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  • New research debunks the “Virtue of Complexity in Return Prediction” in finance

    In "Simplified: A Closer Look at the Virtue of Complexity", Professor Daniel Buncic of Stockholm Business School has released a new study that disputes the findings of one of the most hotly debated papers in quantitative finance this summer. See the articles in the Financial Times and Bloomberg on this topic. Daniel Buncic's research challenges the claim by Kelly, Malamud, and Zhou (2024, KMZ) in "The Virtue of Complexity in Return Prediction" that models with thousands of parameters trained on a short span of financial data can outperform simpler benchmark models. While KMZ’s research has attracted considerable attention in both academia and industry, Daniel Buncic highlights key methodological flaws that undermine its broader implications for systematic investing. In particular, he shows that the supposed "Virtue of Complexity" is an artifact of two implementation choices made by KMZ which make the performance of simpler models appear much worse than they really are. First, KMZ restrict the intercept term in their prediction models to zero. Second, they employ a paradoxical aggregation scheme in the construction of the complex model’s performance measures that no investment professional would (or could) ever implement. These two design choices lead to the seemingly poor performance of simple models.

    Stockholm Business School

  • Do firms engineer “toxic” capital structures to stave off bankruptcy?

    In Stayin’ Alive: Debt Complexity as a Bankruptcy-Delaying Mechanism, recently accepted for publication in Journal of Corporate Finance, Håkan Jankensgård of Stockholm Business School, with co-authors Jens Forssbaeck and Reda Moursli, investigate how financially distressed companies use complex debt structures to prolong their survival. The study finds that as companies encounter financial difficulties, they often increase the complexity of their liabilities, adding multiple layers of debt across various legal entities. This complexity creates uncertainty about creditor claims in the event of bankruptcy, making legal proceedings costly and time-consuming. Faced with these heightened costs and uncertainties, creditors may be reluctant to push a company into bankruptcy. 

    Stockholm Business School

  • Welcome information for new students

    On September 1, Aula Magna was filled with around 1,300 new students as Stockholm Business School welcomed everyone to the autumn semester of 2025. During the welcome session, students met Head of Department Fredrik Nordin, Director of Studies Lovisa Näslund, study advisors, as well as representatives from the Student Association Föreningen Ekonomerna and Fadderiet. The presentations covered, among other things, what academic studies involve, practical information and support, student influence, and the sense of community at the department. See the full presentation here: Welcome Information HT-25 (9928 Kb) Photos from the event with the speakers

    Stockholm Business School

  • 9th EMIC Conference: "Paradigm-shifting ideas in international business research"

    In 2016, EMIC was founded at Stockholm Business School (SBS). EMIC is a small, multidisciplinary conference focused on discussing future research ideas. The conference is held regularly at SBS, and on May 28, 2025, the ninth EMIC conference took place via Zoom. The theme of the ninth EMIC conference was "Paradigm-shifting ideas in international business (IB) research", and it does not require submitted papers or conference fees. The organizer is the Emerging Markets Cross Cultural Research Group at SBS. The conference reflected the current turbulence in the world of international business and international relations. Program for the 9th EMIC Conference: "Paradigm-shifting ideas in international business (IB) research" 9th EMIC Program (531 Kb)

    Stockholm Business School

  • Marketisation, ownership and digitalisation strategies in the sport industry

    The motivation for the paper ”Marketisation, ownership and digitalisation strategies in the sport industry – generic insights and future research” is to provide a deeper understanding of some of the important and trending topics in the sport industry. Besides this, to consider the changing landscape of ownership, strategies and organisation of several types of sports in the contemporary environment, there is a need for deeper contextual knowledge of how different sport/s, leagues, clubs, associations, teams etc. own, organise and strategise at local to national to regional to international contexts. The paper written by the Guest editors introduces the special issue Ownership, Organisation and Strategies in the Sports Industry in the Journal of Strategy and Management: Volume 17 Issue 3. The special issue on the sport industry welcomes three interesting contributions of focusing on the important themes related to the sport industry. They include (1) digital transformation and needed capabilities, (2) fan engagement in a digital way using social media and finally (3) the relevance and relation of social capital in the organisational strategy of sports organisations. Four generic insights are introduced in the paper. The first insight is that sports digitalisation and politicisation significantly impact the strategising, organising and networking activities of sports owners to foster value capture. Secondly, owners’ performance duality of marketisation of their sports clubs and vested business interests unravels the paradoxes of idealism and profit-maximisation. Thirdly, individual sports stars position themselves as an influential platform of value creation through on-field performance, social engagement and self-interests. Finally, the fourth insight is that the dual aims of sporting on-field success and profit making of large capital-funded sports clubs endanger the autonomy and governance of sports bodies/associations and an equitable sporting competition environment. The paper is written by: Krishna Venkitachalam , College of Business Administration, Ajman University, Ajman, United Arab Emirates and Estonian Business School, Tallinn, Estonia Birgitta Schwartz and Sten Söderman , Stockholm Business School, Stockholm University Read the paper Marketisation, ownership and digitalisation strategies in the sport industry – generic insights and future research

    Stockholm Business School

  • Higher emission prices can accelerate the green transition

    Carbon pricing is often highlighted as a key tool for reducing emissions and driving the green transition. But does it actually work in practice? Gustav Martinsson, a professor of Finance at Stockholm Business School, studies whether putting a higher price on carbon leads to lower emissions.

