Knowledge and Training for Financial Decision Making!

NEWSLETTER of August 10, 2018

 

The following content has been added at finexpert:


Tutorials
QoD5

Question of doubt in corporate valuation QoD#5: Are there sanity checks for the growth assumptions in the terminal value calculation? (Bernhard Schwetzler)

The assumption about the permanent growth rate in the terminal value calculation is a standard battlefield in transaction negotiations. This video is first introducing the so called Gordon-Shapiro model for terminal value calculation and then shows that it is a powerful tool to check for reasonable growth assumptions and to sort out unreasonable ones. (Sorry for this video being so long; if you already know the Gordon-Shapiro model and are only interested in the sanity check you may jump to 16:40..)
(August 10, 2018). >more


Studies > Performance

Deutsche Bank Research

GERMAN FINTECHS ON THE RISE: A MIXED BLESSING FOR BANKS, BENEFICIAL FOR CLIENTS

The number of FinTech start-ups in Germany has surged in recent years. They are mostly active in crowd funding and payments. Online payment schemes offered by FinTechs or BigTechs have already become the most popular way to pay for internet purchases. Meanwhile, the biggest focus of blockchain start-ups in Germany is on financial services. Many FinTechs cooperate with banks which like them for their innovative solutions. >more

Studies > Performance

The Boston Consulting Group

VON DEN BESTEN LERNEN: ERFOLGSREZEPTE DEUTSCHER AUFSICHTSRÄTE. ERGEBNISSE VON GESPRÄCHEN MIT DAX-AUFSICHTSRATVORSITZENDEN

How can a supervisory board create value for the company beyond its legal obligations? How does a good Chairman of the Supervisory Board manage and act? BCG asked over 20 successful and experienced supervisory board chairwomen of large German companies about their experiences, strategies, methods and personal recipes for success. >more

Studies > Accounting

Deloitte

GLOBAL IFRS INSURANCE SURVEY 2018

The 2018 Global IFRS Insurance Survey aims to provide a comprehensive and independent overview of how global insurers are reacting to and preparing for IFRS 17 adoption. Undertaken by the Economist Intelligence Unit (EIU) on behalf of Deloitte, the survey explores the views of 340 senior insurance executives from across North America, Europe and Asia on the scale and complexity of IFRS 17 implementation challenges surrounding its budgeting, the technology needed to comply, and the availability of resources to deliver the change. >more


Research Papers > Corporate Finance

THE COST OF IMMEDIACY FOR CORPORATE BONDS

Jens Dick-Nielsen, and Marco Rossi
2018
Liquidity provision for corporate bonds has become significantly more expensive after the 2008 crisis. Using index exclusions as a natural experiment during which uninformed index trackers request immediacy, we find that the cost of immediacy has more than doubled. In addition, the supply of immediacy has become more elastic with respect to its price. Consistent with a stringent regulatory environment incentivizing smaller dealer inventories, we also find that dealers revert deviations from their target inventory more quickly after the crisis. Finally, we investigate the pricing impact of information, changes in ownership structure, and differences between bank and non-bank dealers. >more

Research Papers > Corporate Finance

PUBLIC MARKET PLAYERS IN THE PRIVATE WORLD: IMPLICATIONS FOR THE GOING-PUBLIC PROCESS

Shiyang Huang, Yifei Mao, Cong (Roman) Wang, and Dexin Zhou
2018
Recent years have seen a dramatic increase in investment by public market institutional investors in the private market. We study the consequences of these investments for the initial public offerings of startups. We argue that because institutions are able to substitute for all-star analysts in the secondary market, startups rely less on underwriters with all-star analysts, leading to less IPO underpricing. We find that: (1) institutional participation in startups reduces IPO underpricing; (2) there is a substitution between institutions and all-star analysts in IPO underpricing. We use the 2003 mutual fund scandal as an exogenous shock to establish the causality. >more