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NEWSLETTER of August 23, 2019

 

The following content has been added at finexpert:


Studies > Performance

Ernst & Young

GLOBAL FINTECH ADOPTION INDEX 2019

Financial technology (FinTech) adoption among consumers has nearly doubled over the past 18 months, according to the latest EY Global FinTech Adoption Index, and the adoption rate is growing faster than anticipated. Globally, 64% of digitally-active consumers across 27 markets use FinTech, and awareness is even higher. This year, the EY organization added the first-ever Small and Medium-Sized Enterprise (SME) FinTech Adoption Index given FinTech’s expansion beyond consumers. EY member firms surveyed more than 1,000 organizations in five countries and found that one-quarter of organizations have used at least one FinTech across the following four categories in the past six months: banking and payments, financial management, financing and insurance. >more

Studies > Performance

Oliver Wyman

DIGITAL TRANSFORMATION OF THE FINANCE FUNCTION

Oliver Wyman - Driven by the advancing digitalisation, there is a risk for the finance function that it will be downgraded to a support function. By redefining value contribution, the financial sector can seize the opportunities offered by digitization to become a digital driver that shapes the digital landscape of the entire enterprise. This study offers practical insights and practical steps on how finance can become the digital driver of a company. From our perspective, it's about communicating the vision clearly, strengthening agile teams, leveraging the opportunities of Big Data and AI, starting small and growing fast. >more

Chinese Takeovers

Ernst & Young

CHINESISCHE UNTERNEHMENSKÄUFE UND -BETEILIGUNGEN IN EUROPA

The reluctance of Chinese companies to take over companies in Germany and Europe continues: In the first half of this year, only 81 takeovers and shareholdings were recorded across Europe - 28 percent less than in the same period last year, when 113 European companies still had a Chinese owner. As there were hardly any large transactions, the investment volume even fell by 84 percent from 15.3 to 2.4 billion US dollars. >more

Studies > Accounting

PwC

DIGITALISIERUNG IM FINANZ- UND RECHNUNGSWESEN 2019

No development in recent years has changed companies and other organizations as much as digitization. This affects a wide variety of departments, including finance and accounting, and thus the auditing of financial statements. Many customer discussions, numerous positive feedback and inquiries show us that the experts are very interested in the digital development of the finance function. In the third edition of the study, we succeeded in slightly increasing the number of participants once again: 100 German large and medium-sized companies took part in the current survey. >more


Research Papers > Corporate Finance

QUANTIFY THE QUANTITATIVE EASING: IMPACT ON BONDS AND CORPORATE DEBT ISSUANCE

Karamfil Todorov
2019
This paper studies the impact of the ECB’s Corporate Sector Purchase Programme (CSPP) announcement on prices, liquidity and debt issuance in the European corporate bond market using a dataset on bond transactions from Euroclear. I find that the QE programme increased prices and liquidity of bonds eligible to be purchased substantially. Bond yields dropped on average by 30 bps (8%) after the CSPP announcement. Tri-party repo turnover rose by 8.15 million USD (29%), and bilateral turnover went up by 7.05 million USD (72%). Bid-ask spreads also showed significant liquidity improvement in eligible bonds. QE was successful in boosting corporate debt issuance. Firms issued 2.19 billion EUR (25%) more in QE-eligible debt after the CSPP announcement, compared to other types of debt. Surprisingly, corporates used the attracted funds mostly to increase dividends. These effects were more pronounced for longer-maturity, lower-rated bonds, and for more credit-constrained, lower-rated firms. >more

Research Papers > Corporate Finance

LEVERAGED BUYOUTS AND BOND CREDIT SPREADS

Yael Eisenthal-Berkovitz, Peter Feldhütter, and Vikrant Vig
2017
Recent decades have witnessed several waves of buyout activity. We find LBOs to be a significant concern for bondholders by showing that a) intra-industry credit spreads increase upon an LBO announcement, b) yields on bonds without event risk covenants are, on average, 21bps higher than those on same-firm bonds with such covenants and c) structural models calibrated to historical LBO events imply an impact of 18-21bps on 10-year credit spreads. The impact is strongest in expansion periods and for bonds with maturities of 10-20 years. >more