Hanken Annual Report 2016 by Hanken School of Economics

HANKEN SCHOOL OF ECONOMICS

ANNUAL REPORT 2016

AVSNITTSBESKRIVNING

AN INNOVATIVE ENVIRONMENT FOR CUTTING-EDGE RESEARCH AND INTERNATIONAL EDUCATION

HANKEN IN BRIEF 2016

Hanken School of Economics is a leading, internationally accredited business school in Finland. Hanken was founded more than a hundred years ago and is thus one of the oldest business schools in the Nordic countries. The School offers the full range of academic degrees and executive education in both Helsinki and Vaasa.

CONTENT KEY FIGURES Founded in Helsinki 1909 Campus also in Vaasa since 1980 Research and teaching in Swedish and English at five departments

HANKEN IN BRIEF 2016

RECTOR’S OVERVIEW

HIGHLIGHTS 2016

HANKEN 5TH IN RESEARCH

PEDAGOGICAL COUNCIL DEVELOPS EDUCATION

HANKEN REFUGEE COMMITMENT

NEW UNIT BOOSTS ENTREPRENEURSHIP

BROAD SUPPORT FOR HANKEN RETURNS CAMPAIGN

EXECUTIVE EDUCATION ON THE INCREASE IN VAASA

HANKEN’S ALUMNI ACTIVITIES ON THE RIGHT TRACK

THE YEAR 2016 IN FIGURES

BSc and MSc students Doctoral students

ORGANISATION AND PERSONNEL

INTERNATIONAL STUDENT MOBILITY*

INVESTMENT OPERATIONS

FINANCIAL STATEMENT

Hanken students abroad Exchange students at Hanken

DECISION–MAKING AND ADVISORY BODIES

EXECUTIVE EDUCATION

Accredited by EQUIS since 2000 Hanken EMBA programme accredited by AMBA since 2008 AACSB accredited since 2015 DEGREES AWARDED Doctor of Science Master of Science Bachelor of Science

14 257 250

STUDENTS

Number of Executive Education courses Number of participants in Executive Education

2 412 122

299 167

80 1 751

STAFF (FTE) PUBLISHER E D I TO R P H OTO G R A P H S P R I N T E D BY

ISBN ISSN

Hanken School of Economics Marlene Günsberg Hanken archive Juvenes Print, Helsinki

978 - 952-232- 3 4 3 - 9 1796 -2722

Faculty Support staff * min. 3 months

124 115

Hanken is a research-driven business school, where all education is researchbased and prepares the students to think analytically and critically. Based on an external evaluation, Hanken regularly defines areas of strength in research, which at the moment are Economics, Finance, Management and Organisation, and Marketing. Quality in research is achieved by strong engagement in the international research community and through publications in international top journals. The research conducted at Hanken is on a high level, in both national and international comparison. Hanken is an internationally oriented business school, where internationalisation and multilingualism permeate all activities. The mandatory semester abroad on the BSc level lays the foundation for the students’ international competence and Hanken has an extensive network of partner universities for student exchange. Faculty is increasingly international and more than half of the peer-reviewed journal articles are co-authored with scholars from abroad. In order to maintain corporate and societal relevance of both research and education, our corporate connections

are at the core of our activities. External stakeholders are included in the governance, research and education of Hanken, and our active alumni network serves as a benchmark from a national perspective. Hanken promotes social responsibility and sustainability in all our activities. We were the first university in Finland to sign the UN Principles for Responsible Management Education and Hanken is a member of the PRME Champions group, which consists of some 30 universities pioneering in this work. Like many leading international business schools, Hanken has deliberately chosen to operate as a stand-alone business school. Independence allows flexibility to adapt rapidly to increasing international competition in research and education, and to the challenges and possibilities brought by a growing collaboration with the business world. In this respect, Hanken is unique in Finland. A proof of Hanken succeeding in its activities are the international accreditations and rankings awarded to us. Hanken is one of the exclusive 1% of business schools in the world that have obtained all three major international accreditations for business schools. Hanken has been accredited by EQUIS since 2000, the International Association of MBAs (AMBA) accredited the Hanken EMBA programme in 2008, and the School earned the AACSB accreditation in 2015. Hanken is also ranked on the esteemed Financial Times ranking list.

RECTORS REVIEW

MISSION AND VISION

RECTOR’S REVIEW One of Hanken’s most important aims is to maintain our status as a triple accredited business school, and this involves working hard to maintain and develop the quality standards we have in all our activities. In 2016 our AMBA accreditation was renewed, and we kept our position among the exclusive 1% of business schools worldwide with the three most prestigious international accreditations. Hanken’s master’s degree programme also rated 69th in the global Financial Times ranking. Hanken’s research is still at the top in international comparisons. In 2016 we were ranked fifth worldwide regarding top citations and international joint publications in the U-multirank where 1300 universities worldwide are compared. Hanken’s ranking proves that even a small business school can have substantial impact. In 2016 we digitalised our education and modernised our study environment, giving both our individual and group work areas a face lift. In 2016 we also planned and launched our new incubator, Hanken Business Lab. Hanken continues to emphasise corporate and social responsibility and two competence centres were established in 2016, one within corporate responsibility together with the University of Helsinki as well as an interdisciplinary centre together with the KTH Royal Institute of Technology, Stockholm and Jyväskylä University.

