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contribution, especially in the area of digitalization and its impact on businesses and markets. SHARP researchers are also involved in the BRIIF (Bridging International Fore-Runners) project in which our focus is on the innovation capability of the public procurement. The research projects connect our researchers nationally and internationally to several different research institutions, businesses and public organizations and enable us to have a real impact on the surrounding society at multiple levels. In 2014, we also gained a research grant from the Foundation for Economic Education, which further strengthened our research activities during 2014. We look forward to producing new knowledge through our research projects, knowledge that has an impact on both theory and practice.

The SHARP research group invested heavily in applying external funding to create research oppor tunities for the team members. SUSTAINABLE AND EFFICIENT ECONOMIC DEVELOPMENT (SEED) The project looks at the basic principles of and opportunities for sustainable and efficient economic development in three topics.These are energy markets, regional development, and sound economic pathways for developing countries.

Sustainability has many dimensions and definitions, but current economic development clearly emphasizes the role of economic dimensions in sustainable development. Unless economic processes are based on sound and cost-effective principles, sustainability is not viable in terms of the other dimensions. Professor Rauli Svento acts as Project leader. SUSTAINABLE CORPORATE GOVERNANCE Sustainable Corporate Governance investigates how the personal characteristics of board members, CEOs (Chief Executive Officers), CFOs (Chief Financial Officers) and other top corporate insiders affect the two key decisions on stock-based executive compensation, that is, the design of their stock-based compensation schemes, and the subsequent insider trading of those stocks. In particular, sustainable corporate governance explores whether insiders with certain personal characteristics opportunistically seek personal gain first by influencing the terms of their stock-based compensation systems, and then by timing their trading on the stocks they have received from those compensation systems. Sustainable Corporate Governance contributes to the literature by conducting groundbreaking research on how corporate insiders´ personal traits measured using high-quality metrics explain insider trading behavior and the design of stock-based executive compensation systems. The results will moreover be useful for firms and regulatory bodies in developing corporate legislation and corporate governance codes. Professor Juha-Pekka Kallunki acts as Project leader.

Sustainable Corporate Governance uses the high-quality metrics to explain insider trading behavior and the design of stock-based executive compensation systems.

Annual Report 2014