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NEWSLETTER of April 13, 2018

 

The following content has been added at finexpert:


Studies > M & A

Baker & McKenzie

RISING TENSION: ASSESSING CHINA'S FDI DROP IN EUROPE AND NORTH AMERICA

In 2017, China's global outbound investment dropped for the first time in more than a decade as policy changes in China and host economies cooled M&A activity and created a shift in the industries and geographies targeted by Chinese investors. This report provides insight into how and why China’s outbound investment patterns are changing in the world's two highest income regions: Europe and North America. >more

Studies > Performance

The Boston Consulting Group

THE CFO'S VITAL ROLE IN CORPORATE TRANSFORMATION

In the past decade, it has become commonplace to see companies launch a transformation — a comprehensive change in strategy, operating model, organization, people, or processes. The BCG research finds, though, that many transformations do not create shareholder value. Indeed, among recently launched transformations, only one in four has succeeded in creating shareholder value above the industry average. This study suggests that CFOs have a vital role to play in helping companies establish and achieve a transformation’s objectives for value creation. >more

Studies > Performance

Accenture

BANKING ON BLOCKCHAIN: A VALUE ANALYSIS FOR INVESTMENT BANKS

Many analysts liken the disruptive potential of blockchain's distributed ledger technology — a new type of database system — to that of the Internet. In addition to reshaping the financial infrastructure as we know it, this research pinpoints where blockchain will have the biggest impact on a bank's bottom line. To conduct the study, Accenture joined forces with McLagan, a business unit of Aon plc, and world-class capital markets benchmarking provider. >more

Studies > Macro

Roland Berger Strategy Consultants

2018 OIL PRICE FORECAST: WHO PREDICTS BEST?

Oil prices are set to rise moderately in 2018, according to the annual review of oil price predictions and trends by Roland Berger. In addition, the study examines the accuracy of countries and institutions as forecasters of the oil price in 2017 and aggregate over the last years. >more


Research Papers > Corporate Valuation

THE EQUITY RISK PREMIUM IN 2018

John R. Graham, and Campbell R. Harvey
2018
We analyze the history of the equity risk premium from surveys of U.S. Chief Financial Officers (CFOs) conducted every quarter from June 2000 to December 2017. The risk premium is the expected 10-year S&P 500 return relative to a 10-year U.S. Treasury bond yield. The average risk premium is 4.42% and is somewhat higher than the average observed over the past 18 years. We also provide results on the risk premium disagreement among respondents as well as asymmetry or skewness of risk premium estimates. We also link our risk premium results to survey-based measures of the weighted average cost of capital and investment hurdle rates. The hurdle rates are significantly higher than the cost of capital implied by the market risk premium estimates. >more

Research Papers > M & A

INTERNATIONAL TRADE AND PROPAGATION OF MERGER WAVES

Muhammad Farooq Ahmad, Eric de Bodt, and Jarrad Harford
2017
Cross-border merger activity is growing in importance. We map the global trade network each year from 1989 to 2016 and compare it to cross-border and domestic merger activity. Trade-weighted merger activity in trading partner countries has statistically and economically significant explanatory power for the likelihood a given country will be in a merger wave state, both at the cross-border and the domestic levels, even controlling for its own lagged merger activity. The strength of trade as a channel for transmitting merger waves varies over time and is affected by import tariffs cuts, Euro, EU, EEA, and WTO entry. Overall, the full trade network helps our understanding of merger waves and how merger waves propagate across borders. >more