Hanken was active in helping to integrate some of the many asylum seekers in Finland through offering two courses in Finnish business culture. Business Lead was organised by Hanken & SSE Executive Education together with several companies who offered internships to the participants. Both courses were very well received and will be offered again in 2017. The year’s financial statement show that Hanken’s economy continues to be strong. Our investments and financial activities yielded a good return, and Hanken was able to show a positive result. However, the prognosis regarding state financing is still uncertain, which means that Hanken has to be prudent in its spending while continuing to seek external financing. A good example is the ongoing and very successful fundraising campaign HANKEN RETURNS; I want to take this opportunity to thank all those who have donated; your support for Hanken and your confidence in our activities is extremely important. And a very special thanks to Hanken’s faculty and staff who ceaselessly work in Hanken’s best interests, to our motivated and ambitious students, and to our active alumni and our committed corporate partners – together we are making Hanken strong, for today and for the future! Karen Spens Rector, Professor

THE MISSION

THE VISION

We create cutting-edge knowledge and educate responsible professionals for the global economy and changing society through

A Nordic benchmark for business schools worldwide, attracting top academics, students and business partners.

» research activities characterised by academic excellence and corporate world relevance. In the areas of strength in particular, the research conducted is cutting-edge. » research-based education that provides Hanken graduates and executive education participants with an ability to think analytically and critically and to act in a global environment characterised by continuous change » embracing the statutory responsibility for educating business graduates that are fluent in Swedish, simultaneously offering programmes for international students

Hanken is acknowledged as a Nordic business school with a distinctive research, teaching and learning environment promoting cutting-edge research, effective research-based education and the development of global competences for the benefit of its graduates, the corporate world and society at large.

» integrating social responsibility and sustainability in its activities » embracing a high degree of internationalisation in spirit, content and actions All activities are characterised by high quality, integrity, openness, responsibility, and efficiency.

HIGHLIGHTS 2016

HANKEN FIFTH IN U-MULTIRANK Hanken has been ranked 5th in the global U-Multirank university ranking on research and research linkages. Hanken thus outperformed over 1 300 other universities from both the US and Europe. Hanken ranks particularly well on citation rate and top cited publications, as well as on international joint publications.

HIGHLIGHTS 2016 JANUARY FEBRUARY

ARCADA AND HANKEN SIGNED COOPERATION AGREEMENT Arcada and Hanken, the only Swedishlanguage higher education institutions in Helsinki, signed an agreement on increased co-operation in February 2016. The agreement aims to streamline the activities within the institutions especially in areas where language plays a major role as well as to develop more comprehensive services of high quality.

HANKEN BUSINESS FORUM Hanken Business Forum brought Skype’s creator Jonas Kjellberg to Hanken where he together with Kauppalehti’s editor-in-chief Arno Ahosniemi, Hanken professor Liisa Välikangas and chairman of the board Björn Wahlroos discussed creativity, inspiration and being innovative in the business world. The winner of the EPCEKauppalehti Inspiration Award was also presented during the seminar. This year the award went to the Finnish barbershop chain MRoom for its innovative business design and its commendable financial growth.

ANDERS WALL SCHOLARSHIP TO FREDRIKA GYLLANG The 2016 Anders Wall scholarship of 125 000 SEK was awarded to Hanken student Fredrika Gyllang. Alongside her studies Gyllang has headed the network Startup Sisters with two of her friends, as well as working with the startup company Moni, operating within the payment industry. Gyllang has been with Moni since its incipiation; today she is in charge of the company’s business development.

Hanken Teaching Day was arranged at Hanken in Vaasa on 12 May. During this year’s Teaching Day, Hanken faculty shared new insights and best practices on topics such as digitalization of courses, e-learning and online teaching.

– I want to constantly develop and be challenged. With the help of the scholarship I can pursue new experiences and learn more, perhaps by participating in training programmes at top universities abroad, Gyllang says.

MARCH APRIL

MAY

FULBRIGHT DISTINGUISHED CHAIRS APPOINTED TO HANKEN In accordance with the Hanken-Fulbright Center agreement, four US Fulbright scholars will visit Hanken in 2016-2017. In addition, this same year the holder of the Fulbright-Nokia Distinguished Chair in Information and Communications Technologies will stay at Hanken. – For Hanken, this is an excellent opportunity to become more proficient in our respective fields together with these five internationally acknowledged scholars, says Hanken’s Dean of Research Timo Korkeamäki.

NIKLAS BRUUN APPOINTED TO THE HUMAN RIGHTS DELEGATION Hanken professor Niklas Bruun has been appointed member to the Human Rights Delegation of the Human Rights Centre. Professor Bruun has extensive experience within international law, labour legislation and equality issues both in Finland and in international forums.

TEACHING DAY

RECTOR’S LIST The 16 best performing Hanken students were awarded during the Rector’s List awards ceremony on 23 May. Every year Hanken awards honorary scholarships to students, who make the best 5 per cent based on study performance. The criteria are total study time and study pace, combined with the grade point average.

HIGHLIGHTS 2016

NINA INGVES ALUMNUS OF THE YEAR SUMMER SCHOOL WITH MAYS BUSINESS SCHOOL For the first time, Mays Business School, Texas A & M University and Hanken offered a joint summer school in June 2016 at Hanken. In total 23 students from Mays and Hanken participated in the summer school, which consisted of three courses: “International Environment of Business”, delivered by Mays Business School, as well as “Introduction to Nordic Business Culture” and “Introduction to Russian Business Culture”, delivered by Hanken.

JUNE JULY

– Hanken has shown remarkable development and is working towards keeping its strong position in the future. The students are given a good foundation to start from and through international accreditations and top rankings you can see an increase in value also for the alumni. AUGUST SEPTEMBER I’m proud of my alma mater and I’m happy to support Hanken in any way I can, says Nina Ingves.

MODERNISING THE FACILITIES AT HANKEN During 2016 Hanken refurbished its premises in both Helsinki and Vaasa. In Vaasa, Aveo renovated both student and staff facilities and Helsinki acquired more library space for group work as well as a new area, Skogen – for working or relaxing.

