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NEWSLETTER of August 16, 2019

 

The following content has been added at finexpert:


Studies > Performance

Bain & Company

ROBO ADVICE HAS STALLED, BUT WEALTH TECHNOLOGIES STILL HOLD PROMISE

The wealth management industry has been under significant profit pressure since the global financial crisis. The disruptive threat from robo advisers has not occurred, and the promise of vastly more assets under management by robo programs has not materialized. Instead, wealth technologies are starting to gain traction for the next generation of hybrid adviser-based solutions. >more

Studies > Performance

KPMG

THE PULSE OF FINTECH: H1 2019

Both the number of global fintech deals and the total global investment in fintech dropped in H1’19, driven primarily by the lack of mega deals like 2018’s $14 billion raise by Ant Financial and the $12.9 billion acquisition of Worldpay by Vantiv. Despite the lack of blockbuster deals, the fintech market globally remained relatively strong and well poised for growth. >more

Studies > Alternative Investments

Deloitte

PROPERTY INDEX 2019: DER EUROPÄISCHE IMMOBILIENMARKT IM VERGLEICH

As in previous years, the eighth edition of the Deloitte Property Index shows a relevant price increase for urban residential real estate - both in Germany and even more so in other European countries. The German purchase price growth for real estate slowed slightly, while other countries, such as the Czech Republic, Hungary and Portugal, are showing double-digit growth rates in this area in some cases. Compared with other European real estate markets, the average rental price level in Germany is still relatively low, which also points to sustained momentum in German rents in the future. >more

Studies > Macro

Deutsche Bank Research

LIBRA – A GLOBAL CHALLENGER IN PAYMENTS AND FOR CENTRAL BANKS?

Facebook’s Libra project aims to establish both a private digital currency backed by a basket of hard currencies and a global payment network. It is thus challenging many established players in the financial system, including central banks, credit institutions and payment providers. Facebook can integrate Libra services into its digital platforms and benefit from strong network effects. In Europe, Libra would enter a competitive but fragmented digital payments market. As a currency, Libra will carry a foreign exchange risk for Europeans. But if the ECB drove interest rates deeply below zero, Libra could offer an easy digital way out. The flipside, though, would be a loss of sovereignty for Europe. >more


Research Papers > Corporate Governance

IS THE STOCK MARKET BIASED AGAINST DIVERSE TOP MANAGEMENT TEAMS?

Alberto Manconi, Antonino Emanuele Rizzo, and Oliver G. Spalt
2019
Using a novel text-based measure of top management team diversity, covering over 70,000 top executives in over 6,500 U.S. firms from 1999 to 2014, we show that analyst forecasts are systematically more pessimistic for firms with more diverse top management teams ("diverse firms"), especially for inexperienced analysts. Institutional investors, especially if located in conservative areas, are less likely to hold diverse firms, even though diverse firms do not exhibit inferior returns. Consistent with downward-biased expectations, abnormal returns on information-release days are systematically positive for diverse firms. Combined, our results suggest stock markets are biased against diversity in top management teams. >more

Research Papers > Corporate Finance

STRATEGIC TRADING AS A RESPONSE TO SHORT SELLERS

Marco Di Maggio, Francesco A. Franzoni, Massimo Massa, and Roberto Tubaldi
2019
We study empirically informed traders’ reaction to the presence of short sellers in the market. We find that investors with positive views on a stock strategically slow down their trades when short sellers are present in the same stock. Moreover, they purchase larger amounts to take advantage of the price decline induced by short sellers. Furthermore, they break up their buy trades across multiple brokers, suggesting that they wish to hide from the short sellers. This behavior may impact price discovery, as we find a sizeable reduction of positive information impounding for stocks more exposed to short selling during information sensitive periods. The evidence is confirmed exploiting exogenous variation in short interest provided by the Reg SHO Pilot Program. The findings have relevance for the regulatory debate on the market impact of short selling. >more