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NEWSLETTER of December 14, 2018

 

The following content has been added at finexpert:


Studies > Performance

Barings

FIVE TRENDS TO WATCH IN 2019

The past year has been a strange one for global growth as the recovery fell out of synch. While there were no obvious signs of recession as 2018 ended, it is hard to make the case for a global acceleration in the months ahead. This has left most investors looking for attractive valuations and strong balance sheets, as they look for signs that global growth may fade. >more

Studies > Performance

World Economic Forum

THE NEW PHYSICS OF FINANCIAL SERVICES – HOW ARTIFICIAL INTELLIGENCE IS TRANSFORMING THE FINANCIAL ECOSYSTEM

A clear vision of the future financial landscape will be critical to good strategic and governance decisions as financial institutions around the world face growing competitive pressure to make major strategic investments in AI and policy makers seek to navigate the challenging regulatory and social uncertainties emerging globally. Building on the World Economic Forum’s past work on disruptive innovation in financial services, this report provides a comprehensive exploration of the impact of AI on financial services. >more

Studies > Corporate Finance

Kirchhoff Consult

IPO-STUDIE 2018

Despite the high volatility on the capital market, 2018 was one of the best years for IPOs in Germany. This is the result of the annual IPO study conducted by the Hamburg agency for financial and corporate communications Kirchhoff Consult. According to this study, the number of IPOs (Initial Public Offering) in the Prime Standard stock market segment doubled to 16 compared to the previous year and thus reached its highest level since 2007. >more

Studies > M & A

The Boston Consulting Group

LESSONS FROM EIGHT SUCCESSFUL M&A TURNAROUNDS

M&A is tough, especially when it involves an underperforming asset that needs a turnaround. About 40% of all deals, on average, require some kind of turnaround, whether because of minor problems or a full-blown crisis. With M&A valuations now at record levels, companies must pay higher prices simply to get a deal done. In this environment, leaders need a highly structured approach to put the odds in their favor. >more


Research Papers > Corporate Governance

INSTITUTIONAL DEBT HOLDINGS AND GOVERNANCE

Aneel Keswani, Anh L. Tran, and Paolo F. Volpin
2018
Using data on the universe of US-based mutual funds, we find that two out of five fund families hold corporate bonds of firms in which they also own an equity stake. We show that the greater the fraction of debt a fund family holds in a given firm, the greater its propensity to vote in the interests of firm debt holders at shareholder meetings. In addition, portfolio firms tend to make corporate decisions that appear more in the interests of debt holders than shareholders when mutual fund companies also hold their debt as opposed to holding only their equity. >more

Research Papers > Corporate Finance

FUEL THE ENGINE: BANK CREDIT AND FIRM INNOVATION

Shusen Qi, and Steven Ongena
2018
Whether bank credit is suitable to finance business innovation is a key financing question. Using a representative sample of 6,422 small firms across 22 emerging economies, we find that lack of access to credit stifles innovation, especially of the technologically “hard” type. Especially access to credit with longer duration and denominated in foreign currency spurs hard innovation. This detrimental impact of credit constraints on innovation activities is stronger in localities or sectors that are more dependent on external financing, and only holds for firms that are more limited in alternative sources of external financing, including small, private, or unaudited firms, receiving no government subsidy. We further found that institutional contexts can mitigate the negative impact of credit constraints, possibly via providing firms with more alternative financing means. Foreign or transactional banks, or banks in more diversified banking market are found to be better at promoting firm innovation. Lastly, bank credit enabling hard innovation is expected to foster future firm growth. >more