Knowledge and Training for Financial Decision Making!

NEWSLETTER of August 31, 2018

finexpert Community

This week we welcomed our 1.700th finexpert-member!

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The following content has been added at finexpert:


Tutorials
QoD7

Question of doubt in corporate valuation QoD#7: Gordon-Shapiro model or value driver model for terminal value caclulation? (Bernhard Schwetzler)

This video introduces the "value driver model" as an extension of the Gordon-Shapiro (GS) model for terminal value calculation. It discusses advantages and problems when comparing it against the GS model. (August 31, 2018). >more


Studies > Performance

Deloitte

WELCHEN WERT HAT DER BITCOIN?

Bitcoin has the potential to fundamentally change the financial industry, trade and business models of many companies. But how do Bitcoin and Blockchain work exactly? And what do companies need to know in order to benefit from it? The Deloitte experts explain the functionality and possibilities of the virtual currency. >more

Studies > Performance

Morningstar/PitchBook

DIGITAL ADVICE RAISES PROFITS FOR INVESTMENT SERVICES INDUSTRY

The original robo-advisor model had three main challenges: high client-acquisition costs, ongoing costs of servicing clients, and low revenue yield on client assets. But new business models (and more aggressive digital-transformation efforts) are helping to address these faults. Find out more about these business models in this report. >more

Studies > Performance

Deloitte

2018 GLOBAL BLOCKCHAIN SURVEY

Deloitte’s new global survey of more than 1,000 blockchain-savvy executives from seven countries and nine industries is a leading indicator of where blockchain is headed. The executives see great value in blockchain’s potential to reinvent processes across the business value chain and there is interest and investment in a wide range of use cases. >more

Studies > Macro

The Boston Consulting Group

HOW MUCH WILL A TRADE WAR HURT YOUR COMPANY?

The trade dispute between the US and China continues to escalate. Tariffs of 25% have been imposed or announced on $50 billion of imports from China, and tariffs on a further $200 billion are now being reviewed. With some of the world’s largest trading relationships embroiled in an escalating trade conflict, how high might the cost to the global economy and to your firm be? >more


Research Papers > Corporate Finance

HOW DO CHIEF FINANCIAL OFFICERS AFFECT CORPORATE CASH POLICIES?

Chris Florackis, and Sushil Sainani
2017
This paper examines the extent to which Chief Financial Officers (CFOs) affect corporate cash holding policies. We construct an index (CFO index) that enables us to distinguish between "strong'' and "weak'' CFOs based on their ability to influence firm outcomes. We find that firms with strong CFOs hold substantially less cash than firms with weak CFOs, ceteris paribus. Importantly, the CFO effect documented in our study goes beyond the effect caused by the Chief Executive Officer (CEO) on cash holdings. Our findings provide the first direct empirical evidence that firms with strong CFOs are well positioned to hold less cash due to their relatively weak precautionary motive and superior ability to raise external financing during periods of financial stress. >more

Research Papers > Corporate Finance

TRADE CREDIT AND SUPPLIER COMPETITION

Jiri Chod, Evgeny Lyandres, and S. Alex Yang
2018
This paper examines how competition among suppliers affects their willingness to provide trade credit financing. Trade credit extended by a supplier to a cash constrained retailer allows the latter to increase cash purchases from its other suppliers, leading to a free rider problem. A supplier that represents a smaller share of the retailer's purchases internalizes a smaller part of the benefit from increased spending by the retailer and, as a result, extends less trade credit relative to its sales. In consequence, retailers with dispersed suppliers obtain less trade credit than those whose suppliers are more concentrated. The free rider problem is especially detrimental to a trade creditor when the free-riding suppliers are its product market competitors, leading to a negative relation between product substitutability among suppliers to a given retailer and trade credit that the former provide to the latter. >more