Nina Ingves, a business advisor and entrepreneur, was appointed Hanken’s Alumnus of the Year during the annual homecoming day, Hankendagen, on 14 October 2016. Nina is an active link between Hanken and the business community and serves as a role model for both students and other alumni.

THE MENTORSHIP PROGRAMME 2016–2017 Hanken launched three mentorship programmes in September, two of them in Swedish and one in English, with a total of 53 mentor-mentee pairs. Within the programmes, an alumnus with a successful career shares his or her experiences, thoughts and opinions about work, education and the future with a student.

OKTOBER NOVEMBER DECEMBER

HANKEN RESEARCH DAY The second Hanken Research Day was arranged in connection with Researchers’ Night, an event held simultaneously in September in some 300 cities throughout Europe. Hanken Research Day is a platform for researchers at Hanken to share their research with both colleagues and students at Hanken as well as with the general public. The day concluded with the formal installation lectures of professors Kristina Heinonen, Nari Lee, Topi Miettinen, and Denise Salin.

NOBEL PRIZE IN ECONOMICS TO HONORARY DOCTOR AT HANKEN Professors Bengt Holmström and Oliver Hart were awarded the prize in economics in memory of Alfred Nobel in December 2016. In addition to his long international career in academia, Holmström has worked as assistant professor and has been appointed Honorary Doctor at Hanken in 2004. The prize was awarded for his research in contract theory. 9

RESEARCH

HANKEN RANKS FIFTH WORLDWIDE IN RESEARCH AND JOINT PUBLICATIONS Hanken was ranked fifth in the global U-Multirank as regards research and joint publications. This annual ranking compares over 1 300 universities from more than 90 countries. U-Multirank is composed of 10 ratings listing the 25 best universities according to various U-Multirank indicators. “We view this as the result of our efforts to encourage our researchers to publish in top journals and to cooperate internationally”, says Hanken Rector Karen Spens.

NEW RESEARCH COOPERATION 2016 » Hanken and the Massachusetts Institute of Technology have begun collaboration within humanitarian logistics and innovations research.

Hanken ranks particularly well on citation rate and top cited publications, as well as on international joint publications.

» Hanken-led IPR University Center and Center of International Intellectual Property Studies (CEIPI) in Strasbourg are collaborating on research exchange and student exchange as well as various intellectual property programmes.

“There are only two European universities among the top 10 measured according to the indicator top cited publications, and one of these two is Hanken, which again proves the high quality of the research here”, states Timo Korkeamäki, Dean of Research.

» HUMLOG, Hanken’s research institute within humanitarian logistics and the UN refugee organisation UNHCR have signed a project partnership agreement within logistics education.

The ranking compares seven bibliometric indicators for the chosen U-Multirank institutions. All indicator scores derived from bibliometric analysis are based on information extracted from publications that are indexed in the CWTS-licensed edition of the Web of Science (WoS) database. WoS contains approx. 12 000 sources from mainly peerreviewed scientific journals. In the other categories, where 1 300 universities are compared, Hanken does extremely well in variables such as international student mobility, share of international faculty, share of private funding, and graduation rate.

NEW COMPETENCE CENTRES 2016 » Centre for Corporate Responsibility (CCR) was founded by Hanken and Helsinki University » Gender, Organisation, Diversity, Equality and Social Sustainability in Transnational Times (GODESS) was founded by Hanken, Jyväskylä University and KTH Royal Institute of Technology, Stockholm

DOCTORAL THESES PUBLISHED 2016 BY SUBJECT

ACCOUNTING

INFORMATION SYSTEMS SCIENCE

JIMI SIEKKINEN: Within and Cross-Country Differences in the Value Relevance of Fair Values DENNIS SUNDVIK: Earnings Management in Response to Corporate Tax Rate Changes: Essays on private firms

ANNIKKI ROOS: Understanding Information Practices in Biomedicine: A Domain analytical approach

COMMERCIAL LAW

PAULA KOSKINEN SANDBERG: The Politics of Gender Pay Equity: Policy mechanisms, institutionalized undervaluation, and non-decision making TRICIA CLELAND SILVA: Packaging Nurses: Mapping the social worlds of transnational human resource management

PETTERI GÜNTHER: Transformation of the Recorded Music Industry to the Digital Age ANU TORKKELI: Structuring Corporate Capital Gains Tax System in the European Union – A Comparative Finnish Perspective

ECONOMICS

MANAGEMENT AND ORGANISATION

MARKETING GUSTAV MEDBERG: How Do Customers Perceive Value-in-Use?

NAUFAL ALIMOV: Institutional Investors as Shareholders

FINANCE DAVID GONZALEZ: Essays on Mutual Fund Performance JESPER HAGA: Essays on Asset Pricing Anomalies, Information Flow and Risk OLUGBENGA OLUFEAGBA: Essays on the Currency Effect on Stock Market Relationships and Stock Return Forecast SERGEY OSMEKHIN: Essays on Algorithmic Trading YAMIN XIE: Essays on Corporate Finance and Governance MO ZHANG: Essays on Mispricing in the Chinese Stock Market

SUPPLY CHAIN MANAGEMENT AND SOCIAL RESPONSIBILITY MARIA EHRNSTRÖM-FUENTES: Legitimacy in the Pluriverse: Towards an expanded view on corporate-community relations in the global forestry industry All theses can be read at www.hanken.fi/dhanken

