.

In addition the results of this research programme have been published in high qualified International Journals including e.g. Energy Economics, Energy Policy and Forest Science.

Oulu Growth Lab – International Growth of New Technology-Based Firms (OGL)

The research programme Oulu Growth Lab (OGL) focuses on the challenges faced in developing growth strategies as well as growth models for fast-growing small and middle-sized enterprises and in creating new business enterprises.

Researcher Antti Kauppinen (OBS) and Professor Vesa Puhakka (OBS) have published a joint-paper of the core aspects of this recently launched research concentration in International Journal of Entrepreneurial Venturing.

Other research paper within OGL project is a joint-paper by Tornikoski and Puhakka covering many essential issues concerning the creation of a company published in International Journal of Entrepreneurship and Small Business.

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MASG - Mergers and Acquisitions as a Strategy for Growth

The research programme Mergers and Acquisitions as a Strategy for Growth (MASG) studies the role that international business acquisitions and fusions play in the growth strategies of high technology firms.

In this research project, we explore the role of cross-border M&As in executing the strategies for growth of firms operating in the high-technology field.

Prof. Juha-Pekka Kallunki (OBS), Researcher Elina Pyykkö (OBS) and Prof. Tomi Laamanen (Aalto University) have published a joint-paper on the valuation of the research and development expenditures of the firm in technology-driven mergers in the qualified Journal of Business Finance and Accounting.

Furthermore, Researcher Elina Pyykkö has recently published her research focusing on technology intensive mergers and acquisitions in the Journal of Multinational Financial Management.

Oulu Business School • Annual Report 2010

Contents: Pasi Karjalainen, Content’s Editing: Marja Aro • Texts: Kimmo Alajoutsijärvi, Petri Sahlström, Mikko Puhakka, Juha Junttila, Juha-Pekka Kallunki, Veikko Seppänen, Petri Ahokangas, Vesa Puhakka, Antti Kauppila, Pauliina Ulkuniemi. • Language revision, Andrew Mulley, Aaron Bergdahl, Language Center, University of Oulu. • Editing and layout: Pakkahuone Oy • Photographs by: Ilmestys Oy/Kati Leinonen, Studio Ilpo Okkonen, Juha Sarkkinen, Oulu Business School and Oulu University • Printing house: Joutsen Media Oy • Electronic version of the Oulu Business School’s Annual report can be found online at: www.oulubusinessschool.fi

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University of Oulu Oulu Business School P. O . B O X 4 6 0 0 90014 University of Oulu FINLAND Te l : + 3 5 8 8 5 5 3 2 9 0 5 Fax: +358 8 553 2906 E-mail: international.tatk@oulu.fi

We mean business.