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Frode Kjærland

Bio: Frode Kjærland is an academic researcher from Norwegian University of Science and Technology. The author has contributed to research in topics: Valuation (finance) & Earnings management. The author has an hindex of 6, co-authored 24 publications receiving 238 citations. Previous affiliations of Frode Kjærland include University of Nordland & Sør-Trøndelag University College.

Papers
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Journal ArticleDOI
TL;DR: In this article, the authors present a valuation study of hydropower investment opportunities in the Norwegian context, using the conceptual real option framework of Dixit and Pindyck [1994].

133 citations

Journal ArticleDOI
01 Oct 2018
TL;DR: In this article, the authors identify the technological factor Hashrate as irrelevant for modeling Bitcoin price dynamics and find that the price of Bitcoin is affected by returns on the S&P 500 and Google searches, showing consistency with results from previous literature.
Abstract: This paper aims to enhance the understanding of which factors affect the price development of Bitcoin in order for investors to make sound investment decisions. Previous literature has covered only a small extent of the highly volatile period during the last months of 2017 and the beginning of 2018. To examine the potential price drivers, we use the Autoregressive Distributed Lag and Generalized Autoregressive Conditional Heteroscedasticity approach. Our study identifies the technological factor Hashrate as irrelevant for modeling Bitcoin price dynamics. This irrelevance is due to the underlying code that makes the supply of Bitcoins deterministic, and it stands in contrast to previous literature that has included Hashrate as a crucial independent variable. Moreover, the empirical findings indicate that the price of Bitcoin is affected by returns on the S&P 500 and Google searches, showing consistency with results from previous literature. In contrast to previous literature, we find the CBOE volatility index (VIX), oil, gold, and Bitcoin transaction volume to be insignificant.

56 citations

Journal ArticleDOI
TL;DR: In this article, the authors survey the CFOs of 1500 largest companies from Norway, Denmark and Sweden (500 from each country) about their capital budgeting process with focus on the real option analysis.

27 citations

Journal ArticleDOI
29 Oct 2020
TL;DR: In this article, the authors examined the relation between Nordic corporate governance practices and earnings management and found that both board independence and share ownership by directors positively affect earnings management, while board activity and directors as majority shareholders show an insignificant relation to earnings management.
Abstract: The purpose of the study is to examine the relation between Nordic corporate governance practices and earnings management. We find that the presence of employee representation on the board and the presence of an audit committee are both practices that reduce the occurrence of earnings management. Moreover, we find that both board independence and share ownership by directors positively affect earnings management, while board activity and directors as majority shareholders show an insignificant relation to earnings management. We contribute to the existing literature on corporate governance and earnings management by providing valuable insight into the Nordic corporate governance approach and its potential in mitigating earnings management.

20 citations

Journal ArticleDOI
TL;DR: In this article, the authors examined the relationship between the oil price shock of 2014 and earnings management of oil companies listed on the Oslo Stock Exchange and found that companies adjusted their earnings and abnormal income-decreasing accruals were identified during the third and fourth quarters of 2014.

15 citations


Cited by
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Journal ArticleDOI
TL;DR: In this article, a review article elucidates production methods and storage of hydrogen, and safety related to H2 handling in refilling station, and automobiles has also been discussed, which shows that safety program and awareness could be fruitful for increasing the acceptance of hydrogen as fuel.

549 citations

Journal ArticleDOI
TL;DR: A review of the current state of the art in the application of real options approach to investments in non-renewable energy sources and RES is presented, giving perspectives for further research in this field as mentioned in this paper.
Abstract: Energy shortage, global warming, and climate change led to an increase in the use of alternative sources of energy, with renewable energy sources (RES) playing a fundamental role in this new energetic paradigm. However, the investment costs often constitute a major barrier to their spread use. Moreover, the overall benefits of renewable energy technologies are often not well understood and consequently they are often evaluated to be not as cost effective as traditional technologies. From the moment that the energy sector started a deregulation process, with a high level of competitiveness and associated increased market uncertainty, traditional project evaluation techniques alone became insufficient to properly deal with these additional risk and uncertainty factors. The diffusion of the renewable energy technologies is also affected by this feature. The way investors evaluate their investments call now for the use of more sophisticated evaluation techniques. Real options approach can deal with these issues and, as so, began to be considered and applied for the energy sector decision aid. This approach it is now extensively widespread in evaluating investment projects in the energy sector. A large set of applications in almost all fields of energy decision making, from electricity generation technologies appraisal to policy evaluation is available in the literature. However the use of this technique in the field of RES is still limited and worth to be analysed. This paper addresses this issue. A review of the current state of the art in the application of real options approach to investments in non-renewable energy sources and RES is presented, giving perspectives for further research in this field.

209 citations

01 Jan 2011
TL;DR: In this article, the authors developed two new methods of mean-variance portfolio selection (volatility timing and reward-to-risk timing) that deliver portfolios characterized by low turnover and showed that these timing strategies outperform naive diversification even in the presence of high transaction costs.
Abstract: DeMiguel, Garlappi, and Uppal (2009) report that naive diversification dominates mean-variance optimization in out-of-sample asset allocation tests. Our analysis suggests that this is largely due to their research design, which focuses on portfolios that are subject to high estimation risk and extreme turnover. We find that mean-variance optimization often outperforms naive diversification, but turnover can erode its advantage in the presence of transaction costs. To address this issue, we develop 2 new methods of mean-variance portfolio selection (volatility timing and reward-to-risk timing) that deliver portfolios characterized by low turnover. These timing strategies outperform naive diversification even in the presence of high transaction costs.

164 citations

Journal ArticleDOI
TL;DR: In this paper, the economic viability of hydrogen storage for excess electricity produced in wind power plants is investigated, and two scenarios are defined and used both Monte Carlo simulation and real options analysis.
Abstract: In this paper, we investigate the economic viability of hydrogen storage for excess electricity produced in wind power plants. To this end, we define two scenarios and use both Monte Carlo simulation and real options analysis. The use of hydrogen as a storage medium helps to increase capacity utilization of the wind parks; in the case of disconnection of the wind park (grid overload, grid stability considerations), the investor can also offer system-relevant services by producing reserve energy. It also allows temporal arbitrage, i.e. the purchasing of electrical energy at low spot market prices in order to generate hydrogen, and the selling of electricity that is generated from hydrogen at high spot market prices. Finally, system services can be offered in the form of minute reserve.

148 citations