PEDAGOGICAL COUNCIL

SOCIAL RESPONSIBILITY

PEDAGOGICAL COUNCIL DEVELOPS EDUCATION In 2016 Hanken’s first Pedagogical Council was appointed to work with broadening and deepening all aspects of education at Hanken. The pedagogical council is headed by Minna Martikainen, Dean of Education at Hanken. “Our task is to coordinate the work being done to develop the pedagogy here. We have to improve the communication between our units where Hanken’s education and programmes are concerned”, says Martikainen. The Pedagogical Council began by defining the areas where change has to be planned and effected. The Council appointed several working groups to concentrate on specific issues. The digitalization process in education is one of the key questions for the Council, and it has explored what the implications are for Hanken, as well as which measures are the most pressing. E-exams go hand in hand with digitalization. Hanken already has the Exam programme for e-exams and one question is how to develop this further. The Council’s agenda included developing the master’s degree programme and a working group was appointed to propose improvements to bring the programme up to date. How the the master’s thesis can and should be changed also came under scrutiny.

HANKEN REFUGEE COMMITMENT

“Of course it has to be research-orientated. But we have to consider that companies offering students research projects expect concrete results” says Minna Martikainen.

Hanken has worked purposefully for many years to further social responsibility in both research and education. In 2016 Hanken took several initiatives to further the integration of asylum seekers.

a university degree, at least two years relevant work experience and English language skills. The applicants were mainly men in their thirties from Irak, Syria and Afghanistan.

The Pedagogical Council also discussed future tuition fees and how they affect Hanken’s admissions.

In April the first Finnish Business Culture course was held at Hanken. The target groups were asylum seekers, and exchange students at Hanken.

Every subject at Hanken is represented in the Council, including those administrative units with direct connections to teaching, for instance international recruitment, study administration, accreditations, the library and the computer centre. The students have two representatives on the Council, bringing the total to some 20 members.

“The course taught Finnish organisation and leadership culture. We were very concrete about starting up and running an enterprise in Finland”, says university lecturer and course coordinator Pia Polsa.

“We were aiming for mutual benefit; for companies to find competent employees or partners with language skills while supporting asylum seekers’ entry into Finnish business life”, says Sari Salojärvi, CEO of Hanken & SSE Executive Education.

“The idea is for everyone to be conscious of issues related to teaching and possible problems. This allows for quick and efficient discussions and solutions. We manage with a one-hour meeting once a month”, says Minna Martikainen. The Council’s mandate applies from the beginning of 2016 to the end of 2018.

Half of the participants in the two-day course were asylum seekers, the other half exchange students. The asylum seekers were primarily from Irak, but also from Afghanistan, Bangladesh, Eritrea, Nepal, Somalia and Syria. In May Hanken & SSE Executive Education initiated the integration programme Business Lead 2016 for educated asylum seekers in collaboration with 40 partner companies. Out of the 70 applicants 40 were approved for the programme. The central programme criteria were

The programme is unique in its aim of supporting the two-way integration of educated asylum seekers into Finnish and European business life. The programme consisted of four live modules, a mobile learning service, mentoring and a two-month internship at one of the partner companies. The well-defined programme modules contained everything from business strategy and entrepreneurship to marketing and accounting. Hanken also supported its student union SHS during the Start it up! week, which encouraged and supported asylum seekers in learning about Finnish entrepreneurship.

ACADEMIC STUDIES

NEW INCUBATOR TO BOOST ENTREPRENEURSHIP

HONORARY SCHOLARSHIPS FOR MASTER’S THESES AND EXCHANGE STUDIES

In October, Hanken Business Lab, a new form of incubator, opened its doors, taking the theme of entrepreneurship to a new level.

“Business schools don’t just impart knowledge any more, they’ve developed into platforms where students can grow and try their wings”, Wartiovaara concludes.

HONORARY SCHOLARSHIPS FOR MASTER’S THESES

Hanken Business Lab offers students and alumni support, networks and facilities to encourage entrepreneurship. The Lab welcomes start-ups, companies looking to start subsidiaries, and non-profit organisations of all kinds. Markus Wartiovaara, Head of Hanken Business Lab, sums up:

At the turn of the year the Business Lab was fully booked, with eleven companies and five associations. A removal firm, several consulting agencies and smaller high-tech companies are all sharing the Lab. All the companies have some connection with Hanken, but this is not a prerequisite. The associations are mainly student ones.

“We offer a unique and inspiring community, access to a first-class Nordic business angel network, digital presence on the web, video and in social media, plus a unique social mix of start-ups, scale-ups and non-profit organisations. We are active in both Helsinki and Vaasa.”

You can find the 250 square meter Business Lab, called Torget, in the basement of Hanken’s main building in Helsinki; the furniture is modern, the colours bright.

Wartiovaara goes on to say that incubators are now common at business schools and used to create new business activities.

In line with the whole new Lab concept, there are no desks and no standard office furniture. Instead, there are sofa groups, small round tables and a large bar counter. The area includes a few glazed-in conference rooms, a room for repose and a cabinet.