  • Why we dare to take financial risks – How the labour market, culture, and knowledge influence us

    Why do some people choose to start their own business when their job situation feels uncertain? How do our cultural roots influence our willingness to take risks? What happens when immigrants invest in the Swedish financial market? These are the kinds of questions answered in a new dissertation, Essays on Household Risk-Taking, by Qinglin Ouyang. The thesis consists of three research articles, each exploring different aspects of risk-taking in personal finance.

    Stockholm Business School

  • Sustainable fashion – can we dress well without harming the planet?

    The fashion industry thrives on constant reinvention. Fast fashion companies pump out millions of garments daily, often at low prices, but at a high cost to both the environment and workers' rights. Yet fashion is deeply personal. It’s a powerful form of self-expression and identity. So, is it possible to stay stylish without compromising our planet? According to Malin Wennberg, a researcher on sustainable fashion, the answer is yes - but with nuance.

  • Two Articles Accepted for Publication in Top Three Finance Journals

    Two groundbreaking research articles have been accepted for publication in leading academic journals: “The Trade Imbalance Network and Currency Returns” by Professor Ai Jun Hou and “Career Concerns, Short-Termism, and Real Options: The Case of Delegated Money Management” by Assistant Professor Ran Xing. These achievements underscore the authors’ significant contributions to advancing knowledge in their respective fields.

    Stockholm Business School

  • Laying the Groundwork for Lozova’s Sustainable Water Future

    As the war in Ukraine continues, municipalities are under immense pressure to address immediate needs while planning for sustainable recovery. In the city of Lozova, located in Ukraine's Kharkiv region, one of the most pressing challenges is to modernise its ageing water supply and wastewater systems. With support from a capacity building program organised by Stockholm University and Ro3kvit Urban Coalition, and through a feasibility study funded by Swedfund, the Swedish development finance institution (DFI), Lozova is now underway to develop a roadmap for sustainable and energy-efficient infrastructure improvements. The collaboration between the parties was initiated during the Rethinking Cities in Ukraine conference in Stockholm, where Ukrainian municipalities met with international experts and stakeholders to discuss strategies for rebuilding war-affected communities. Rethinking Cities in Ukraine: a catalyst for action The conference was the culmination of a six-month capacity building programme organised by Stockholm Business School, Stockholm University and the Ro3kvit Urban Coalition, with funding from the Swedish Institute's Public Sector Innovation Programme. The program was specially designed for decision makers in war affected municipalities near the frontline and focused on strategic urban planning for reconstruction projects. Lozova representatives presented their infrastructure challenges, which corresponds with Swedfund's mission and scope to support sustainable public sector projects. Ragnar Lund, PhD Stockholm Business School, who initiated the Rethinking Cities in Ukraine programme, emphasised the importance of making connections: The programme was designed to provide Ukrainian municipalities with the knowledge and partnerships they need to tackle their reconstruction challenges. The cooperation between Lozova and Swedfund is a good example of how such initiatives can lead to effective and tangible results.

    Stockholm Business School

  • SBS educates women in Afghanistan

    After the pandemic, SBS has continued to offer online distance learning. Now, a completely new group of students - women in Afghanistan - can benefit from this initiative. Thanks to the great commitment of Professor Iñaki Rodriguez Longarela and several other colleagues, women in Afghanistan now have the opportunity to take his course Finance I online. The course is an introductory undergraduate-level course, taught in English, and is offered as a commissioned education program specifically for Afghan women. Collaboration with SAIH The course is provided in collaboration with the Norwegian organization SAIH, which serves as the official commissioning body for the program. SAIH (Students' and Academics' International Assistance Fund) is an organization that supports higher education as a human right. The first formal group of students enrolled in the spring of 2024 after Fredrik Nordin, the head of SBS, signed an agreement with SAIH. Five students participated that semester, with 15 more joining in the fall. The current agreement also includes education for the spring of 2025. SAIH has an on-the-ground teaching assistant in Afghanistan who provides daily support to the Afghan students. The teaching assistant handles all necessary and practical matters such as recruiting students and arranging internet access through mobile subscriptions to enable participation in the courses.

    Stockholm Business School

  • The Effect of Carbon Pricing on Firm Emissions

    Gustav Martinsson (Stockholm Business School) together with Laszlo Sajtos and Per Strömberg (Stockholm School of Economics) and Christian Thomann (Royal Institute of Technology) have got their article “The Effect of Carbon Pricing on Firm Emissions: Evidence from the Swedish CO2 Tax” accepted for publication in the Review of Financial Studies, one of the top journals in Finance. The authors use Sweden as a laboratory setting to study how carbon pricing affects firm level CO2 emissions. Sweden is an ideal setting as it was one of the first countries to introduce a carbon tax in 1991. The group has assembled a unique dataset tracking CO2 emissions from Swedish manufacturing firms over 26 years. In the published paper, this dataset is used to estimate the impact of carbon pricing on firm-level emission intensities.   The main finding is the estimate of an emission-to-pricing elasticity of around two. Meaning, a one percent increase in a firm’s marginal cost of emitting CO2 leads to a reduction in CO2 emissions per unit of sales of about two percent. However, this elasticity varies substantially across subsectors and firms, where higher abatement costs and tighter financial constraints are associated with lower elasticities.  A simple calibration suggests that 2015 CO2 emissions from Swedish manufacturing would have been roughly 30 percent higher without carbon pricing. Research making a real difference The article "The Effect of Carbon Pricing on Firm Emissions: Evidence from the Swedish CO2 Tax" has been awarded by Financial Times to the list of Academic research with impact, Highly commended. Read more "Research making a real difference", Financial Times Read more about Gustav Martinsson

    Stockholm Business School

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