2013-03-21 08:07:56 -
21.3.2013 klo 09:00
Large corporations play a crucial role in the Finnish economy. According to a
recent study, around a quarter of private-sector employees work for large
corporations. Moreover, the role of large corporations in the Finnish economy is
much greater through supply chains. Large corporations still mainly invest in
Finland but their future prospects are worrisome.
In cooperation with the Nordic Institute of Business and Society (NIBS), a think
tank set up by professors of the Aalto University School of Business, Pohjola
carried out a study of large Finnish corporations and their prospects, involving
the largest 250 Finnish companies.
According to the study, taxes paid by large corporations total 3.1 billion
euros, which accounts for roughly 62% of the total corporate income taxes
levied. Roughly a quarter of large corporations are
listed on the NASDAQ OMX
Helsinki. Family businesses account for some 80% of all Finnish companies and
16% of the largest 250 companies. Net sales of the surveyed companies registered
in Finland total almost 320 billion euros, which represent more than 80% of the
net sales of all companies registered in Finland.
- Lately, the tone of public debate on large companies have often been negative.
The study shows that large corporations play an important role in our society in
many respects but their interests have been ignored in policymaking, says Reima
Rytsölä, Executive Vice President, Banking, Pohjola Bank plc.
Large corporations invest the most in production capacity and the second most in
selling. It is surprising that in relative terms their capital spending is
fairly low on projects pivotal to long-term business expansion and development,
such as product and service improvements.
According to the survey respondents, future prospects will be more dismal in
Finland and fixed investments will increasingly flow abroad. The majority of the
respondents see weak market growth in Finland but expect market demand to grow
abroad, especially in Russia.
- Large corporations will increasingly allocate their capital spending outside
Finland. The Finnish society will have much to lose if our policymakers do not
promptly react to the alarming message from these companies. In their decisions,
policymakers must now encourage fixed investments so that we will have growing
global companies in Finland in the future too, continues Rytsölä.
In particular, companies consider regulatory factors and weakening domestic
demand to present a challenge.
- The business environment is changing constantly. Therefore, we need
policymaking that is predictable and results in committed decisions across the
board in our society, says Rytsölä.
During the summer and autumn of 2012, the researchers collected an extensive
database of the largest companies using and combining public sources of
information. In addition, the key executives of the largest 250 companies were
surveyed extensively in respect of future prospects, based either on an
electronic questionnaire or an interview, representing 96 companies. The created
research data is unequalled in Finland in terms of its extent and nature.
For more information, please contact:
Reima Rytsölä, Executive Vice President, Banking, Pohjola Bank plc, tel. +358
(0)10 25 24422
Pekka Mattila, Visiting Professor, Aalto University School of Business, and
Group Managing Director of Aalto University Executive Education, tel. +358 (0)40
Pohjola is a Finnish financial services group which provides its customers with
banking, non-life insurance and asset management services. Our mission is to
promote the prosperity, security and wellbeing of our customers. Profitable
growth and an increase in company value form our key objectives. Pohjola Group
serves corporate customers in Finland and abroad by providing an extensive range
of financial, investment, cash-management and non-life insurance services. We
offer non-life insurance and private banking services to private customers.
Pohjola Series A shares have been listed on the Large Cap List of the NASDAQ OMX
Helsinki since 1989. The number of shareholders totals around 32,000. Pohjola's
consolidated earnings before tax came to 374 million euros in 2012 and the
balance sheet total amounted to 45 billion euros on 31 December 2012. Pohjola is
part of OP-Pohjola Group, the leading financial services group in Finland, which
has over four million customers.
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Source: Pohjola Pankki Oyj via Thomson Reuters ONE