Hanken awarded the nine best master’s theses of the year with named honorary scholarships. The awardees were chosen among all students who had received the grade Excellent or Very good for their thesis during the academic year. The honorary scholarships were awarded to the following students: Teemu Friman Jonas von Hertzen Caroline Holmberg

Sonja Ingman Anna-Kaisa Kaila Christian Krohn

Alexey Sklyar Frida Strandström Jussi Uusitupa

HONORARY SCHOLARSHIPS FOR EXCHANGE STUDIES Hanken also awarded the highest achieving students with honorary scholarships for their approaching exchange studies. The honorary scholarships, based on study times and grades, were awarded to the following students: Aapo Aaltio Alexander Back Kristoffer Backman Emilia Bonde Edward Enckell Tino Helenius Jessica Hinkka Maria Holmström Milla Hänninen Sofi Kallio Emmi Kallioniemi

Juho Kärpijoki Per Larson Daniela Lindström Henry Mattsson Markus Mitikka Mia Palmgren Annika Pyykkönen Susanna Rantonen Markus Rönnberg Johanna Salo Pontus Simonsen

RECTOR’S LIST PRIZE 2016 The annual Rector’s List Prize, awarded to the students who represent the top five per cent measured in successful studies, was this year awarded to the following students: Bergström Jenny Biese Karin Blusi Jonas Hallila Robin Harju Saara Hyvärinen Ronnie Johansson Mikaela Laakso Nora Leppäaho Minna Nguyen Linh Pehkonen Pauliina Rönnberg Daniela Sklyar Alexey Virtanen Pinja Wellmann Johannes Winter Jill

Micaela Stierncreutz Fanny Törnqvist Henri Virkkunen Simon Vänttinen Frans Westerlund Alex Wiik Anniina Ylitalo Rickard Zilliacus Simon Åberg

FUNDRAISING

AVSNITTSBESKRIVNING FUNDRAISING

THE LARGEST DONATIONS TO DATE HAVE BEEN MADE BY:

BROAD SUPPORT FOR HANKEN RETURNS CAMPAIGN In 2016, Hanken’s campaign has had the support of private individuals, companies and foundations. Several alumni initiatives have also been launched, helping to spread the campaign message. The HANKEN RETURNS campaign has managed to increase Hanken’s basic capital 2016 with over three million euro. In 2016 Hanken received 328 donations totalling 3 281 610 euro. The largest donation, one million euro, came from The Erling-Persson Family Foundation. All donations were directed to the fundraising campaign HANKEN RETURNS. The aim of the campaign is to strengthen Hanken’s basic capital and ensure Hanken’s position as a stand-alone business school. Only the returns from the donations are used to support Hanken’s priority undertakings in internationalisation, research, education and study environment. “Our aim is to continue as a stand-alone business school and retain the genuine and unique that is Hanken. All our donors are contributing to Hanken’s continued development as a Swedish-language, research-intensive and international business school of high quality”, says Rector Karen Spens.

ALUMNI MEET THE CHALLENGE Several alumni initiatives have bee launched during the year, the most spectacular being the Alumni Challenge where a group of alumni decided to extend the state’s matching by matching every incoming donation 1:1. For every donated euro the state now has to match two euro, tripling the total effect of each donation. This initiative was launched in 2016 and continues until mid-June 2017. No extra effort is required from the donors as Hanken automatically registers the donations through its alumni database. The goal is to have 10% of all alumni commit to the campaign, making it equally important as the 10 million euro goal. “To be able to show such a breadth of commitment is immensely important, our alumni believe in Hanken and want to participate in its development in this very concrete way. Donating to one’s alma mater has to do with giving something back in return, but also with a belief that research and education are the road to a sustainable society and Finland’s future well-being”, says Camilla Wardi, Head of Fundraising.

The Erling-Persson Family Foundation The Jane and Aatos Erkko Foundation The Swedish Cultural Foundation in Finland The foundation Stiftelsen Tre Smeder The foundation Bergsrådet Tekn. och Ekon. Dr. h.c. Marcus Wallenbergs Stiftelse för Företagsekonomisk Forskning The Marcus and Amalia Wallenberg Foundation The Foundation for Economic Education Camilla and John Lindfors The Louise and Göran Ehrnrooth Foundation The Saara and Björn Wahlroos Foundation Wärtsilä Karl Fazer Ab Ahlström Capital Aktia Bank Helvar Merca Oy Ab The Evald and Hilda Nissi Foundation Evli Bank

ALUMNI CHALLENGE A group of alumni matches all donations 1:1, increasing the state’s matching. The Challenge was launched in December, 2016 by: Philip and Marina Aminoff, Henrik and Martina Andersin, Patrick Anderson, Henrica and Magnus Bargum, Peter Berner, Kurt Björklund, Riitta and Berndt Brunow, Alexander Ehrnrooth, Henrik Ehrnrooth, Johanna Hamro-Drotz and Ilkka Brotherus, Jannica Fagerholm and Patrik Hertsberg, Erik Hartwall, Ole and Eva Johansson, Barbara Hisinger-Jägerskiöld, Janne Larma, Mikael and Lena Lilius, Camilla and John Lindfors, the Pentti family, Yvonne Potrykus, Ann and Carolus Rosenlew, Michael Rosenlew, Hannu Ryöppönen, Christoph Vitzthum, Björn Wahlroos and Thomas Wahlroos.

EXECUTIVE EDUCATION

CORPORATE LINKS

HANKEN’S ALUMNI ACTIVITIES ON THE RIGHT TRACK

EXECUTIVE EDUCATION ON THE INCREASE IN VAASA With a new export initiative, an increase in both programmes and participants and with activities showing a profit, 2016 proved to be a record year at Hanken Executive Education in Vaasa. Close to 200 participated in the 17 programmes, with a further total of 30 consultation days. “We focus on open courses at market prices and on cooperation with ELY (the Centre for Economic Development, Transport and the Environment). But we also work with projects, custom-designed in-company training and direct business consultations”, explains André Österholm, Head of the Vaasa unit. Österholm points out that marketing and sales attract the greatest interest, followed by accounting. Hanken Executive Education Vaasa offers accounting programmes at four different levels. A course that attracted a great deal of attention was Middle Management and Business Administration for Immigrants. The four-month course targeted university-trained unemployed immigrants and those risking unemployment. 16 of the 34 applicants were accepted and they represented 13 nationalities.

“But not everyone came from Ostrobothnia. Our courses attracted people from all parts of Swedish-speaking Finland, and for the first time several chains from Sweden sent key people to us for training – our first education export”, says André Österholm. Hanken New Ventures is an annual series of executive education seminars which has found a new target group: companies interested in start-up issues and Hanken degree students in Vaasa. An executive education sparring programme helped many Hanken companies out on the market. The successes of 2016 relate to many interacting factors, especially to a process that started in 2011. André Österholm explains: “We have commoditized our programmes, units and modules, and this has given us a steady foothold on the market. We can launch new programmes with varying leadership angles and without undue delay. We now have comprehensive programmes for the modern, efficient and productive running of a company.” The programmes are short and efficient, adding to their attraction. In 2016, Hanken Executive Education also began developing a model of its own for digital learning methods.

Hanken is developing in the right direction and many alumni take part in Hanken’s alumni activities, the most popular one being Hankendagen, the annual homecoming day. These opinions were taken in the 2016 alumni survey. The surveys are conducted every third year and this time 258 alumni shared their views on Hanken and its alumni activity. 83% of the respondents agree “completely” or “to a large extent” that their alma mater is developing in the right direction. Many mention internationalisation as an important factor – e.g. Hanken’s three international accreditations. Other positive factors are digitalisation, the high quality of Hanken’s research and Hanken’s commitment to furthering entrepreneurship among the students.

Most of the alumni who took part in the survey have some kind of commitment to Hanken. The annual homecoming day, Hankendagen, seems to be the event that interests alumni the most. The opportunity to meet and mingle with other alumni is the most important reason for taking part in Hankendagen. Listening to prominent guest speakers and learning something new are also mentioned as incentives. Alumni were asked how they wanted Hanken to keep in touch with them. Most frequently mentioned were the monthly alumni letter, the alumni magazine “Hanken” and Facebook. Almost all alumni wanted information about what was going on at Hanken and most of the alumni wished to hear about specific alumni programmes.

“We need to strengthen this kind of education, for the future”, concludes André Österholm.

31.12 2016 HANKEN PREMIUM PARTNER Fazer KPMG Naava PwC HANKEN PARTNER Academic Work Elo Fennia HANKEN VASA PARTNER Dermoshop Wärtsilä HANKEN BRANDING PARTNER

HOW ALUMNI WANT TO ENGAGE IN HANKEN » 225 participate in an event

THE SURVEY AND THE RESPONDENTS

» The alumni survey was conducted between 78 interviewee for a student 15.11 and 6.12 2016. 62 speaker on an alumni event 238 of the 258 respondents were Swedish speaking 53 representative of a major subject and 20 English speaking. 48 donor 53 percent were female.

» 82 mentor for a student » » » »

HOW HANKEN SHOULD COMMUNICATE WITH ALUMNI » 240 monthly alumni letters » 123 Hanken-magazine » 75 Facebook

The participants in the other courses represented both large and small Ostrobothnian enterprises as well as banks, insurance and accounting companies. Some of the courses offered were explicitly for those in search of work.

HANKEN PARTNERS

» 75 LinkedIn

» 70% of the respondents were enrolled at Hanken 1991 or later. » More than half live in the Helsinki metropolitan area, 15% live in Vaasa and 18% live abroad.

Deloitte EF Education First Eilakaisla EY Handelsbanken Nestlé Niord

» 36 Hanken Network » 16 Hankens webpage » 10 Twitter » 5 Other

THE YEAR 2016 IN FIGURES

NUMBER OF APPLICANTS, ADMITTED AND ENROLLED STUDENTS APPLICANTS

DEGREES AWARDED

2014

2015

2016

1 108

1 177

1 108

Master’s programmes in Swedish

158

172

197

Master’s programmes in English

387

338

835

1 653

1 687

2 140

2014

2015

2016

301

289

270

Master’s programmes in Swedish

Master’s programmes in English

168

176

TOTAL

535

524

2014

2015

2016

272

249

Master’s programmes in Swedish

Master’s programmes in English

102

124

435

433

437

Integrated BSc and MSc programmes in Swedish

TOTAL

ADMITTED Integrated BSc and MSc programmes in Swedish

ENROLLED Integrated BSc and MSc programmes in Swedish

TOTAL

2014

2015

2016

Vaasa

TOTAL

2014

2015

2016

PhD Helsinki

MSc Helsinki

205

210

201

Vaasa

TOTAL

278

284

257

2014

2015

2016

180

190

189

Vaasa

TOTAL

229

250

2014

2015

2016

205

230

213

of which JUFO* – Level 3

of which JUFO* – Level 2

BSc Helsinki

PUBLICATIONS TOTAL NUMBER OF ENROLLED STUDENTS BY AUTUMN 2016 ENROLLED

HELSINKI

VAASA

NUMBER OF SCHOLARLY PEER-REVIEWED PUBLICATIONS

TOTAL

Present

Absent

TOTAL

Present

Absent

TOTAL

BSc students

928

114

1 042

314

343

1 385

MSc students

752

824

190

203

1 027

122

1 766

199

1 965

526

569

2 534

Doctoral students TOTAL ENROLMENTS

Class A1–A4 & C1 (total)

Number of publications in FT50-journals** External reserch funding exposed to competition (total EUR

1 546 592

1 242 637

1 244 823

* Finnish Publication Forum classification ** The 50 journals used by the Financial Times in compiling the business schools’ MBA ranking

ORGANISATION AND PERSONNEL

INVESTMENT OPERATIONS

HANKEN’S ORGANISATION CHART University Counsil

Board

Hanken & SSE Executive Education Academic Council

INVESTMENT OPERATIONS OF THE YEAR

Rector International Advisory Board

Academic Departments Councils/Heads of Department » Accounting and Commercial Law » Economics

Hanken Executive Education Board » Hanken Executive MBA » Hanken Executive Education Vaasa

» Finance and Statistics » Management and Organsation

Independent Units Boards/Directors » Centre for Languages and Business Communication

» General Administration and Human Resources

» Centre for Research and International Affairs

» Accounting Office

» IT Services » Library

» Marketing

HANKEN’S PERSONNEL

The management of assets is outsourced to two external portfolio managers. These assets are invested in publicly listed shares as well as in investment funds administering shares and interest-bearing instruments. Also, the School has entered into an agreement on investing in private equity funds.

» External Relations » Real Estate and Services » Office of Study Affairs

FULL-TIME EQUIVALENT (FTE)

2016

Professors

30.2

Associate professors and lecturers

32.6

Assistant professors, postdoctoral and project researchers and lecturers

45.2

Doctoral students Teachers (hourly paid) ACADEMIC STAFF TOTAL

10.3 123.6 12.0

ICT staff

12.5

Administrative staff

0.40 %

ASSET MANAGEMENT Market value of outsourced investments (MEUR) Revaluation reserve at end of year (MEUR) Book-value of outsourced investments (MEUR) PORTFOLIO RETURN (%)

ADMINISTRATIVE STAFF TOTAL

114.8

FTE TOTAL

238.4

2015

81.1

75.0

6.8

4.3

74.3

70.7

7.3 %

6.1 %

INVESTMENT CATEGORIES

25.7 %

30.2 %

5.4 84.9

2016

The guidelines for the outsourced investment management are stipulated by the Board of Hanken. The Board regularly follows up the investment operations through its Investment Committee.

5.3

Library staff Assisting research and teaching staff

Administration Directors

29.4 %

14.3 %

Interest-bearing listed instruments of companies: 24.5 MEUR; 30.2 % Other interest-bearing instruments, including money market instruments : 11.6 MEUR; 14.3 % Equity funds investing in foreign listed shares: 23.9 MEUR; 29.4 % Domestic exchange-traded shares: 20.8 MEUR; 25.7 % Private equity: 0.3 MEUR; 0.40 % TOTAL OUTSOURCED INVESTMENTS IN 2016: 81.1 MEUR

INCOME AND EXPENDITURE STATEMENT (EUR)

2016

2015

ORDINARY OPERATIONS

Income of commercial activities Other income

Depreciation and reduction in value Other operating expenses

GENERAL GRANTS. Universities Act based government funding

DEFICIT OF ORDINARY OPERATIONS

3 476 475.32

Tangible assets

970 129.02

Land and water areas

148 542.72

232 811.44

Buildings and construction

5 411 401.91

4 679 415.78

1 097 727.91

9 004 139.30

13 719 715.90

14 148 471.70

22 723 855.20

23 152 611.00

386 229.01

410 555.53

60 263.09

59 877.63

446 492.10

470 433.16

Investments

-15 884 333.19

-15 532 425.28

-444 509.41

-143 389.00

-7 853 756.24

-9 423 642.58

-24 182 598.84

-25 099 456.86

17 841 000.00

18 344 008.00

-930 196.93

-2 076 033.08

Shares and holdings Self-financing funds CURRENT ASSETS Current financial receivables Sales receivables

652 500.97

519 683.51

Other receivables

109 987.53

428 210.88

Adjusting entries for assets

FUNDRAISING

Investments

INCOME Fundraising

3 281 609.71

2 314 026.56

Transfer to capital reserves

-3 281 609.71

-2 314 026.56

INVESTMENT AND FINANCING ACTIVITIES

Cash and bank TOTAL ASSETS

504 331.04

480 270.73

81 142 966.01

75 014 295.31

7 699 101.83

5 533 674.89

90 108 887.38

81 976 135.32

113 279 234.68

105 599 179.48

61 429 390.22

EQUITY AND LIABILITIES

INCOME

EQUITY

1 005 097.84

1 067 794.60

19.73

17 528.70

Self-financing funds

60 263.09

59 877.63

Other financial income

1 723 030.81

1 832 542.03

Revaluation reserve

6 807 378.10

4 316 484.83

Profit from sales of investments

1 267 240.52

3 524 271.56

OTHER RESERVES

3 995 388.90

6 442 136.89

Operating equity

6 285 092.24

Dividends Interests

Endowment equity

EXPENSES

Special purpose funds

Interests

Endowment Fund

Other financial expenses Loss on sales of investments

INVESTMENT AND FINANCING ACTIVITIES TOTAL

-108 460.49

-33 453.58

-45 663.12

-42 524.64

-829 561.20

-569 365.97

-983 684.81

-645 344.19

3 011 704.09

5 796 792.70

EXTRAORDINARY INCOME 0.00 Change in special purpose funds

2 130 303.50

Surplus of the financial year

-85 004.83

118 990.00

23 840.36

31 790.01

2 020 342.69

6 001 843.13

145 730.00

60 725.17

6 316 631.27

3 035 021.56

14 726 225.28

8 724 382.15

2 020 342.69

6 001 843.13

97 791 052.89

89 912 816.93

7 687 193.60

8 648 092.80

960 899.20

LIABILITIES Long-term liabilities Current liabilities Loans from credit institutions

DIRECT TAXES SURPLUS OF THE FINANCIAL YEAR

Retained earnings

Loans from credit institutions

APPROPRIATIONS

2015

FIXED ASSETS

4 165 131.28

EXPENSES Personnel expenses

2016

ASSETS

INCOME Grants and benefits

BALANCE SHEET (EUR)

Advances received

3 091 465.71

2 330 718.31

Accounts payable

1 203 564.52

1 320 438.33

2 119 088.91

2 044 241.37

Other liabilities Adjusting entries for liabilities TOTAL EQUITY AND LIABILITIES

425 969.85

381 972.54

7 800 988.19

7 038 269.75

113 279 234.68

105 599 179.48

DECISION-MAKING BODIES

PEDAGOGICAL COUNCIL

DECISION-MAKING AND ADVISORY BODIES HANKEN BOARD

31.12.2016

Chair

Professor Minna Martikainen

Secretary

Education Planning Officer Susanna Taimitarha

Head of Subject

Professor Tom Berglund

UNIVERSITY COUNCIL Bo-Christer Björk Niklas Bruun Gyöngyi Kovács Eva Liljeblom

Professor Matti Kukkonen

Petri Mäntysaari

Professor Nari Lee

Pontus Troberg

Professor Anders Löflund Professor Topi Miettinen

ACADEMIC COUNCIL

Chair, Björn Wahlroos (external)

Chair

Rector Karen Spens

Vice-Chair

CEO, Jannica Fagerholm (external)

Vice-Chair

Dean Sören Kock

Student Filip Björklöf

REPRESENTATIVES OF THE DEPARTMENTS

31.12.2016

Subject Representatives, Vaasa

31.12.2016

PROFESSORS

Associate Professor Johanna Gummerus

Chair

LECTURERS, ASSOCIATE PROFESSORS AND OTHER STAFF

Assistant Professor Virpi Sorsa

Åke Finne

Professor Pontus Troberg

Lotte Granberg-Haakana

Professor Joakim Wincent

Marit Nilsson-Väre

Professor Joakim Wincent

Pia Polsa Sampo Sauri

Professor Peter Björk

Eva Maria Ström

Associate Professor Henrik Höglund Lecturer Mayvor Höglund

STUDENTS

Dean Sören Kock

Nam Do

Marketing Manager Hanna Donner

Professor Jaakko Aspara

Associate Professor Emilia Vähämaa

Alexandra Järnefelt

Professor Kristina Heinonen

Professor Anders Löflund

Director Tua Hindersson-Söderholm

Jessica Kock

Chair Anna Häggblom (external)

Professor Topi Miettinen

Director of Office of Study Affairs Linda Gerkman

Mea Miettunen

Professor Kenneth Högholm

Assistant Professor Virpi Sorsa

Associate Professor Martti Mäkinen

Sofia Slotte

Postdoc Researcher Charlotta Niemistö

Professor Pontus Troberg

Lecturer Sofia Stolt

Veronica Välimäki

Education Planning Officer Susanna Taimitarha

EXECUTIVE MANAGEMENT

31.12.2016

Rector, professor Karen Spens Dean of Executive Education and Hanken in Vaasa, Professor Sören Kock Dean on Education, Professor Minna Martikainen Dean of Research, Professor Timo Korkeamäki Head of Department Matti Kukkonen Head of Department Topi Miettinen

Language Centre

External relations

Director Nina Olin

Professor Nari Lee

Office of Study Affairs

Director Linda Gerkman

Professor Benjamin Maury

IT Services

ICT-coordinator Kicka Lindroos

REPRESENTATIVES OF THE PROFESSORS

Senior Executive Vice President Lars Ågren (external)

REPRESENTATIVE OF THE LANGUAGE CENTRE Associate ProfessorMartti Mäkinen

Director Kuno Öhrman Centre for Research and International Affairs Director Maj-Britt Hedvall

REPRESENTATIVES OF LECTURERS, ASSOCIATE PROFESSORS AND OTHER STAFF Lecturer Jannika Lassus Associate Professor Anne Rindell STUDENT REPRESENTATIVES

Head of Department Anders Löflund

Kenneth Nilsson

Head of Department Jaakko Aspara

Sofia Slotte

Manager Johanna Julin-Lilius International Student Recruitment

Planner Niina Arppe Advisor Tove Ahlskog-Pursiainen / Lotte Granberg-Haakana

Students

Elin Bergman Katri Hämäläinen (Vaasa) Erik Kaunismäki

Director of the Centre for Languages and Business Communication Martti Mäkinen ICT-Director Kuno Öhrman Director of Office of Study Affairs, Linda Gerkman Director, Research and Internationalisation, Maj-Britt Hedvall Library Director Tua Hindersson-Söderholm Planning Manager Helena Strandell Director of External Relations Nina Olin Director of Human Resources Elina Stadigh

Marketing Manager Hanna Donner

AC Secretary

Director of Financial Management Thomas Baltscheffsky

31.12.2016

INTERNATIONAL ADVISORY BOARD Marie-Laure Djelic

Professor, Co-dean, Sciences Po School of Management and Innovation, France

Jos Lemmink

Professor of Marketing, Maastricht University School of Business and Economics, The Netherlands

Vera Minina

Professor, Graduate School of Management, St. Petersburg State University, Russia

Joseph Sarkis

Professor of Management, Worchester Polytechnic Institute, USA

Henrik Steinbrecher

Global Middle Market Leader, PricewaterhouseCooper, Sweden

Karin Thorburn

Research Chair Professor of Finance, Norges Handelshøyskole, Norway

31.12.2016

AVSNITTSBESKRIVNING

HANKEN SCHOOL OF ECONOMICS HELSINKI ARKADIANKATU 22, P.O. BOX 479, 00101 HELSINKI, FINLAND PHONE +358 (0)9 434 334 VAASA KIRJASTONKATU 16, P.O. BOX 287, 65101 VAASA, FINLAND PHONE +358 (0)6 3533 700 INFO@HANKEN.FI HANKEN.FI